China’s Communist Party recently published an ambitious urban plan. By 2035 it wants cities to be “liveable, beautiful, resilient, civilised and smart”. This approach might be harder to implement than it sounds https://t.co/R8y0TwoZr5 ...

Core Insights - Stantec Inc. (STN) has achieved a 39% year-to-date gain, significantly outperforming the industry's 6% decline, while U.S. peers have shown mixed results [1][8] - The company is benefiting from strong global demand for infrastructure, water security, and climate-resilient solutions, supported by long-term trends such as climate change initiatives and increased infrastructure investments [3][4] Financial Performance - In Q1 2025, Stantec's net revenues grew by 13.3% year-over-year, with organic revenue increasing by 5.9% when excluding acquisitions and currency effects [4] - The U.S. market saw a 2.4% organic growth, while Canada experienced a 15% revenue increase year-over-year, with key contributions from wastewater projects and large industrial developments [5][4] - Globally, revenues rose by 20.3% year-over-year, with the U.K. water business growing over 20% and energy transition projects boosting results in Australia and New Zealand [5] Margin Expansion - Stantec demonstrated efficient growth with project margins improving by 10 basis points to 54.3% and adjusted EBITDA margins rising by 70 basis points to 16.2% in Q1 2025 [9][10] - Lower administrative and marketing expenses, along with a proactive hiring strategy, are expected to enhance workforce utilization and operating leverage in the future [10][11] Analyst Sentiment - There has been a notable increase in positive analyst sentiment, with five analysts raising their 2025 earnings estimates and another five upgrading projections for 2026 [12][16] - Earnings are projected to grow by 19.5% in 2025 and 12% in 2026, with revenue expectations lifted to an 11% increase in 2025 and a 10% gain in 2026 [12][14] Valuation Concerns - Stantec's forward P/E ratio stands at 26.74, above its five-year median of 22.56, raising concerns about its valuation compared to peers like Tetra Tech and AECOM [17] - The elevated valuation may limit upside potential unless the company delivers significant earnings outperformance [17][18]