Stantec's 2025 Q2 Earnings Call: Navigating Contradictions in U.S. Growth, M&A Strategy, and Water Segment Performance

U.S. organic growth and caution among clients, M&A strategy and market uncertainty, U.S. market and organic growth outlook, FEMA work transition, U.S. organic growth in the water segment are the key contradictions discussed in Stantec's latest 2025Q2 earnings call



Strong Financial Performance:
- Stantec reported a net revenue of $1.6 billion for Q2 2025, up 6.9% year-over-year, primarily driven by 4.8% organic growth.
- The growth was supported by increased public infrastructure spending, private investments, and strong demand across sectors like water, transportation, mining, and energy transition.

Water Business Growth:
- The water sector achieved 12.4% organic growth in Q2 2025.
- This growth was attributed to long-term framework agreements, public sector investment in water infrastructure, and increased demand for water treatment and wastewater projects.

Acquisitions and Expansions:
- Stantec completed several strategic acquisitions, including Page, Ryan Hanley, and Cosgroves, to strengthen its architectural and engineering capabilities.
- These acquisitions are expected to bolster services in key growth sectors such as health care, advanced manufacturing, and data centers.

Margin Expansion and Operational Efficiency:
- Stantec's adjusted EBITDA margin improved to 17.8%, a 1.2% increase from the previous year.
- This expansion was driven by strong project execution, operational excellence, and disciplined cost management, including lower admin and marketing expenses.