What factors drove the changes in Stantec's revenue and profit?

What is Stantec's gross profit margin?

What were the key takeaways from Stantec's earnings call?

What is the revenue and EPS growth rate for Stantec year over year?

What guidance did Stantec's management provide for the next earnings period?

What is the market's earnings forecast for Stantec next quarter?

What were the key takeaways from Stantec’s earnings call?

Did Stantec beat or miss consensus estimates last quarter?

- **Revenue Growth**: CAD 1.7 billion (+11.8% YoY), with 5.6% organic and 5.2% acquisition growth.
- **Profitability**: 19% EBITDA margin (up 100bps YoY), EPS +17.7%.
- **Backlog Strength**: CAD 8.4 billion (+15% YoY), including major wins in water, energy, and buildings.
- **Free Cash Flow**: CAD 551 million (+86% YoY), DSO 73 days.
- **Strategic Moves**: Page acquisition integration on track, M&A pipeline active in North America and Europe.
- **2026 Outlook**: US organic growth expected to accelerate, Canada and global businesses resilient.

**【CEO Summary Section】**
- **Robust Q3 Performance**: Net revenue of CAD 1.7 billion, up 11.8% year-over-year (YoY), driven by 5.6% organic growth and 5.2% acquisition growth.
- **Key Business Highlights**: 
  - **Water Business**: 13% organic growth, supported by public sector investments in North America and Europe.
  - **Energy & Resources**: 10% organic growth, driven by mining and energy transition projects in South America.
  - **Buildings**: 40% net revenue growth, fueled by the Page acquisition and healthcare/civic projects.
- **Profitability**: Adjusted EBITDA margin of 19% (up 100 basis points YoY), with EPS growth of 17.7%.
- **Backlog**: CAD 8.4 billion (15% YoY), with wins in Manitoba Hydro, South Carolina infrastructure, and Western Australia hospitals.

**【CFO Financial Commentary】**
- **Financial Metrics**: 
  - Net revenue: CAD 1.7 billion (11.8% YoY)
  - Adjusted EBITDA: CAD 324 million (18% YoY growth)
  - Free cash flow: CAD 551 million (86% YoY increase)
  - DSO: 73 days (down 4 days YoY)
- **Liquidity**: Net debt-to-EBITDA ratio of 1.5x, within target range of 1-2x.
- **Margin Expansion**: Project margins stable at 54.4%, with admin expenses declining as a percentage of revenue.

**【Q&A Key Highlights】**
- **2026 Outlook**: 
  - **US Growth**: 4.6% organic growth in Q3, with optimism for 2026 driven by IIJA funding and defense spending.
  - **Canada**: 7.6% organic growth, supported by infrastructure and water projects.
  - **Global**: 11% net revenue growth, led by UK AMP programs and German transmission projects.
- **M&A Strategy**: 
  - **Page Integration**: Synergies realized in buildings and healthcare, with full financial integration by year-end.
  - **Pipeline**: Active discussions in North America and Europe, targeting 2-3% annual revenue contribution.
- **Risk Management**: 
  - **US Procurement Delays**: Q3 organic growth flat, but backlog verbally awarded but unsigned.
  - **Defense Sector**: 5% revenue exposure, focused on infrastructure for military facilities.
  - **Energy Transition**: Copper demand driving mining projects in South America.


Stantec Inc (STN) Q3 2025 Earnings Call Transcript

- **Acquisition-Driven Growth**: Closed Page ($525M), Cosgroves, and Ryan Hanley, expanding U.S. and global capabilities.
- **Financial Excellence**: Q2 EBITDA margin 17.8%, up 120bps YoY. 2025 guidance: 10-12% net revenue growth, 17-17.4% EBITDA margin.
- **U.S. Recovery**: Q2 organic growth 4.4%, July acceleration to high single digits. 2025 U.S. growth: mid-single digits (prev. 6-8%).
- **Margin Expansion**: 2025 EBITDA margin target 17-17.4% (prev. 16.7-17.3%). Claims settlements and cost control driving improvement.
- **AI Integration**: 10,000 Copilot licenses deployed, early-stage efficiency gains in back office and project delivery.

**【CEO Summary Section】**
- Announced acquisition of Page (1,500 employees) and Cosgroves (90 employees), bringing total team to over 34,000. Highlighted recognition as #1 architecture firm in healthcare and 5th in Canada's best companies.
- Q2 net revenue: $1.6B (+6.9% YoY), driven by 4.8% organic growth. Adjusted EBITDA: $283M (+15%), margin 17.8%. Adjusted EPS: $1.36 (+21% YoY).
- Regional growth: U.S. (+5.7%), Canada (+6.2%), Global (+10.5%). Water business led with 12.4% organic growth. Backlog: $7.9B (+9.8% YoY).
- Raised 2025 guidance: Net revenue 10-12% growth (prev. 7-10%), EBITDA margin 17-17.4% (prev. 16.7-17.3%), EPS growth 18.5-21.5% (prev. 16-19%).

**【CFO Financial Commentary】**
- Q2 gross revenue: $2B, net revenue $1.6B. Project margin 54.2%, stable vs. prior year. Admin expenses down 5% YoY.
- Year-to-date operating cash flow: $235M (+100% YoY). DSO: 73 days (target <80). Net debt/EBITDA: 1.1x (within 1-2x target).
- Issued $425M 7-year notes at 4.374%, expanded revolver to $1.2B. Post/Page acquisition, $1B+ credit capacity remains.

**【Q&A Key Highlights】**
- **U.S. Growth**: Q2 organic growth 4.4%, July acceleration to high single digits. 2025 U.S. guidance: mid-single digits (prev. 6-8%). Backlog +9.8% YoY, 100+ data center projects.
- **Margins**: EBITDA margin 17% YTD vs. 16% prior year. Claims settlements contributed 30-40bps in Q2. 2025 target: 17-17.4% (prev. 16.7-17.3%).
- **Acquisition Integration**: Page (1,500) financial integration by Q4. Ryan Hanley (Ireland) and Cosgroves (NZ) on track for 2025 completion.
- **AI Impact**: 10,000 Copilot licenses deployed. Early-stage efficiency gains in back office, proposal writing, and design optimization.
- **FEMA Shift**: State/local disaster preparedness work increasing. Engaged with multiple agencies on support roles.
- **M&A Landscape**: Global deal flow expected to accelerate in next 6-12 months, with focus on North America and Europe.

Stantec Inc. (STN) Q2 2025 Earnings Call Transcript

- **Q1 Growth Supercharged**: $1.6B net revenue (+13.3% YoY), 16.2% EBITDA margin, 29% EPS growth. Canada leads with 15% net revenue growth.
- **Strategic Acquisitions**: Page (US$300M+ net revenue) and Ryan Hanley expand capabilities in advanced manufacturing, data centers, and Europe.
- **Global Momentum**: Water business up 20% organically in UK, NZ, Australia; Energy & Resources rebounding with 8.3% Q1 organic growth.
- **Backlog Strength**: $7.9B record backlog (+13% YoY), supported by major projects in water, transit, and industrial sectors.
- **M&A Pipeline**: 5 deals since 2024, +4,500 employees. ZETCON integration progressing, targeting EUR 500B infrastructure opportunities in Germany.

**【CEO Opening Remarks】**
- Q1 2025 net revenue reached $1.6 billion, up 13.3% YoY (5.9% organic, 3.2% acquisition growth). Adjusted EBITDA margin improved to 16.2% (+70bps YoY), with EPS up 29% YoY.
- Acquired Page (US$300M+ net revenue, 1,400 employees) and Ryan Hanley (150 employees in Ireland), adding expertise in advanced manufacturing, data centers, and cleanroom design.
- Canada delivered 15% net revenue growth (12.2% organic), driven by wastewater projects, energy-intensive industrial processes, and transit/rail projects.
- Global business grew 20.3% (7.5% organic), with Water leading in UK, NZ, Australia, and Energy & Resources expanding in Chile/Peru.

**【CFO Financial Highlights】**
- Q1 GAAP net income: $192 million; Non-GAAP EPS: $1.16 (+29% YoY). Adjusted EBITDA: $259 million (+19% YoY).
- Operating cash flow: $101 million (+136% YoY). DSO: 77 days (stable). Net debt/EBITDA: 1.1x (down from 1.2x YoY).
- Page acquisition expected to close in Q3, with leverage maintained within 1.0-2.0x target.

**【Q&A Key Takeaways】**
- **U.S. Organic Growth**: 2.4% Q1 growth (vs. 10% YoY comp), but confident in mid-single-digit full-year guidance. Major projects ramping in Q2 offset a large water project roll-off.
- **M&A Strategy**: 5 acquisitions since 2024, +4,500 employees. Focused on small- to medium-sized tuck-ins and strategic larger deals (e.g., Page). ZETCON (Germany) integration progressing well, with EUR 500B infrastructure fund driving opportunities.
- **Energy & Resources Recovery**: 8.3% Q1 organic growth (vs. negative in 2024), driven by mining, copper demand, and industrial process projects. Backlog up low double digits YoY.
- **Margin Outlook**: 16.7-17.3% EBITDA margin target for 2025, supported by project execution and cost control. Q1 70bps margin expansion reflects solid execution, but cautious on full-year pacing.

**【Backlog & Outlook】**
- Record backlog of $7.9 billion (+13% YoY, 7.5% organic). Major wins include $1.1B Irving Pulp upgrade, $580M Dundas BRT, and largest PFAS treatment system in NW U.S.
- Full-year guidance: 7-10% net revenue growth, 16-19% adjusted EPS growth. Tracking well against 2024-2026 strategic plan (target: $7.5B net revenue by end-2026).

Stantec Inc. (STN) Q1 2025 Earnings Call Transcript

- **Record Growth**: 2024 net revenues +15.8% to CAD5.9B, driven by 7.4% organic and 7.5% acquisition growth. Adjusted EBITDA margin expands to 16.7%.
- **Backlog Boom**: CAD7.8B record backlog (+24% YoY), with 24% organic growth in Water. AMP8 in UK offers 75% larger capital spend opportunity.
- **2025 Outlook**: 7-10% net revenue growth, 16.7-17.3% EBITDA margin, and 16-19% EPS growth. M&A pipeline active, targeting mid-sized firms.
- **Strong Cash Flow**: Free cash flow >1x net income, net debt-to-EBITDA 1.2x. Dividend increased 7.1% to CAD0.90 annualized.
- **Resilient Demand**: Water and Buildings businesses see double-digit organic growth. AMP8 and U.S. infrastructure projects drive 2025 visibility.


**【CEO Summary Section】**
- **Record Year Performance**: 2024 net revenues reached CAD5.9 billion (+15.8% YoY), driven by 7.4% organic growth and 7.5% acquisition growth. Adjusted EBITDA rose to CAD980 million (+18%), with a margin of 16.7% (+30bps YoY). Adjusted EPS was CAD4.42 (+20% YoY).
- **Geographic Growth**: 
  - **U.S.**: Q4 net revenues +14.1% (10.3% organic), full year +13.3% (8.6% organic). Water and Buildings businesses saw double-digit organic growth.
  - **Canada**: Q4 net revenues +17.6% (9.1% organic), full year +14.5% (6% organic). Water and Buildings businesses led growth.
  - **Global**: Q4 net revenues +32.6% (7.3% organic), full year +23.2% (16.3% acquisition). UK Water business secured AMP8 framework with 75% larger capital spend.
- **Backlog**: Record CAD7.8 billion (+24.1% YoY), with 24% organic growth in Water backlog. AMP8 in UK and U.S. infrastructure projects drive future visibility.
- **2025 Guidance**: Net revenue growth 7-10%, EBITDA margin 16.7-17.3%, adjusted EPS +16-19%. M&A pipeline remains active, targeting mid-sized firms in U.S. and global markets.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: 
  - Net revenues CAD1.5 billion (+19% YoY, 9.3% organic). Adjusted EBITDA CAD246.5 million (+26.7%), margin 16.7% (+100bps YoY). Adjusted EPS CAD1.11 (+35.4%).
  - Full year operating cash flow CAD603 million (+16% YoY). Free cash flow >1x net income. Net debt-to-EBITDA ratio 1.2x, well within 1-2x target.
- **Dividend Growth**: 7.1% increase to CAD0.90 annualized, supported by strong cash flow and balance sheet flexibility.
- **Liquidity**: CAD1.1 billion available under revolving credit facility. No material impact from U.S. administration changes on federal projects (5% of net revenues).

**【Q&A Key Highlights】**
- **Demand Environment**: Strong proposal activity across all regions. Water and Buildings businesses see double-digit organic growth momentum. AMP8 in UK expected to drive significant backlog conversion in 2025.
- **Margin Guidance**: 16.7-17.3% EBITDA margin range reflects project mix (Global vs. North America) and operational leverage from Pune delivery center.
- **M&A Strategy**: Pipeline remains robust, targeting mid-sized firms (1,000-2,000 employees) in U.S. and global markets. No discernible impact from macro environment on multiples or transaction pace.
- **Energy & Resources**: Backlog +14% YoY, returning to organic growth in 2025. Copper projects in Arizona and Chile, power infrastructure in Canada and U.S. drive recovery.
- **Tariff Impact**: Minimal exposure to tariffs in Canada. U.S. infrastructure spending (IIJA) continues as states prioritize aging infrastructure repair.
- **Germany Integration**: ZETCON performing above expectations, with strong transportation project pipeline in Europe.


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