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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

STN

STN fundamentals

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