Stantec Reports Exceptional First Quarter Results
Stantec, a global leader in sustainable engineering, architecture, and environmental consulting, announced its outstanding results for the first quarter of 2025. This performance is underscored by a remarkable 29% increase in adjusted earnings per share (EPS) and a record-high backlog of $7.9 billion. The company continues to demonstrate robust demand for its services and exceptional project execution, positioning itself strongly for continued growth.
Financial Highlights from Q1 2025
For the first quarter, Stantec recorded net revenue of $1.6 billion, marking a significant 13.3% increase from the same quarter last year. This growth was aided by an organic growth rate of 5.9% and a contribution of 3.2% from acquisitions. Notably, the company saw organic growth across all its operational regions, with Canada leading the way at 12.2%.
Adjusted EBITDA also saw strong growth, rising by 19.1% to $252.3 million. The adjusted EBITDA margin grew to 16.2%, an increase of 70 basis points compared to Q1 2024. Stantec's diluted EPS reached $0.88, while adjusted EPS climbed to $1.16, showing increases of 29.4% and 28.9%, respectively. These strong results underscore the company’s efficient cost management and operational excellence even amidst a dynamic market environment.
Strategic Acquisitions and Future Potential
Stantec's commitment to growth is further exemplified by its recent acquisitions. In early 2025, the company acquired Ryan Hanley, an engineering and environmental consultancy in Ireland, which enhances Stantec's service offerings in the Irish water sector. Additionally, Stantec entered into a definitive agreement to acquire Page, a prominent architecture and engineering firm headquartered in Washington, DC. With this acquisition, Stantec is poised to become the second-largest architecture firm in the United States. This strategic move is expected to accelerate its growth trajectories in vital market segments such as healthcare, advanced manufacturing, and data centers.
President and CEO Gord Johnston expressed confidence in Stantec's direction, stating, “With a record backlog of $7.9 billion and significant opportunities ahead, we are well-positioned to build on our momentum.” He emphasized that the integration of Page and Ryan Hanley will considerably strengthen the company's capabilities and facilitate the achievement of its strategic objectives outlined in the 2024-2026 Strategic Plan.
Stantec's 2025 Guidance and Outlook
As part of its 2025 outlook, Stantec anticipates continued revenue growth of 7% to 10%. The company projects adjusted EBITDA margins to lie within the range of 16.7% to 17.3%, driven by enhanced project execution and disciplined management of operational expenses. Notably, Stantec expects that its adjusted net income will exceed 8.8% of net revenue, with adjusted EPS growth forecasted between 16% and 19% compared to the prior year.
Stantec's optimistic projections reflect its solid operational foundations and the successful management of its diverse service offerings across geographies. Both the US and Canada are expected to contribute to steady organic growth, supported by a strong pipeline of projects and existing market relationships.
Empowering Communities and Driving Innovation
Stantec remains committed to empowering communities and tackling pressing global challenges. The company's robust performance and strategic initiatives underline its dedication to creating sustainable solutions that transcend geographical borders. Stantec’s diverse team of professionals, including designers, engineers, and consultants, play a vital role in enhancing community resilience and addressing critical issues such as climate change and infrastructure sustainability.
Stantec trades on the TSX and NYSE under the symbol STN. With a mission to redefine what's possible, the company continues to innovate at the intersection of community needs and environmental stewardship, building a sustainable future for generations to come.
Frequently Asked Questions
What were Stantec's financial results for Q1 2025?
In Q1 2025, Stantec reported net revenue of $1.6 billion, an increase of 13.3% compared to the previous year, with adjusted EPS growing by 28.9% to $1.16.
What strategic acquisitions did Stantec accomplish?
Stantec acquired Ryan Hanley and entered an agreement to acquire Page, enhancing its capabilities in design and engineering in critical sectors.
What is Stantec's projected revenue growth for 2025?
Stantec expects revenue growth of 7% to 10% in 2025, with strong organic growth anticipated in both the US and Canada.
What is Stantec's adjusted EBITDA margin forecast?
The company anticipates its adjusted EBITDA margin to be between 16.7% and 17.3% for 2025.
How does Stantec impact community sustainability?
Stantec empowers communities through sustainable engineering and architectural solutions, addressing challenges such as climate change and infrastructure optimization.
