STN · Stantec Inc.

Stantec delivered a strong first quarter in 2026, with net revenue increasing 9.1% to $1,694.3 million, driven by 7.2% acquisition growth (including the Page acquisition) and 3.6% organic growth. Organic growth was broad-based across all regions, with particular strength in Water (double-digit) and Global (21.8% organic backlog growth). Project margin increased 8.4% to $914.1 million, though margin as a percentage of net revenue dipped 30 bps to 54.0% due to project mix, remaining within the expected range. Adjusted EBITDA grew 13.8% to $287.0 million, with margin expanding 70 bps to 16.9%, reflecting disciplined cost management as administrative and marketing expenses declined 110 bps as a percentage of net revenue. Net income rose 10.7% to $110.8 million, and adjusted EPS increased 14.7% to $1.33. Contract backlog reached $9.0 billion, up 13.2% year-over-year, with organic growth of 5.4% and acquisition growth of 9.1%. Operating cash flow was negative $2.3 million, impacted by Page integration (financial system migration) and working capital investment from high organic growth in Global. The company reaffirmed its 2026 guidance: net revenue growth of 8.5%-11.5%, adjusted EBITDA margin of 17.6%-18.2%, adjusted net income margin at or above 9.5%, adjusted EPS growth of 15%-18%, and adjusted ROIC above 13%. Management noted that Q1 and Q4 margins are typically lower due to seasonality, with improvement expected in Q2 and Q3. The Board declared a quarterly dividend of $0.245 per share, payable July 15, 2026.