STN · Stantec Inc.

Stantec's first quarter 2026 results reflect sustained global demand and solid operational execution. Net revenue grew 9.1% to $1.7 billion, driven by 3.6% organic growth and 7.2% from acquisitions, notably the Page acquisition which boosted Buildings backlog by over 40%. Organic growth was broad-based, with Water (14.3%) and Energy & Resources (8.6%) leading. Adjusted EBITDA margin expanded 70 basis points to 16.9%, benefiting from lower administrative and marketing expenses as a percentage of net revenue, reflecting disciplined cost management. Adjusted EPS rose 14.7% to $1.33, outpacing diluted EPS growth of 10.2% due to higher amortization from acquisitions. Contract backlog reached a record $9.0 billion, up 13.2% year-over-year, providing approximately 13 months of work and strong visibility. Management reaffirmed 2026 guidance for net revenue growth of 8.5%-11.5%, adjusted EBITDA margin of 17.6%-18.2%, and adjusted EPS growth of 15%-18%. Operating cash flow was negative $2.3 million due to Page integration and working capital investment, but DSO improved to 74 days. The dividend was increased to $0.245 per share. Overall, the quarter demonstrates strong momentum and margin expansion, positioning Stantec for continued growth.