Stantec (STN) Q1 2025 earnings summary

Executive summary

• Net revenue reached $1.6 billion in Q1 2025, up 13.3% year-over-year, driven by 5.9% organic and up to 7.4% acquisition growth.

• Adjusted EBITDA grew over 19% to $252.3 million, with margin improving 70 basis points to 16.2%.

• Adjusted EPS increased 29% to $1.16 compared to Q1 2024.

• Backlog hit a record $7.9 billion, up 12.8% year-over-year, representing about 12 months of work.

• Major acquisitions in the US and Ireland, including Page and Ryan Hanley, expanded capabilities and geographic reach.

Financial highlights

• Gross revenue for Q1 was $1.92 billion, up almost 12% year-over-year.

• Project margin improved to 54.3% of net revenue.

• Operating cash flow rose 135.8% year-over-year to $100.7 million.

• Net debt-to-adjusted EBITDA ratio reduced to as low as 1.1x, within target range.

• DSO remained stable at 77 days, within the internal target.

Outlook and guidance

• 2025 guidance reaffirmed: net revenue growth of 7%-10%, adjusted EBITDA margin of 16.7%-17.3%, and adjusted EPS growth of 16%-19%.

• Adjusted ROIC targeted above 12%.

• Guidance excludes impact from Page and Ryan Hanley acquisitions and share-based compensation revaluation.

• Strategic plan targets 50% net revenue growth to $7.5 billion by end of 2026.

• Mid- to high single-digit organic growth expected across all geographies.