Stantec (STN) Q2 2025 earnings summary

Executive summary

• Net revenue rose 6.9% year-over-year to $1.6 billion in Q2 2025, driven by 4.8% organic growth across all regions and business units.

• Adjusted EPS increased 21.4% to $1.36, and adjusted EBITDA grew 15% to $284.4 million with a margin of 17.8%.

• Completed acquisitions of Page (US), Cosgroves (New Zealand), and Ryan Hanley (Ireland), expanding global presence and capabilities.

• Recognized as the top global healthcare architecture firm and ranked among the world's most sustainable companies.

• Contract backlog reached $7.9 billion, up 9.9% year-over-year, with 9% organic growth.

Financial highlights

• Adjusted EBITDA margin increased 120 bps to 17.8% compared to Q2 2024.

• Net income increased 62.7% to $135.4 million; adjusted net income rose 21.6% to $154.7 million.

• Operating cash flow doubled year-to-date to $235 million; DSO improved to 73 days.

• Gross revenue reached $1.964 billion and net revenue $1.597 billion, both up from Q2 2024.

• Dividend of $0.225 per share declared for Q2 2025.

Outlook and guidance

• 2025 net revenue growth guidance raised to 10–12% (from 7–10%) due to acquisitions and strong performance.

• Adjusted EBITDA margin guidance increased to 17.0–17.4%; adjusted EPS growth now 18.5–21.5%.

• Adjusted ROIC expected above 12.5%.

• Effective tax rate expected at 23.5–24.5%, up from prior 22–23% range.

• Anticipates continued strong organic growth in Canada and global regions; U.S. organic growth outlook moderated to mid-single digits.