Stantec (STN) Q3 2025 earnings summary

Executive summary

• Net revenue reached $1.7 billion (CAD 1.7 billion), up 11.8%–12% year-over-year, with strong organic (5.6%) and acquisition (5.2%) growth across all regions and business units, supported by global trends in water, transportation, energy transition, and mission-critical sectors.

• Adjusted EBITDA rose 17.8% to $323.4 million, achieving a record 19% margin, and adjusted EPS increased 17.7% to $1.53.

• Backlog grew 14.9% to $8.4 billion, representing about 13 months of work and reflecting robust demand and project wins.

• Strong cash flow from operations, up 76.6% to $315.9 million in Q3, with year-to-date operating cash flows at $551 million.

Financial highlights

• Gross revenue for Q3 was $2.1 billion, net revenue $1.7 billion, up 11.8% from Q3 2024.

• Project margin was 54.4% of net revenue, with adjusted net income up 17.7% to $174.1 million (10.2% of net revenue).

• DSO improved to 73 days, down four days from year-end 2024.

• Net debt-to-adjusted EBITDA at 1.5x, within the target range of 1.0x–2.0x.

• Year-to-date net revenue up 10.6% to $4.9 billion; adjusted EBITDA up 17.2% to $860.1 million.

Outlook and guidance

• Net revenue growth for 2025 expected at 10%–12%, with adjusted EBITDA margin guidance raised to 17.2%–17.5%.

• Adjusted EPS growth for the year projected at 18.5%–21.5%; adjusted ROIC expected above 12.5%.

• Adjusted net income margin expected above 8.8%; effective tax rate expected between 23.5% and 24.5%.

• Guidance reflects recent acquisitions and does not assume further M&A or share-based compensation revaluation.

• Positive momentum anticipated into 2026, with strong demand drivers across all regions and sectors.