Stantec (STN) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 net revenues of $5.9B (CAD 5.9B), up 15.8% year-over-year, with strong organic and acquisition growth across all business units and geographies.

• Adjusted EBITDA rose 18.0% to $980M, with margin up 30 bps to 16.7%; adjusted EPS up 20.4% to $4.42 for the year, and Q4 adjusted EPS up 35.4% to $1.11.

• Backlog reached a record $7.8B, up 24.1% from December 2023, supporting confidence in future growth.

• Double-digit organic growth in the U.S. and high single-digit growth in Canada and globally in Q4; all business units delivered organic growth, including a return to growth in energy and resources.

• Recognized for sustainability leadership, ranking #8 globally and 1st among peers by Corporate Knights.

Financial highlights

• Q4 net revenue grew 19% year-over-year to $1.5B, driven by 9.3% organic and 7.6% acquisition growth.

• Full-year adjusted EBITDA reached $980M, up 18%, with a 16.7% margin (30 bps increase); Q4 adjusted EBITDA up 26.7% to $246.5M.

• Adjusted EPS for 2024 was $4.42, up 20.4% year-over-year; Q4 adjusted EPS was $1.11, up 35.4%.

• Operating cash flows increased 16% to $603M; net debt to adjusted EBITDA reduced to 1.2x.

• Dividend increased 7.1% to $0.90 per share annualized.

Outlook and guidance

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

• Expect mid to high single-digit organic net revenue growth in all geographies, with strong backlog and proposal activity supporting confidence.

• Adjusted ROIC projected above 12%; capital expenditures to be 1.5–2.0% of net revenue.

• M&A pipeline remains robust, with a focus on mid-sized acquisitions and a strong balance sheet to support further deals.