Stantec (STN) Q4 2025 earnings summary

Executive summary

• Achieved record results in 2025 with net revenue up 10.7% to $6.5 billion, driven by 5.0% organic and 3.9% acquisition growth.

• Adjusted EBITDA rose 16.7% to $1.14 billion, with margin improving to 17.6%, reaching the 2024-2026 strategic plan target range a year early.

• Adjusted EPS increased 19.9% to $5.30 for the year.

• Completed three acquisitions, including the Page acquisition, and delivered mid-single-digit organic growth across all regions and business units.

• Strong demand in water, mission-critical, transportation, energy transition, and healthcare sectors supported performance.

Financial highlights

• Gross revenue for 2025 was $8.1 billion; Q4 net revenue rose 10.9% to $1.6 billion.

• Operating cash flow increased 43.1% to $863 million; free cash flow to net income conversion at 1.3x.

• Net income rose 32.6% to $479.4 million; adjusted net income up 19.8% to $604.4 million (9.3% of net revenue).

• Net debt to Adjusted EBITDA at 1.3x by year-end, within target range.

• Board approved an 8.9% dividend increase to $0.98 per share (quarterly $0.245 per share).

Outlook and guidance

• 2026 net revenue growth expected between 8.5%-11.5%, driven by organic and acquisition growth.

• Adjusted EBITDA margin guidance of 17.6%-18.2%; Adjusted EPS growth targeted at 15%-18%.

• Adjusted ROIC targeted above 13% for 2026.

• Strong organic growth anticipated across all geographies and business units, with water and buildings leading.

• Continued focus on operational efficiency, digital strategies, and leveraging AI for margin enhancement.