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 90 basis points to 17.6%.

• Adjusted EPS increased 19.9% to $5.30; diluted EPS reached $4.20.

• Strong demand across water, mission-critical, transportation, energy transition, and healthcare sectors supported growth and resilience.

• Backlog hit a record $8.6 billion, up 9.5% year-over-year.

Financial highlights

• Adjusted EBITDA margin for 2025 was 17.6%, up from 16.7% in 2024.

• Adjusted EPS grew 19.9% to CAD 5.30; Q4 Adjusted EPS up 12.6% to $1.25.

• Operating cash flow rose 43.1% to CAD 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).

• Dividend increased by 8.9% to $0.245 per share.

Outlook and guidance

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

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

• Adjusted ROIC targeted above 13% for 2026.

• Days sales outstanding targeted at or below 75; net debt to adjusted EBITDA between 1.0x and 2.0x.

• Strong backlog of $8.6 billion (up 9.5% YoY), representing 13 months of work.