Q3 2025 Stantec Inc Earnings Call Transcript
Key Points
- Stantec Inc (STN) reported a robust performance in Q3 2025, with net revenue growing to $1.7 billion, marking an increase of almost 12% compared to Q3 2024.
- The company achieved an all-time high adjusted EBITDA margin of 19%, reflecting a 100 basis point increase from the previous year.
- Stantec Inc (STN) experienced significant organic growth in its Water and Energy & Resources businesses, with Water delivering almost 13% organic growth.
- The integration of the Page acquisition is progressing well, contributing to more than 40% net revenue growth in the Buildings business in Q3.
- Stantec Inc (STN) has a strong contract backlog of $8.4 billion, representing approximately 13 months of work and a 15% increase year over year.
- The US market showed slower procurement cycles, resulting in flat backlog growth year-to-date, which could impact future organic growth.
- Environmental Services experienced slower organic growth, with low single-digit increases quarter over quarter.
- There is uncertainty in the US market due to factors like government shutdowns and slower project signings, affecting backlog and revenue recognition.
- The AMP8 program in the UK faces challenges with one of its largest customers experiencing financial difficulties, although Stantec Inc (STN) remains optimistic about continued work.
- The company faces a challenging environment with potential economic headwinds in regions like Canada and Australia, which could impact future growth.
Welcome to Stantec's third quarter 2025 results webcast and conference call. Leading the call today are Gord Johnston, President and Chief Executive Officer; and Vito Culmone, Executive Vice President and Chief Financial Officer.
Stantec invites those dialing in to view the slide presentation, which is available in the Investors section at stantec.com. Today's call is also webcast. Please be advised that if you have dialed in, while also viewing the webcast, you should mute your computer as there is a delay between the call and the webcast.
All information provided during the conference call is subject to the forward-looking statement qualification set out on slide 2, detailed in Stantec's Management Discussion and Analysis and incorporated in full for the purposes of today's call. Unless otherwise noted, dollar amounts discussed in today's call are expressed in Canadian dollars and are generally rounded. With that, I'll turn the call over to Gord Johnston.
Good
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
