Q4 2025 Stantec Inc Earnings Call Transcript
Key Points
- Stantec Inc (STN) achieved a record year in 2025 with net revenue growth of almost 11% to $6.5 billion, driven by 5% organic and 3.9% acquisition growth.
- The company delivered adjusted EBITDA growth of close to 17% year over year, achieving a margin of 17.6%, which met their strategic plan target range a year early.
- Stantec Inc (STN) reported strong performance across all geographies, with notable growth in the US and Canada, driven by acquisitions and organic growth.
- The water business achieved almost 11% organic growth, supported by large wastewater treatment projects and public sector investments.
- Stantec Inc (STN) increased its annualized dividend by 8.9% to $0.98 per share, reflecting strong financial performance and confidence in future growth.
- Geopolitical uncertainty posed challenges, although Stantec Inc (STN) managed to navigate these effectively.
- The company faces potential delays in executing M&A due to recent changes in public equity valuations and market conditions.
- There is a need for ongoing adjustments in pricing expectations for private company acquisitions, which may impact M&A timelines.
- While AI presents opportunities, its integration into operations and its impact on revenue per employee utilization is still evolving.
- The environmental services segment showed weaker performance in 2025, with flat growth in the fourth quarter, indicating room for improvement.
Welcome to Santec's 4th quarter and full year 2025 results webcast and conference call. Leading the call today are Gord Johnston, President and Chief Executive Officer, and Vito Comoni, executive Vice President and Chief Financial Officer. SANEC invites those dialing in to view the slide presentation, which is available in the investor section at santec.com.
Today's call is being 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 this conference call is subject to the forward-looking statement qualification. Set out on slide 2 detailed in Zante's management discussion and analysis and incorporated in full for the purpose of today's call. Unless otherwise noted, dollar amounts discussed in today's call are expressed in CAD and are generally rounded. With that, I'll turn the call over to Mr. Gord Johnston.
Good morning everyone,
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