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Stantec (TSX:STN) Operating Income : C$596 Mil (TTM As of Dec. 2024)


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What is Stantec Operating Income?

Stantec's Operating Income for the three months ended in Dec. 2024 was C$150 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was C$596 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Stantec's Operating Income for the three months ended in Dec. 2024 was C$150 Mil. Stantec's Revenue for the three months ended in Dec. 2024 was C$1,960 Mil. Therefore, Stantec's Operating Margin % for the quarter that ended in Dec. 2024 was 7.63%.

Good Sign:

Stantec Inc operating margin is expanding. Margin expansion is usually a good sign.

Stantec's 5-Year average Growth Rate for Operating Margin % was 2.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Stantec's annualized ROC % for the quarter that ended in Dec. 2024 was 7.92%. Stantec's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 85.50%.


Stantec Operating Income Historical Data

The historical data trend for Stantec's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Stantec Operating Income Chart

Stantec Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 348.80 317.90 391.30 495.80 591.00

Stantec Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 112.70 121.30 154.10 170.70 149.60

Stantec Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$596 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Stantec  (TSX:STN) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Stantec's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=598.4 * ( 1 - 22.28% )/( (5646.2 + 6104)/ 2 )
=465.07648/5875.1
=7.92 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Stantec's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=663.6/( ( (779 + max(-364.2, 0)) + (773.3 + max(-325.3, 0)) )/ 2 )
=663.6/( ( 779 + 773.3 )/ 2 )
=663.6/776.15
=85.50 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1110.2 + 0 + 61.3) - (1014.1 + 433.8 + 87.8)
=-364.2

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1282.4 + 0 + 65.6) - (597.4 + 502.4 + 573.5)
=-325.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Stantec's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=149.6/1959.5
=7.63 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Stantec Operating Income Related Terms

Thank you for viewing the detailed overview of Stantec's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Stantec Business Description

Traded in Other Exchanges
Address
10220 - 103 Avenue NW, Suite 300, Edmonton, AB, CAN, T5J 0K4
Stantec Inc is a sustainable engineering, architecture, and environmental consulting company. It offers services through the following business operating units; Environmental Services, Infrastructure, Water, Buildings, and Energy & Resources. Maximum revenue is derived from its Infrastructure business unit, which is engaged in evaluating, planning, and designing infrastructure solutions for transportation, community development, and urban spaces. The company's reportable segments are the United States, which derives maximum revenue, Canada, and Global. These segments provide consulting in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics services in the area of infrastructure and facilities.
Executives
Shelley Ann Marie Brown Director
Douglas Keith Ammerman Director
Marie-lucie Morin Director
Vito Culmone Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Asifa Samji Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Steve Marvin Fleck Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Robert Gomes Director
Leonardo De Oliveira Castro Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Michael Aloysius Kennedy Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Stuart Lerner Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
John David Take Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Ryan Roberts Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Jeffrey Philip Stone Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Bjorn Morisbak Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Paul Jeremy David Alpern Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer