Stantec reports strong third quarter 2025 results, deliverin...

Stantec reports strong third quarter 2025 results, delivering over 17% growth in adjusted earnings per share

Net revenue increased 11.8% or $180.6 million, to $1.7 billion, driven by 5.6% organic growth and 5.2% acquisition growth. Stantec achieved organic growth in all of its regional and business operating units, most notably in Water with double-digit organic growth. Project margin increased 12.1% or $99.8 million, to $927.9 million. As a percentage of net revenue, project margin increased 10 basis points to 54.4%, remaining in line with expectations. Adjusted EBITDA increased 17.8% or $48.8 million, to $323.4 million. Adjusted EBITDA margin was 19.0%, an increase of 100 basis points compared to Q3 2024. The increase in margin primarily reflects lower administrative and marketing expenses as a percentage of net revenue, mainly due to Stantec’s disciplined management of operations and higher utilization. Net income increased 45.3% or $46.8 million, to $150.0 million, and diluted EPS increased 46.7%, or $0.42, to $1.32, mainly due to increases in project margin and, as a percentage of revenue, lower administrative and marketing expenses partly offset by higher income tax expense. As well, Q3 2024 included a non-cash impairment charge of $13.7 million from our real estate optimization strategy. Adjusted net income grew 17.7% or $26.2 million, to $174.1 million, achieving 10.2% of net revenue—an increase of 50 basis points. Adjusted EPS increased 17.7% or $0.23, to $1.53. Contract backlog increased to $8.4 billion at September 30, 2025, achieving 14.9% overall growth year over year, which includes 6.8% acquisition growth and 5.6% organic growth. Organic growth was achieved in all of Stantec’s regional operating units. Contract backlog represents approximately 13 months of work. Operating cash flows increased $137.0 million or 76.6%, with cash inflows of $315.9 million, reflecting strong revenue growth, operational performance, and collection efforts. DSO was 73 days, a decrease of 4 days from December 31, 2024. Net debt to adjusted EBITDA (on a trailing twelve-month basis) at September 30, 2025 was 1.5x, reflecting the funding of the recent acquisition of Page, and remained within our internal target range of 1.0x to 2.0x. On July 31, 2025, we acquired Page, a 1,400-person architecture and engineering firm headquartered in Washington, DC that strategically complements Stantec’s Buildings business and serves the advanced manufacturing, healthcare, mission critical, academic, civic, aviation, science and technology, and commercial markets. On November 13, 2025, Stantec’s Board of Directors declared a dividend of $0.225 per share, payable on January 15, 2026, to shareholders of record on December 31, 2025.

Project margin increased 12.1% or $99.8 million, to $927.9 million. As a percentage of net revenue, project margin increased 10 basis points to 54.4%, remaining in line with expectations.

Adjusted EBITDA increased 17.8% or $48.8 million, to $323.4 million. Adjusted EBITDA margin was 19.0%, an increase of 100 basis points compared to Q3 2024. The increase in margin primarily reflects lower administrative and marketing expenses as a percentage of net revenue, mainly due to Stantec’s disciplined management of operations and higher utilization.

Net income increased 45.3% or $46.8 million, to $150.0 million, and diluted EPS increased 46.7%, or $0.42, to $1.32, mainly due to increases in project margin and, as a percentage of revenue, lower administrative and marketing expenses partly offset by higher income tax expense. As well, Q3 2024 included a non-cash impairment charge of $13.7 million from our real estate optimization strategy.

Adjusted net income grew 17.7% or $26.2 million, to $174.1 million, achieving 10.2% of net revenue—an increase of 50 basis points. Adjusted EPS increased 17.7% or $0.23, to $1.53.

Contract backlog increased to $8.4 billion at September 30, 2025, achieving 14.9% overall growth year over year, which includes 6.8% acquisition growth and 5.6% organic growth. Organic growth was achieved in all of Stantec’s regional operating units. Contract backlog represents approximately 13 months of work.

Operating cash flows increased $137.0 million or 76.6%, with cash inflows of $315.9 million, reflecting strong revenue growth, operational performance, and collection efforts.

DSO was 73 days, a decrease of 4 days from December 31, 2024.

Net debt to adjusted EBITDA (on a trailing twelve-month basis) at September 30, 2025 was 1.5x, reflecting the funding of the recent acquisition of Page, and remained within our internal target range of 1.0x to 2.0x.

On July 31, 2025, we acquired Page, a 1,400-person architecture and engineering firm headquartered in Washington, DC that strategically complements Stantec’s Buildings business and serves the advanced manufacturing, healthcare, mission critical, academic, civic, aviation, science and technology, and commercial markets.

On November 13, 2025, Stantec’s Board of Directors declared a dividend of $0.225 per share, payable on January 15, 2026, to shareholders of record on December 31, 2025.