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

Executive Summary

• Stantec reported Q3 2025 net revenue of $1.7 billion, up 11.8% YoY, driven by 5.6% organic growth and 5.2% acquisition growth.
• Adjusted EBITDA rose 17.8% to $323.4 million, with an all‑time‑high adjusted EBITDA margin of 19.0% (up 100 bps).
• Diluted EPS increased 46.7% to $1.32; adjusted EPS rose 17.7% to $1.53. The Board also declared a quarterly dividend of $0.225 per share.

Key Details

• Revenue & Growth – Net revenue $1,705.4 M (100% of net revenue), up $180.6 M YoY; organic growth 5.6%, acquisition growth 5.2%. Segment breakdown: Canada $399.6 M (+7.6% YoY), U.S. $888.0 M (+35.8% YoY), Global $417.8 M (+20.9% YoY).
• Project Margin – $927.9 M (54.4% of net revenue), up $99.8 M (+12.1%). Administrative & marketing expenses fell to 36.1% of revenue, down from 37.5% YoY.
• Adjusted EBITDA – $323.4 M; margin 19.0%, an increase of 100 bps versus Q3 2024.
• Net Income & EPS – Net income $150.0 M (8.8% of revenue), up 45.3%; diluted EPS $1.32, up 46.7%. Adjusted net income $174.1 M (10.2% of revenue); adjusted EPS $1.53.
• Backlog – Contract backlog $8.4 B, up 14.9% YoY (≈13 months of work). Segment backlog: Canada $1.73 B, U.S. $5.05 B, Global $1.61 B.
• Cash Flow & Liquidity – Operating cash flow $137.0 M (+76.6% YoY); DSO improved to 73 days (‑4 days). Net debt/adjusted EBITDA = 1.5×, within target range.
• Acquisitions – Completed acquisition of Page (1,400‑person architecture & engineering firm) on July 31 2025; acquisitions contributed $112.1 M to U.S. revenue growth and $498.6 M to backlog increase.
• Guidance Update – Adjusted EBITDA margin guidance narrowed to 17.2%–17.5% (up from prior 17.0%–17.4%). All other 2025 targets unchanged (net revenue growth 10%‑12%, adjusted net income >8.8% of revenue, adjusted EPS growth 18.5%‑21.5%). Effective tax rate expected at 23.5%‑24.5%.
• Dividend – Board declared dividend $0.225 per share payable Jan 15 2026 to shareholders of record Dec 31 2025.
• Webcast – Live webcast and conference call scheduled for Fri, Nov 14 2025 at 7:00 AM MT / 9:00 AM ET to discuss Q3 performance.

Notable Quotes

“Stantec delivered strong third quarter results, driven by the sustained global demand for our services and a continued focus on project execution and operational efficiency,” – Gord Johnston, President & CEO.

All non‑material boilerplate, forward‑looking disclaimer text, and company background have been omitted.