Stantec reports second quarter 2025 results, delivering over 20% growth in adjusted earnings per share and increases its 2025 outlook

Executive Summary

• Stantec reported strong second-quarter 2025 financial results, with net revenue increasing 6.9% year-over-year to $1.6 billion and adjusted EBITDA rising 15.0% to $284.4 million.
• The company announced the closure of the acquisition of Page (a 1,400-person US firm) and previously acquired Ryan Hanley and Cosgroves, driving strategic expansion in buildings engineering and water sectors.
• Stantec raised its full-year 2025 guidance, increasing net revenue growth expectations to 10-12% and adjusted EPS growth to 18.5-21.5%, citing strong organic performance and the impact of recent acquisitions.

Key Details

• Q2 2025 Financial Performance:
  • Net Revenue: $1.6 billion (up 6.9% YoY), driven by 4.8% organic growth.
  • Adjusted EBITDA: $284.4 million (up 15.0% YoY); Margin: 17.8% (up 120 bps).
  • Diluted EPS: $1.19 (up 63.0% YoY).
  • Adjusted EPS: $1.36 (up 21.4% YoY).
  • Net Income: $135.4 million (up 62.7% YoY).
  • Project Margin: $864.7 million (54.2% of revenue).
  • Operating Cash Flow: $134.0 million (up 79.4%).
  • Days Sales Outstanding (DSO): 73 days.
  • Net Debt to Adjusted EBITDA: 1.1x.
• Contract Backlog:
  • Total Backlog: $7.9 billion (up 9.9% YoY), representing approximately 12 months of work.
  • Organic Backlog Growth: 9.0%.
• 2025 Guidance Revisions:
  • Net Revenue Growth: Raised to 10-12% (from 7-10%).
  • Adjusted EBITDA Margin: Raised to 17.0-17.4% (from 16.7-17.3%).
  • Adjusted EPS Growth: Raised to 18.5-21.5% (from 16-19%).
  • Adjusted ROIC: Raised to >12.5% (from >12%).
  • Effective Tax Rate: Expected 23.5-24.5% (from 22-23%).
• Acquisitions:
  • Page: Acquired July 31, 2025; 1,400-person US-based design, architecture, and engineering firm.
  • Ryan Hanley: Acquired April 8, 2025; 150-person Irish engineering and environmental consultancy.
  • Cosgroves: Acquired June 27, 2025; 90-person New Zealand buildings engineering firm.
• Capital Markets & Dividends:
  • Dividend: Board declared $0.225 per share, payable October 15, 2025, to shareholders of record on September 29, 2025.
  • Debt Issuance: Issued $425 million senior unsecured notes due June 10, 2032, at a fixed rate of 4.374% (BBB rated by DBRS).
  • Credit Facility: Increased unsecured revolving credit facility to $1.2 billion (from $800 million) and extended maturity to June 11, 2030.

Notable Quotes

• “Throughout the first half of 2025, Stantec has delivered strong financial and operational results, underpinned by the diversification of our business, and continued demand across all of our regions,” said Gord Johnston, President and CEO. “With our strong performance year-to-date and the acquisitions of Ryan Hanley, Cosgroves, and now Page, we are increasing our guidance for the full year.”