Stantec reports record 2025 results, achieves 17.6% adjusted EBITDA margin, increases dividend by 8.9%, and provides 2026 outlook
Executive Summary
- Stantec reported record full‑year 2025 results: net revenue $6.5 bn (+10.7% YoY), adjusted EBITDA $1.14 bn (+16.7%), diluted EPS $4.20 and adjusted EPS $5.30, both up ~20% year‑over‑year.
- Fourth‑quarter 2025 revenue $1.6 bn (+10.9% QoQ) with adjusted EBITDA $283.5 m and EPS $0.82 (diluted).
- Company announced 2026 guidance targeting net revenue growth of 8.5%–11.5%, adjusted EBITDA margin 17.6%‑18.2%, adjusted EPS growth 15%‑18%, and a dividend of $0.245 per share payable April 15, 2026.
Key Details
- Full‑Year 2025 Financial Highlights
- Net revenue: $6,494.8 m (↑10.7%) – driven by 5.0% organic growth and 3.9% acquisition growth.
- Adjusted EBITDA: $1,143.7 m (↑16.7%); margin 17.6% (↑90 bps).
- Diluted EPS: $4.20; Adjusted EPS: $5.30 (↑19.9%).
- Net income: $479.4 m (↑32.6%); Adjusted net income: $604.4 m (↑19.8%).
- Contract backlog: $8.6 bn (↑9.5%), representing ~13 months of work; includes 30% growth from Page acquisition in Buildings segment.
- Net debt/adjusted EBITDA: 1.3x (within target range).
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Operating cash flow: $862.9 m (↑43.1%); free‑cash‑flow‑to‑net‑income 1.3×.
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Q4 2025 Highlights
- Revenue: $1,639.7 m (↑10.9%).
- Adjusted EBITDA: $283.5 m; margin 17.3% (↑60 bps).
- Diluted EPS: $0.82 (↓4.7%); Adjusted EPS: $1.25 (↑12.6%).
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Net income: $93.9 m (↓4.2%) due to higher amortization of intangibles from recent acquisitions.
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Segment Performance
- Canada revenue $1,546.5 m (+7.8% organic).
- United States revenue $3,369.4 m (+3.4% organic, strong acquisition contribution).
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Global revenue $1,578.9 m (+5.8% organic).
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2026 Outlook & Targets
- Net revenue growth: 8.5%‑11.5%.
- Adjusted EBITDA margin: 17.6%‑18.2%.
- Adjusted net income margin: ≥9.5% of revenue.
- Adjusted EPS growth: 15%‑18%.
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ROIC >13%; effective tax rate 23%‑25%; capital expenditures 1.4%‑1.8% of revenue; net debt/EBITDA 1.0‑2.0x; DSO ≤75 days.
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Dividend Declaration
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Board declared dividend $0.245 per share, payable April 15, 2026 to shareholders of record March 31, 2026.
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Conference Call
- Scheduled for Feb 26, 2026 at 7:00 AM MT (9:00 AM ET) with CEO Gord Johnston and CFO Vito Culmone to discuss Q4 and FY 2025 results.
Notable Quotes
“2025 marked another successful year… we achieved our highest ever adjusted EBITDA margin driven by strong execution and operational excellence.” – Gord Johnston, President & CEO
“2026 is off to a strong start… the momentum we have built positions us well to unlock meaningful growth not only in 2026, but for years to come.” – Gord Johnston, President & CEO