Stantec (STN) Q1 2025 earnings summary

Executive summary

• Achieved record net revenue of $1.6 billion in Q1 2025, up 13.3% year-over-year, driven by 5.9% organic and up to 7.4% acquisition growth.

• Adjusted EBITDA rose 19.1% to $252.3 million, with margin improving 70 basis points to 16.2%.

• Adjusted EPS increased 28.9% to $1.16 compared to Q1 2024.

• Record backlog reached $7.9 billion, up 12.8% year-over-year, representing about 12 months of work.

• Major acquisitions in the US (Page) and Ireland (Ryan Hanley) expand capabilities and market position, adding over 1,500 employees.

Financial highlights

• Gross revenue for Q1 was up to $1.92 billion, with net revenue at $1.6 billion, both up from Q1 2024.

• Project margin improved to 54.3% of net revenue.

• Operating cash flow increased 135.8% year-over-year to $100.7 million.

• Net income grew 29.8% to $100.1 million; adjusted net income rose 28.9% to $132.8 million (8.6% of net revenue).

• Net debt to adjusted EBITDA at 1.1x, within the target range.

Outlook and guidance

• 2025 guidance reaffirmed: net revenue growth of 7%–10%, adjusted EBITDA margin of 16.7%–17.3%, and adjusted EPS growth of 16%–19%.

• Adjusted ROIC targeted above 12%.

• Guidance excludes impact from Page and Ryan Hanley acquisitions and share-based compensation revaluation.

• Organic growth in US and Canada expected in mid- to high-single digits, with Global also targeting similar growth.

• Strategic plan targets 50% net revenue growth to CAD 7.5 billion by end of 2026.