Stantec (STN) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 reached $1.7 billion, up 9.1% year-over-year, with 3.6% organic and 7.2% acquisition growth.

• Adjusted EBITDA increased 13.8% to $287.0 million, with margin up 70 basis points to 16.9%.

• Adjusted EPS grew 14.7% to $1.33, reflecting robust operational performance.

• Record contract backlog of $9.0 billion, up 13.2% year-over-year, providing strong visibility into future growth.

• Strong organic growth in Water (14.3%) and Energy & Resources (8.6%) segments.

Financial highlights

• Adjusted EBITDA reached $287M, up from $252M in Q1 2025; margin improved to 16.9%.

• Adjusted net income rose 14.6% to $152.2 million, achieving 9.0% of net revenue.

• Project margin increased 8.4% to $914.1 million, though as a percentage of net revenue, it decreased by 30 basis points to 54.0%.

• Net operating cash outflows totaled $2.3 million, reflecting seasonal trends and working capital investments; operating cash flows decreased by $103.0 million due to integration costs.

• Dividend of $0.245 per share declared, payable July 15, 2026.

Outlook and guidance

• 2026 net revenue growth expected in the range of 8.5%-11.5%, with mid- to high-single digit organic growth.

• Adjusted EBITDA margin projected at 17.6%-18.2% for 2026.

• Adjusted EPS growth guidance of 15%-18% for 2026.

• Adjusted net income margin targeted at or above 9.5% of net revenue; adjusted ROIC above 13%.

• U.S. organic growth expected to accelerate, with strong demand in data centers, defense, and advanced manufacturing.