Stantec (STN) Q2 2025 earnings summary

Executive summary

• Net revenue rose 6.9% year-over-year to $1.6 billion in Q2 2025, driven by 4.8% organic growth across all regions and business units.

• Adjusted EBITDA increased 15.0% to $284.4 million, with margin up 120 basis points to 17.8%.

• Adjusted EPS grew 21.4% to $1.36 in Q2 2025; diluted EPS surged 63.0% to $1.19.

• Completed acquisitions of Page (US), Cosgroves (New Zealand), and Ryan Hanley (Ireland), expanding global presence and capabilities.

• Recognized as the top global healthcare architecture firm and ranked among the world's most sustainable companies.

Financial highlights

• Gross revenue reached $1.964 billion and net revenue $1.597 billion, both up from Q2 2024.

• Project margin increased 6.5% to $864.7 million, representing 54.2% of net revenue.

• Operating cash flow doubled year-to-date to $235 million; DSO improved to 73 days.

• Backlog grew 9.9% year-over-year to $7.9 billion, with 9% organic growth.

• Net debt-to-adjusted EBITDA ratio at 1.1x, within the 1x-2x target range.

Outlook and guidance

• 2025 net revenue growth guidance raised to 10–12% (from 7–10%) due to acquisitions and strong performance.

• Adjusted EBITDA margin guidance increased to 17.0–17.4% (from 16.7–17.3%).

• Adjusted EPS growth now expected at 18.5–21.5% for 2025.

• Adjusted ROIC expected above 12.5%.

• Effective tax rate now expected at 23.5–24.5%.