Stantec (STN) Q3 2025 earnings summary

Executive summary

• Net revenue reached $1.7 billion in Q3 2025, up 11.8% year-over-year, driven by 5.6% organic and 5.2% acquisition growth across all regions and business units.

• Adjusted EBITDA rose 17.8% to $323.4 million, with margin at a record 19.0%, up 100 basis points year-over-year.

• Adjusted EPS increased 17.7% to $1.53; diluted EPS up 46.7% to $1.32.

• Backlog grew 14.9% year-over-year to $8.4 billion, representing about 13 months of work and reflecting robust demand and project wins.

• Strong operational performance and project execution supported by recent acquisitions and global trends in water, transportation, energy transition, and mission-critical sectors.

Financial highlights

• Gross revenue for Q3 was $2.1 billion, net revenue $1.7 billion, up 11.8% from Q3 2024.

• Project margin increased 12.1% to $927.9 million, representing 54.4% of net revenue.

• Net income rose 45.3% to $150.0 million; adjusted net income up 17.7% to $174.1 million (10.2% of net revenue).

• Operating cash flows for Q3 increased 76.6% to $315.9 million; year-to-date up 86% to $550.6 million.

• DSO improved by 4 days to 73 days since December 2024.

Outlook and guidance

• Net revenue growth for 2025 expected at 10%-12%; adjusted EBITDA margin guidance raised to 17.2%-17.5%.

• Adjusted EPS growth for the year projected at 18.5%-21.5%; adjusted ROIC expected above 12.5%.

• Effective tax rate expected between 23.5%-24.5%.

• Guidance reflects recent acquisitions and does not assume further M&A or share-based compensation revaluation.

• Positive momentum anticipated into 2026, with strong demand drivers across all regions and sectors.