Overview
* Stantec ( STN ) Q2 net revenue rises 6.9% to C$1.6 bln, missing expectations
* Adjusted EPS meets expectations at C$1.36, adjusted EBITDA beats estimates
Outlook
* Stantec ( STN ) raises 2025 net revenue growth guidance to 10%-12%
* Company expects adjusted EPS growth of 18.5%-21.5% in 2025
* Stantec ( STN ) increases adjusted EBITDA margin guidance to 17%-17.4%
* Company sees adjusted ROIC above 12.5% for 2025
Result Drivers
* ORGANIC GROWTH - Stantec ( STN ) achieved 4.8% organic growth, with significant contributions from Water and Energy & Resources sectors
* ACQUISITIONS - Recent acquisitions, including Page, bolstered the company's Buildings business and contributed to revenue growth
* EXPENSE MANAGEMENT - Lower administrative and marketing expenses improved adjusted EBITDA margin by 120 basis points
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q2 Miss C$1.60 C$1.64
Revenue bln bln (10
Analysts
)
Q2 Meet C$1.36 C$1.36
Adjusted (10
EPS Analysts
)
Q2 EPS C$1.19
Q2 Beat C$284.40 C$283.50
Adjusted mln mln (11
EBITDA Analysts
)
Q2 Order C$7.90
Backlog bln
Analyst Coverage
* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
* The average consensus recommendation for the construction & engineering peer group is "buy"
* Wall Street's median 12-month price target for Stantec Inc ( STN ) is C$155.00, about 3% above its August 12 closing price of C$150.32
* The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 22 three months ago
Press Release:
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)