Stantec Inc. is a global professional services firm delivering comprehensive expertise in engineering, architecture, and environmental consultancy. Operating across Canada, the United ...
Stantec Inc. (NYSE: STN) is a multinational design and delivery company focused on helping clients and communities address complex challenges through professional services in engineering, architecture, environmental science, and project advisory. Founded in 1954 in Edmonton, Alberta, Stantec has grown from a local practice into a global firm with operations ...Stantec Inc. (NYSE: STN) is a multinational design and delivery company focused on helping clients and communities address complex challenges through professional services in engineering, architecture, environmental science, and project advisory. Founded in 1954 in Edmonton, Alberta, Stantec has grown from a local practice into a global firm with operations across Canada, the United States, and other international markets.
At a high level, Stantec serves public- and private-sector organizations that need planning, design, and engineering expertise for the built environment and for critical infrastructure systems. Its work commonly spans infrastructure and facility development, including multidisciplinary engineering services such as structural engineering and mechanical, electrical, and plumbing (MEP) engineering. The company also provides complementary design and technical disciplines including interior design, landscape architecture, surveying, and project management support. For environmental and compliance-focused needs, Stantec offers environmental consulting and environmental sciences services, along with assessments and advisory related to cultural resources and other permitting or regulatory requirements—capabilities that are particularly important for infrastructure and transportation programs.
Stantec’s transportation practice extends from early advisory and strategic planning through technical design and execution support. In addition, the company conducts specialized assessment services—such as paleontological and archaeological evaluations—often connected to rail, water, power, and broader transportation sectors. This breadth supports clients from initial studies and feasibility through to design development and implementation planning.
In terms of how Stantec creates value, the company’s multidisciplinary approach helps reduce fragmentation for customers: rather than engaging separate firms for each technical area, clients can align planning, engineering, environmental, and design work within a single coordinated professional services team. Engagements can be structured around project delivery, design services, and ongoing advisory; typical project cost considerations include staff and technical resource levels, local permitting/compliance activities, and the integration work required across engineering disciplines.
Financially, the provided data indicates a large, established public-market profile (market capitalization in the billions of USD) and ongoing cash generation and profitability metrics typical of a global professional services company. Key leadership includes President and Chief Executive Officer Gordon Allan Johnston, who leads the firm’s strategy and operations. With tens of thousands of employees across hundreds of locations, Stantec continues to emphasize sustainable, future-focused solutions—covering topics such as climate-related resilience, environmental stewardship, and future-proofing infrastructure—while supporting clients through long-cycle project development and delivery.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$8.1B
+8.5%
-14.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$479.0M
+32.5%
+35.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+39.0%
-8.4%
+37.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+9.2%
+16.6%
+70.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+5.9%
+22.1%
+57.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$790.4M
+56.8%
+513.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.7%
+44.5%
+581.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
96.7%
+39.4%
+4.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.23x
-4.4%
+11.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Welcome to Stantec's Second Quarter 2026 Results Webcast and Conference Call. Leading the call today are Gord Johnston, President and Chief Executive Officer; and Vito Culmone, Executive Vice President and Chief Financial Officer. Stantec invites those dialing in to view the slide presentation, which is available in the Investors section at stantec.com. Today's call is also webcast. [Operator Instructions] All information provided during this conference call is subject to the forward-looking statement qualifications set out on Slide 2. Detailed in Stantec's management's discussion and analysis and incorporated in full for the purposes of today's call. Unless otherwise noted, dollar amounts discussed in today's call are expressed in Canadian dollars and are generally rounded. With that, I'll turn the call over to Mr. Gord Johnston. Please go ahead, sir.
Gordon Johnston: Good morning, everyone, and thank you for joining us today. Our second quarter financial results continue to showcase the strength of our business. Stantec's diversification across operating regions and across sectors has kept us on track to deliver on our financial targets for the year. In the second quarter, we grew our net revenue to $1.8 billion, up almost 12% compared to Q2 2025, driven by almost 4% organic and 7% acquisition growth. Organic growth was driven by double-digit growth of approximately 13% in our global region. And our industry-leading water business achieved close to 12% organic growth. Adjusted EBITDA increased over 17%, and we achieved an adjusted EBITDA margin of 18.7%, a record for Q2, and this represents an increase of 90 basis points year-over-year. Adjusted EPS grew over 18% compared to Q2 2025. Looking at our results in each of our geographies. In the second quarter, U.S. net revenue increased almost 13%, driven by the acquisition and strong performance of Page. Underlying demand across our end markets remains very strong, supported by long-term investments in infrastructure, energy, transportation, water and advanced manufacturing facilities. Our water business saw continued demand and work on large wastewater treatment projects. In Energy & Resources, work on a major hydropower dam project drove organic growth, and our infrastructure business delivered growth through data center projects in our North Central region and benefited from favorable recoveries on a large transportation project. While organic growth was flat in the quarter, driven by some delays and the slower ramp up on certain projects, we've already started to see positive signs of acceleration in Q3 and expect this trend to continue throughout the back half of this year. In Canada, second quarter net revenue grew 2.4% organically. Double-digit organic net revenue growth in our water business was driven by biosolids projects and continued momentum on wastewater projects. Robust net revenue growth was also achieved in both our Buildings and Environmental Services businesses …
