Stantec delivers strong second quarter 2026 results, expands margins and raises adjusted EBITDA outlook for 2026
Rhea-AI Summary
Stantec (TSX, NYSE: STN) reported strong Q2 2026 results, with net revenue up 11.5% year-over-year to $1.8 billion, driven by 7.1% acquisition growth and 3.7% organic growth. Adjusted EBITDA rose 17.1% to $332.9 million, lifting adjusted EBITDA margin 90 bps to 18.7%. Diluted EPS was $1.32 and adjusted EPS increased 18.4% to $1.61.
Contract backlog reached a record $9.2 billion, up 17.5% year-over-year, representing about 13 months of work. Year-to-date, net revenue grew 10.3% to $3.5 billion and adjusted EBITDA climbed 15.5% to $619.9 million, with margin up 80 bps to 17.8%. Stantec raised its 2026 adjusted EBITDA margin outlook to 17.8%–18.3%, reaffirmed net revenue growth of 8.5%–11.5%, adjusted EPS growth of 15%–18%, and adjusted ROIC above 13%.
The company repurchased 1,667,292 shares for $175.9 million in the first half, acquired Australian consultancy Niche on July 31, 2026, and declared a Q3 dividend of $0.245 per share, payable October 15, 2026.
Positive
- Q2 2026 net revenue up 11.5% year-over-year to $1.8 billion
- Q2 adjusted EBITDA up 17.1% to $332.9 million; margin 18.7% (+90 bps)
- Q2 adjusted EPS up 18.4% to $1.61
- Backlog up 17.5% year-over-year to $9.2 billion (~13 months of work)
- 2026 adjusted EBITDA margin guidance raised to 17.8%–18.3%
- Share repurchases of 1,667,292 shares for $175.9 million in H1 2026
Negative
- Q2 2026 cash from operations down $15.4 million to $118.6 million
- Year-to-date 2026 operating cash flow down $118.4 million to $116.3 million
- Lease asset impairment of $12.9 million recorded in Q2 2026
- Amortization of intangible assets increased to $40.3 million in Q2 2026
- Days sales outstanding rose 2 days year-over-year to 75 days
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 13 | Q1 2026 earnings | Positive | -6.6% | Revenue, EBITDA, EPS and backlog increased; 2026 guidance was reaffirmed. |
| Nov 13 | Q3 2025 earnings | Positive | +1.1% | Revenue, EBITDA, margin, EPS and backlog increased; 2025 guidance was narrowed. |
| Aug 13 | Q2 2025 earnings | Positive | -2.4% | Revenue, EBITDA, EPS and backlog increased; 2025 guidance was raised. |
| May 14 | Q1 2025 earnings | Positive | +5.1% | Revenue, EBITDA, EPS and backlog increased alongside strategic acquisitions. |
| Nov 07 | Q3 2024 earnings | Positive | -4.7% | Revenue, EBITDA, EPS and backlog increased; 2024 guidance was raised. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events produced three negative reactions and two positive reactions, with an average move of -1.5%.
Key Terms
adjusted ebitda financial
non-ifrs financial
organic growth financial
adjusted roic financial
days sales outstanding financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Net revenue of
$1.8 billion , an increase of11.5% compared to Q2 2025 - Adjusted EBITDA1 increase of
17.1% to$332.9 million and adjusted EBITDA margin1 of18.7% , a 90 basis point increase over Q2 2025 - Diluted EPS of
$1.32 and adjusted EPS1 of$1.61 , up10.9% and18.4% , respectively, compared to Q2 2025 - Contract backlog increased to
$9.2 billion , up17.5% year-over-year - Repurchased 1,667,292 common shares for an aggregate price of
$175.9 million in the first two quarters of 2026 - On July 31, 2026 Stantec acquired Niche, a 200-person engineering and environmental consultancy firm in Australia, bolstering its Environmental Services operations.
EDMONTON, Alberta and NEW YORK, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Stantec (TSX, NYSE:STN), a global leader in sustainable engineering, architecture and environmental consulting, released its second quarter 2026 results today.
In the second quarter, net revenue increased
On a year-to-date basis, net revenue increased
“As reflected in Stantec's second quarter results, strong operational performance, combined with solid growth in our Global region and meaningful contributions from our acquisition of Page, have kept us on track to deliver on our 2026 financial targets,” said Gord Johnston, President and CEO. “The long-term demand drivers of our business remain intact, and with a record backlog of
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1 Adjusted EPS, adjusted EBITDA, adjusted EBITDA margin and free cash flow to net income are non-IFRS measures; organic growth and acquisition growth are other financial measures (discussed in the Definitions section of Stantec's Q2 2026 Management's Discussion and Analysis).
2026 Outlook
Stantec is reaffirming its 2026 guidance while narrowing and adjusting upward its adjusted EBITDA target for the year.
| 2026 Annual Range | |
| Targets | |
| Net revenue growth | |
| Adjusted EBITDA as % of net revenue (note) | |
| Adjusted net income as % of net revenue (note) | at or above |
| Adjusted EPS growth (note) | |
| Adjusted ROIC (note) | above |
In setting targets and guidance, Stantec assumed an average value for the US dollar of
note: Adjusted EBITDA, adjusted net income, adjusted EPS, and adjusted ROIC are non-IFRS measures discussed in the Definitions section of Stantec's Q2 2026 Management's Discussion and Analysis.
The global environment is dynamic, and customer needs continue to evolve, as do public sector policy and investment priorities. While year-to-date results position Stantec favorably to achieve its initial estimate of net revenue growth of
Stantec's year-to-date results reflect strong margin improvements and effectiveness in managing operating costs, and the Company has refined its estimate of adjusted EBITDA margin accordingly. Stantec expects that adjusted EBITDA margin will reach a record range of
Overall, Stantec expects to achieve an adjusted net income margin at or above
The above targets do not include any assumptions related to additional acquisitions, given the unpredictable nature of the timing and size of such transactions.
Q2 2026 compared to Q2 2025
Stantec achieved strong second quarter adjusted net income of
- Net revenue increased
11.5% or$183.9 million , to$1.8 billion , driven by acquisition growth of7.1% , which primarily reflects the strong results of Page in Stantec's US operations, and organic growth of3.7% . Organic growth was driven by Stantec's Global region of12.8% . - Project margin increased
12.3% or$106.0 million , to$970.7 million as a result of net revenue growth and solid project execution. Project margin, as a percentage of net revenue, increased by 30 basis points to54.5% . - Adjusted EBITDA increased
17.1% or$48.5 million , to$332.9 million . Adjusted EBITDA margin was18.7% , an increase of 90 basis points compared to Q2 2025. The growth in margin was primarily due to the increase in net revenue, solid project margin, and lower administrative and marketing expenses as a percentage of net revenue, reflecting our focus on efficient management of operations and optimization of discretionary spending. - Net income increased
11.0% or$14.9 million , to$150.3 million , and diluted EPS increased11.0% , or$0.13 , to$1.32 , mainly due to net revenue growth and solid project margin, and, as a percentage of net revenue, a 110 basis point reduction in administrative and marketing expenses, partly offset by impairment recorded on lease assets and higher amortization of intangible assets as a result of Stantec's recent acquisitions. - Adjusted net income grew
18.0% or$27.8 million , to$182.5 million , achieving10.2% of net revenue—an increase of 50 basis points compared to Q2 2025. Adjusted EPS increased18.4% or$0.25 , to$1.61 . - Contract backlog grew to
$9.2 billion at June 30, 2026, achieving a17.5% year over year increase, which included7.8% acquisition growth and7.0% organic growth. Notably, Stantec's acquisition of Page contributed to over40% backlog growth in its Buildings business. Additionally, organic growth was achieved in all regions, driven primarily by nearly25% organic growth in its Global region and over10% organic growth in its Water business. Contract backlog represents approximately 13 months of work. - Cash flows from operations were
$118.6 million , which was a decrease of$15.4 million compared to Q2 2025. This reflects required investment in net working capital as a result of revenue growth. - Days sales outstanding (DSO) was 75 days, an increase of two days compared to Q2 2025 and within Stantec's target of 75 days.
- Net debt to adjusted EBITDA (on a trailing twelve-month basis) at June 30, 2026 remained at 1.3x, within Stantec's internal target range of 1.0x to 2.0x.
- On July 31, 2026 Stantec acquired Niche, a 200-person engineering and environmental consultancy firm in Australia, bolstering its Environmental Services operations.
- On August 12, 2026, Stantec's Board of Directors declared a dividend of
$0.245 per share, payable on October 15, 2026, to shareholders of record on September 29, 2026.
Year-to-date Q2 2026 compared to year-to-date Q2 2025
- Net revenue increased
10.3% or$325.2 million , to$3.5 billion , driven by acquisition growth of7.2% , which primarily reflects strong results of Page in Stantec's US operations, and organic growth of3.7% . Organic growth was driven by Stantec's Global region of10.4% combined with modest growth in Canada and the United States. The largest driver of organic growth was a13.0% increase in net revenue from Stantec's Water business. - Project margin increased
$176.6 million or10.3% , to$1.9 billion . As a percentage of net revenue, project margin remained consistent with the prior year at54.2% . - Adjusted EBITDA increased
$83.2 million or15.5% , to$619.9 million . Adjusted EBITDA margin increased by 80 basis points over the prior period to17.8% , primarily due to lower administrative and marketing expenses as a percentage of net revenue, reflecting Stantec's focus on efficient management of operations and optimization of discretionary spending. - Net income increased
10.9% or$25.6 million , to$261.1 million , and diluted EPS increased11.2% , or$0.23 , to$2.29 , mainly due to higher net revenue and lower administrative and marketing expenses as a percentage of net revenue partly offset by higher amortization of intangible assets and lease asset impairment. - Adjusted net income grew
16.4% or$47.2 million , to$334.7 million , achieving9.6% of net revenue—an increase of 50 basis points—and adjusted EPS increased16.7% , or$0.42 , to$2.94 . - Cash flows from operations were
$116.3 million , a decrease of$118.4 million compared to the prior year. This reflects the required investment in net working capital as a result of revenue growth and the impacts of the Page integration in Q1 2026.
Q2 2026 Financial Highlights
| For the quarter ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| (In millions of Canadian dollars, except per share amounts and percentages) | $ | % of Net Revenue | $ | % of Net Revenue | ||||
| Gross revenue | 2,228.0 | 125.1 | % | 1,964.3 | 123.0 | % | ||
| Net revenue | 1,780.6 | 100.0 | % | 1,596.7 | 100.0 | % | ||
| Direct payroll costs | 809.9 | 45.5 | % | 732.0 | 45.8 | % | ||
| Project margin | 970.7 | 54.5 | % | 864.7 | 54.2 | % | ||
| Administrative and marketing expenses | 648.2 | 36.4 | % | 598.3 | 37.5 | % | ||
| Depreciation of property and equipment | 18.1 | 1.0 | % | 17.3 | 1.1 | % | ||
| Depreciation of lease assets | 35.3 | 2.0 | % | 31.1 | 1.9 | % | ||
| Net impairment (reversal) of lease assets | 12.9 | 0.7 | % | (0.8 | ) | (0.1 | %) | |
| Amortization of intangible assets | 40.3 | 2.3 | % | 31.3 | 2.0 | % | ||
| Net interest expense and other net finance expense | 27.0 | 1.5 | % | 21.2 | 1.3 | % | ||
| Other income | (11.2 | ) | (0.6 | %) | (12.8 | ) | (0.7 | %) |
| Income taxes | 49.8 | 2.8 | % | 43.7 | 2.7 | % | ||
| Net income | 150.3 | 8.4 | % | 135.4 | 8.5 | % | ||
| Basic and diluted earnings per share (EPS) (note) | 1.32 | n/m | 1.19 | n/m | ||||
| Adjusted EBITDA (note) | 332.9 | 18.7 | % | 284.4 | 17.8 | % | ||
| Adjusted net income (note) | 182.5 | 10.2 | % | 154.7 | 9.7 | % | ||
| Adjusted EPS (note) | 1.61 | n/m | 1.36 | n/m | ||||
| Dividends declared per common share | 0.245 | n/m | 0.225 | n/m | ||||
note: Adjusted EBITDA, adjusted net income, and adjusted EPS are non-IFRS measures (discussed in the Definitions section of the Q2 2026 MD&A).
n/m = not meaningful
Net Revenue by Reportable Segment
| (In millions of Canadian dollars, except percentages) | Q2 2026 | Q2 2025 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||
| Canada | 403.2 | 393.7 | 9.5 | — | n/a | 9.5 | ||||||
| United States | 924.5 | 819.6 | 104.9 | 105.1 | (0.2 | ) | — | — | % | |||
| Global | 452.9 | 383.4 | 69.5 | 8.8 | 11.4 | 49.3 | ||||||
| Total | 1,780.6 | 1,596.7 | 183.9 | 113.9 | 11.2 | 58.8 | ||||||
| Percentage Growth | ||||||||||||
Backlog
| Backlog by Reportable Segment - June 30, 2026 vs June 30, 2025 | ||||||||||||
| (In millions of Canadian dollars, except percentages) | Jun 30, 2026 | Jun 30, 2025 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||
| Canada | 1,862.4 | 1,786.6 | 75.8 | — | — | 75.8 | ||||||
| United States | 5,465.9 | 4,584.7 | 881.2 | 598.6 | 174.4 | 108.2 | ||||||
| Global | 1,908.0 | 1,490.5 | 417.5 | 11.9 | 37.6 | 368.0 | ||||||
| Total | 9,236.3 | 7,861.8 | 1,374.5 | 610.5 | 212.0 | 552.0 | ||||||
| Percentage Growth | ||||||||||||
Webcast & Conference Call
Stantec will host a live webcast and conference call on Thursday, August 13, 2026, at 7:00 AM Mountain Time (9:00 AM Eastern Time) to discuss the Company’s second quarter performance.
To listen to the webcast and view the slide presentation, please join here.
If you are an analyst and would like to participate in the Q&A, please register here.
The conference call and slideshow presentation will be broadcast live and archived in their entirety in the Investors section of Stantec.com.
About Stantec
Stantec empowers clients, people, and communities to rise to the world’s greatest challenges at a time when the world faces more unprecedented concerns than ever before.
We are a global leader in sustainable engineering, architecture, and environmental consulting. Our professionals deliver the expertise, technology, and innovation communities need to manage aging infrastructure, demographic and population changes, the energy transition, and more.
Today’s communities transcend geographic borders. At Stantec, community means everyone with an interest in the work that we do—from our project teams and industry colleagues to our clients and the people our work impacts. The diverse perspectives of our partners and interested parties drive us to think beyond what’s previously been done on critical issues like climate change, digital transformation, and future-proofing our cities and infrastructure.
We are designers, engineers, scientists, project managers, and strategic advisors. We innovate at the intersection of community, creativity, and client relationships to advance communities everywhere, so that together we can redefine what’s possible.
Stantec trades on the TSX and the NYSE under the symbol STN.
Cautionary Statements
Non-IFRS and Other Financial Measures
Stantec reports its financial results in accordance with IFRS. However, in this press release, the following non-IFRS and other financial measures are used by the Company: adjusted EBITDA, adjusted net income, adjusted earnings per share (EPS), adjusted return on invested capital (ROIC), free cash flow, free cash flow to net income, net debt to adjusted EBITDA, days sales outstanding (DSO), margin (percentage of net revenue), organic growth (retraction), acquisition growth, and measures described as on a constant currency basis and the impact of foreign exchange or currency fluctuations, as well as measures and ratios calculated using these non-IFRS or other financial measures. Additional disclosure for these non-IFRS and other financial measures, incorporated by reference, is included in the Definitions of Non-IFRS and Other Financial Measures section of the Q2 2026 Management’s Discussion and Analysis, available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov, and the Company’s website at Stantec.com and the reconciliation of Non-IFRS Financial Measures appended hereto.
These non-IFRS and other financial measures do not have a standardized meaning under IFRS and, therefore, may not be comparable similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS and other financial measures provide useful information to investors to assist them in understanding components of Stantec's financial results. These measures should not be considered in isolation or viewed as a substitute for the related financial information prepared in accordance with IFRS.
Forward-looking Statements
Certain statements contained in this news release constitute forward-looking statements. Forward-looking statements in this news release include, but are not limited to, Stantec's Outlook and Annual Targets for 2026 in their entirety, any projections related to revenue, adjusted EBITDA as a % of net revenue, adjusted net income as a % of net revenue, adjusted diluted EPS growth, adjusted ROIC, free cash flow to net income, net debt to adjusted EBITDA, effective tax rate, earnings patterns, and days sales outstanding. Any such statements represent the views of management only as of the date hereof and are presented for the purpose of assisting the Company’s shareholders in understanding Stantec’s operations, objectives, priorities, and anticipated financial performance as at and for the periods ended on the dates presented and may not be appropriate for other purposes. By their nature, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. Stantec's assumptions relating to the 2026 Outlook and Annual Targets are provided in the Company’s 2025 Annual Report.
Readers of this news release are cautioned not to place undue reliance on forward-looking statements since a number of factors could cause actual future results to differ materially from the expectations expressed in these forward-looking statements. These factors include, but are not limited to, economic downturns, future pandemics or health crises that could adversely affect operations, reduced public or private sector capital spend, changing market conditions for Stantec’s services, and the risk that Stantec fails to capitalize on its strategic initiatives. Investors and the public should carefully consider these factors, other uncertainties, and potential events, as well as the inherent uncertainty of forward-looking statements, when relying on these statements to make decisions with respect to the Company.
Future outcomes relating to forward-looking statements may be influenced by many factors and material risks. For the three and six month periods ended June 30, 2026, there has been no significant change in the risk factors from those described in Stantec's 2025 Annual Report. This report is accessible online by visiting EDGAR on the SEC website at sec.gov or by visiting the CSA website at sedarplus.com or Stantec’s website, stantec.com. You may obtain a hard copy of the 2025 Annual Report free of charge from the investor contact noted below.
Investor Contact
Jess Nieukerk
Stantec Investor Relations
Ph: 403-569-5389
jess.nieukerk@stantec.com
To subscribe to Stantec’s email news alerts, please fill out the subscription form, which is also available on the Contact Information page of the Investors section at Stantec.com.
Design with community in mind
Attached to this news release are Stantec’s reconciliation of non-IFRS financial measures.
Reconciliation of Non-IFRS Financial Measures
| For the quarter ended June 30, | ||||
| (In millions of Canadian dollars, except per share amounts) | 2026 | 2025 | ||
| Net income | 150.3 | 135.4 | ||
| Add back: | ||||
| Income taxes | 49.8 | 43.7 | ||
| Net interest expense | 26.5 | 20.7 | ||
| Net impairment of lease assets (note 1) | 10.1 | 0.1 | ||
| Depreciation and amortization | 93.7 | 79.7 | ||
| Unrealized (gain) loss on equity securities | (9.8 | ) | (7.9 | ) |
| Acquisition, integration, and restructuring costs (note 4) | 12.3 | 12.7 | ||
| Adjusted EBITDA | 332.9 | 284.4 | ||
| For the quarter ended June 30, | ||||
| (In millions of Canadian dollars, except per share amounts) | 2026 | 2025 | ||
| Net income | 150.3 | 135.4 | ||
| Add back after tax: | ||||
| Net impairment of lease assets (note 1) | 7.6 | 0.1 | ||
| Amortization of intangible assets related to acquisitions (note 2) | 22.7 | 15.7 | ||
| Unrealized (gain) loss on equity securities (note 3) | (7.4 | ) | (6.1 | ) |
| Acquisition, integration, and restructuring costs (note 4) | 9.3 | 9.6 | ||
| Adjusted net income | 182.5 | 154.7 | ||
| Weighted average number of shares outstanding - diluted | 113,560,104 | 114,066,995 | ||
| Adjusted earnings per share | 1.61 | 1.36 | ||
See the Definitions section for our discussion of non-IFRS and other financial measures used and additional reconciliations of non-IFRS financial measures.
note 1: The net impairment of lease assets includes onerous contract provisions related to the lease agreements associated with underutilized office space for the quarter ended June 30, 2026 of
note 2: The add back of intangible amortization relates only to the amortization from intangible assets acquired through acquisitions and excludes the amortization of software purchased by Stantec. For the quarter ended June 30, 2026, this amount is net of tax of
note 3: For the quarter ended June 30, 2026, this amount is net of tax of
note 4: The add back of certain administrative and marketing costs and depreciation primarily related to acquisition and integration expenses associated with our acquisitions and restructuring activities. For the quarter ended June 30, 2026, this amount is net of tax of
