Stantec reports first quarter 2026 results, achieving record backlog of $9.0 billion, and adjusted earnings per share growth of 14.7%
Rhea-AI Summary
Stantec (NYSE:STN) reported Q1 2026 net revenue of $1.7 billion, up 9.1% year-over-year, with 3.6% organic and 7.2% acquisition-driven growth. Adjusted EBITDA rose 13.8% to $287.0 million, with a 16.9% margin, and adjusted EPS increased 14.7% to $1.33.
Contract backlog reached a record $9.0 billion, up 13.2% and representing about 13 months of work. Stantec reaffirmed 2026 guidance, targeting 8.5%–11.5% net revenue growth, adjusted EBITDA margin of 17.6%–18.2%, and 15%–18% adjusted EPS growth, and declared a quarterly dividend of $0.245 per share.
AI-generated analysis. Not financial advice.
Positive
- Net revenue rose 9.1% to $1.7 billion versus Q1 2025
- Adjusted EBITDA increased 13.8% to $287.0 million; margin improved 70 bps to 16.9%
- Adjusted EPS grew 14.7% to $1.33; adjusted net income margin reached 9.0%
- Contract backlog hit $9.0 billion, up 13.2% and covering ~13 months
- 2026 guidance reaffirmed: 8.5%–11.5% net revenue growth, 15%–18% adjusted EPS growth
- Quarterly dividend raised to $0.245 per share from $0.225
Negative
- Operating cash flow declined by $103.0 million, resulting in a $2.3 million outflow
- Project margin percentage slipped 30 bps to 54.0% of net revenue
- Amortization of intangible assets increased to $42.6 million from $28.7 million
Key Figures
Market Reality Check
Peers on Argus
Pre-earnings, STN was down 3.04% with elevated volume. Peers showed mixed moves: APG -0.25%, BLD -1.91%, J -5.72%, MTZ -1.68%, while ACM gained 0.71%. Momentum scanners flagged no coordinated sector move, suggesting the reaction was more company-specific.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| 2025-11-13 | Q3 2025 earnings | Positive | +1.1% | Strong Q3 2025 beat with record margins and backlog growth. |
| 2025-08-13 | Q2 2025 earnings | Positive | -2.4% | Q2 2025 strong EPS and guidance increase but shares fell. |
| 2025-05-14 | Q1 2025 earnings | Positive | +5.1% | Q1 2025 robust growth and record backlog drove share gains. |
| 2024-11-07 | Q3 2024 earnings | Positive | -4.7% | Q3 2024 record revenue and backlog but stock sold off. |
| 2024-08-07 | Q2 2024 earnings | Positive | -2.7% | Q2 2024 strong growth and backlog expansion met with decline. |
Earnings releases have been consistently strong on fundamentals, but price reactions skew slightly negative on average, with more instances of downside divergence than upside alignment.
Recent earnings history shows Stantec repeatedly delivering strong results: growing net revenue, expanding adjusted EBITDA margins, and building record backlogs above $7B. Adjusted EPS has risen double-digits in multiple quarters, often alongside raised or reaffirmed guidance. Despite this, share-price reactions have been mixed, with both rallies and selloffs following solid prints. Today’s Q1 2026 report—featuring backlog of $9.0B and adjusted EPS growth of 14.7%—extends this pattern of fundamental strength amid uneven market responses.
Historical Comparison
Over the last five earnings releases, STN’s average next-day move was -0.72% despite consistently strong results. Today’s -3.04% pre-news decline tilts more negative than the typical earnings-day reaction.
Earnings releases since 2024 show a steady progression in net revenue, adjusted EBITDA margins near or above the high teens, and record backlogs rising from the low $7B range to about $9B, reflecting sustained growth across cycles.
Market Pulse Summary
This announcement highlights robust Q1 2026 performance: net revenue of $1.7B (up 9.1%), adjusted EBITDA of $287.0M with a 16.9% margin, and record backlog of $9.0B. Management reaffirmed 2026 targets, including adjusted EPS growth of 15–18%. Historically, earnings have shown consistent growth in revenue, margins, and backlog. Investors may track execution against the 17.6–18.2% margin outlook and the pace of cash flow normalization.
Key Terms
adjusted EBITDA financial
adjusted EPS financial
non-IFRS measures financial
organic growth financial
adjusted ROIC financial
net debt to adjusted EBITDA financial
AI-generated analysis. Not financial advice.
Highlights
- Net revenue of
$1.7 billion , an increase of9.1% compared to Q1 2025 - Adjusted EBITDA1 increase of
13.8% to$287.0 million and adjusted EBITDA margin1 of16.9% , a 70 basis point increase over Q1 2025 - Diluted EPS of
$0.97 and adjusted EPS1 of$1.33 , up10.2% and14.7% , respectively, compared to Q1 2025 - Contract backlog increased to
$9.0 billion , up13.2% year-over-year - Reaffirms mid-to-high single digit organic growth guidance for 2026.
EDMONTON, Alberta and NEW YORK, May 13, 2026 (GLOBE NEWSWIRE) -- Stantec (TSX, NYSE:STN), a global leader in sustainable engineering, architecture and environmental consulting, released its first quarter 2026 results today.
In the first quarter, net revenue increased to
“Stantec's first quarter results reflect sustained global demand for our services and solid operational performance as we continue to drive strong margins and bottom line results,” said Gord Johnston, President and CEO. “We continue to see strong organic growth in our contract backlog which reached a record
_________________
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 Q1 2026 Management's Discussion and Analysis).
2026 Outlook
As described in Stantec's 2025 Annual Report, the following targets have been established for 2026:
| 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 Q1 2026 Management's Discussion and Analysis. | |
Stantec continues to expect to achieve net revenue growth of
We anticipate adjusted EBITDA margin will continue to expand, reaching a record range of
Overall, we expect 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.
Q1 2026 compared to Q1 2025
Stantec achieved strong first quarter adjusted net income of
- Net revenue increased
9.1% or$141.3 million , to$1.7 billion , driven by7.2% acquisition growth and3.6% organic growth. Stantec drove organic growth in all of its regional operating units, and continued to deliver double-digit organic growth in its Water business. - Project margin increased
8.4% or$70.6 million , to$914.1 million as a result of net revenue growth and solid project execution. As a percentage of net revenue, project margin decreased slightly by 30 basis points to54.0% as a result of changes in project mix and remained in line with the expected range. - Adjusted EBITDA, driven by operational performance, increased
13.8% or$34.7 million , to$287.0 million . Adjusted EBITDA margin was16.9% , an increase of 70 basis points compared to Q1 2025. The growth in margin was primarily due to lower administrative and marketing expenses as a percentage of net revenue and reflected Stantec's continuing disciplined management of operations. - Net income increased
10.7% or$10.7 million , to$110.8 million , and diluted EPS increased10.2% , or$0.09 , to$0.97 , mainly due to increases in net revenue and, as a percentage of net revenue, a 110 basis point reduction in administrative and marketing expenses, partly offset by higher amortization of intangible assets as a result of Stantec's recent acquisitions and income taxes. - Adjusted net income grew
14.6% or$19.4 million , to$152.2 million , achieving9.0% of net revenue—an increase of 40 basis points. Adjusted EPS increased14.7% or$0.17 , to$1.33 . - Contract backlog grew to
$9.0 billion at March 31, 2026, achieving a13.2% year over year increase, which included9.1% acquisition growth and5.4% organic growth. Notably, Stantec's acquisition of Page contributed to over40% backlog growth in its Buildings business. Additionally, organic growth was achieved in all of Stantec's regions, including21.8% organic growth in its Global region and nearly10% organic growth in both Buildings and Water. Contract backlog represents approximately 13 months of work. - Operating cash flows decreased
$103.0 million or102.3% , with cash outflows of$2.3 million , reflecting the expected disruption from the Page integration, particularly the financial system migration and the investment in net working capital as a result of high organic revenue growth in Stantec's global region. - Days sales outstanding was 74 days, an improvement of 3 days compared to Q1 2025 and below Stantec's target of 75 days.
- Net debt to adjusted EBITDA (on a trailing twelve-month basis) at March 31, 2026 remained at 1.3x, within Stantec's internal target range of 1.0x to 2.0x.
- On May 13, 2026, Stantec's Board of Directors declared a dividend of
$0.245 per share, payable on July 15, 2026, to shareholders of record on June 30, 2026.
Q1 2026 Financial Highlights
| For the quarter ended March 31, | ||||
| 2026 | 2025 | |||
| (In millions of Canadian dollars, except per share amounts and percentages) | $ | % of Net Revenue | $ | % of Net Revenue |
| Gross revenue | 2,067.7 | 122.0% | 1,923.6 | |
| Net revenue | 1,694.3 | 100.0% | 1,553.0 | |
| Direct payroll costs | 780.2 | 709.5 | ||
| Project margin | 914.1 | 54.0% | 843.5 | |
| Administrative and marketing expenses | 648.3 | 612.0 | ||
| Depreciation of property and equipment | 17.7 | 17.6 | ||
| Depreciation of lease assets | 34.5 | 32.2 | ||
| Amortization of intangible assets | 42.6 | 28.7 | ||
| Net interest expense and other net finance expense | 24.1 | 21.4 | ||
| Other expense | 0.3 | 1.6 | ||
| Income taxes | 35.8 | 29.9 | ||
| Net income | 110.8 | 6.5% | 100.1 | |
| Basic and diluted earnings per share (EPS) (note) | 0.97 | n/m | 0.88 | n/m |
| Adjusted EBITDA (note) | 287.0 | 16.9% | 252.3 | |
| Adjusted net income (note) | 152.2 | 9.0% | 132.8 | |
| Adjusted EPS (note) | 1.33 | n/m | 1.16 | 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 Q1 2026 MD&A). | ||||
| n/m = not meaningful | ||||
Net Revenue by Reportable Segment
| (In millions of Canadian dollars, except percentages) | Q1 2026 | Q1 2025 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||
| Canada | 376.3 | 372.1 | 4.2 | — | n/a | 4.2 | 1.1 | % | ||||
| United States | 892.5 | 804.9 | 87.6 | 100.7 | (35.6 | ) | 22.5 | 2.8 | % | |||
| Global | 425.5 | 376.0 | 49.5 | 10.7 | 9.0 | 29.8 | 7.9 | % | ||||
| Total | 1,694.3 | 1,553.0 | 141.3 | 111.4 | (26.6 | ) | 56.5 | |||||
| Percentage Growth | 9.1 | % | 7.2 | % | (1.7 | %) | 3.6 | % | ||||
Backlog
| Backlog by Reportable Segment - March 31, 2026 vs March 31, 2025 | ||||||||||||
| (In millions of Canadian dollars, except percentages) | Mar 31, 2026 | Mar 31, 2025 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||
| Canada | 1,862.0 | 1,753.1 | 108.9 | — | n/a | 108.9 | 6.2 | % | ||||
| United States | 5,379.4 | 4,802.1 | 577.3 | 681.5 | (125.5 | ) | 21.3 | 0.4 | % | |||
| Global | 1,738.3 | 1,376.7 | 361.6 | 38.6 | 23.1 | 299.9 | 21.8 | % | ||||
| Total | 8,979.7 | 7,931.9 | 1,047.8 | 720.1 | (102.4 | ) | 430.1 | |||||
| Percentage Growth | 13.2 | % | 9.1 | % | (1.3 | )% | 5.4 | % | ||||
Webcast & Conference Call
Stantec will host a live webcast and conference call on Thursday, May 14, 2026, at 7:00 AM Mountain Time (9:00 AM Eastern Time) to discuss the Company’s first 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 Q1 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 month period ended March 31, 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 March 31, | ||
| (In millions of Canadian dollars, except per share amounts) | 2026 | 2025 |
| Net income | 110.8 | 100.1 |
| Add back: | ||
| Income taxes | 35.8 | 29.9 |
| Net interest expense | 23.8 | 21.0 |
| Depreciation and amortization | 94.8 | 78.5 |
| Unrealized loss on equity securities | 7.9 | 8.7 |
| Acquisition, integration, and restructuring costs (note 3) | 13.9 | 14.1 |
| Adjusted EBITDA | 287.0 | 252.3 |
| For the quarter ended March 31, | ||
| (In millions of Canadian dollars, except per share amounts) | 2026 | 2025 |
| Net income | 110.8 | 100.1 |
| Add back after tax: | ||
| Amortization of intangible assets related to acquisitions (note 1) | 24.8 | 15.1 |
| Unrealized loss on equity securities (note 2) | 6.0 | 6.7 |
| Acquisition, integration, and restructuring costs (note 3) | 10.6 | 10.9 |
| Adjusted net income | 152.2 | 132.8 |
| Weighted average number of shares outstanding - diluted | 114,066,995 | 114,066,995 |
| Adjusted earnings per share | 1.33 | 1.16 |
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 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 March 31, 2026, this amount is net of tax of
note 2: For the quarter ended March 31, 2026, this amount is net of tax of
note 3: The add back of certain administrative and marketing costs and depreciation primarily related to acquisition and integration expenses associated with our acquisitions and restructuring costs. For the quarter ended March 31, 2026, this amount is net of tax of
