Stantec reports second quarter 2025 results, delivering over 20% growth in adjusted earnings per share and increases its 2025 outlook
Stantec (NYSE:STN) reported strong Q2 2025 results with significant growth across key metrics. Net revenue increased 6.9% to $1.6 billion, driven by 4.8% organic growth. The company achieved an adjusted EBITDA of $284.4 million, up 15.0%, with margins expanding 120 basis points to 17.8%. Diluted EPS grew 63.0% to $1.19, while adjusted EPS increased 21.4% to $1.36.
Contract backlog grew 9.9% year-over-year to $7.9 billion, including 9% organic growth. The company completed strategic acquisitions including Page (1,400 employees), Ryan Hanley (150 employees), and Cosgroves (90 employees). Based on strong performance and recent acquisitions, Stantec increased its 2025 guidance, now expecting 10-12% net revenue growth and adjusted EPS growth of 18.5-21.5%.
Stantec (NYSE:STN) ha registrato ottimi risultati nel secondo trimestre 2025 con una crescita significativa nei principali indicatori. I ricavi netti sono saliti del 6,9% a 1,6 miliardi di dollari, trainati da una crescita organica del 4,8%. L'azienda ha raggiunto un EBITDA rettificato di 284,4 milioni di dollari, in aumento del 15,0%, con i margini in espansione di 120 punti base al 17,8%. L'utile diluito per azione è cresciuto del 63,0% a $1,19, mentre l'utile rettificato per azione è aumentato del 21,4% a $1,36.
Il portafoglio ordini è cresciuto del 9,9% su base annua a 7,9 miliardi di dollari, compresa una crescita organica del 9%. L'azienda ha completato acquisizioni strategiche tra cui Page (1.400 dipendenti), Ryan Hanley (150 dipendenti) e Cosgroves (90 dipendenti). Sulla base delle solide performance e delle acquisizioni recenti, Stantec ha innalzato le previsioni per il 2025, ora prevedendo una crescita dei ricavi netti del 10-12% e una crescita dell'utile rettificato per azione del 18,5-21,5%.
Stantec (NYSE:STN) registró sólidos resultados en el 2T 2025 con un crecimiento notable en los principales indicadores. Los ingresos netos aumentaron un 6,9% hasta 1,6 mil millones de dólares, impulsados por un crecimiento orgánico del 4,8%. La compañía alcanzó un EBITDA ajustado de 284,4 millones de dólares, un alza del 15,0%, con márgenes que se ampliaron 120 puntos básicos hasta el 17,8%. El BPA diluido creció 63,0% hasta $1,19, mientras que el BPA ajustado subió 21,4% hasta $1,36.
La cartera de contratos creció 9,9% interanual hasta 7,9 mil millones de dólares, incluyendo un crecimiento orgánico del 9%. La empresa completó adquisiciones estratégicas, entre ellas Page (1.400 empleados), Ryan Hanley (150 empleados) y Cosgroves (90 empleados). Con el sólido desempeño y las adquisiciones recientes, Stantec elevó sus previsiones para 2025, esperando ahora un crecimiento de ingresos netos del 10-12% y un aumento del BPA ajustado de 18,5-21,5%.
Stantec (NYSE:STN)는 2025년 2분기에 주요 지표 전반에서 견조한 실적을 발표했습니다. 순매출은 6.9% 증가한 $1.6 billion으로, 그중 4.8%는 유기적 성장에 기인했습니다. 회사는 조정 EBITDA $284.4 million을 달성해 15.0% 증가했으며, 마진은 120베이시스포인트 확대되어 17.8%가 되었습니다. 희석 주당순이익(EPS)은 63.0% 증가해 $1.19였고, 조정 EPS는 21.4% 증가해 $1.36였습니다.
계약 잔고는 전년 대비 9.9% 증가한 $7.9 billion으로, 이 중 9%는 유기적 성장입니다. 회사는 Page(1,400명), Ryan Hanley(150명), Cosgroves(90명) 등 전략적 인수를 완료했습니다. 견조한 실적과 최근 인수를 바탕으로 Stantec은 2025년 가이던스를 상향 조정해 현재 순매출 10-12% 성장과 조정 EPS 18.5-21.5% 성장을 예상하고 있습니다.
Stantec (NYSE:STN) a publié de solides résultats au 2e trimestre 2025 avec une croissance marquée sur les indicateurs clés. Le chiffre d'affaires net a augmenté de 6,9% à 1,6 milliard de dollars, porté par une croissance organique de 4,8%. La société a réalisé un EBITDA ajusté de 284,4 millions de dollars, en hausse de 15,0%, avec une expansion des marges de 120 points de base à 17,8%. Le BPA dilué a progressé de 63,0% à $1,19, tandis que le BPA ajusté a augmenté de 21,4% à $1,36.
Le carnet de commandes a crû de 9,9% d'une année sur l'autre à 7,9 milliards de dollars, incluant une croissance organique de 9%. La société a finalisé des acquisitions stratégiques, dont Page (1 400 employés), Ryan Hanley (150 employés) et Cosgroves (90 employés). Sur la base de ces performances solides et des acquisitions récentes, Stantec a relevé ses prévisions pour 2025, anticipant désormais une croissance du chiffre d'affaires net de 10–12% et une hausse du BPA ajusté de 18,5–21,5%.
Stantec (NYSE:STN) meldete starke Ergebnisse für das 2. Quartal 2025 mit deutlichem Wachstum bei den wichtigsten Kennzahlen. Der Nettoumsatz stieg um 6,9% auf 1,6 Milliarden US-Dollar, getragen von 4,8% organischem Wachstum. Das Unternehmen erzielte ein bereinigtes EBITDA von 284,4 Millionen US-Dollar, ein Plus von 15,0%, wobei die Margen um 120 Basispunkte auf 17,8% zulegten. Das verwässerte Ergebnis je Aktie wuchs um 63,0% auf $1,19, das bereinigte Ergebnis je Aktie stieg um 21,4% auf $1,36.
Der Auftragsbestand wuchs 9,9% im Jahresvergleich auf 7,9 Milliarden US-Dollar, davon 9% organisches Wachstum. Das Unternehmen schloss strategische Übernahmen ab, darunter Page (1.400 Mitarbeiter), Ryan Hanley (150 Mitarbeiter) und Cosgroves (90 Mitarbeiter). Aufgrund der starken Performance und der jüngsten Akquisitionen hat Stantec seine Prognose für 2025 erhöht und erwartet nun ein Netto-Umsatzwachstum von 10–12% sowie ein bereinigtes EPS-Wachstum von 18,5–21,5%.
- Adjusted EBITDA increased 15.0% to $284.4 million with margin expansion of 120 basis points
- Contract backlog grew 9.9% to $7.9 billion, with 9% organic growth
- Strategic acquisitions of Page, Ryan Hanley, and Cosgroves strengthen market position
- Increased 2025 guidance for revenue and earnings growth
- Strong operating cash flows up 79.4% to $134.0 million
- Improved DSO to 73 days, below target of 80 days
- Secured $425 million in investment-grade senior unsecured notes
- Expanded credit facility to $1.2 billion from $800 million
- US organic growth outlook moderated to mid-single digits due to slower public sector procurement
- Elevated caution in private sectors for larger projects
- Increased effective tax rate guidance to 23.5-24.5% from 22-23%
- Expected lower margins in Q4 2025 due to seasonal effects
Insights
Stantec delivered stellar Q2 results with 21.4% adjusted EPS growth, driven by margin expansion and strategic acquisitions, prompting raised guidance.
Stantec's Q2 2025 results showcase exceptional operational efficiency with substantial margin improvements driving profitability. Net revenue increased
The company's disciplined approach to cost management is evident in the declining administrative and marketing expenses as a percentage of revenue. This operational leverage translated directly to the bottom line, with adjusted EPS surging
Stantec's backlog growth tells an equally compelling story – up
The revised guidance reflects management's confidence, with new targets for net revenue growth (
The strategic acquisitions of Page (1,400 employees), Ryan Hanley (150 employees), and Cosgroves (90 employees) expand Stantec's capabilities in key markets and sectors. These acquisitions, combined with the company's strong organic growth, position Stantec well for continued success despite some noted slowdowns in US procurement cycles and private sector caution.
The balance sheet remains solid with net debt to adjusted EBITDA at 1.1x, well within the target range of 1.0-2.0x. The company also enhanced its financial flexibility by increasing its revolving credit facility to
The
Highlights
- Net revenue of
$1.6 billion , an increase of6.9% compared to Q2 2024 - Adjusted EBITDA1 increase of
15.0% to$284.4 million and adjusted EBITDA margin1 of17.8% , a 120 basis point increase over Q2 2024 - Diluted EPS of
$1.19 and adjusted EPS1 of$1.36 , up63.0% and21.4% , respectively, compared to Q2 2024 - Contract backlog of
$7.9 billion , up9.9% year-over-year, including9% organic growth - Acquired Cosgroves, a 90-person industry-leading firm, expanding buildings engineering capabilities in New Zealand
- Closed the acquisition of Page, a 1,400 person US-based design, architecture and engineering firm
- Increased guidance for net revenue, EBITDA margin, adjusted diluted EPS and adjusted ROIC to reflect strong performance year-to-date and the closure of the Page acquisition.
EDMONTON, Alberta and NEW YORK, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Stantec (TSX, NYSE:STN), a global leader in sustainable engineering, architecture and environmental consulting, released its second quarter 2025 results today which were underpinned by the continued demand for Stantec’s services and solid project execution.
Net revenue increased to
“Throughout the first half of 2025, Stantec has delivered strong financial and operational results, underpinned by the diversification of our business, and continued demand across all of our regions,” said Gord Johnston, President and CEO. “With our strong performance year-to-date and the acquisitions of Ryan Hanley, Cosgroves, and now Page, we are increasing our guidance for the full year.”
_______________
1 Adjusted EPS, adjusted net income, adjusted EBITDA, adjusted EBITDA margin, and adjusted ROIC are non-IFRS measures, and organic growth, acquisition growth and DSO are other financial measures (discussed in the Definitions section of the Q2 2025 MD&A).
2025 Outlook
Stantec is revising upward and narrowing certain targets contained within its 2025 guidance.
| Previously Published 2025 Annual Range | Revised 2025 Annual Range | |
| Targets | ||
| Net revenue growth | ||
| Adjusted EBITDA as % of net revenue (note) | ||
| Adjusted net income as % of net revenue (note) | above | above |
| Adjusted EPS growth (note) | ||
| Adjusted ROIC (note) | above | above |
In setting our targets and guidance, we 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 the Q2 2024 MD&A.
Stantec now expects to achieve net revenue growth of
Stantec has increased and narrowed the range for adjusted EBITDA margin slightly to
Stantec's effective tax rate is now expected to fall within a range of
Overall, Stantec continues to expect to drive adjusted net income to a margin of greater than
The above targets do not include any assumptions for additional acquisitions beyond those noted in this Outlook section or further impact from significant share price movements subsequent to June 30, 2025, and the relative total shareholder return components on our share-based compensation programs.
Q2 2025 compared to Q2 2024
- Net revenue increased
6.9% or$103.4 million , to$1.6 billion , primarily driven by4.8% organic growth. Stantec achieved organic growth in each of its regional and business operating units, most notably in Water with double-digit organic growth. - Project margin increased
6.5% or$53.0 million , to$864.7 million . As a percentage of net revenue, project margin was54.2% , remaining aligned with the Company's expectations. - Adjusted EBITDA increased
15.0% or$37.1 million , to$284.4 million . Adjusted EBITDA margin was17.8% , an increase of 120 basis points compared to Q2 2024. The quarter-over-quarter increase in margin primarily reflects lower administrative and marketing expenses as a percentage of net revenue, due to lower claim provision expense and discretionary spending. - Net income increased
62.7% or$52.2 million , to$135.4 million , and diluted EPS increased63.0% , or$0.46 , to$1.19 , mainly due to increases in project margin and as a percentage of net revenue, lower administrative and marketing expenses partly offset by higher income tax expense. As well, Q2 2024 included a non-cash impairment charge of$16.5 million from Stantec's real estate optimization strategy. - Adjusted net income grew
21.6% or$27.5 million , to$154.7 million , achieving9.7% of net revenue—an increase of 120 basis points. Adjusted EPS increased21.4% or$0.24 , to$1.36 . - Contract backlog increased to
$7.9 billion at June 30, 2025, achieving9.9% overall growth year over year, which includes9.0% organic growth. Organic growth was achieved in all of Stantec's regional operating units. Contract backlog represents approximately 12 months of work. - Operating cash flows increased
$59.3 million or79.4% , with cash inflows of$134.0 million , reflecting solid operational performance and continued strong collection efforts. - DSO was 73 days, a decrease of 4 days from Q1 2025 and below the Company's target of 80 days.
- Net debt to adjusted EBITDA (on a trailing twelve-month basis) at June 30, 2025 was 1.1x, remaining within Stantec's internal target range of 1.0x to 2.0x.
- On July 31,2025, Stantec acquired Page, a 1,400-person architecture and engineering firm headquartered in Washington, DC that strategically complements the Company's Buildings business and serves the advanced manufacturing, healthcare, mission critical, academic, civic, aviation, science and technology, and commercial markets.
- On April 8, 2025 Stantec acquired Ryan Hanley, a 150-person engineering and environmental consultancy firm in Ireland, bolstering its offering in the Irish water sector.
- On June 27, 2025, Stantec acquired Cosgroves, a 90-person firm, expanding the Company's buildings engineering capabilities in New Zealand.
- On June 10, 2025, Stantec issued
$425 million senior unsecured notes due June 10, 2032 that bear interest at a fixed rate of4.374% per annum. These notes were assigned an investment-grade credit rating of BBB by DBRS Limited. - On June 11, 2025, Stantec increased its unsecured revolving credit facility to
$1.2 billion from$800 million and extended the maturity date to June 11, 2030 from June 27, 2029. - On August 13, 2025, Stantec's Board of Directors declared a dividend of
$0.22 5 per share, payable on October 15, 2025, to shareholders of record on September 29, 2025.
Year-to-date Q2 2025 compared to year-to-date Q2 2024
- Net revenue increased
10.0% or$286.3 million , to$3.1 billion , driven by5.3% organic growth and2.0% acquisition growth, as well as the positive impact of foreign exchange. Stantec achieved organic growth in each of its regional and business operating units. - Project margin increased
$154.0 million or9.9% , to$1,708.2 million . As a percentage of net revenue, project margin was54.2% , remaining aligned with the Company's expectations. - Adjusted EBITDA increased
$77.5 million or16.9% , to$536.7 million . Adjusted EBITDA margin increased by 100 basis points over the prior period to17.0% , primarily reflecting lower administrative and marketing expenses as a percentage of net revenue, due to lower claim provision expense and discretionary spending. - Net income increased
46.9% or$75.2 million , to$235.5 million , and diluted EPS increased46.1% , or$0.65 , to$2.06 , mainly due to increases in project margin and as a percentage of net revenue, lower administrative and marketing expenses partly offset by higher income tax expense. As well, 2024 included a non-cash impairment charge of$16.5 million from our real estate optimization strategy. - Adjusted net income grew
24.9% or$57.3 million , to$287.5 million , achieving9.1% of net revenue—an increase of 110 basis points—and adjusted diluted EPS increased24.8% , or 0.50, to 2.52. - Operating cash flows increased
$117.3 million or100% , with cash inflows of$234.7 million , reflecting solid revenue growth, operational performance, and strong collection efforts.
Q2 2025 Financial Highlights
| For the quarter ended June 30, | For the two quarters ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (In millions of Canadian dollars, except per share amounts and percentages) | $ | % of Net Revenue | $ | % of Net Revenue | $ | % of Net Revenue | $ | % of Net Revenue | ||||||||
| Gross revenue | 1,964.3 | 123.0 | % | 1,889.7 | 126.5 | % | 3,887.9 | 123.4 | % | 3,611.1 | 126.1 | % | ||||
| Net revenue | 1,596.7 | 100.0 | % | 1,493.3 | 100.0 | % | 3,149.7 | 100.0 | % | 2,863.4 | 100.0 | % | ||||
| Direct payroll costs | 732.0 | 45.8 | % | 681.6 | 45.6 | % | 1,441.5 | 45.8 | % | 1,309.2 | 45.7 | % | ||||
| Project margin | 864.7 | 54.2 | % | 811.7 | 54.4 | % | 1,708.2 | 54.2 | % | 1,554.2 | 54.3 | % | ||||
| Administrative and marketing expenses (note 1) | 598.3 | 37.5 | % | 578.4 | 38.7 | % | 1,210.3 | 38.4 | % | 1,124.3 | 39.3 | % | ||||
| Depreciation of property and equipment | 17.3 | 1.1 | % | 17.2 | 1.2 | % | 34.9 | 1.1 | % | 33.0 | 1.2 | % | ||||
| Depreciation of lease assets | 31.1 | 1.9 | % | 32.0 | 2.1 | % | 63.3 | 2.0 | % | 63.5 | 2.2 | % | ||||
| Net (reversal) impairment of lease assets | (0.8 | ) | (0.1 | %) | 16.5 | 1.1 | % | (0.9 | ) | — | % | 16.9 | 0.6 | % | ||
| Amortization of intangible assets | 31.3 | 2.0 | % | 31.8 | 2.1 | % | 60.0 | 1.9 | % | 62.8 | 2.2 | % | ||||
| Net interest expense and other net finance expense | 21.2 | 1.3 | % | 27.4 | 1.8 | % | 42.6 | 1.4 | % | 51.6 | 1.8 | % | ||||
| Other (income) expenses | (12.8 | ) | (0.7 | %) | 0.9 | 0.2 | % | (11.1 | ) | (0.4 | %) | (4.8 | ) | (0.2 | %) | |
| Income taxes (note 1) | 43.7 | 2.7 | % | 24.3 | 1.6 | % | 73.6 | 2.3 | % | 46.6 | 1.6 | % | ||||
| Net income (note 1) | 135.4 | 8.5 | % | 83.2 | 5.6 | % | 235.5 | 7.5 | % | 160.3 | 5.6 | % | ||||
| Basic and diluted earnings per share (EPS) (note 1) | 1.19 | n/m | 0.73 | n/m | 2.06 | n/m | 1.41 | n/m | ||||||||
| Adjusted EBITDA (note 2) | 284.4 | 17.8 | % | 247.3 | 16.6 | % | 536.7 | 17.0 | % | 459.2 | 16.0 | % | ||||
| Adjusted net income (note 2) | 154.7 | 9.7 | % | 127.2 | 8.5 | % | 287.5 | 9.1 | % | 230.2 | 8.0 | % | ||||
| Adjusted EPS (note 2) | 1.36 | n/m | 1.12 | n/m | 2.52 | n/m | 2.02 | n/m | ||||||||
| Dividends declared per common share | 0.225 | n/m | 0.210 | n/m | 0.450 | n/m | 0.420 | n/m | ||||||||
note 1: Results for the quarter ended June 30, 2024 and for the two quarters ended June 30, 2024 have been retrospectively revised for the change in accounting policy related to the treatment of deferred payments from our historical acquisitions. Refer to the Critical Accounting Developments, Estimates, and Measurements section of the Q2 2025 MD&A further details.
note 2: Adjusted EBITDA, adjusted net income, and adjusted EPS are non-IFRS measures (discussed in the Definitions section of the Q2 2025 MD&A).
n/m = not meaningful
Net Revenue by Reportable Segment
| (In millions of Canadian dollars, except percentages) | Q2 2025 | Q2 2024 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||||
| Canada | 393.7 | 370.7 | 23.0 | — | n/a | 23.0 | 6.2 | % | ||||||
| United States | 819.6 | 775.6 | 44.0 | — | 10.0 | 34.0 | 4.4 | % | ||||||
| Global | 383.4 | 347.0 | 36.4 | 12.4 | 9.2 | 14.8 | 4.3 | % | ||||||
| Total | 1,596.7 | 1,493.3 | 103.4 | 12.4 | 19.2 | 71.8 | ||||||||
| Percentage Growth | 6.9 | % | 0.8 | % | 1.3 | % | 4.8 | % | ||||||
Backlog
| (In millions of Canadian dollars, except percentages) | Jun 30, 2025 | Dec 31, 2024 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||||
| Canada | 1,786.6 | 1,687.1 | 99.5 | — | n/a | 99.5 | 5.9 | % | ||||||
| United States | 4,584.7 | 4,722.6 | (137.9 | ) | — | (230.5 | ) | 92.6 | 2.0 | % | ||||
| Global | 1,490.5 | 1,414.2 | 76.3 | 16.1 | 43.6 | 16.6 | 1.2 | % | ||||||
| Total | 7,861.8 | 7,823.9 | 37.9 | 16.1 | (186.9 | ) | 208.7 | |||||||
| Percentage Growth | 0.5 | % | 0.2 | % | (2.4 | )% | 2.7 | % | ||||||
Webcast & Conference Call
Stantec will host a live webcast and conference call on Thursday, August 14, 2025, 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, 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 2025 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, (a) statements regarding the anticipated benefits and strategic positioning of Stantec after giving effect to the Page acquisition, and (b) Stantec's Outlook and Annual Targets for 2025 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 2025 Outlook and Annual Targets are provided in the Company’s 2024 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, the risk of the Page acquisition not completing, 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, 2025, there has been no significant change in the risk factors from those described in Stantec's 2024 Annual Report. This report is accessible online by visiting EDGAR on the SEC website at sec.gov or by visiting the CSA website at sedar+.com or Stantec’s website, stantec.com. You may obtain a hard copy of the 2024 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
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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, | For the two quarters ended June 30, | |||||||
| (In millions of Canadian dollars, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||
| Net income (note 1) | 135.4 | 83.2 | 235.5 | 160.3 | ||||
| Add back (deduct): | ||||||||
| Income taxes (note 1) | 43.7 | 24.3 | 73.6 | 46.6 | ||||
| Net interest expense | 20.7 | 27.3 | 41.7 | 51.3 | ||||
| Net impairment of lease assets (note 2) | 0.1 | 18.4 | — | 18.9 | ||||
| Depreciation and amortization | 79.7 | 81.0 | 158.2 | 159.3 | ||||
| Unrealized (gain) loss on equity securities | (7.9 | ) | (1.8 | ) | 0.8 | (3.7 | ) | |
| Gain on sale of an investment interest | (3.7 | ) | — | (3.7 | ) | — | ||
| Acquisition, integration, and restructuring costs (note 1,6,7) | 16.4 | 14.9 | 30.6 | 26.5 | ||||
| Adjusted EBITDA | 284.4 | 247.3 | 536.7 | 459.2 | ||||
| For the quarter ended June 30, | For the two quarters ended June 30, | |||||||
| (In millions of Canadian dollars, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||
| Net income (note 1) | 135.4 | 83.2 | 235.5 | 160.3 | ||||
| Add back (deduct) after tax: | ||||||||
| Net impairment of lease assets (note 2) | 0.1 | 14.4 | — | 14.7 | ||||
| Amortization of intangible assets related to acquisitions (note 3) | 15.7 | 18.9 | 30.8 | 37.0 | ||||
| Unrealized (gain) loss on equity securities (note 4) | (6.1 | ) | (1.4 | ) | 0.6 | (2.9 | ) | |
| Gain on sale of an investment interest (note 5) | (2.8 | ) | — | (2.8 | ) | 0 | ||
| Acquisition, integration, and restructuring costs (note 1,6,7) | 12.4 | 12.1 | 23.4 | 21.1 | ||||
| Adjusted net income | 154.7 | 127.2 | 287.5 | 230.2 | ||||
| Weighted average number of shares outstanding - diluted | 114,066,995 | 114,066,995 | 114,066,995 | 114,066,995 | ||||
| Adjusted earnings per share | 1.36 | 1.12 | 2.52 | 2.02 | ||||
See the Definitions section of the Q2 2025 MD&A for the discussion of non-IFRS and other financial measures used and additional reconciliations of non-IFRS financial measures.
note 1: Results for the quarter ended June 30, 2024 and for the two quarters ended June 30, 2024 have been retrospectively revised for the change in accounting policy related to the treatment of deferred payments from historical acquisitions. Refer to the Critical Accounting Developments, Estimates, and Measurements section of the Q2 2025 MD&A for further details.
note 2: The net (reversal) impairment of lease assets includes onerous contracts associated with the impairment for the quarter ended June 30, 2025 of
note 3: 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, 2025, this amount is net of tax of
note 4: For the quarter ended June 30, 2025, this amount is net of tax of
note 7: Acquisition, integration, and restructuring cost include additional acquisition costs related to the change in accounting policy described in note 1 for the quarter ended June 30, 2025 of
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