Canada's Stantec Q1 revenue up 9.1%, slightly misses estimates

Stantec

13/05/2026 22:10

Overview

Canada sustainable engineering firm's Q1 net revenue rose 9.1%, a slight miss versus analyst expectations

Adjusted EPS for Q1 rose 14.7%, beating analyst expectations

Contract backlog grew 13.2% yr/yr to a record C$9.0 bln

Outlook

Stantec reaffirms 2026 net revenue growth guidance of 8.5% to 11.5%

Company expects 2026 adjusted EBITDA margin of 17.6% to 18.2%

Stantec sees 2026 adjusted EPS growth of 15% to 18% versus 2025

Result Drivers

ORGANIC AND ACQUISITION GROWTH - Q1 net revenue rose 9.1%, driven by 3.6% organic growth and 7.2% acquisition growth, with all regions contributing to organic gains

COST DISCIPLINE - Adjusted EBITDA margin rose to 16.9%, primarily due to lower administrative and marketing expenses as a percentage of net revenue

BACKLOG EXPANSION - Contract backlog grew 13.2% year-over-year to C$9.0 bln, supported by acquisitions and strong organic growth, notably in the Buildings and Global regions

Company press release: ID:nGNX3xHbsm

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
C$1.70 bln
C$1.71 bln (10 Analysts)
Q1 Adjusted EPS
Beat
C$1.33
C$1.29 (11 Analysts)
Q1 EPS
C$0.97
Q1 Adjusted EBITDA
Beat
C$287 mln
C$283.14 mln (10 Analysts)
Q1 Order Backlog
C$9 bln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 is C$160.00, about 40% above its May 12 closing price of C$114.25

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)