Stantec's Q2 adjusted EPS meets estimates

Stantec

13/08/2025 22:11

Overview

Stantec Q2 net revenue rises 6.9% to C$1.6 bln, missing expectations

Adjusted EPS meets expectations at C$1.36, adjusted EBITDA beats estimates

Outlook

Stantec raises 2025 net revenue growth guidance to 10%-12%

Company expects adjusted EPS growth of 18.5%-21.5% in 2025

Stantec increases adjusted EBITDA margin guidance to 17%-17.4%

Company sees adjusted ROIC above 12.5% for 2025

Result Drivers

ORGANIC GROWTH - Stantec achieved 4.8% organic growth, with significant contributions from Water and Energy & Resources sectors

ACQUISITIONS - Recent acquisitions, including Page, bolstered the company's Buildings business and contributed to revenue growth

EXPENSE MANAGEMENT - Lower administrative and marketing expenses improved adjusted EBITDA margin by 120 basis points

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$1.60 bln
C$1.64 bln (10 Analysts)
Q2 Adjusted EPS
Meet
C$1.36
C$1.36 (10 Analysts)
Q2 EPS
C$1.19
Q2 Adjusted EBITDA
Beat
C$284.40 mln
C$283.50 mln (11 Analysts)
Q2 Order Backlog
C$7.90 bln


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$155.00, about 3% above its August 12 closing price of C$150.32

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNX8PTKn7

(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.)