Stantec Q2 adjusted EPS beats estimates on acquisition growth, margin gains

Stantec

12/08/2026 22:11

Overview
Canada sustainable engineering firm's Q2 net revenue rose 11.5% yr/yr
Adjusted EPS for Q2 increased 18.4% and beat analyst expectations
Company repurchased 1.67 mln shares for C$175.9 mln in H1; acquired Niche in Australia after quarter-end

Outlook
Stantec reaffirms 2026 net revenue growth target of 8.5% to 11.5%
Company raises 2026 adjusted EBITDA margin target to 17.8%-18.3%
Stantec expects 2026 adjusted EPS growth of 15% to 18%

Result Drivers
ACQUISITION CONTRIBUTIONS - Co said revenue growth was driven by acquisition growth of 7.1%, primarily reflecting strong results from Page in US operations
ORGANIC GROWTH - Organic growth of 3.7% was driven primarily by 12.8% organic growth in the Global region
MARGIN IMPROVEMENT - Adjusted EBITDA margin rose due to higher net revenue, solid project execution, and lower administrative and marketing expenses as a percentage of net revenue

Company press release: ID:nGNX9LNMk3

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Revenue
Slight Miss*
C$1.78 bln
C$1.79 bln (10 Analysts)
Q2 Adjusted EPS
Beat
C$1.61
C$1.58 (10 Analysts)
Q2 EPS
 
C$1.32
 
Q2 Adjusted EBITDA
Beat
C$332.90 mln
C$324.91 mln (11 Analysts)
Q2 Contract Backlog
 
C$9.20 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 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Stantec Inc. is C$137.00, about 32% above its August 11 closing price of C$103.77
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Aug 11 - Cardinal Infrastructure Q2 revenue jumps 114% on organic and acquisition growth, raises 2026 sales guidance
Aug 10 - Bowman Q2 revenue beats estimates on organic service billing growth
Aug 12 - UK's Balfour Beatty raises annual profit forecast, shares jump to record high

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.)