Stantec Inc. reported record‑setting full‑year 2025 results, with net revenue rising 10.7% to $6.5 billion and adjusted EBITDA reaching $1.143 billion, a 16.7% increase from the prior year. The company’s adjusted EBITDA margin climbed to 17.6%, the upper end of its 2024‑2026 strategic‑plan target range of 17%‑18%. Adjusted earnings per share grew 19.9% to $5.30, while diluted EPS reached $4.20. A $8.6 billion backlog now provides 13 months of forward visibility.
In the fourth quarter, Stantec’s net revenue of $1.64 billion was slightly below the analyst forecast of $1.65 billion, yet the quarter still delivered a strong performance. Adjusted EPS of $1.25 beat expectations of $1.22, a $0.03 margin that underscored the company’s disciplined cost management and pricing power. The quarter’s adjusted EBITDA margin of 17.3% represented a 60‑basis‑point lift over Q4 2024, driven by lower administrative and marketing expenses as a share of revenue and higher utilization rates.
The Water segment led growth with 10.1% organic expansion, while acquisitions contributed 3.9% of total revenue growth. The recent acquisition of Page bolstered the Buildings business and added to the backlog, reinforcing Stantec’s position in the high‑margin construction‑management space. Other segments—Infrastructure, Energy & Resources, and Environmental Services—also posted solid growth, though the fact‑check report does not provide individual percentages.
Margin expansion was largely a result of lower administrative and marketing costs relative to revenue, a consequence of higher utilization and disciplined operational oversight. Stantec’s management highlighted that scale economies and pricing power have been key drivers, allowing the company to maintain profitability even as it invests in new projects and talent.
Looking ahead, Stantec guided for 2026 net revenue growth of 8.5%‑11.5% and an adjusted EBITDA margin of 17.6%‑18.2%, signaling confidence in continued demand across its core sectors. The company also raised its quarterly dividend by 8.9% to CAD 0.245, reflecting its strong cash‑flow generation and commitment to shareholder returns.
Management emphasized the company’s success in achieving its highest adjusted EBITDA margin to date. “Stantec achieved another record‑setting year in 2025 as its work continues to address some of the world’s greatest challenges,” said President and CEO Gord Johnston. “The demand for our services continues to be very robust, and as we continue on our path of operational excellence, we have further levers to continue to expand our EBITDA margin and grow earnings.”
Comparing to 2024, Stantec’s full‑year revenue grew from $5.9 billion to $6.5 billion, and its adjusted EBITDA margin rose from 16.7% to 17.6%. Q4 2024 revenue was $1.5 billion, and the quarter’s adjusted EBITDA margin was 16.7%. The year‑over‑year gains in revenue and margin illustrate accelerating performance and effective execution of the company’s strategic plan.
Headwinds include potential macroeconomic slowdown, public‑sector funding cycles, and integration risks from recent acquisitions. Tailwinds remain strong, with sustained demand for water security, aging infrastructure, climate‑change‑driven projects, and emerging technologies. Stantec’s early achievement of its 2024‑2026 strategic‑plan margin target range—one year ahead of schedule—underscores its operational discipline and market positioning.
Stantec’s commitment to sustainability is reflected in its recognition as a leading responsible company, and the company’s backlog growth and dividend increase reinforce its financial strength and long‑term growth prospects.
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