Stantec Inc. was selected on March 4 2026 to deliver the first phase of the Government of Canada’s Arctic Over‑the‑Horizon Radar (A‑OTHR) program, a long‑range early‑warning radar system that will replace the aging North Warning System and support NORAD modernization.
The $5 billion‑plus contract places Stantec in charge of multidisciplinary design and project management, while construction will be performed by a joint venture of Aecon and Pomerleau. Validation of the radar system is slated to begin in the first quarter of 2026, with construction expected to start after the validation and design‑development phases are complete. Stage 1 of the program is projected to deliver initial operational capability by December 2029, and full capability is anticipated by 2043.
Stantec’s responsibilities include civil, environmental, architectural, buildings, power, geotechnical and landscape engineering services, ensuring the radar infrastructure is resilient, climate‑ready and integrated with Canada’s broader defense network. The joint venture of Aecon and Pomerleau will handle all construction work, leveraging their combined experience in large‑scale infrastructure projects.
The contract win expands Stantec’s federal‑government footprint and positions the company in a high‑visibility defense project that underpins Canada’s Arctic surveillance strategy. The A‑OTHR program’s long‑term timeline and substantial funding provide a significant revenue opportunity and reinforce Stantec’s backlog, which reached a record $8.6 billion as of the most recent reporting.
Stantec’s Q4 2025 results, released February 25 2026, showed net revenue of $1.6 billion—up 10.9% year‑over‑year—and an adjusted EBITDA of $283.5 million, giving an adjusted EBITDA margin of 17.3%. Full‑year 2025 revenue was $6.5 billion, up 10.7% YoY, with an adjusted EBITDA margin of 17.6%. The company’s record backlog and early achievement of its 2024‑2026 strategic plan margin target underscore the financial strength that underlies this new contract.
"We are honored to help advance NORAD's modernization, drawing on our deep experience in delivering resilient, climate‑ready solutions across Canada. Our long‑standing partnership with Canada's Department of National Defence reflects the trust built through decades of collaboration—and reinforces a shared commitment to strengthening the country's critical infrastructure for generations to come," said Gord Johnston, President and Chief Executive Officer of Stantec.
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