Stantec Reports Record 2025 Financials, Exceeds Targets, and Raises 2026 Outlook

summarizeSummary

Stantec Inc. reported record financial results for fiscal year 2025, exceeding key targets, driven by strong organic growth and strategic acquisitions, and provided an optimistic outlook for 2026.

check_boxKey Events

• Record 2025 Financial Performance

  Stantec achieved record net revenue of $6.5 billion (up 10.7%), net income of $479.4 million (up 32.6%), and diluted EPS of $4.20 (up 32.5%) for the year ended December 31, 2025.

• Exceeded Adjusted EBITDA Margin Target

  The company's adjusted EBITDA margin reached 17.6% in 2025, surpassing its 2024-2026 Strategic Plan target range of 17% to 18% one year earlier than anticipated.

• Strong Organic Growth and Backlog Expansion

  Organic growth contributed 5.0% to net revenue, with notable 10.7% organic growth in the Water business. Contract backlog increased by 9.5% to $8.6 billion, representing approximately 13 months of work.

• Strategic Acquisitions and Capital Raises

  Stantec completed three acquisitions in 2025 for a total consideration of $784.0 million, expanding its North American and Global footprints. The company also increased its revolving credit facility to $1.2 billion and closed a $425 million senior unsecured notes offering to fund growth and repay debt.

auto_awesomeAnalysis

Stantec Inc. delivered exceptional financial performance in 2025, achieving record net revenue, net income, and diluted EPS, while also surpassing its adjusted EBITDA margin target a year ahead of schedule. The company demonstrated robust organic growth across its business units and successfully integrated several strategic acquisitions. Significant capital management actions, including an increased revolving credit facility and a substantial senior unsecured notes offering, bolster its financial flexibility for future growth. The positive 2026 outlook, with projected continued growth and margin expansion, reinforces investor confidence. This strong financial position provides a solid foundation for executing major projects, such as the recently announced preferred bidder status for the Scottish Water Enterprise.