Stantec Reports Strong Q1 2026 Results with 14.7% Adjusted EPS Growth and Record Backlog
STN is trading near its 52-week low of $77.41 (2.0% above the low).
Summary
Stantec reported strong Q1 2026 financial results, including a 14.7% increase in adjusted EPS and a record $9.0 billion backlog, while reaffirming its full-year guidance, though operating cash flow significantly declined due to integration costs.
Key Events · Earnings and Guidance · STN
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Strong Q1 Financial Performance
Adjusted EPS increased by 14.7% to $1.33, and net revenue grew 9.1% to $1.7 billion, driven by both acquisition and organic growth across all regional operating units, notably double-digit organic growth in the Water business.
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Record Contract Backlog
Contract backlog reached a record $9.0 billion, a 13.2% year-over-year increase, representing approximately 13 months of work. This growth was fueled by 9.1% acquisition growth and 5.4% organic growth, with significant contributions from the Buildings and Global regions.
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Full-Year Guidance Reaffirmed
The company reaffirmed its 2026 annual targets, including net revenue growth of 8.5% to 11.5% and adjusted EPS growth of 15% to 18%, indicating management's confidence in achieving its strategic objectives despite current market conditions.
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Significant Decrease in Operating Cash Flow
Operating cash flows decreased by $103.0 million, resulting in a cash outflow of $2.3 million, primarily due to expected disruption from the Page acquisition integration and increased investment in net working capital.
Analysis · STN · Trade & Services
Stantec delivered robust Q1 2026 financial results, exceeding expectations with significant growth in adjusted EPS and net revenue, alongside a record contract backlog. The company also reaffirmed its full-year guidance, signaling confidence in continued performance. However, operating cash flow saw a substantial decrease, attributed to integration disruptions from a recent acquisition and investments in working capital, which warrants attention despite the strong top-line figures.
At the time of this filing, STN was trading at $78.99 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.9B. The 52-week trading range was $77.41 to $114.52. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.