Stantec Reports Strong Q1 2026 Results with 14.7% Adjusted EPS Growth and Record Backlog

summarizeSummary

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.

check_boxKey Events

• 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.

• 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.

• 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.

• 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.

auto_awesomeAnalysis

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.