Stantec (S3A) Q2 2026 Earnings Report

The call emphasized robust top-line growth (net revenue +~11.5%), material margin expansion (adjusted EBITDA margin 18.7%, +90 bps YoY), record backlog ($9.2B, +17.5% YoY), strong adjusted EPS (+18.4%) and several large project wins and strategic acquisitions. Management acknowledged near-term timing-related softness in U.S. organic growth, working-capital/headcount impacts and a valuation gap affecting some M&A opportunities, but expects organic acceleration in H2, supported by backlog and the Page integration. On balance the positive operational and financial momentum substantially outweighs the highlighted near-term execution and working-capital challenges.

Stantec reiterated full-year targets while tightening its margin range: it now expects net revenue growth of 8.5%–11.5% (overall organic growth in the mid-single-digit range), adjusted EBITDA margin of 17.8%–18.3% and adjusted EPS growth of 15%–18%; by segment, U.S. organic growth is expected in the mid-single-digits, Canada mid-single-digits and Global high-single-digits (with Page converting from acquisition to organic in Q3). Those targets are backed by Q2 results of gross revenue $2.2B and net revenue $1.8B (+11.5% YoY: +3.7% organic, +7.1% acquisition), a record Q2 adjusted EBITDA margin of 18.7% (+90 bps YoY) and adjusted EPS of $1.61 (+18.4%), project margins of 54.5% (+30 bps), trailing‑12‑month EBITDA margin of 18% (+80 bps), a record backlog of $9.2B (+17.5% YoY, ~13 months of work, +7% organic; Global backlog ~+25%, Water backlog >+10% organic), YTD operating cash flow of $116M, the July acquisition of 200‑person Niche in Australia, a Q2 NCIB repurchase of ~1.7M shares (~1.5%) for ~$175M, net debt/adjusted EBITDA of 1.3x (target 1–2x) and DSO of 75 days.