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Stantec
(TSX:STN)
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Rating:73Outperform
Price Target:
C$115.00
â–²(9.85% Upside)
Action:Upgraded
Date:08/19/26
Overall score reflects solid financial performance and a strong earnings update (margin expansion, EPS growth, and record backlog supporting outlook). This is tempered by mixed technicals (below 100/200-day averages) and a valuation that offers limited dividend support at a ~23x P/E.
Positive Factors
Record backlog supports multi-month revenue visibility
The record backlog provides substantial visibility into future billable work and supports revenue conversion over the next several quarters. Organic backlog growth and strength in Global and Water also indicate broad demand rather than dependence on one market.
Negative Factors
Recent growth is slowing and Infrastructure organic growth was flat
The sharp multi-year expansion has not translated into comparable recent growth, creating greater reliance on acquisitions and future project ramps. Flat Infrastructure organic growth also signals that timing and demand conversion could weigh on growth if delays persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog supports multi-month revenue visibility
The record backlog provides substantial visibility into future billable work and supports revenue conversion over the next several quarters. Organic backlog growth and strength in Global and Water also indicate broad demand rather than dependence on one market.
Read all positive factors
Stantec (STN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$11.44B
Dividend Yield0.92%
Average Volume (3M)480.22K
Price to Earnings (P/E)23.0
Beta (1Y)0.85
Revenue Growth9.97%
EPS Growth15.80%
CountryCA
Employees34,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)4.43
Shares Outstanding112,399,704
10 Day Avg. Volume487,711
30 Day Avg. Volume480,216
Financial Highlights & Ratios
PEG Ratio0.95
Price to Book (P/B)4.56
Price to Sales (P/S)1.81
P/FCF Ratio18.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$135.50Price Target Upside29.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)6.2
Revenue Forecast (FY)C$7.09B
Stantec Business Overview & Revenue Model
Company Description
Stantec Inc. operates as a prominent global professional services firm, offering comprehensive consulting in engineering, architecture, and environmental domains. The company specializes in infrastructure and facilities, serving clients across Can...
How the Company Makes Money
Stantec primarily makes money by delivering fee-based professional services on client projects. Revenue is generated when the company performs billable work—typically charged under time-and-materials (hourly billing rates for staff time plus reimb...
Stantec Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Revenue Growth
Net revenue of $1.8 billion in Q2 2026, up ~11.5% year-over-year (management cited 'almost 12%'); driven by ~3.7% organic growth and ~7.1% acquisition growth (primarily Page). Gross revenue was $2.2 billion.
Negative Updates
U.S. Organic Softness and Project Timing Delays in Q2
Some U.S. segments experienced slower-than-expected organic growth in Q2 due to timing issues: several projects wrapped as scheduled while awarded work was slower to ramp (e.g., a Navy program, a large electrical utility project, and a public transit project). This contributed to weaker Q2 organic growth in the U.S. and softer organic backlog trends in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Net revenue of $1.8 billion in Q2 2026, up ~11.5% year-over-year (management cited 'almost 12%'); driven by ~3.7% organic growth and ~7.1% acquisition growth (primarily Page). Gross revenue was $2.2 billion.
Read all positive updates
Company Guidance
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.Stantec Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.10B | 8.14B | 5.87B | 5.07B | 4.46B | 3.64B |
| Gross Profit | 3.51B | 3.18B | 3.20B | 2.74B | 2.42B | 1.96B |
| EBITDA | 1.14B | 1.09B | 812.50M | 682.40M | 568.80M | 411.40M |
| Net Income | 505.00M | 479.40M | 361.50M | 316.50M | 247.00M | 200.70M |
Balance Sheet | ||||||
| Total Assets | 8.19B | 7.96B | 6.96B | 5.77B | 5.65B | 5.23B |
| Cash, Cash Equivalents and Short-Term Investments | 377.30M | 398.10M | 228.50M | 352.90M | 148.30M | 193.90M |
| Total Debt | 2.75B | 3.13B | 2.04B | 1.70B | 1.92B | 1.92B |
| Total Liabilities | 4.80B | 4.72B | 4.01B | 3.32B | 3.37B | 3.22B |
| Stockholders Equity | 3.39B | 3.24B | 2.95B | 2.45B | 2.29B | 2.00B |
Cash Flow | ||||||
| Free Cash Flow | 666.20M | 791.00M | 504.10M | 419.40M | 235.80M | 351.20M |
| Operating Cash Flow | 744.50M | 862.90M | 603.10M | 520.00M | 304.30M | 397.00M |
| Investing Cash Flow | -470.70M | -534.10M | -605.00M | -201.70M | -73.80M | -764.80M |
| Financing Cash Flow | -278.50M | -139.50M | -152.10M | -109.30M | -296.70M | 276.50M |
Stantec Technical Analysis
Neutral
104.69
Price Trends
100.03
Positive
105.12
Negative
116.84
Negative
Market Momentum
0.18
Positive
50.78
Neutral
30.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STN, the sentiment is Neutral. The current price of 104.69 is above the 20-day moving average (MA) of 102.41, above the 50-day MA of 100.03, and below the 200-day MA of 116.84, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 30.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:STN.
Stantec Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$11.44B | 22.98 | 15.26% | 0.92% | 9.97% | 15.80% | |
72 Outperform | C$25.19B | 26.54 | 9.52% | 0.80% | 10.24% | 14.12% | |
71 Outperform | C$3.89B | 65.04 | 13.41% | 1.20% | 7.38% | -39.80% | |
67 Neutral | C$13.96B | 33.31 | 7.89% | 0.09% | 14.82% | -82.14% | |
64 Neutral | C$2.84B | 28.67 | 24.14% | 0.91% | 16.24% | 10.17% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$3.09B | -49.52 | -6.76% | 1.70% | 21.48% | -323.81% |
* Industrials Sector Average
TSE:STN
Stantec
101.78
-45.61
-30.95%
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TSE:WSP
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.