Stantec Inc (STN) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

GuruFocus News

Fri, May 16, 2025, 12:09 AM 4 min read

• Net Revenue: $1.6 billion, up 13.3% twelvemonth implicit year.

• Organic Growth: 5.9% overall, with notable double-digit maturation successful Canada.

• Acquisition Growth: 3.2%.

• Adjusted EBITDA: Increased by implicit 19%, with a borderline of 16.2%.

• Adjusted EPS: Growth of 29% compared to Q1 2024, reaching $1.16.

• Gross Revenue: $1.9 billion, up astir 12% twelvemonth implicit year.

• Project Margins: 54.3%, a 10 ground constituent summation implicit past year.

• Operating Cash Flow: Increased astir 136% twelvemonth implicit year, from $43 cardinal to $101 million.

• Net Debt to Adjusted EBITDA Ratio: 1.1 times arsenic of March 31.

• Backlog: Reached a grounds $7.9 billion, with 7.5% integrated growth.

• US Net Revenue Growth: 9.7%, with 2.4% integrated growth.

• Canada Net Revenue Growth: 15%, with 12.2% integrated growth.

• Global Business Net Revenue Growth: 20.3%, with 7.5% integrated growth.

• Warning! GuruFocus has detected 2 Warning Signs with MTTRF.

Release Date: May 15, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Stantec Inc (NYSE:STN) reported a beardown commencement to 2025 with a 13.3% year-over-year summation successful nett revenue, reaching $1.6 billion.

• The institution achieved a 19% maturation successful adjusted EBITDA, with an enhanced borderline of 16.2%.

• Stantec Inc (NYSE:STN) announced 2 strategical acquisitions, including Page, which volition marque it the second-largest architectural steadfast successful North America.

• The company's backlog reached a grounds $7.9 billion, indicating beardown request and aboriginal work.

• Stantec Inc (NYSE:STN) maintained a affirmative outlook for 2025, expecting nett gross maturation of 7% to 10% and adjusted EPS maturation of 16% to 19%.

• Organic maturation successful the US was somewhat beneath expectations astatine 2.4%, attributed to task rhythm timing and a pugnacious examination from the erstwhile year.

• Despite beardown performance, the institution did not rise its guidance for 2025, citing the request to adjacent acquisitions and measure Q2 results.

• There is immoderate uncertainty successful the US authorities business, with imaginable impacts connected procurement cycles and declaration renewals.

• The integration of ZETCON successful Germany is progressing slower than accustomed owed to connection and accounting differences.

• The institution faces heightened marketplace uncertainty owed to tariffs, argumentation shifts, and regulatory changes, which could interaction aboriginal performance.

Q: In presumption of integrated maturation for the US, you achieved 2.4%, which is somewhat beneath the consolidated level. Is this owed to pugnacious comparisons from past twelvemonth oregon are determination existent uncertainties successful the US market? A: Gordon Johnston, President and CEO, explained that the little maturation is partially owed to a pugnacious examination from past twelvemonth erstwhile they completed a important h2o project. However, they expect mid to precocious single-digit integrated maturation for the year, supported by a beardown backlog.