Stantec's Q2 adjusted EPS meets estimates
Overview
Stantec Q2 net revenue rises 6.9% to C$1.6 bln, missing expectations
Adjusted EPS meets expectations at C$1.36, adjusted EBITDA beats estimates
Outlook
Stantec raises 2025 net revenue growth guidance to 10%-12%
Company expects adjusted EPS growth of 18.5%-21.5% in 2025
Stantec increases adjusted EBITDA margin guidance to 17%-17.4%
Company sees adjusted ROIC above 12.5% for 2025
Result Drivers
ORGANIC GROWTH - Stantec achieved 4.8% organic growth, with significant contributions from Water and Energy & Resources sectors
ACQUISITIONS - Recent acquisitions, including Page, bolstered the company's Buildings business and contributed to revenue growth
EXPENSE MANAGEMENT - Lower administrative and marketing expenses improved adjusted EBITDA margin by 120 basis points
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | C$1.60 bln | C$1.64 bln (10 Analysts) |
Q2 Adjusted EPS | Meet | C$1.36 | C$1.36 (10 Analysts) |
Q2 EPS | C$1.19 | ||
Q2 Adjusted EBITDA | Beat | C$284.40 mln | C$283.50 mln (11 Analysts) |
Q2 Order Backlog | C$7.90 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Stantec Inc is C$155.00, about 3% above its August 12 closing price of C$150.32
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 22 three months ago
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