European Investor
14 May 2026, 09:33
Stantec Edges Higher in Premarket as Record Backlog and Margin Expansion Impress
May 14, 2026 | NYSE: STN
Stantec is nudging 1.67% higher in premarket after a first quarter that demonstrates the steady, compounding quality that has made the Canadian engineering and consulting firm a reliable performer — record backlog, expanding margins, and double-digit adjusted EPS growth delivered in a macro environment that is creating genuine tailwinds for infrastructure spending.
Net revenue grew 9.1% to $1.694 billion, driven by 7.2% acquisition growth and 3.6% organic growth across all regional operating units. Adjusted EBITDA rose 13.8% to $287 million, with margin expanding 70 basis points to 16.9%. Adjusted EPS of $1.33 grew 14.7% year-on-year, and net income rose 10.7% to $110.8 million. The standout organic growth came from Water, up 14.3%, and Energy & Resources, up 8.6% — two sectors benefiting directly from global infrastructure investment cycles.
The number that arguably matters most for a professional services firm is backlog, and Stantec's hit a record $9.0 billion at quarter end, up 13.2% year-on-year. That represents approximately 13 months of forward revenue visibility, giving management confidence to reaffirm full-year guidance of 8.5% to 11.5% net revenue growth and 15% to 18% adjusted EPS growth. The Global segment posted particularly strong organic backlog growth of 21.8%, driven by Water activity under ongoing Asset Management programs in the UK and Australia.
The one soft spot was operating cash flow, which swung to a small outflow of $2.3 million from a strong positive position a year ago. Management attributed this to integration disruption from the Page acquisition — specifically a financial system migration — and elevated working capital from high organic growth in the Global segment. Days sales outstanding of 74 days was actually an improvement of three days year-on-year, suggesting the underlying collections discipline remains intact.
Balance sheet leverage of 1.3x net debt to adjusted EBITDA sits comfortably within the company's 1.0 to 2.0x target range, and the board declared a quarterly dividend of $0.245 per share — up from $0.225 a year ago.
The modest premarket move reflects the market's familiarity with Stantec's consistent execution rather than any surprise element. This is a business quietly compounding at double-digit EPS growth with a record order book — exactly the kind of steady compounder that attracts institutional accumulation rather than headline-driven spikes.
May 14, 2026 | NYSE: STN
Stantec is nudging 1.67% higher in premarket after a first quarter that demonstrates the steady, compounding quality that has made the Canadian engineering and consulting firm a reliable performer — record backlog, expanding margins, and double-digit adjusted EPS growth delivered in a macro environment that is creating genuine tailwinds for infrastructure spending.
Net revenue grew 9.1% to $1.694 billion, driven by 7.2% acquisition growth and 3.6% organic growth across all regional operating units. Adjusted EBITDA rose 13.8% to $287 million, with margin expanding 70 basis points to 16.9%. Adjusted EPS of $1.33 grew 14.7% year-on-year, and net income rose 10.7% to $110.8 million. The standout organic growth came from Water, up 14.3%, and Energy & Resources, up 8.6% — two sectors benefiting directly from global infrastructure investment cycles.
The number that arguably matters most for a professional services firm is backlog, and Stantec's hit a record $9.0 billion at quarter end, up 13.2% year-on-year. That represents approximately 13 months of forward revenue visibility, giving management confidence to reaffirm full-year guidance of 8.5% to 11.5% net revenue growth and 15% to 18% adjusted EPS growth. The Global segment posted particularly strong organic backlog growth of 21.8%, driven by Water activity under ongoing Asset Management programs in the UK and Australia.
The one soft spot was operating cash flow, which swung to a small outflow of $2.3 million from a strong positive position a year ago. Management attributed this to integration disruption from the Page acquisition — specifically a financial system migration — and elevated working capital from high organic growth in the Global segment. Days sales outstanding of 74 days was actually an improvement of three days year-on-year, suggesting the underlying collections discipline remains intact.
Balance sheet leverage of 1.3x net debt to adjusted EBITDA sits comfortably within the company's 1.0 to 2.0x target range, and the board declared a quarterly dividend of $0.245 per share — up from $0.225 a year ago.
The modest premarket move reflects the market's familiarity with Stantec's consistent execution rather than any surprise element. This is a business quietly compounding at double-digit EPS growth with a record order book — exactly the kind of steady compounder that attracts institutional accumulation rather than headline-driven spikes.
