Stantec raises 2026 profit targets after 20.2% EBITDA margin

Stantec raised its 2026 profitability outlook on Nov. 12 after reporting third-quarter net revenue of $1.9 billion, up 9.4% from a year earlier, in a company press release.

Stantec said in the Nov. 12 press release that adjusted EBITDA margin rose 120 basis points to 20.2% in the third quarter, backing a higher annual margin target of 18.3% to 18.5%.

Adjusted EBITDA, a non-IFRS measure of operating profit before interest, taxes, depreciation and amortization, increased 16.6% to $377.1 million in the quarter. Diluted earnings per share rose 21.2% to $1.60, while adjusted EPS increased 23.5% to $1.89.

Net revenue growth was split between 5.3% organic growth and 2.6% acquisition growth, the company said. Stantec reported organic growth across all regions and businesses, with double-digit organic growth in Water.

“As a result of our strong year-to-date margin and earnings performance, we are raising our profitability outlook for 2026,” Susan Reisbord, Stantec’s president and chief executive officer, said in the press release.

For 2026, Stantec narrowed expected net revenue growth to 9.0% to 11.0%, compared with its prior range of 8.5% to 11.5%. The company also lifted adjusted net income margin guidance to at least 9.8% from at least 9.5%, and raised adjusted EPS growth guidance to 17% to 19% from 15% to 18%.

The company said the stronger outlook reflected improved project margins, operating execution and tighter administration and marketing costs. It cited expanded high-value centers, digital strategies and scale efficiencies in selected geographies as part of those cost efforts.

For the first three quarters of 2026, Stantec reported net revenue of $5.3 billion, up 10.0% from a year earlier. Year-to-date adjusted EBITDA rose 15.9% to $997.0 million, and adjusted EBITDA margin increased 100 basis points to 18.7%.

Backlog stood at $9.2 billion on Sept. 30, up 11.6% from a year earlier, including 9.9% organic growth. Stantec said the backlog represented about 13 months of work.

Capital returns also increased during the year. Stantec repurchased 3,390,521 common shares for $350.4 million in the first three quarters, including 1,723,229 shares for $174.5 million in the third quarter under its normal course issuer bid.

The company said net debt to adjusted EBITDA was 1.2 times at Sept. 30, within its internal target range of 1.0 times to 2.0 times. Days sales outstanding, a measure of how quickly invoices are collected, rose three days from a year earlier to 76 days, close to Stantec’s 75-day target.

Stantec said its targets exclude additional acquisitions because the timing and size of deals are unpredictable. The company acquired Niche, a 200-person engineering and environmental consultancy in Australia, on Aug. 6.

Stantec’s board declared a dividend of $0.245 per share on Nov. 12, payable on Jan. 15, 2027, to shareholders of record on Dec. 31, 2026.

Source: Company press release via Globe Newswire, Nov. 12, 2026