Stantec offers asset-light infrastructure compounding, record backlog, expanding margins, and asymmetric five-year upside, tempered by U.S. project timing, labor inflation, M&A integration, and leadership-transition risks.
Overview
Stantec is a global, asset-light provider of sustainable engineering, architecture, planning, and environmental consulting, monetizing specialized professional expertise across the full lifecycle of capital projects. Its geographic mix—approximately 52% of net revenue from the United States, 23% from Canada, and 25% from international markets—reduces dependence on any single region, while Water, Infrastructure, Buildings, Environmental Services, and Energy & Resources provide service diversification. **Q2 2026 demonstrated strong earnings quality:** gross revenue rose 13.4% to CAD 2,228.0 million, net revenue increased 11.5% to CAD 1,780.6 million, adjusted EBITDA rose 17.1% to CAD 332.9 million, and adjusted EBITDA margin reached a record 18.7%. Adjusted EPS of CAD 1.61 beat consensus by 1.26%, although net revenue missed by 0.56% because of temporary U.S. project delays. **The CAD 9.24 billion backlog, up 17.5% and equal to roughly 13 months of work, anchors visibility.** Management raised the 2026 EBITDA-margin range to 17.8%-18.3%, reaffirmed 8.5%-11.5% revenue growth and 15%-18% adjusted EPS growth, and expanded buyback capacity to 5%. At USD 74.25, valuation is 22.1x trailing P/E and 14.17x EV/EBITDA, with catalysts including Q3 U.S. acceleration, CEO succession, backlog conversion, and buybacks.