Stantec (STN) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 reached $1.7 billion, up 9.1% year-over-year, with 3.6% organic and 7.2% acquisition growth; adjusted EBITDA rose 13.8% to $287.0 million, and adjusted EPS increased 14.7% to $1.33.

• Record contract backlog of $9.0 billion, up 13.2% year-over-year, providing about 13 months of work and strong visibility into future growth.

• Strong organic growth in Water (14.3%) and Energy & Resources (8.6%) segments.

• Adjusted EBITDA margin improved to 16.9%, up 70 basis points year-over-year.

• Adjusted EPS grew 14.7% compared to Q1 2025; diluted EPS increased 10.2% to $0.97.

Financial highlights

• Gross revenue was $2.1 billion; net revenue $1.7 billion, up 9.1% year-over-year.

• Adjusted EBITDA reached $287.0 million, up from $252.0 million in Q1 2025.

• Adjusted net income rose 14.6% to $152.2 million, achieving 9.0% of net revenue.

• Project margin increased 8.4% to $914.1 million, though as a percentage of net revenue, it decreased by 30 basis points to 54.0%.

• Operating cash flows were an outflow of $2.3 million, reflecting integration costs and working capital investment.

Outlook and guidance

• 2026 net revenue growth expected in the range of 8.5%-11.5%, with mid- to high-single digit organic growth across all regions.

• Adjusted EBITDA margin projected at 17.6%-18.2% for 2026, with seasonal fluctuations anticipated.

• Adjusted EPS growth guidance of 15%-18% for 2026; adjusted ROIC above 13%.

• Adjusted net income margin targeted at or above 9.5% of net revenue.

• Organic growth expected in all regions, with US and Canada to accelerate in subsequent quarters; Global to maintain strong growth, especially in Water.