Stantec (STN) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 reached $1.8 billion, up 11.5% year-over-year, driven by 7.1% acquisition and 3.7% organic growth, with strong contributions from the Page acquisition and Global region performance.

• Adjusted EBITDA rose 17.1% to $332.9 million, with margin expanding 90 basis points to 18.7%; adjusted EPS increased 18.4% to $1.61.

• Backlog hit a record $9.2 billion, up 17.5% year-over-year, with 7% organic growth and notable contributions from acquisitions.

• Acquisition of Niche, a 200-person Australian consultancy, closed July 31, strengthening Environmental Services.

• Leadership transition announced: CEO retiring effective October 1, 2026, to become Vice Chair; Susan Reisbord to assume CEO role.

Financial highlights

• Gross revenue for Q2 was $2.2 billion, net revenue $1.8 billion, up 11.5% year-over-year.

• Adjusted EBITDA margin reached 18.7% in Q2, up 90 basis points; trailing 12-month adjusted EBITDA margin at 18%.

• Adjusted EPS for Q2 was $1.61, up 18.4% year-over-year.

• Project margin as a percentage of net revenue increased 30 basis points to 54.5%.

• Operating cash flows for Q2 were $118.6 million, down $15.4 million year-over-year due to higher working capital needs.

Outlook and guidance

• Net revenue growth for 2026 expected in the range of 8.5%–11.5%, with mid-single-digit organic growth globally.

• Adjusted EBITDA margin guidance raised to 17.8%–18.3% for the year.

• Adjusted EPS growth target maintained at 15%–18% for 2026.

• Adjusted net income margin targeted at or above 9.5% of net revenue; adjusted ROIC above 13%.

• U.S. and Canada expected to achieve mid-single-digit organic growth in H2, with Global segment targeting high-single-digit growth.