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Canada's Stantec Q3 net revenue beats estimates

By Reuters News


Overview

  • Canada sustainable engineering firm's Q3 net revenue rose 9.4%, beating analyst expectations

  • Q3 adjusted EPS grew 23.5%, beating analyst expectations

  • Company raised 2026 targets for revenue growth and profitability metrics


Outlook

  • Stantec raises 2026 net revenue growth target to 9.0%-11.0% from 8.5%-11.5%

  • Company now expects 2026 adjusted EBITDA margin of 18.3%-18.5%, up from 17.8%-18.3%

  • Stantec raises 2026 adjusted EPS growth target to 17%-19% from 15%-18%


Result Drivers

  • ORGANIC AND ACQUISITION GROWTH - Net revenue growth of 9.4% was driven by 5.3% organic growth and 2.6% acquisition growth, with organic gains across all regions and businesses

  • MARGIN IMPROVEMENT - Project margin increased 10.5% to $1,024.9 mln, reflecting improved project execution and a 60 basis point reduction in administrative and marketing expenses as a percentage of net revenue


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Revenue

Beat

C$1.90 bln

C$1.84 bln (11 Analysts)

Q3 Adjusted EPS

Beat

C$1.89

C$1.78 (11 Analysts)

Q3 EPS

C$1.60

Q3 Adjusted EBITDA

Beat

C$377.10 mln

C$354.34 mln (11 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction & engineering peer group is "buy"

  • Wall Street's median 12-month price target for Stantec Inc. is C$135.00, about 25.5% above its November 11 closing price of C$107.58

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago


Reuters Recommended Reads

  • Nov 12 - Construction firm MT Hoejgaard Q3 revenue rises 12%

  • Nov 11 - Tetra Tech Q4 revenue beats estimates on contract wins

  • Nov 12 - Norway's Veidekke beats Q3 revenue estimates on higher activity, utilisation


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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