Canada's Stantec Q3 net revenue beats estimates
STN•Stantec's Q3 net revenue rose 9.4% to C$1.90 billion and adjusted EPS grew 23.5% to C$1.89, both above estimates. The company raised its 2026 targets for net revenue growth, adjusted EBITDA margin and adjusted EPS growth.
1. Quarterly results
Stantec reported Q3 net revenue of C$1.90 billion, up 9.4% and above the C$1.84 billion analyst estimate. Adjusted EPS increased 23.5% to C$1.89, beating the C$1.78 estimate; adjusted EBITDA was C$377.10 million versus an estimate of C$354.34 million.
2. Growth and margins
Net revenue growth included 5.3% organic growth and 2.6% acquisition growth, with organic gains across all regions and businesses. Project margin rose 10.5% to C$1,024.9 million, reflecting improved project execution and a 60-basis-point reduction in administrative and marketing expenses as a percentage of net revenue.
3. Raised 2026 targets
Stantec raised its 2026 net revenue growth target to 9.0%-11.0% from 8.5%-11.5%. It now expects an adjusted EBITDA margin of 18.3%-18.5%, up from 17.8%-18.3%, and adjusted EPS growth of 17%-19%, compared with its previous 15%-18% target.
