Stantec, Inc. - STN STOCK NEWS

Stantec has been selected to provide planning and design services for the new South Niagara Hospital in Ontario, which aims to be among the first healthcare facilities in Canada to achieve WELL certification. The hospital will occupy 1.3 million square feet, featuring 470 beds and various specialized care centers, and is scheduled to open in 2027. This facility aims to enhance healthcare access and improve patient experiences in the region, addressing the growing need for healthcare services.

Stantec has launched Stantec GenerationAV™, a comprehensive consulting program aimed at facilitating the deployment of autonomous vehicle (AV) projects. The initiative addresses major obstacles such as technology supplier selection, regulatory compliance, and efficient deployment roadmaps. Stantec GenerationAV™ leverages data-driven experiences from past projects and an extensive partnership network to enhance client resources. With a proven ability to accelerate AV deployments by three to six months, the program is expected to bolster safety, efficiency, and community-wide benefits.

Stantec Inc. (STN) announced the renewal of its Normal Course Issuer Bid (NCIB), allowing it to repurchase up to 5,605,224 common shares, about 5% of its outstanding shares. This initiative begins on November 16, 2020, and lasts until November 15, 2021. Stantec's previous NCIB resulted in the purchase of 1,151,244 shares at a weighted average price of $36.82. The company aims to enhance shareholder returns, reinforcing its capital strategy alongside organic growth and debt management.

Stantec reported Q3 2020 adjusted net income of $69.9 million, a 5.4% increase from Q3 2019, with adjusted diluted EPS rising to $0.62. Despite a 3.8% decrease in net revenue, the company managed to maintain adjusted EBITDA at 17.3%. The contract backlog increased to $4.8 billion, signaling strong future work. Operating cash flows also rose 17.8% to $163.8 million. The Board declared a dividend of $0.155 per share, payable in January 2021. Looking forward, Stantec anticipates muted revenue growth due to COVID-19 impacts but expects to remain resilient with strong earnings in 2021.

Stantec's Pure Water San Diego program has achieved a significant milestone by obtaining a National Pollutant Discharge Elimination System permit, enabling the addition of purified water to the Miramar Reservoir. This $3 billion initiative aims to supply sustainable water to over 1.4 million residents, enhancing the City's water independence. Upon completion in 2035, it will provide one-third of San Diego's water supply locally, significantly reducing reliance on imported water. Phase 1 funding and construction bids are currently underway, targeting a production of 30 million gallons of purified water per day.

Stantec announced the closing of a private placement offering of $300 million in senior unsecured notes due October 8, 2027, with an interest rate of 2.048% per annum. The proceeds will be utilized to repay existing debt and for general corporate purposes. The notes rank equally with Stantec's existing senior unsecured indebtedness and were assigned a BBB rating with a stable outlook by DBRS Limited. Notably, these notes are not registered under U.S. securities laws and cannot be sold to U.S. persons.

Stantec will announce its third quarter 2020 financial results on November 4, 2020, after market close. A conference call, hosted by CEO Gord Johnston and CFO Theresa Jang, is scheduled for November 5, 2020, at 7:00 AM MT (9:00 AM ET) to discuss the results. The call will be accessible via telephone or streamed online. Stantec, trading on TSX and NYSE under the symbol STN, focuses on community-centric design, emphasizing collaboration and innovation.

Stantec has announced a private placement of $300 million in senior unsecured notes with a 2.048% interest rate, due October 8, 2027. The closing is expected around the same date, subject to customary conditions. The funds will primarily be used for repaying existing debt and general corporate purposes. The notes will not be registered under the U.S. Securities Act and will be issued at par, with interest payments starting on April 8, 2021. The notes have been provisionally rated BBB by DBRS Limited.

Stantec has completed the acquisition of Teshmont, enhancing its expertise in high voltage power transmission and distribution engineering. Founded in 1966, Teshmont brings experience from over 300 projects across 50 countries. This strategic move positions Stantec to capitalize on an estimated US$13 trillion in renewable energy spending by 2025. The acquisition is expected to bolster Stantec's Energy & Resources operations, specifically in renewable energy projects like wind and solar, while offering Teshmont's employees new opportunities for growth and diverse services.