Stantec announces record 2024 earnings, increases dividend by 7%, achieves all-time record backlog of $7.8 billion, and provides 2025 outlook
Stantec reported record earnings for 2024, with net revenue rising 15.8% to $5.9 billion. The company saw a 7.4% organic growth and 7.5% acquisition growth. Adjusted EBITDA increased by 18.0% to $980.3 million, with a margin of 16.7%. Adjusted diluted EPS rose by 20.4% to $4.42. Stantec achieved a record backlog of $7.8 billion, up 24.1% from 2023.
Q4 2024 highlights include a 19.0% increase in net revenue to $1.5 billion, with 9.3% organic growth. Adjusted EBITDA rose by 26.7% to $246.5 million, and adjusted diluted EPS increased by 35.4% to $1.11. Net income for the year grew by 14.2% to $361.5 million, and diluted EPS increased by 11.2% to $3.17.
For 2025, Stantec projects net revenue growth of 7% to 10% and adjusted EBITDA margin between 16.7% and 17.3%. The company expects adjusted EPS growth of 16% to 19%. A dividend of $0.225 per share was declared, a 7.1% increase, payable on April 15, 2025.
Stantec's strategic focus on project execution and operational excellence is anticipated to drive continued growth and margin expansion in 2025.
Stantec ha riportato guadagni record per il 2024, con un aumento del fatturato netto del 15,8% a 5,9 miliardi di dollari. L'azienda ha registrato una crescita organica del 7,4% e una crescita da acquisizioni del 7,5%. L'EBITDA rettificato è aumentato del 18,0% a 980,3 milioni di dollari, con un margine del 16,7%. L'EPS diluito rettificato è salito del 20,4% a 4,42 dollari. Stantec ha raggiunto un record di portafoglio ordini di 7,8 miliardi di dollari, in aumento del 24,1% rispetto al 2023.
I punti salienti del Q4 2024 includono un aumento del 19,0% del fatturato netto a 1,5 miliardi di dollari, con una crescita organica del 9,3%. L'EBITDA rettificato è aumentato del 26,7% a 246,5 milioni di dollari, e l'EPS diluito rettificato è aumentato del 35,4% a 1,11 dollari. Il reddito netto per l'anno è cresciuto del 14,2% a 361,5 milioni di dollari, e l'EPS diluito è aumentato dell'11,2% a 3,17 dollari.
Per il 2025, Stantec prevede una crescita del fatturato netto del 7% al 10% e un margine EBITDA rettificato tra il 16,7% e il 17,3%. L'azienda si aspetta una crescita dell'EPS rettificato del 16% al 19%. È stato dichiarato un dividendo di 0,225 dollari per azione, con un aumento del 7,1%, pagabile il 15 aprile 2025.
Il focus strategico di Stantec sull'esecuzione dei progetti e sull'eccellenza operativa è previsto per guidare una continua crescita e un'espansione del margine nel 2025.
Stantec reportó ganancias récord para 2024, con ingresos netos que aumentaron un 15.8% a 5.9 mil millones de dólares. La compañía vio un crecimiento orgánico del 7.4% y un crecimiento por adquisiciones del 7.5%. El EBITDA ajustado aumentó un 18.0% a 980.3 millones de dólares, con un margen del 16.7%. El EPS diluido ajustado subió un 20.4% a 4.42 dólares. Stantec logró un récord de cartera de pedidos de 7.8 mil millones de dólares, un aumento del 24.1% en comparación con 2023.
Los aspectos destacados del Q4 2024 incluyen un aumento del 19.0% en ingresos netos a 1.5 mil millones de dólares, con un crecimiento orgánico del 9.3%. El EBITDA ajustado aumentó un 26.7% a 246.5 millones de dólares, y el EPS diluido ajustado creció un 35.4% a 1.11 dólares. El ingreso neto del año creció un 14.2% a 361.5 millones de dólares, y el EPS diluido aumentó un 11.2% a 3.17 dólares.
Para 2025, Stantec proyecta un crecimiento de ingresos netos del 7% al 10% y un margen de EBITDA ajustado entre el 16.7% y el 17.3%. La compañía espera un crecimiento del EPS ajustado del 16% al 19%. Se declaró un dividendo de 0.225 dólares por acción, un aumento del 7.1%, pagadero el 15 de abril de 2025.
El enfoque estratégico de Stantec en la ejecución de proyectos y la excelencia operativa se anticipa que impulse un crecimiento continuo y una expansión del margen en 2025.
Stantec는 2024년 기록적인 수익을 보고했으며, 순수익이 15.8% 증가하여 59억 달러에 달했습니다. 회사는 7.4%의 유기적 성장과 7.5%의 인수 성장을 경험했습니다. 조정된 EBITDA는 18.0% 증가하여 9억 8천만 달러에 이르렀고, 마진은 16.7%입니다. 조정된 희석 EPS는 20.4% 증가하여 4.42달러에 달했습니다. Stantec는 2023년 대비 24.1% 증가한 78억 달러의 기록적인 미수금 잔고를 달성했습니다.
2024년 4분기 주요 내용에는 순수익이 19.0% 증가하여 15억 달러에 이르고, 유기적 성장은 9.3%입니다. 조정된 EBITDA는 26.7% 증가하여 2억 4천 6백 50만 달러에 이르렀고, 조정된 희석 EPS는 35.4% 증가하여 1.11달러에 도달했습니다. 연간 순이익은 14.2% 증가하여 3억 6천 1백 50만 달러에 이르렀고, 희석 EPS는 11.2% 증가하여 3.17달러에 달했습니다.
2025년을 위해 Stantec는 순수익 성장률을 7%에서 10%로 예상하고, 조정된 EBITDA 마진은 16.7%에서 17.3% 사이로 예상하고 있습니다. 회사는 조정된 EPS 성장률을 16%에서 19%로 예상합니다. 주당 0.225달러의 배당금이 선언되었으며, 이는 7.1% 증가한 것으로, 2025년 4월 15일에 지급될 예정입니다.
Stantec의 프로젝트 실행 및 운영 우수성에 대한 전략적 초점은 2025년에도 지속적인 성장과 마진 확장을 이끌 것으로 예상됩니다.
Stantec a annoncé des bénéfices records pour 2024, avec un chiffre d'affaires net en hausse de 15,8 % à 5,9 milliards de dollars. L'entreprise a connu une croissance organique de 7,4 % et une croissance par acquisitions de 7,5 %. L'EBITDA ajusté a augmenté de 18,0 % pour atteindre 980,3 millions de dollars, avec une marge de 16,7 %. Le BPA dilué ajusté a augmenté de 20,4 % pour atteindre 4,42 dollars. Stantec a atteint un carnet de commandes record de 7,8 milliards de dollars, soit une augmentation de 24,1 % par rapport à 2023.
Les points forts du quatrième trimestre 2024 incluent une augmentation de 19,0 % du chiffre d'affaires net à 1,5 milliard de dollars, avec une croissance organique de 9,3 %. L'EBITDA ajusté a augmenté de 26,7 % pour atteindre 246,5 millions de dollars, et le BPA dilué ajusté a augmenté de 35,4 % pour atteindre 1,11 dollar. Le revenu net pour l'année a augmenté de 14,2 % pour atteindre 361,5 millions de dollars, et le BPA dilué a augmenté de 11,2 % pour atteindre 3,17 dollars.
Pour 2025, Stantec prévoit une croissance du chiffre d'affaires net de 7 % à 10 % et une marge d'EBITDA ajusté entre 16,7 % et 17,3 %. L'entreprise s'attend à une croissance du BPA ajusté de 16 % à 19 %. Un dividende de 0,225 dollar par action a été déclaré, soit une augmentation de 7,1 %, payable le 15 avril 2025.
Le focus stratégique de Stantec sur l'exécution des projets et l'excellence opérationnelle devrait continuer à stimuler la croissance et l'expansion des marges en 2025.
Stantec meldete Rekordgewinne für 2024, mit einem Anstieg des Nettoumsatzes um 15,8% auf 5,9 Milliarden Dollar. Das Unternehmen verzeichnete ein organisches Wachstum von 7,4% und ein Wachstum durch Akquisitionen von 7,5%. Das bereinigte EBITDA stieg um 18,0% auf 980,3 Millionen Dollar, mit einer Marge von 16,7%. Der bereinigte verwässerte EPS stieg um 20,4% auf 4,42 Dollar. Stantec erreichte einen Rekordauftragsbestand von 7,8 Milliarden Dollar, was einem Anstieg von 24,1% im Vergleich zu 2023 entspricht.
Die Highlights des Q4 2024 umfassen einen Anstieg des Nettoumsatzes um 19,0% auf 1,5 Milliarden Dollar, mit einem organischen Wachstum von 9,3%. Das bereinigte EBITDA stieg um 26,7% auf 246,5 Millionen Dollar, und der bereinigte verwässerte EPS erhöhte sich um 35,4% auf 1,11 Dollar. Das Nettoergebnis für das Jahr wuchs um 14,2% auf 361,5 Millionen Dollar, und der verwässerte EPS stieg um 11,2% auf 3,17 Dollar.
Für 2025 prognostiziert Stantec ein Nettoumsatzwachstum von 7% bis 10% und eine bereinigte EBITDA-Marge zwischen 16,7% und 17,3%. Das Unternehmen erwartet ein Wachstum des bereinigten EPS von 16% bis 19%. Eine Dividende von 0,225 Dollar pro Aktie wurde erklärt, ein Anstieg von 7,1%, zahlbar am 15. April 2025.
Der strategische Fokus von Stantec auf die Projektdurchführung und operative Exzellenz wird voraussichtlich auch 2025 für anhaltendes Wachstum und Margenexpansion sorgen.
- Net revenue increased 15.8% to $5.9 billion.
- Adjusted EBITDA rose 18.0% to $980.3 million.
- Adjusted diluted EPS increased by 20.4% to $4.42.
- Record backlog of $7.8 billion, up 24.1%.
- Net income increased 14.2% to $361.5 million.
- Dividend increased by 7.1%.
- Non-cash lease impairment charge of $34.9 million.
2024 Highlights
- Net revenue of
$5.9 billion in 2024, an increase of15.8% over 2023; - Adjusted EBITDA1 of
$980.3 million , up18.0% over 2023, and adjusted EBITDA margin1 of16.7% , a 30-basis point increase over 2023; - Strong organic growth of
7.4% for the full year driven by8.6% organic growth in the US,6% in Canada, and5.8% in Global; - Operating cash flows increased to
$603.1 million , up16.0% over 2023; - Adjusted diluted EPS1 of
$4.42 , an increase of20.4% over 2023; - Backlog of
$7.8 billion , up24.1% since December 31, 2023, and; - Ranked #8 of the most sustainable corporations in the world by Corporate Knights, first among peers.
EDMONTON, Alberta and NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) -- TSX, NYSE:STN Stantec, a global leader in sustainable design and engineering, released its results today for the fourth quarter and year ended December 31, 2024.
2024 was another record-setting year for Stantec, as the Company completed the first year of its ambitious 2024-2026 Strategic Plan. Net revenue increased
In the fourth quarter of 2024, Stantec grew net revenue
“Our strong 2024 results put us well on track to deliver on our Strategic Plan objectives,” said Gord Johnston, president and chief executive officer. “We continue to thrive in a resilient industry influenced by macro factors including water security, aging infrastructure, climate change, future technologies and an expansion in advanced manufacturing. By maintaining our strong focus on project execution and addressing our clients’ most pressing challenges, we anticipate another year of exceptional performance for Stantec in 2025, driven by continued margin expansion and earnings growth."
____________________________
1 Adjusted diluted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-IFRS measures, and organic growth and acquisition growth are other financial measures (discussed in the Definitions section of Stantec's 2024 Annual Report).
2025 Outlook
For 2025, Stantec has established the following targets:
| 2025 Annual Range | |
| Targets | |
| Net revenue growth | |
| Adjusted EBITDA as % of net revenue (note) | |
| Adjusted net income as % of net revenue (note) | above |
| Adjusted EPS growth (note) | |
| Adjusted ROIC (note) | above |
| Other expectations | |
| Effective tax rate (without discrete transactions) | |
| Earnings pattern | 42 |
| 53 | |
| Capital expenditures as % of net revenue | |
| Net debt to adjusted EBITDA (note) | 1.0x to 2.0x |
| Days sales outstanding (note) | at or below 80 |
| In setting our targets and guidance, we assumed an average value for the US dollar of | |
| note: Adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted ROIC, and net debt to adjusted EBITDA are non-IFRS measures and days sales outstanding is a supplementary financial measure discussed in the Definitions section of Stantec's 2024 Annual Report. | |
Stantec expects to achieve net revenue growth of
Stantec anticipates adjusted EBITDA margin will be in the range of
Overall, Stantec expects to drive adjusted net income to a margin of greater than
The above targets do not include any assumptions for additional acquisitions given the unpredictable nature of the size and timing of such acquisitions, or the impact from share price movements subsequent to December 31, 2024 and the relative total shareholder return components on our share-based compensation programs.
Full-Year 2024 Financial Highlights
- Net revenue increased
15.8% , or$800.4 million , to$5.9 billion compared to 2023, primarily driven by7.4% organic growth and7.5% acquisition growth. Stantec achieved organic growth in all of its regional and business operating units with the exception of Energy & Resources which remained consistent. The Company achieved double-digit organic growth in its Water and Buildings businesses. - Project margin increased
$451.0 million , or16.4% , to$3.2 billion and, as a percentage of net revenue, project margin increased by 30 basis points from 2023 to54.5% as a result of net revenue growth and solid project execution. - Adjusted EBITDA increased
$149.3 million , or18.0% , to$980.3 million . Adjusted EBITDA margin increased by 30 basis points from 2023 to16.7% and decreased by 30 basis points when normalized for the 2023 increase in long-term incentive plan (LTIP) expense that resulted from strong share price appreciation in the prior year. The change in margin primarily reflects higher administrative and marketing expenses as a percentage of net revenue resulting from claim provision estimates increasing to historically normal levels compared to 2023. - Net income and diluted EPS achieved record highs in 2024. Net income increased
14.2% , or$45.0 million , to$361.5 million , and diluted EPS increased11.2% , or$0.32 , to$3.17 , mainly due to strong net revenue growth and solid project margins, partly offset by a non cash lease impairment charge of$34.9 million resulting from our real estate optimization strategy and higher administrative and marketing expenses as a percentage of net revenue. - Stantec continued to execute on the real estate optimization objectives outlined in its 2024-2026 Strategic Plan and drove approximately
$0.08 adjusted EPS savings while reducing its footprint by over6.0% relative to 2023 baseline. - Adjusted net income increased
23.5% , or$95.9 million , to a record high of$504.3 million , representing8.6% of net revenue, up 50 basis points compared to last year. Adjusted diluted EPS increased20.4% , or$0.75 , to$4.42 . The LTIP revaluation had a downward impact on adjusted diluted EPS of$0.03 in 2024 and$0.24 in 2023. - Contract backlog stands at
$7.8 billion —a24.1% increase from December 31, 2023—reflecting9.7% acquisition growth and8.5% organic growth. Organic backlog growth was primarily achieved in Stantec's Canada and US operations, with Water attaining24% organic backlog growth. Contract backlog represents approximately 13 months of work. - Net debt to adjusted EBITDA was 1.2x at December 31, 2024—within our internal range of 1.0x to 2.0x.
- Operating cash flows increased
16.0% from$520.0 million to$603.1 million , reflecting continued strong cash flow generation, growth, and operational performance. - Days sales outstanding was 77 days at December 31, 2024, consistent with the prior year, remaining within Stantec's target of 80 days.
- On February 24, 2025, Stantec's Board of Directors declared a dividend of
$0.22 5 per share, payable on April 15, 2025, to shareholders of record on March 28, 2025, representing a7.1% increase.
Fourth Quarter 2024 Financial Highlights
- Net revenue increased
19.0% , or$236.2 million , to$1.5 billion , driven by9.3% organic growth and7.6% acquisition growth. Stantec achieved organic growth in all of its regional and business operating units, attaining double-digit organic growth in the United States and in its Water and Buildings businesses. - Project margin increased
21.5% , or$143.8 million , and increased 110 basis points as a percentage of net revenue from53.9% to55.0% , primarily due to higher project recoveries and change order approvals in the quarter as well as strong project execution. - Adjusted EBITDA increased
26.7% , or$51.9 million , to$246.5 million . Adjusted EBITDA margin increased by 100 basis points over Q4 2023 to16.7% and increased by 30 basis points after normalizing for the LTIP revaluation. - Net income increased
39.0% , or$27.5 million , to$98.0 million and diluted EPS increased36.5% to$0.86 , mainly due to strong net revenue growth and solid project margins. - Adjusted net income increased
38.1% , or$34.8 million , to$126.2 million , representing8.5% of net revenue, up 110 basis points compared to Q4 2023. Adjusted diluted EPS increased35.4% , or$0.29 , to$1.11 . The LTIP revaluation had no impact on the Company's Q4 2024 adjusted diluted EPS and a downward impact of$0.08 in 2023.
Q4 and Full-Year 2024 Financial Summary
| Quarter Ended Dec 31, | Year Ended Dec 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In millions of Canadian dollars, except per share amounts and percentages) | $ | % of Net Revenue | $ | % of Net Revenue | $ | % of Net Revenue | $ | % of Net Revenue | ||||||||
| Gross revenue | 1,959.5 | 132.5 | % | 1,609.0 | 129.5 | % | 7,500.0 | 127.8 | % | 6,479.6 | 127.9 | % | ||||
| Net revenue | 1,478.4 | 100.0 | % | 1,242.2 | 100.0 | % | 5,866.6 | 100.0 | % | 5,066.2 | 100.0 | % | ||||
| Direct payroll costs | 665.0 | 45.0 | % | 572.6 | 46.1 | % | 2,670.9 | 45.5 | % | 2,321.5 | 45.8 | % | ||||
| Project margin | 813.4 | 55.0 | % | 669.6 | 53.9 | % | 3,195.7 | 54.5 | % | 2,744.7 | 54.2 | % | ||||
| Administrative and marketing expenses (note 1) | 590.3 | 39.9 | % | 487.8 | 39.3 | % | 2,286.1 | 39.0 | % | 1,965.3 | 38.8 | % | ||||
| Depreciation of property and equipment | 17.3 | 1.2 | % | 14.9 | 1.2 | % | 67.7 | 1.2 | % | 59.9 | 1.2 | % | ||||
| Depreciation of lease assets | 31.9 | 2.2 | % | 30.5 | 2.5 | % | 127.1 | 2.2 | % | 121.7 | 2.4 | % | ||||
| Net impairment of lease assets and property and equipment | 4.3 | 0.3 | % | 3.2 | 0.3 | % | 34.9 | 0.6 | % | 0.3 | — | % | ||||
| Amortization of intangible assets | 24.3 | 1.6 | % | 23.7 | 1.9 | % | 123.8 | 2.1 | % | 102.0 | 2.0 | % | ||||
| Net interest expense and other net finance expense | 25.9 | 1.8 | % | 22.3 | 1.8 | % | 104.4 | 1.8 | % | 93.0 | 1.8 | % | ||||
| Other income | (6.7 | ) | (0.5 | %) | (3.9 | ) | (0.5 | %) | (13.6 | ) | (0.4 | %) | (5.2 | ) | — | % |
| Income taxes (note 1) | 28.1 | 1.9 | % | 20.6 | 1.7 | % | 103.8 | 1.8 | % | 91.2 | 1.8 | % | ||||
| Net income (note 1) | 98.0 | 6.6 | % | 70.5 | 5.7 | % | 361.5 | 6.2 | % | 316.5 | 6.2 | % | ||||
| Basic and diluted EPS (note 1) | 0.86 | 0.63 | 3.17 | 2.85 | ||||||||||||
| Adjusted EBITDA (note 2) | 246.5 | 16.7 | % | 194.6 | 15.7 | % | 980.3 | 16.7 | % | 831.0 | 16.4 | % | ||||
| Adjusted net income (note 2) | 126.2 | 8.5 | % | 91.4 | 7.4 | % | 504.3 | 8.6 | % | 408.4 | 8.1 | % | ||||
| Adjusted diluted EPS (note 2) | 1.11 | 0.82 | 4.42 | 3.67 | ||||||||||||
| Dividends declared per common share | 0.210 | 0.195 | 0.84 | 0.78 | ||||||||||||
| Total assets (note 1) | 6,956.1 | 5,766.3 | ||||||||||||||
| Total long-term debt (note 1) | 1,383.5 | 1,098.2 | ||||||||||||||
| note 1: Results for the year and quarter ended December 31, 2023 have been retrospectively revised for the change in accounting policy related to the treatment of deferred payments from our historical acquisitions. Refer to the Critical Accounting Developments, Estimates, and Measurements section of Stantec's 2024 Annual Report for further details. | ||||||||||||||||
| note 2: Adjusted EBITDA, adjusted net income, and adjusted diluted EPS are non-IFRS measures (discussed in the Definitions section of Stantec's 2024 Annual Report). | ||||||||||||||||
Net Revenue by Reportable Segment
Full-Year 2024
| (In millions of Canadian dollars, except percentages) | 2024 | 2023 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||||||||
| Canada | 1,427.0 | 1,246.3 | 180.7 | 105.4 | n/a | 75.3 | 6.0 | % | ||||||||||
| United States | 3,040.7 | 2,684.1 | 356.6 | 87.4 | 37.9 | 231.3 | 8.6 | % | ||||||||||
| Global | 1,398.9 | 1,135.8 | 263.1 | 185.1 | 12.2 | 65.8 | 5.8 | % | ||||||||||
| Total | 5,866.6 | 5,066.2 | 800.4 | 377.9 | 50.1 | 372.4 | ||||||||||||
| Percentage growth | 15.8 | % | 7.5 | % | 0.9 | % | 7.4 | % | ||||||||||
Fourth Quarter 2024
| (In millions of Canadian dollars, except percentages) | Q4 2024 | Q4 2023 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||||||||
| Canada | 361.1 | 307.1 | 54.0 | 26.2 | n/a | 27.8 | 9.1 | % | ||||||||||
| United States | 755.3 | 662.1 | 93.2 | 9.1 | 15.8 | 68.3 | 10.3 | % | ||||||||||
| Global | 362.0 | 273.0 | 89.0 | 59.6 | 9.5 | 19.9 | 7.3 | % | ||||||||||
| Total | 1,478.4 | 1,242.2 | 236.2 | 94.9 | 25.3 | 116.0 | ||||||||||||
| Percentage growth | 19.0 | % | 7.6 | % | 2.1 | % | 9.3 | % | ||||||||||
Backlog
| (In millions of Canadian dollars, except percentages) | Dec 31, 2024 | Dec 31, 2023 | Total Change | Change Due to Acquisitions | Change Due to Foreign Exchange | Change Due to Organic Growth | % of Organic Growth | |||||||||||
| Canada | 1,687.1 | 1,342.6 | 344.5 | 193.5 | n/a | 151.0 | 11.2 | % | ||||||||||
| United States | 4,722.6 | 3,950.8 | 771.8 | 48.0 | 339.0 | 384.8 | 9.7 | % | ||||||||||
| Global | 1,414.2 | 1,012.5 | 401.7 | 372.3 | 26.4 | 3.0 | 0.3 | % | ||||||||||
| Total | 7,823.9 | 6,305.9 | 1,518.0 | 613.8 | 365.4 | 538.8 | ||||||||||||
| Percentage growth | 24.1 | % | 9.7 | % | 5.9 | % | 8.5 | % | ||||||||||
Conference Call
Later today, Tuesday, February 25, 2025, at 2:30 PM Mountain Time (4:30 PM Eastern Time), Gord Johnston, president and chief executive officer, and Vito Culmone, executive vice president and chief financial officer, will hold a conference call to discuss the Company’s fourth quarter and year end 2024 performance.
To listen to the webcast and view the slide presentation, please join here.
If you are an analyst and would like to participate in the Q&A, please register here.
The conference call and slideshow presentation will be broadcast live and available on the Events and Presentations section of Stantec.com.
About Stantec
Stantec empowers clients, people, and communities to rise to the world’s greatest challenges at a time when the world faces more unprecedented concerns than ever before.
We are a global leader in sustainable engineering, architecture, and environmental consulting. Our professionals deliver the expertise, technology, and innovation communities need to manage aging infrastructure, demographic and population changes, the energy transition, and more.
Today’s communities transcend geographic borders. At Stantec, community means everyone with an interest in the work that we do—from our project teams and industry colleagues to our clients and the people our work impacts. The diverse perspectives of our partners and interested parties drive us to think beyond what’s previously been done on critical issues like climate change, digital transformation, and future-proofing our cities and infrastructure.
We are designers, engineers, scientists, project managers, and strategic advisors. We innovate at the intersection of community, creativity, and client relationships to advance communities everywhere, so that together we can redefine what’s possible.
Stantec trades on the TSX and the NYSE under the symbol STN.
Cautionary Statements
Non-IFRS and Other Financial Measures
Stantec reports its financial results in accordance with IFRS. However, in this press release, the following non-IFRS and other financial measures are used by the Company: adjusted EBITDA, adjusted net income, adjusted earnings per share (EPS), adjusted return on invested capital (ROIC), free cash flow, net debt to adjusted EBITDA, days sales outstanding (DSO), margin (percentage of net revenue), organic growth (retraction), acquisition growth, and measures described as on a constant currency basis and the impact of foreign exchange or currency fluctuations, as well as measures and ratios calculated using these non-IFRS or other financial measures. Additional disclosure for these non-IFRS and other financial measures, incorporated by reference, is included in the Definitions of Non-IFRS and Other Financial Measures section of the 2024 Annual Report, available on SEDAR at SEDAR.com, EDGAR at sec.gov, and the Company's website at stantec.com and the reconciliation of Non-IFRS Financial Measures appended hereto.
These non-IFRS and other financial measures do not have a standardized meaning under IFRS and, therefore, may not be comparable similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS and other financial measures provide useful information to investors to assist them in understanding components of Stantec's financial results. These measures should not be considered in isolation or viewed as a substitute for the related financial information prepared in accordance with IFRS.
Forward Looking Statements
Certain statements contained in this news release constitute forward-looking statements. Forward-looking statements in this news release include, but are not limited to, Stantec's Outlook and Annual Targets for 2025 in their entirety, any projections related to revenue, adjusted EBITDA as a % of net revenue, adjusted net income as a % of net revenue, adjusted diluted EPS growth, adjusted ROIC, free cash flow to net income, net debt to adjusted EBITDA, effective tax rate, earnings patterns, and days sales outstanding. Any such statements represent the views of management only as of the date hereof and are presented for the purpose of assisting the Company’s shareholders in understanding Stantec’s operations, objectives, priorities, and anticipated financial performance as at and for the periods ended on the dates presented and may not be appropriate for other purposes. By their nature, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. Stantec's assumptions relating to the 2023 Outlook and Annual Targets are provided in the Company’s 2024 Annual Report.
Readers of this news release are cautioned not to place undue reliance on forward-looking statements since a number of factors could cause actual future results to differ materially from the expectations expressed in these forward-looking statements. These factors include, but are not limited to, the risk of economic downturn, future pandemics or health crises that could adversely affect operations, reduced public or private sector capital spend, changing market conditions for Stantec’s services, and the risk that Stantec fails to capitalize on its strategic initiatives. Investors and the public should carefully consider these factors, other uncertainties, and potential events, as well as the inherent uncertainty of forward-looking statements, when relying on these statements to make decisions with respect to the Company.
For more information about how other material risk factors could affect Stantec’s results, refer to the Risk Factors section and Cautionary Note Regarding Forward-Looking Statements section in the Company’s 2024 Annual Report. This report is accessible online by visiting EDGAR on the SEC website at sec.gov or by visiting the CSA website at sedar+.com or Stantec’s website, stantec.com. You may obtain a hard copy of the 2024 Annual Report free of charge from the investor contact noted below.
Investor Contact
Jess Nieukerk
Stantec Investor Relations
Ph: 587-579-2086
jess.nieukerk@stantec.com
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Design with community in mind
Attached to this news release are Stantec’s reconciliation of non-IFRS measures.
Reconciliation of Non-IFRS Financial Measures
| Quarter Ended Dec 31, | Year Ended Dec 31, | |||||||
| (In millions of Canadian dollars, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||
| Net income (note 1) | 98.0 | 70.5 | 361.5 | 316.5 | ||||
| Add back (deduct): | ||||||||
| Income taxes (note 1) | 28.1 | 20.6 | 103.8 | 91.2 | ||||
| Net interest expense | 25.6 | 22.9 | 103.6 | 91.0 | ||||
| Net impairment (reversal) of lease assets and property and equipment (note 2) | 6.8 | 3.9 | 41.7 | 0.1 | ||||
| Depreciation and amortization | 73.5 | 69.1 | 318.6 | 283.6 | ||||
| Unrealized (gain) loss on equity securities | 1.0 | (6.4 | ) | (6.1 | ) | (10.5 | ) | |
| Acquisition, integration, and restructuring costs (note 1,5,7) | 20.5 | 14.0 | 64.2 | 59.1 | ||||
| Gain on disposition of intangible asset (note 6) | (7.0 | ) | — | (7.0 | ) | — | ||
| Adjusted EBITDA | 246.5 | 194.6 | 980.3 | 831.0 | ||||
| Quarter Ended Dec 31, | Year Ended Dec 31, | |||||||
| (In millions of Canadian dollars, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||
| Net income (note 1) | 98.0 | 70.5 | 361.5 | 316.5 | ||||
| Add back (deduct) after tax: | ||||||||
| Net impairment (reversal) of lease assets and property and equipment (note 2) | 5.3 | 3.1 | 32.4 | 0.1 | ||||
| Amortization of intangible assets related to acquisitions (note 3) | 11.7 | 10.9 | 69.9 | 52.6 | ||||
| Unrealized (gain) loss on equity securities (note 4) | 0.8 | (4.9 | ) | (4.7 | ) | (8.1 | ) | |
| Acquisition, integration, and restructuring costs (note 1,5,7) | 15.9 | 11.8 | 50.7 | 47.3 | ||||
| Gain on disposition of intangible asset (note 6) | (5.5 | ) | — | (5.5 | ) | — | ||
| Adjusted net income | 126.2 | 91.4 | 504.3 | 408.4 | ||||
| Weighted average number of shares outstanding - diluted | 114,066,995 | 112,039,745 | 114,066,995 | 111,228,491 | ||||
| Adjusted earnings per share - diluted | 1.11 | 0.82 | 4.42 | 3.67 | ||||
| See the Definitions section of Stantec's 2024 Annual Report for our discussion of non-IFRS and other financial measures used and additional reconciliations of non-IFRS financial measures. | ||||||||
| note 1: Results for the year and quarter ended December 31, 2023 have been retrospectively revised for the change in accounting policy related to the treatment of deferred payments from our historical acquisitions. Refer to the Critical Accounting Developments, Estimates, and Measurements section of Stantec's 2024 Annual Report for further details. | ||||||||
| note 2: The net impairment (reversal) of lease assets and property and equipment includes onerous contracts associated with the impairment for the year ended December 31, 2024 of | ||||||||
| note 3: The add back of intangible amortization relates only to the amortization from intangible assets acquired through acquisitions and excludes the amortization of software purchased by Stantec. For the year ended December 31, 2024, this amount is net of tax of | ||||||||
| note 4: For the year ended December 31, 2024, this amount is net of tax of | ||||||||
| note 5: The add back of certain administrative and marketing costs and depreciation primarily related to acquisition and integration expenses associated with our acquisitions and restructuring costs. For the year ended December 31, 2024, this amount is net of tax of | ||||||||
| note 6: For the year and quarter ended December 31, 2024, this amount is net of tax of | ||||||||
| note 7: Acquisition, integration, and restructuring cost include additional acquisition costs related to the change in accounting policy described in note 1 for the year ended December 31, 2024 of | ||||||||
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