Stantec reports record 2025 results, achieves 17.6% adjusted EBITDA margin, increases dividend by 8.9%, and provides 2026 outlook
StockNews.AI · 1 minute
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Information
2025 Highlights Net revenue grew to $6.5 billion, an increase of 10.7% compared to 2024;Adjusted EB...
Original sourceAI Summary
Stantec reported impressive financial results for 2025, with a net revenue increase of 10.7% driven by organic and acquisition growth. The record backlog of $8.6 billion and anticipated adjusted EBITDA margin expansion provide a solid foundation for continued growth into 2026, likely enhancing investor confidence.
Sentiment Rationale
Stantec's strong earnings and backlog growth indicate a robust business model, likely leading to a positive market reception.
Trading Thesis
Buy Stantec (STN) for strong growth potential and sustainable earnings in 2026.
Market-Moving
- Earnings per share increased significantly, boosting investor sentiment.
- Record backlog suggests strong future revenue streams.
- Adjusted EBITDA margin of 17.6% indicates effective cost management.
- Increased cash flows support potential reinvestments and dividends.
Key Facts
- Stantec's net revenue reached $6.5 billion, up 10.7% YoY.
- Adjusted EBITDA rose 16.7% YoY, achieving a margin of 17.6%.
- Record backlog of $8.6 billion indicates growth stability for 2026.
- Strong cash flows up 43.1% boost financial health.
- EPS increased by 19.9% to $5.30, highlighting profitability.
Companies Mentioned
- Page (N/A): Acquisition contributed over 30% backlog growth in Stantec's Buildings business.
Earnings
The article fits in the 'Earnings' category due to Stantec's impressive financial performance, highlighting growth metrics and future outlook that are crucial for investors.