Stantec Surpasses Goals, Posts Record Profit and Bullish 2026 Outlook

EDMONTON, Alberta – February 25, 2026 – Global design and engineering leader Stantec Inc. (TSX, NYSE: STN) today revealed record-setting financial results for 2025, demonstrating significant growth that surpassed key strategic goals a full year ahead of schedule. The company reported a 10.7% increase in net revenue to $6.5 billion and a nearly 20% surge in adjusted earnings per share, fueling a robust outlook for 2026 and an 8.9% increase in its shareholder dividend.

The performance underscores a period of exceptional operational execution and strategic positioning, as Stantec capitalizes on a global boom in sustainable infrastructure, water management, and energy transition projects. With a record backlog of $8.6 billion, the firm enters 2026 with powerful momentum.

Strategic Execution Delivers Early Victory

Stantec's 2025 financial success is a direct result of its disciplined strategic execution. The company's adjusted EBITDA soared 16.7% to $1.14 billion, achieving an adjusted EBITDA margin of 17.6%. This figure is particularly significant as it lands squarely within the 17% to 18% target range set in the company's 2024-2026 Strategic Plan, a milestone originally slated for the end of 2026.

“2025 marked another successful year for Stantec, delivering solid mid-single-digit organic growth despite ongoing global geopolitical uncertainties,” said Gord Johnston, president and chief executive officer. “We also achieved our highest ever adjusted EBITDA margin driven by strong execution and operational excellence. Closing out the second year of our 2024-2026 Strategic Plan, we are proud of the meaningful progress we've made against our priorities and we continue to work toward the targets set out in this Plan.”

This operational excellence was further evidenced by the firm's successful real estate optimization strategy. Stantec exceeded its objectives by reducing its physical footprint by 11% compared to its 2023 baseline, a move that contributed approximately $0.17 of incremental adjusted earnings per share. The combination of strong project execution, disciplined cost management, and higher utilization rates drove the impressive margin expansion and a 32.5% increase in diluted earnings per share to $4.20.

Capitalizing on a Global Infrastructure Supercycle

Stantec’s record year is not occurring in a vacuum. The company is strategically positioned at the confluence of several powerful global trends, including massive government investment in infrastructure renewal and climate adaptation. With global infrastructure spending projected to surpass $9 trillion in 2026, Stantec's expertise in sustainable design is in high demand.

In North America, this trend is particularly pronounced. The United States continues to deploy funds from the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), with an estimated $492 billion still available for critical projects through 2026. Similarly, Canada has committed over C$100 billion for infrastructure in its 2025-26 fiscal year, a record high. These public funds are fueling projects across transportation, energy, and water—all core markets for Stantec.

The company’s Water business was a standout performer, achieving 10.7% organic growth for the full year. This reflects a booming global market for water infrastructure, driven by urbanization, aging systems, and the urgent need for enhanced water management. Stantec's selection as the Owner's Engineer for the $800 million Mojave Groundwater Bank project, one of the largest new water initiatives in the U.S. Southwest, highlights its leading role in addressing critical resource security challenges.

Strategic Acquisitions Bolster Market Leadership

While organic growth was strong at 5.0% for the year, Stantec also pursued a disciplined acquisition strategy that contributed 3.9% to its net revenue growth. The most significant move was the 2025 acquisition of Page, a major U.S.-based architecture and engineering firm. This transaction was a pivotal step in expanding Stantec's U.S. footprint and capabilities.

The Page acquisition immediately elevated Stantec to the second-largest architecture firm in the United States and the largest integrated architecture and engineering firm in North America. It grew the company's Buildings practice by nearly 35% and more than doubled its presence in the key market of Texas. More importantly, it deepened Stantec's expertise in high-growth sectors such as advanced manufacturing, data centers, and healthcare. The impact was clear in the company's backlog, where the Buildings business saw its project pipeline swell by over 30% following the integration.

Bullish Outlook and Growing Investor Confidence

Buoyed by its 2025 performance and a record $8.6 billion backlog, which represents approximately 13 months of work, Stantec has issued a confident outlook for 2026. The company is targeting net revenue growth between 8.5% and 11.5%, with adjusted earnings per share expected to grow by another 15% to 18%. The firm also anticipates its adjusted EBITDA margin will continue to expand, reaching a new record range of 17.6% to 18.2%.

“2026 is off to a strong start, and with a new record high backlog of $8.6 billion, we are very well positioned for another year of continued growth,” Mr. Johnston stated. “The momentum we have built, combined with favorable long-term market trends across water, health care, transportation, energy transition, and mission critical segments, positions us well to unlock meaningful growth not only in 2026, but for years to come.”

This financial strength is being shared directly with investors. The Board of Directors declared an 8.9% increase in the quarterly dividend to $0.245 per share. This move, supported by a 43.1% increase in operating cash flows to $862.9 million and a healthy net debt to adjusted EBITDA ratio of 1.3x, signals strong confidence from leadership in the company's long-term value and stability. This combination of a robust backlog, strategic positioning in high-demand sectors, and proven operational discipline provides a strong foundation for sustained growth in the years ahead.