Stantec Boosts Margins, Raises EBITDA Outlook on Strong Q2 Growth — Stantec Inc.

Event summary

Stantec reported Q2 2026 net revenue of $1.8B, up 11.5% YoY, driven by 7.1% acquisition growth and 3.7% organic growth.
Adjusted EBITDA rose 17.1% to $332.9M, with margins expanding 90 basis points to 18.7%.
Contract backlog grew 17.5% YoY to $9.2B, supported by strong demand in Water and Global regions.
Stantec acquired Niche, a 200-person Australian engineering consultancy, bolstering Environmental Services.
The company raised its adjusted EBITDA margin outlook for 2026 to 17.8%-18.3%, up from prior guidance.

The big picture

Stantec's Q2 results reflect a strategic focus on operational efficiency and selective acquisitions to bolster high-margin service lines like Environmental Services. The company's ability to expand margins while growing organically contrasts with broader industry challenges in engineering consultancies, where public sector project delays have pressured revenue visibility. Stantec's raised EBITDA outlook signals confidence in sustaining these gains amid dynamic global demand for sustainable infrastructure solutions.

What we're watching

Integration Risk: How Stantec will manage the assimilation of Niche and prior acquisitions like Page to sustain margin gains.
Regional Dynamics: Whether mid-single-digit organic growth in the US and Canada can accelerate amid public sector spending trends.
Execution Pressure: The pace at which Stantec converts its record $9.2B backlog into revenue, given 13 months of work pipeline.