Stantec's Global Acceleration and Succession: A Quarter of Timing, Talent, and Transition

Record backlog, raised margins, and a new CEO as Stantec bets on infrastructure demand across data centers, defense, and water.

STN · Earnings Call · 2026-08-13

Strong Q2, Stronger Trajectory

Stantec delivered a solid Q2 with net revenue up 11.5% to $1.8 billion and a record adjusted EBITDA margin of 18.7%, up 90 basis points. “Our second quarter financial results continue to showcase the strength of our business.” — Gordon Johnston, President and Chief Executive Officer · 2026-08-13 The company also recorded organic backlog growth of 7% and a record contract backlog of $9.2 billion. Management raised its EBITDA margin guidance to 17.8%–18.3%, citing consistent project execution and better operational leverage.

The Acceleration Thesis

US organic growth was flat in Q2, but management emphasized that this is a timing issue, not a demand problem. “it's really more of a timing issue for us here in Q2.” — Gordon Johnston, President and Chief Executive Officer · 2026-08-13 The key driver for the expected acceleration is the Page acquisition transitioning from acquisition to organic reporting in Q3 and Q4, plus a robust pipeline of projects ramping up. As Vito explained,

So these projects that we've got in the backlog ramping up, strong sales, strong backlog, good organic backlog growth there in the U.S. year-to-date and year-over-year. Page transitioning from acquisition into the organic side, that all kind of supports our thesis of that continued organic acceleration into the second half of the year and good momentum into 2027.
Gordon Johnston, President and Chief Executive Officer · 2026-08-13

This echoes the company's prior communication: “we see acceleration of organic growth in the U.S. for the second half of the year and through 2026 and beyond.” — Gordon Allan Johnston, President and Chief Executive Officer · 2025-08-14

New Growth Vectors

Global performance is a standout, with 18% net revenue growth and strong organic gains across regions. Latin America delivered over 50% organic growth, driven by copper mining and energy transition demand. “we're seeing over 50% organic growth in our Latin American operations right now.” — Gordon Johnston, President and Chief Executive Officer · 2026-08-13 The company is also capitalizing on nation building projects in Canada, including defense infrastructure, and expanding its data centers capabilities with the $13 billion Meta project in Alberta. The global delivery center in India has reached 2,000 employees, ahead of schedule, supporting scalability. The AMP8 framework in the U.K. remains a powerful tailwind: “it's not a one-to-one increase with the increase in the capital spend, but it's often not far off from that.” — Gord Johnston, President and Chief Executive Officer · 2025-02-26

Leadership Transition and Capital Deployment

CEO Gord Johnston announced his retirement, transitioning to Vice Chair, with Susan Reisbord taking over. “As announced in June, I'll be retiring from the role effective October 1 and transitioning to Vice Chair of Stantec's Board of Directors.” — Gordon Johnston, President and Chief Executive Officer · 2026-08-13 This transition comes at a time when the M&A environment is "incredibly active," with Vito projecting more M&A over the next 12 months and the company having expanded its NCIB to 5%. The acquisition of Niche adds to the environmental services footprint in Australia. Management is confident in the long-term demand drivers, from water infrastructure to grid modernization, positioning the company for continued growth.