Aug 13, 2026 earnings call — Record backlog, margins, and regional growth
Net revenue reached $1.8 billion and adjusted EBITDA margin was 18.7%, a Q2 record, with backlog at $9.2 billion.
Revenue $1.3B (est $1.3B) · EPS $1.16 (est $1.15)
Key quotes
"In the second quarter, we grew our net revenue to $1.8 billion, up almost 12% compared to Q2 2025, driven by almost 4% organic and 7% acquisition growth."
"We achieved an adjusted EBITDA margin of 18.7% in the quarter, a 90 basis point increase compared to Q2 of 2025."
"At the end of Q2, our contract backlog reached a record of $9.2 billion, a 17.5% increase year-over-year, representing approximately 13 months of work."
Analyst Q&A 10
U.S. growth, margins, Page deal
Q (Sabahat Khan · RBC): They asked how the U.S. can reach mid-single-digit organic growth in H2, what drives the margin moves, and how Page is contributing to growth.
A: Management said the Q2 weakness in the U.S. was timing, not demand, as some projects finished and others were slow to start but many have since kicked off. They said the sales funnel and organic backlog are strong, and Page will move from acquisition to organic reporting in Q3 and Q4 which supports H2 momentum. On margins, they said project margins and lower admin as a percent of revenue drove expansion, but headcount increases to support H2 growth will moderate further margin gains.
"And so in the U.S. specifically, we see that this is not a demand issue." — Gordon Johnston (CEO)
Project margins and M&A outlook
Q (Frederic Bastien · Raymond James): He asked how much project margins can improve and whether the company can lift them further, and he asked about reconciling private versus public valuations for M&A and Stantec's capital deployment.
A: They said project margins are the core driver and they focus on project execution, right pricing and risk, and they will return with more detail after completing their 3-year planning and at Investor Day. On M&A, they said the acquisition market is active, there is some valuation dislocation between private sellers and public buyers, Stantec is in many conversations and expects possible consolidation next year while staying focused on long-term shareholder value.
"We're in the middle of our 3-year planning process right now." — Vito Culmone (CFO)
Why U.S. slowed and backlog fall
Q (Yuri Lynk · Canaccord Genuity): He wanted to know what caused the U.S. slowdown and the lower organic backlog, and whether U.S. organic growth will recover in H2. He also asked if LTIP affected G&A given share price movement.
A: Management said the Q2 softness was largely timing: several large projects were slower to start but are now moving, and a big infrastructure proposal could materially boost backlog if awarded. They expect U.S. organic growth to pick up in Q3 and strengthen into Q4 and 2027. On LTIP, they said the impact was very minor because most long-term incentive programs are hedged, creating an offset.
"So again, just to reiterate, I think a lot of it was just a timing issue." — Gordon Johnston (CEO)
Canada growth and digitization
Q (Michael Tupholme · TD Cowen): He asked how Canada will pick up organic growth in H2 and what is driving it, and he asked for details on digital initiatives that helped margins.
A: They said Canada shows strong organic backlog year-to-date with large programs starting, including a $13 billion Meta data center, major utility work in Western Canada, defense and nation-building opportunities, and strong water and buildings backlogs. They expect Buildings and Water to drive H2 organic growth in Canada. On digitization, they said they are using digital and AI tools across back office and bidding to improve efficiency and it's part of the 3-year strategy.
"We talked about that $13 billion Meta data center project that we've just got going on." — Gordon Johnston (CEO)
Global growth drivers and buybacks
Q (Chris Murray · ATB Cormark): He asked what is driving strong global growth and how regions like Europe, Australia, and Latin America are performing. He also asked if a larger buyback or SIB is being considered versus M&A.
A: They said global strength is broad: Australia returned to organic growth, the U.K. is about 15% organic driven by AMP8, Germany (ZETCON) is low-20s, and Latin America is over 50% driven by copper demand. On capital allocation, they said M&A remains central to value creation, expect more M&A in the next 12 months, and they expanded the NCIB from 2% to 5% to give flexibility while remaining disciplined.
"So we're seeing pretty broad-based strength in our global operations." — Gordon Johnston (CEO)
Workforce and working capital
Q (Devin Dodge · BMO): He asked whether backlog duration requires adding staff globally, and why working capital was more pronounced in H1 and what to expect in H2.
A: They said they are actively expanding the workforce in high-growth regions (Latin America, Germany, U.K.) and have been hiring aggressively, including expanding the India delivery center toward a 2,000-person goal. They said some contract opportunities (like multi-year AMP programs) don't hit backlog until assigned change orders, and they view the business as entering a period of high single-digit growth for several quarters. On working capital, DSOs are 75 (within guidance) and management is focused on bringing it down; Page integration affected timing but they expect normal H2 seasonality.
"Yes. I'll add, Devin, this is a bit of an inflection point for our global business." — Vito Culmone (CFO)
M&A priorities unchanged
Q (Krista Friesen · CIBC): She asked whether M&A priorities or target sizes have changed given current private and public valuations.
A: They said their M&A strategy and discipline have not changed; they will continue to pursue the right acquisitions by geography or line of business at the right time. The environment has not altered their approach to building Stantec for the long term.
"But no, we're holding our consistency, holding our discipline as to where we think there are great opportunities longer term, either geographically or in certain lines of business." — Gordon Johnston (CEO)
Marketing efficiency and surface transport
Q (Maxim Sytchev · NBCM): He asked whether controlled marketing spend affected growth, and how surface transportation funding and IIJA timing could affect 2027.
A: They said philosophy hasn't changed: focus on the right growth while staying efficient, and digitization and margin work happened despite softer organic growth. On surface transport and IIJA, they said industry estimates show about 80% of IIJA funds encumbered, the House put forward a $581 billion bill, Senate expected after Labor Day with similar sizing, and they expect reauthorization likely early next year so they don't see a negative impact on next year.
"So I don't see it really being a negative impact going into next year because everyone sort of has made plans for it, got their proposals out now when they can and such." — Gordon Johnston (CEO)
Elections and planning risk
Q (Ian Gillies · Stifel): He asked how midterm election uncertainty might affect the U.S. H2 recovery and whether H1 issues will affect the 2027-2030 business plan due in December.
A: They said elections can create uncertainty but their backlog, soft backlog, and recently started projects give confidence for H2, and Page converting to organic helps the math. They added Buildings and Environmental Services enter H2 with momentum and many projects that will ramp in Q3 and Q4, and they expect the planning cycle to support confidence in positioning for the next 3-year period while letting Susan present her perspectives.
"So I think most of those would be insulated from midterm type activity." — Vito Culmone (CFO)
Consolidation, valuations, financing
Q (Jonathan Goldman · Scotiabank): He asked how fragmented the E&C market is and whether consolidation will accelerate, if private-side valuations are a bottleneck, and whether the balance sheet has capacity for larger deals.
A: They said the market is still very fragmented (largest U.S. firm only about 6%–8% penetration) so more consolidation is possible, especially among small and midsized firms. On valuations, they said acquisitions are case-by-case and they believe accretive opportunities exist in the next 12 months. On financing, they said they remain investment-grade with leverage around 1.3x and there is substantial dry powder and debt capacity on the balance sheet, with equity blended if needed for very large deals.
"So there's a substantial amount of dry powder and debt capacity on our balance sheet." — Vito Culmone (CFO)