Stantec Net Revenue Rises 9.1% to $1.7 Billion
The engineering and design firm reported adjusted net income of $152.2 million for the first quarter ended March 31, 2026.
Stantec Inc. (STN), a global engineering and design firm, reported net revenue of $1.69 billion for the first quarter ended March 31, 2026, an increase of 9.1% from $1.55 billion in the prior-year period. The company said the $141.3 million increase was driven by 7.2% acquisition growth and 3.6% organic growth, though results were partly offset by foreign exchange impacts.
Net income for the period rose to $110.8 million from $100.1 million in the first quarter of 2025. Basic and diluted earnings per share were 0.97 Canadian dollars compared to 0.88 Canadian dollars a share in the same period last year. Adjusted net income reached $152.2 million, a 14.7% increase attributed to net revenue growth and operational performance.
Growth was led by the Water business, which achieved 15% organic growth in global operations through public sector investment and long-term framework agreements in Australia, New Zealand, and the UK. In Canada, the Water business saw organic growth driven by wastewater solution and biosolids projects. The company also reported double-digit organic growth in its U.S. Water business due to large wastewater treatment projects.
Other regional drivers included the Energy & Resources sector, where projects in Chile and Peru fueled double-digit organic growth due to copper mining demand for energy-transition solutions. In Germany, the Infrastructure business saw double-digit organic growth from a public sector electrical transmission project and increased rail and transit volumes.
These gains were offset by a retraction in the Canadian Infrastructure business as certain roadway and transit projects wound down. Stantec also noted a retraction in U.S. Buildings following the completion of several major mission-critical projects.
Cash flows from operating activities were $2.3 million used in the quarter, compared to $100.7 million generated in the first quarter of 2025. This shift followed a $144.7 million increase in trade and other payables and other accruals, alongside $33.2 million in trade and other receivables. The company ended the period with $357.7 million in cash and cash equivalents.
Stantec declared dividends of 0.245 Canadian dollars per common share during the quarter. The company expects a ramp up of new projects in its Canadian Infrastructure business to commence in the second quarter of 2026.