Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 12, 2026 · Beat 5 of last 5 quarters
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Stantec's results underscore the sustained demand for AI-driven data center infrastructure, highlighted by the Meta data center project in Alberta and continued strength in mission-critical facilities. The company's record backlog and margin expansion reflect the broader buildout of digital and energy infrastructure, positioning Stantec as a key professional services provider in the AI infrastructure ecosystem.
Stantec delivered strong Q2 2026 results with net revenue of $1.8 billion, up 11.5% year-over-year, driven by 3.7% organic growth and 7.1% acquisition growth, primarily from the Page acquisition. Adjusted EBITDA margin reached a record 18.7%, up 90 basis points, and adjusted EPS grew 18.4% to $1.61. Contract backlog hit a record $9.2 billion, up 17.5% year-over-year, with organic growth of 7%. The company announced the acquisition of Niche, a 200-person environmental consultancy in Australia, and repurchased 1.7 million shares under its NCIB. Organic growth was flat in the U.S. due to project timing delays, but management noted positive signs of acceleration in Q3.
Management raised and narrowed the adjusted EBITDA margin guidance to 17.8%-18.3% for 2026, increased from prior guidance, while reaffirming net revenue growth of 8.5%-11.5% and adjusted EPS growth of 15%-18%. Organic net revenue growth is now expected to be mid-single-digit overall, with the U.S. and Canada each expected to achieve mid-single-digit organic growth and Global expected to achieve high single-digit organic growth. The U.S. is expected to accelerate in the second half, supported by strong backlog, a robust sales funnel, and the Page acquisition transitioning to organic growth in Q3. Management expressed confidence in continued margin expansion, though they noted some moderation in the back half due to workforce investments to support growth. They also expect continued disciplined M&A with a robust pipeline and plan to seek TSX approval to extend the NCIB beyond the existing 2% limit.
“Our second quarter financial results continue to showcase the strength of our business. Stantec's diversification across operating regions and across sectors has kept us on track to deliver on our financial targets for the year.”
on Q2 performance
“We continue to expect net revenue growth in the range of 8.5% to 11.5%, driven by strong acquisition growth from Page and organic growth across our operating regions.”
on 2026 outlook
“We believe that continued disciplined M&A remains our highest source of value creation for our shareholders measured over a reasonable period of time.”
on Capital allocation
On the U.S. segment, you're pointing to mid-single-digit organic growth for the year, which implies high single-digit organic in the back half. Can you detail the building blocks and your confidence in that outlook?
Gord Johnston explained that the Q2 softness was a timing issue, not a demand issue, with projects wrapping up and new ones slow to start. He cited strong sales funnel, soft backlog, and positive organic backlog growth in the U.S. as supporting the acceleration. He also noted that Page will transition from acquisition to organic growth in Q3, adding to the momentum.
A good chunk of margin expansion came from project margins. How far can you get those margins going?
Vito Culmone said the company is focused on delivering outstanding outcomes for clients, which drives project execution and margins. He noted they are in the middle of their 3-year planning process and will provide more detail at Investor Day in December, but expressed confidence in project margins given strong macro demand and the ability to be selective with clients.
Global order intake was strong again. Has the duration of that backlog changed much, and will you need to expand workforce to convert it?
Gord Johnston said they are actively expanding the workforce globally, particularly in Latin America, Germany, and the U.K., and have been hiring aggressively for 18 months. He noted that AMP programs only enter backlog when specific change orders are assigned, so the opportunity is larger than reported. They are also expanding their global delivery center in India, which has reached roughly 2,000 people ahead of schedule.