The following is a summary of the Stantec Inc. (STN) Q3 2024 Earnings Call Transcript:
Financial Performance:
Stantec reported record third-quarter net revenue of CAD 1.5 billion, up almost 16% compared to the same quarter in 2023.
Adjusted EBITDA rose to CAD 275 million, reflecting a healthy margin of 18%.
Adjusted earnings per share (EPS) increased by 14% to CAD 1.30.Solid net revenue growth was seen across all key geographies with significant contributions from acquisitions and organic growth.
Gross revenue for Q3 stood at CAD 1.9 billion, reflecting nearly 14% growth year-over-year.
Business Progress:
Stantec saw a significant increase in backlog, reaching a record CAD 7.3 billion, indicative of continued strong demand.
The company achieved notable growth in water and infrastructure segments globally with major project awards in the UK and ongoing work in North America.
Expansion in data center projects and renewable energy sectors exemplifies Stantec's diversification.
Noteworthy project awards during the quarter include significant framework agreements in the UK's regulated water business and a master services agreement with LUMA Energy in Puerto Rico for grid reconstruction projects.
Opportunities:
Stantec plans to capitalize on robust public and private sector investments across its operating regions, especially in infrastructure and water security projects.
Recent regulatory changes in the UK and potential shifts in the US regulatory environment could represent enhanced business opportunities in both regions.
Risks:
Global operations in the Energy & Resources sector experienced a slight retraction, potentially offsetting growth in other geographical segments.
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