Stantec posts net revenue growth of 24.3% in third quarter
Stantec, an Edmonton-headquartered design and engineering consultancy, had 24.3% growth in the three months ending September 30, 2022 to reach net revenue of $1.2 billion.
The 24.3% growth (over Q3 2021) was driven by 11.0% organic growth and 12.9% acquisition growth. Every one of Stantec’s regional and business operating units delivered organic growth.
The consultancy also achieved record adjusted diluted earnings per share (EPS) of $0.86, up 19.4% over Q3 2021.
Adjusted Ebitda increased 23.9% to $193.3 million, with a margin of 16.7%. Backlog at the end of Q3 2022 stood at a record $6.2 billion, driven by organic growth of 15.1% since December 31, 2021.
“Our performance in the quarter demonstrates the ongoing strong execution of our strategic plan, while our record backlog reflects the resiliency of our business despite broader economic headwinds,” said Gord Johnston, president and CEO of Stantec. “As we look ahead to the remainder of the year and into 2023, we continue to see numerous growth opportunities that we are well positioned to capture, bolstering our confidence in our ability to deliver on our strategic plan.”
Stantec’s Canada-based consulting engineering rivals also reported solid third quarters.
WSP had growth of 8.3% to reach $2.2 billion in net revenue, with organic growth of 8.2% attributable to all reportable segments.
Adjusted Ebitda in Q3 2022 grew 7.8% over Q3 2021 to reach $407.0 million, with a margin of 18.6%.
WSP’s backlog grew organically by 15.2% in the 12-month period ending October 1, 2022 to reach $13.3 billion.
SNC-Lavalin splits reporting for its consulting and lump-sum turnkey (LSTK) construction segments, the latter of which the firm has been working to wind down in recent years. Like US counterpart Aecom, SNC has been pivoting to focus on higher-margin, lower-risk consulting work.
SNC’s services segment increased revenue by 8.2% to reach $1.6 billion, with 12.6% organic growth. The segment had an adjusted EBIT of $152.6 million, with a 9.3% margin. The services segment’s backlog at the end of Q3 2022 stood at $11.7 billion.
SNC’s LSTK projects segment had adjusted EBIT of -$43.9 million, owing to supply chain disruption, inflation, labor shortages, and a safety inspectors’ strike in Ontario. The segment decreased its backlog by 19.9% in the quarter to reach $663.9 million.
