Stantec posts revenues of $1.36 billion in Q2 on back of consulting services

14 August 2018

Canadian engineering consultancy released its second quarter 2018 results last week. The company’s consulting services division spurred on growth, while its construction services division was more of a financial drag.

Founded in 1954, Edmonton-based Stantec is one of the world’s largest design and engineering consultancies, offering services in architecture, interior design, engineering, environmental science, and project management. The firm had gross revenues of $5.14 billion in 2017, and employs over 22,000 people across over 400 offices worldwide.

Stantec recently released its second quarter 2018 results: gross revenues grew 3% from Q2 2017, reaching $1.36 billion, while net revenues grew 2.2% to $908 million. Growth was driven by the firm’s Consulting Services business, which realized 4.5% organic net revenue growth over Q2 2017. The Energy & Resources business operating unit saw especially explosive gains, achieving 32.4% net organic growth.

Consulting Services - Canada outperformed its US counterpart, posting 6.9% organic net revenue growth in comparison to the US division’s 3.3% growth. Meanwhile, Consulting Services - Global had 3.3% net organic revenue growth, mostly due to new projects in the Water and Mining units.Stantec posts revenues of $1.36 billion in Q2 on back of consulting servicesHowever, delays and performance issues in legacy waste-to-energy projects in the UK and legacy hard-bid (locked-in prices on public contracts) and design-build projects in the US negatively impacted results in the Construction Services business. As such, Stantec had negative revenues of $16.3 million on UK waste-to-energy projects, $5.4 million on a US design-build contract, and $3 million on legacy US hard-bid projects.

Stantec had vastly expanded its UK operations with the 2016 acquisition of MWH Global, which employed thousands of British staff. The firm’s UK footprint was further expanded with the purchase of environmental advisory specialist ESI Consulting earlier this year.

In April, Stantec announced a strategic review of its Construction Services business, wherein it will look at different strategies to optimize the value of the business.

“Our Consulting Services business continues to perform well. We’re focusing on our long-term strategy, meeting targets, growing organically, and reducing costs,” commented Stantec president and chief executive officer, Gord Johnston. “Though we believe that our core Construction Services business is solid, several legacy projects continued to negatively impact results.”

“We have placed a hold on hard-bid projects outside our area of expertise, we are winding down our exposure to the UK waste-to-energy market, and we continue to make positive progress on our strategic review.”

During Q2 2018, Stantec made three notable acquisitions. The consultancy acquired New Zealand-based Traffic Design Group, a transportation engineering firm, Alberta-based energy firm Norwest Corporation, and Quebec-based engineering consultancy Cegertec.

Electricity in Nepal

In other Stantec news, the firm was recently selected as lead electricity transmission project consultant in a $630 million infrastructure project tasked with improving the supply of electricity to millions of consumers in Nepal. US government agency the Millennium Challenge Corporation (MCC) will provide $500 million for the project, while the Government of Nepal will foot $130 million. The project will aim to construct 300 km of transmission lines and three new substations.

Stantec will plan, design, and supervise the construction of the critical energy project. The project will be led by Stantec’s Washington, DC-based International Development Group (IDG), with support from the firm’s Canada-based Power group – which has deep experience with specialized high-voltage transmission lines and substations.


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Collins Barrow rebrands as Baker Tilly Canada

21 January 2019

Accounting and consulting network Collins Barrow has rebranded as Baker Tilly Canada. The rebranding was part of a unified marketing strategy initiated by Baker Tilly International, of which Collins Barrow is the Canadian representative.

Baker Tilly International is one of the largest accounting and consulting networks in the world. Together, the network’s 125 independent global firms generate revenues of US$3.4 billion and have 33,600 employees across 147 territories.

Until now, Baker Tilly International’s member firms retained their original names (e.g. Collins Barrow) despite being part of the international network, muddying brand cohesion. In December of last year, Baker Tilly International launched a global brand unification strategy, along with a refreshed brand/logo. As part of the effort, the differently named member firms of the network would unify under the trade name of Baker Tilly by January of 2019.

The bird in the old Baker Tilly logo is gone, replaced by a stylized representation of the rings of a tree, probably symbolic of growth. The formerly all-uppercase letters have been replaced by a more approachable lowercase. The rebrand also includes a new tagline: “Now, for tomorrow.”

Collins Barrow rebrands as Baker Tilly Canada

“In a rapidly changing and complex financial environment, nationally and globally, our independent network is agile and evolving,” commented national chair of Baker Tilly Canada Grant Galbraith. “Our new name, identity and vision reflect our true dedication to seizing tomorrow’s opportunities, today.”

Now, Collins Barrow National Cooperative Incorporated has taken on the name and visual brand of Baker Tilly Canada. The firm is the largest group of independent chartered accounting firms in the country. As such, each of the 20 constituent firms retain autonomous ownership and management, while also investing in national initiatives and representation.

The typical model (i.e. for Grant Thorton, Deloitte, etc.) is for the country firm to be independent (Deloitte Canada), but for its various offices to be owned and operated by the country firm. That country firm is then a part of the international network (i.e. Deloitte Canada, Deloitte US, Deloitte UK are all independent entities that are a part of the international Deloitte network). Strategy firms and smaller non-accounting-focused consultancies are usually just one big firm throughout their global footprint (e.g. McKinsey, Bain).

The rebranded Baker Tilly Canada has been the Canadian representative of Baker Tilly International since 2009. The refreshed branding will not affect Baker Tilly Canada’s autonomous ownership structure.

“The new Baker Tilly brand is a symbol of our capacity to adapt to the ever-changing needs of clients around the world. We invest in great relationships and conversations to achieve great futures,” said Ted Verkade, CEO of Baker Tilly International. “By embracing the opportunities and challenges of tomorrow, in the present, Baker Tilly Canada is creating a catalyst for innovation, growth and client success.”

Related: Collins Barrow Vancouver merges with two accounting firms