The strong Q2 beat and upward guidance revision support a positive view on STN. Monitor US organic growth acceleration in H2 as project deferrals subside, and watch for further M&A given the 1.3x leverage and $990M available on credit facilities. The Niche acquisition and major project wins (Meta data center, Montreal airport) provide near-term catalysts.
Price Chart
Executive Summary
Stantec reported strong Q2 2026 results with net revenue up 11.5% to $1.78B, driven by 7.1% acquisition growth (primarily Page) and 3.7% organic growth. Adjusted EBITDA margin expanded 90bps to 18.7%, and adjusted EPS grew 18.4% to $1.61. The company raised its adjusted EBITDA margin guidance to 17.8%-18.3% and secured major project wins including Meta's $13B data center. However, operating cash flow declined 11.5% to $118.6M due to working capital investment, and US organic growth was muted at 0.2% due to project deferrals. The $175.9M share buyback and Niche acquisition signal confidence in the growth trajectory.
Key Facts
- Net revenue increased 11.5% YoY to $1,780.6M in Q2 2026
- Adjusted EPS grew 18.4% to $1.61, with adjusted EBITDA margin expanding 90bps to 18.7%
- Contract backlog reached $9.2B, up 17.5% YoY with 7.0% organic growth
- Raised adjusted EBITDA margin guidance to 17.8%-18.3% from prior 17.6%-18.2%
- Repurchased 1,667,292 shares for $175.9M under NCIB; acquired Niche in Australia on July 31, 2026
- Operating cash flow declined to $118.6M from $134.0M due to working capital investment
- US organic net revenue growth was flat (0.2%) due to project deferrals
- Net debt to adjusted EBITDA remained at 1.3x, within 1.0x-2.0x target
Financial Impact
Net revenue +11.5% YoY to $1.78B; adjusted EPS +18.4% to $1.61; backlog +17.5% to $9.2B; operating cash flow -11.5% to $118.6M
Risk Factors
- US organic growth was flat at 0.2% due to project deferrals, with risk of further delays
- Operating cash flow declined 11.5% YoY due to working capital needs from revenue growth
- Higher interest expense from debt to fund acquisitions and $12.9M lease impairment charge
- Geopolitical risks in Middle East operations and macroeconomic uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001131383-26-000017 |
| Exhibit: ex-991xmdaxq2x2026x6k.htm | 0001131383-26-000017 |
| Exhibit: ex-993xceoxcertxq2x2026x6k.htm | 0001131383-26-000017 |
| Exhibit: ex-994xcfoxcertxq2x2026x6k.htm | 0001131383-26-000017 |
| Document: a6kq22026.htm | 0001131383-26-000017 |
| Document: 0001131383-26-000017-index-headers.html | 0001131383-26-000017 |
| Document: 0001131383-26-000017-index.html | 0001131383-26-000017 |
| Document: 0001131383-26-000017.txt | 0001131383-26-000017 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 18, 2026 6w ago | Press Release | $74.20 $71.47 | ▼ −3.69% | ▼ −2.70% | $67.68 (−8.79%) |
Aug 12, 2026 7w ago | 6-K | $74.01 $69.66 | ▼ −5.88% | ▼ −4.13% | $67.68 (−8.55%) |
Aug 12, 2026 7w ago | 6-K | $74.01 $69.66 | ▼ −5.88% | ▼ −4.13% | $67.68 (−8.55%) |
Aug 12, 2026 7w ago | Press Release | $74.01 $69.66 | ▼ −5.88% | ▼ −4.13% | $67.68 (−8.55%) |
Jul 30, 2026 9w ago | 6-K | $69.44 $74.71 | ▲ +7.59% | ▲ +3.62% | $67.68 (−2.53%) |
Jul 15, 2026 11w ago | 6-K | $70.45 $74.01 | ▲ +5.05% | ▲ +1.44% | $67.68 (−3.93%) |
Jul 9, 2026 12w ago | 6-K | $68.80 $73.11 | ▲ +6.26% | ▲ +4.02% | $67.68 (−1.63%) |
Jul 9, 2026 12w ago | Press Release | $68.80 $73.11 | ▲ +6.26% | ▲ +4.02% | $67.68 (−1.63%) |
Jun 18, 2026 15w ago | 6-K | $67.69 $70.45 | ▲ +4.08% | ▲ +3.54% | $67.68 (−0.01%) |
Jun 17, 2026 15w ago | 6-K | $67.69 $70.45 | ▲ +4.08% | ▲ +3.54% | $67.68 (−0.01%) |
US Market Status
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