Stantec Contract Backlog Grows 17.5% to $9.2 Billion
The engineering and environmental consulting firm reported net revenue of $3.5 billion for the first two quarters of 2026, a 10.3% increase over the prior year.
Stantec Inc. (STN), a global leader in sustainable engineering, architecture, and environmental consulting, reported a contract backlog of $9.2 billion as of June 30, 2026. This represents a 17.5% year-over-year increase, which the company attributed to 7.8% acquisition growth and 7.0% organic growth.
Growth was particularly concentrated in the Buildings business, where the acquisition of Page contributed to backlog growth of over 40%. Organic growth occurred across all regions, led by nearly 25% growth in the Global region and over 10% in the Water business.
For the two quarters ended June 30, 2026, net revenue rose 10.3% to $3.5 billion. This increase was driven by 7.2% acquisition growth, primarily from Page in the United States, and 3.7% organic growth. The Water business was the largest organic driver, with a 13.0% increase in net revenue.
Project margin for the first half of the year increased 10.3% to $1.9 billion, remaining steady as a percentage of net revenue at 54.2%. Performance varied by region; the United States saw project margin increase to $1.0 billion year-to-date, while Canada's project margin decreased $1.7 million to $407.8 million. The company said lower margins in Canada were influenced by a change in project mix and lower volumes in roadways and rail projects, as well as delays in change order approvals in Energy & Resources.
Net income for the two quarters ended June 30 reached $261.1 million, compared to $235.5 million in the same period in 2025. Adjusted net income grew 18.0% to $182.5 million, and adjusted earnings per share rose 18.4% to $1.61 a share.
Cash flows from operating activities for the first half of 2026 were $116.3 million, a decrease of $118.4 million from 2025. The company said this decline reflected required investments in net working capital due to revenue growth from 2025 acquisitions and the Global region, along with residual impacts from the Page integration in the first quarter of 2026.
Financing activities resulted in a net cash outflow of $158.3 million year-to-date, primarily due to $175.9 million used to repurchase shares for cancellation. The company also reported a net debt to adjusted EBITDA ratio of 1.3x as of June 30, 2026.
Stantec acquired Niche, an Australian engineering and environmental consultancy firm with 200 employees, on July 31, 2026, to bolster its Environmental Services operations. The Board of Directors declared a dividend of $0.245 a share on August 12, 2026.