Q3 2024 Stantec Inc Earnings Call Transcript
Key Points
- Stantec Inc (STN) achieved record net revenue of $1.5 billion in Q3 2024, up almost 16% compared to Q3 2023.
- The company delivered solid organic growth in key geographies, with double-digit organic growth in the water and buildings businesses.
- Adjusted EBITDA for the quarter rose to $275 million, up almost 14%, with a healthy margin of 18%.
- Stantec Inc (STN) was ranked number 1 on Newsweek's list of Canada's Most Responsible Companies for 2025, highlighting its commitment to climate, social welfare, and responsible governance.
- The company's backlog reached a record-setting $7.3 billion, representing 9.5% acquisition and almost 5% organic growth across all regions.
- The energy & resources business experienced a slight retraction, particularly in the global mining sector, offsetting growth in the US and Canada.
- The percentage of net revenue from projects decreased by 50 basis points compared to Q3 2023, reflecting a minor shift in project mix.
- Admin and marketing expenses as a percentage of net revenue were slightly up, reflecting increased labor training and integration costs.
- The company's Q3 financial statements included a noncash charge reducing goodwill by approximately $310 million due to updated IFRS guidance.
- The adjusted EBITDA margin was slightly down compared to the previous year, even after normalizing for long-term incentive programs.
Welcome to Stantec's third quarter 2024 results webcast and conference call. Leading the call today are Gord Johnston, President and Chief Executive Officer; and Vito Culmone, Executive Vice President and Chief Financial Officer.
Stantec invites those dialing in to view the slide presentation, which is available in the Investors section at stantec.com. Today's call is also webcast. Please be advised that if you have dialed in while also viewing the webcast, you should mute your computer as there is a delay between the call and the webcast.
All information provided during this conference call is subject to forward-looking statements, qualification set out on slide 2, detailed in Stantec's Management Discussion and Analysis and incorporated in full for the purposes of today's call. Unless otherwise noted, dollar amounts discussed in today's call are expressed in Canadian dollars and are generally rounded.
With that, I'm pleased to turn the call over to Mr. Gord Johnston.
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