Stantec Inc reported net revenue of $1.8 billion for the second quarter of fiscal 2026, marking a 12% increase year-over-year. The growth was driven by a combination of 4% organic expansion and 7% acquisition contributions, primarily from the Page integration.

The company achieved a record adjusted EBITDA margin of 18.7%, representing a 90 basis point improvement compared to Q2FY25. Adjusted earnings per share rose over 18% to $1.61, reflecting strong operational execution and margin discipline across its diversified global platform.

Regional Performance and Backlog

Contract backlog reached a record $9.2 billion, up 17.5% year-over-year, representing approximately 13 months of work. The Global region led growth with nearly 25% year-over-year backlog expansion, fueled by water infrastructure projects in the UK, Australia, and New Zealand. In the U.S., net revenue grew almost 13%, driven by the Page acquisition, while organic growth in Canada stood at 2.4%.

Strategic Initiatives and Leadership

Management highlighted continued capital allocation flexibility, with net debt to adjusted EBITDA remaining at 1.3 times, within the internal target range of 1 to 2 times. During the quarter, Stantec repurchased approximately 1.7 million common shares for $175 million under its Normal Course Issuer Bid (NCIB) and plans to seek TSX approval to expand the program limit from 2% to 5%. Additionally, the company completed the acquisition of Niche, an Australian engineering consultancy, effective July 31.

In a significant leadership transition, President and CEO Gord Johnston announced his retirement effective October 1, transitioning to Vice Chair of the Board. Susan Reisbord is set to succeed him as CEO. Johnston emphasized that the underlying demand for infrastructure, energy, and water services remains strong across all operating regions.

What the Numbers Show

A divergence between regional organic growth rates highlights the varying pace of project conversions. While the Global region delivered approximately 13% organic net revenue growth, the U.S. segment saw flat organic growth in Q2 due to timing delays in project starts, despite a 13% total revenue increase driven by acquisitions. This suggests that future U.S. performance relies heavily on converting existing backlog rather than new order intake momentum in the short term.

Outlook for FY26

Stantec maintained its full-year guidance for net revenue growth of 8.5% to 11.5% and adjusted EPS growth of 15% to 18%. However, management raised the outlook for adjusted EBITDA margin to 17.8% to 18.3%, citing improved operational efficiency and favorable mix shifts. Organic net revenue growth is now expected to be in the mid-single-digit range overall, with high single-digit growth anticipated in the Global segment.

Stantec Inc., a global leader in sustainable engineering, architecture, and environmental consulting, has received approval from the Toronto Stock Exchange to amend its Normal Course Issuer Bid (NCIB), significantly expanding the maximum number of common shares it may repurchase for cancellation. The amendment raises the buyback ceiling from 2,281,339 shares (2% of issued and outstanding shares as of March 2, 2026) to 5,703,349 shares (5% of issued and outstanding shares as of March 2, 2026).

Amendment details and timeline

The amended NCIB will commence on August 20, 2026 and terminate no later than March 11, 2027. No changes have been made to any other terms of the NCIB beyond the increase in the maximum repurchase limit. For further details on the original NCIB, Stantec referred to its prior news release dated March 10, 2026.

The key parameters of the amended NCIB are summarised below:

Buyback activity to date

As of August 17, 2026, Stantec had repurchased and cancelled a total of 1,667,292 common shares at a weighted average price of $103.43 under the current NCIB. This represents 1.46% of the issued and outstanding common shares as of March 10, 2026, the date on which Stantec filed its initial application with the TSX.

Automatic share purchase plan remains in effect

The automatic share purchase plan (ASPP), implemented alongside the current NCIB to allow share purchases during periods when Stantec would otherwise be restricted from market activity due to regulatory requirements or internal trading blackout periods, remains in effect as previously approved by the TSX. The ASPP constitutes an automatic securities purchase plan under applicable Canadian securities laws and will terminate on the earliest of the following:

• The maximum annual purchase limit under the NCIB has been reached
• The NCIB expires
• Stantec terminates the ASPP in accordance with its terms

Rationale for the buyback programme

Stantec stated that it believes the market price of its common shares may not, from time to time, adequately reflect the value of its business and future business prospects. The company characterised the repurchase of its outstanding common shares as an attractive investment opportunity and an appropriate use of available funds. Stantec noted that this capital deployment strategy is consistent with its priority of maintaining balance sheet strength, while reinvesting in organic and acquisitive growth and increasing dividends, all of which contribute to enhanced shareholder returns.