Stantec Inc · TSX:STN
Stantec — Investor Presentation (September 2024)
17 slides from Stantec's investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation East Midtown Greenway McGregor New Square | Denver, Colorado York, NY SEPTEMBER 2024
Slide 2: Cautionary statement
Cautionary statement This presentation contains non-IFRS and other financial measures and forward-looking statements, including a discussion of our business targets, expectations, and outlook. We caution readers not to place undue reliance on our forward- looking statements since a number of factors
Slide 3: Global leader in sustainable engineering, design, and environmental services
Global leader in sustainable engineering, design, and environmental services A GLOBAL LEADER IN SUSTAINABILITY TSX / NYSE STN Net Revenue1 $5.4B1 Market Cap2 C$12.2B2 | US$9.0B EV2 C$14.4B2 | US$10.6B Q2 2024 TTM Employees2 31,000 #1 Net Revenue 21% 20% by business operating unit Ranked most Infrast
Slide 4: Stantec's value proposition
Stantec’s value proposition • Diverse business lines and customers • Well-positioned for organic growth • Global leader in sustainability #1 Ranked most sustainable • Strong culture & technical expertise corporation among industry peers 2024 Corporate Knights Global 100 • Disciplined capital allocat
Slide 5: Execution of our strategy drives strong results
Execution of our strategy drives strong results Net Revenue Adjusted EBITDA & Margin Adjusted EPS ($ millions) ($ millions & %) ($ per share) Guidance: 12% to 15% Guidance: 12% to 16% Guidance: 16.5% to 16.9% $5,066 16.4% $3.67 $4,457 16.2% $831 $3.13 $3,636 15.8% $724 $2.42 $574 2021 2022 2023 2024
Slide 6: A global leader in sustainability
A global leader in sustainability Carbon neutral to Global 100 Indigenous climate net zero #1among peers action Carbon neutral Ranked the most Donated sustainability- for second year and sustainable design and linked loan savings to committed to the Canada engineering firm in the Indigenous-led non-
Slide 7: Sustainability: core to our strategy
Sustainability: core to our strategy Our greatest potential for positive impact comes from the projects we deliver to clients Gross Revenue aligned to UN Sustainable Development Goals 2023 61% 2022 60% 2021 53% 2020 49% 2019 45% $- $1,000 $2,000 $3,000 $4,000 Gross Revenue (CA$ millions) Other 7
Slide 8: Business operating units – overview
Business operating units – overview Environmental Energy & Water Services Infrastructure Buildings Resources S U S T A I N A B I L I T Y $1.2B | 21% $1.0B | 19% $1.5B | 28% $1.1B | 20% $623M | 12% I N L E A D E R G L O B A L A Q2 2024 TTM net revenue of $5.4 billion
Slide 9: Water
Stantec, with 70 years in the Water business, is recognized as a global leader $1.2B Q2 2024 TTM Net revenue Q2 2024 TTM Net revenue We have delivered water solutions since 1954 Water Treatment Water Resources By sector Conveyance We design water projects that improve the health and quality of life
Slide 10: Environmental Services
Environmental Services helps preserve and minimize impacts to environmental, social and cultural resources $1.0B Q2 2024 TTM Net revenue Q2 2024 TTM Net revenue Environmental Services provides a wide array of Buildings conservation, ecosystem restoration, and sustainability Power & Dams services By
Slide 11: Infrastructure
Infrastructure is a leader in transport system design and community development $1.5B Q2 2024 TTM Net revenue Q2 2024 TTM Net revenue Stantec’s Infrastructure group is at the forefront of integrating transport design and community development into the communities we serve Roadways By sector Communit
Slide 12: Buildings
Buildings ranked #1 in Architecture and Engineering for the last 10 years1 $1.1B Q2 2024 TTM Net revenue Q2 2024 TTM Net revenue Stantec’s Buildings group provides consulting and design services for built, natural, and organizational Healthcare environments Commercial By sector Civic Industrial Buil
Slide 13: Energy & Resources
Energy & Resources plays a critical role in energy transition $623M Q2 2024 TTM Net revenue Q2 2024 TTM Net revenue Stantec’s Energy & Resources group delivers utility-scale and microgrid renewable energy generation engineering and design services Mining By sector Power We design for increasingly se
Slide 14: Three-year financial targets
Three-year financial targets STANTEC’S TARGETS (end of 2026) 2026 Net revenue $7.5 billion Focus on Organic net revenue 3-Year CAGR1 above 7% execution and efficiencies will Project margin as % of net revenue1 53% to 56% drive margin enhancement Adjusted EBITDA as % of net revenue1 17% to 18% Adjust
Slide 15: 2024 Financial targets
2024 Financial targets REVISED 2024 ANNUAL RANGE 1 Net revenue growth 12% to 15% Adjusted EBITDA as % of net 16.5% to 16.9% revenue2 Adjusted net income as % of net above 8.0% revenue2 Adjusted diluted EPS growth2 12% to 16% Adjusted ROIC2 above 11.0% 1. 2024 Annual Range revised at Q2 2024. 15 2. A
Slide 16: Why invest in Stantec?
Strong Why invest in Stantec? Dividend Growth $0.84 Diverse business lines, geographies, and $0.72 $0.78 $0.66 customers Significant growth opportunities 1 2021 2022 2023 2024E Global leader in sustainability Strong Backlog ($ billions) $7.2 Strong culture & technical expertise $6.3 $5.9 Disciplined
Slide 17: Q&A
Q&A Bunker Hill Elementary East Midtown Greenway School Houston, New York,Texas NY SEPTEMBER 2024