Stantec Inc · TSX:STN
Stantec — Q3 2023 Earnings Presentation
14 slides from Stantec's earnings presentation, Nov 10, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation November 10, 2023
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: Q3 2023 earnings
Q3 2023 earnings Net revenue Increased earnings Q3 KEY DRIVERS $1.3B | ▲ 14% driven by: Strong demand in Adjusted EBITDA (1) Organic Net Revenue Growth (1) Canada $241M | ▲ 25% 9.0% Q3 2023 High utilization Adjusted EBITDA Margin (1) Acquisition Growth (1) (Canada & US) augmented by effective 18.3%
Slide 4: United States
United States Gross and net revenue ($ millions) $4.1 Billion BACKLOG Q3 2023 Gross Revenue Net Revenue 12.9% organic growth & 4.5% acquisition growth Double-digit organic growth in: • Water – public sector and industrial projects; large-scale water security projects in western US • Buildings – heal
Slide 5: Canada
Canada Gross and net revenue ($ millions) $1.3 Billion BACKLOG Q3 2023 Gross Revenue Net Revenue 7.4% organic growth Double-digit organic growth in: • Environmental Services – permitting, archaeology resource assessments and environmental impact assessments • Infrastructure – large scale bridge and
Slide 6: Global
Global Gross and net revenue ($ millions) $1.0 Billion BACKLOG Q3 2023 Gross Revenue Net Revenue 2.2% organic growth Strong organic growth in: • Water – various framework agreements and public sector investments in UK, New Zealand and Australia • Energy & Resources – double-digit organic growth - ma
Slide 7: Q3 2023 Financial Performance
Q3 2023 Q3 2023 Amsterdam Dunes Preservation Area Sheboygan County, Wisconsin, US Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 7
Slide 8: Financial results
Q3 2023 Financial results Gross and net revenue Project margin ($ millions) ($ millions and % of NR) Q3 2023 Adjusted EBITDA and Adjusted EBITDA margin(1) Adjusted diluted earnings per share ($)(1) ($ millions and % of NR) 8 (1) Adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings p
Slide 9: Liquidity and capital resources
Liquidity and capital resources Operating cash flow Capital returned to shareholders ($ millions) ($ millions) Q3 2023 Days sales outstanding(1) Net debt to adjusted EBITDA(1) Target range Target 80 days 1.0 - 2.0x 9 (1) Net debt to adjusted EBITDA and days sales outstanding are non-IFRS measures di
Slide 10: Backlog, Major Projects & Outlook
Q3 2023 Q3 2023 TimberHP Manufacturing Facility Madison, Maine, US Backlog, Major Projects & Outlook Gord Johnston - President and Chief Executive Officer 10
Slide 11: Significant Backlog
Significant Backlog Backlog ($ billions) Q3 2023 • 7.6% growth since December 31, 2022 • 5.5% organic growth; organic backlog growth in Water, Buildings and Environmental Services • Represents approximately 12 months of work PFAS Treatment Systems 11 Santa Ana, California, US
Slide 12: Major Project Awards
Major Project Awards Tampa Bay Water • Final design engineering and construction management contract for US$100 million potable water supply project • Stantec is designing special tunneling sections as the pipes will pass through urban and rural corridors Belfast Wastewater Treatment Works Q3 2023 •
Slide 13: Outlook – Revised
Outlook – Revised 2023 Financial Targets Aug 2023 Published Revised 2023 Revised 2023 Annual Range Annual Range Annual Range Excluding Excluding Including Targets LTIP(2) Impact LTIP(2) Impact LTIP(2) Impact Q3 2023 Net revenue growth 10% to 13% 12% to 14% 12% to 14% Adjusted EBITDA as % of net reve
Slide 14: Q&A
Q&A Q3 2023 Australian Nursing and Midwifery Federation House Melbourne, Australia 14 14