Stantec Inc · TSX:STN
Stantec — Q2 2023 Earnings Presentation
16 slides from Stantec's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation August 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: Our values and Q2 2023 second quarter results
We put people We are better We do what is We are driven to first together right achieve Q2 2023 Acquired Highly Engaged Environmental #5 Best Corporate Record Second Workforce Systems Design Inc. Citizens in Canada1 Quarter Results 3 1. Corporate Knights June 2023
Slide 4: Q2 2023 earnings
Q2 2023 earnings Net revenue Organic net $1.3B | ▲ 15% revenue growth KEY DRIVERS Project Margin 11.2% Aging and overloaded 54.3% ▲ 30bps infrastructure As reported Excluding LTIP(2) revaluation Q2 2023 Climate change and Adjusted EBITDA Margin (1) sustainability 16.9% | ▲ 20bps 17.5% Production cap
Slide 5: United States
United States Gross and net revenue ($ millions) $4.3 Billion Q2 2023 BACKLOG Gross Revenue Net Revenue 12.2% organic growth & 0.5% acquisition growth Double-digit organic growth in: • Water – large scale water security projects • Buildings – healthcare, industrial, commercial and science and techno
Slide 6: Canada
Canada Gross and net revenue ($ millions) $1.4 Billion Q2 2023 BACKLOG Gross Revenue Net Revenue 9.8% organic growth Double-digit organic growth in: • Environmental Services – permitting and archeology work • Infrastructure – large scale bridge work in western Canada • Water – wastewater solutions F
Slide 7: Global
Global Gross and net revenue ($ millions) $0.9 Billion Q2 2023 BACKLOG Gross Revenue Net Revenue 10.6% organic growth Double-digit organic growth in: • Water – long-term framework agreements and public sector investments in UK, New Zealand and Australia • Energy & Resources – major energy storage pr
Slide 8: Q2 2023 Financial Performance
Q2 2023 Q2 2023 Mike O'Callaghan–Pat Tillman Memorial Bridge Boulder City, Nevada, USA Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 8
Slide 9: Q2 2023 Financial results
Q2 2023 Financial results Gross and net revenue Project margin ($ millions) ($ millions and % of NR) Q2 2023 Adjusted EBITDA and Adjusted EBITDA margin(1) Adjusted diluted earnings per share ($)(1) ($ millions and % of NR) 9 (1) Adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings p
Slide 10: Liquidity and capital resources
Liquidity and capital resources Operating cash flow Capital returned to shareholders ($ millions) ($ millions) Q2 2023 Days sales outstanding(1) Net debt to adjusted EBITDA(1) Target range Target 80 days 1.0 - 2.0x 10 (1) Net debt to adjusted EBITDA and days sales outstanding are non-IFRS measures d
Slide 11: Backlog, Major Projects & Outlook
Q2 2023 Q2 2023 Clifton Integrated Constructed Wetlands Sustainable Infrastructure Award at the 2023 Sustainability Consulting Awards Backlog, Major Projects & Outlook Doncaster, United Kingdom Gord Johnston - President and Chief Executive Officer 11
Slide 12: Well positioned with record backlog
Well positioned with record backlog Backlog ($ billions) Q2 2023 • 11.4% growth since December 31, 2022 • 10.0% organic growth; double-digit organic backlog growth in Water, Buildings and Environmental Services • Represents approximately 13 months of work Virgin Hotels NYC 12 New York City, New York
Slide 13: Q2 major project awards
Q2 major project awards Q2 2023 Queensway & Apache Macdonald Bridge Queensland Hydro • Stantec selected for consulting engineering • Various new projects in Canada and US services for the steel repair and corrosion • Stantec, through our joint venture, • Engineering services for design and protectiv
Slide 14: Energy Transition
Energy Transition SunZia Transmission Project • Stantec selected as Owner’s Engineer • Will enable 3,500 MW of wind power development in New Mexico • 550 miles in length • 525-kilovolt high voltage direct current system Q2 2023 Clean Hydrogen Hubs • Stantec engaged to provide advisory services on th
Slide 15: Outlook - Revised
Outlook - Revised 2023 Financial Targets Previously Published Revised 2023 Annual 2023 Annual Range Range Targets Net revenue growth 7% to 11% 10% to 13% Q2 2023 Adjusted EBITDA as % of net revenue(1) 16% to 17% 16.3% to 16.7% Adjusted net income as % of net revenue(1) above 7.5% above 7.5% Adjusted
Slide 16: Q&A
Q&A Q2 2023 Q2 2023 Filsinger Park Stream Naturalization Kitchener, Ontario, Canada 16 16