Stantec Inc · TSX:STN
Stantec — Q4 2022 Earnings Presentation
18 slides from Stantec's earnings presentation, Feb 23, 2023
Slide 1: Q4 2022 Earnings Presentation
Q4 2022 Earnings Presentation February 23, 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: Record 2022 earnings
Record 2022 earnings Net revenue Increased earnings KEY DRIVERS $4.5B | ▲ 23% driven by: Aging and overloaded Adjusted EBITDA (1) Organic Net Revenue Growth (1) infrastructure $724M | ▲ 26% 9.4% Q4 2022 Production capacity Adjusted EBITDA Margin (1) Acquisition Growth (1) constraints and re-shoring
Slide 4: United States
United States Gross and net revenue ($ millions) $3.7 Billion BACKLOG Q4 2022 Gross Revenue Net Revenue • 9.5% organic growth in 2022 • 12.7% acquisition growth in 2022 • Water – double-digit organic growth with large scale water security projects • Buildings – investments in healthcare, civic, indu
Slide 5: Canada
Canada Gross and net revenue ($ millions) $1.2 Billion BACKLOG Q4 2022 Gross Revenue Net Revenue • 7.7% organic growth in 2022 • Environmental Services and Energy & Resources – double digit growth • Buildings – continued investments in healthcare and mixed-use commercial projects • Infrastructure –
Slide 6: Global
Global Gross and net revenue ($ millions) $0.9 Billion BACKLOG Q4 2022 Gross Revenue Net Revenue • 11.4% organic growth in 2022, with strong performance in all business units • 28.4% acquisition growth in 2022 • Water – double-digit organic growth driven by UK, Australia and New Zealand • Infrastruc
Slide 7: Corporate Knights Global 100
Corporate Knights Global 100 #1 Ranked the most sustainable design and engineering firm in the world #7 Ranked as one of the most sustainable companies in the world Q4 2022 Castle Rock Ridge Wind Farm Pincher Creek, Alberta, Canada 7
Slide 8: Q4 2022 Financial Performance
Q4 2022 Q4 2022 Wichelstowe Southern Access Swindon, United Kingdom Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 8
Slide 9: Q4 2022 Financial results
Q4 2022 Financial results Gross and net revenue Project margin ($ millions) ($ millions and % of NR) Q4 2022 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
Slide 10: 2022 Financial results
2022 Financial results Gross and net revenue Project margin ($ millions) ($ millions and % of NR) Q4 2022 Adjusted EBITDA and Adjusted EBITDA margin(1) Adjusted diluted earnings per share ($)(1) ($ millions and % of NR) 10 (1) Adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted earnings pe
Slide 11: Liquidity and capital resources
Liquidity and capital resources Operating cash flow Capital returned to shareholders ($ millions) ($ millions) Q4 2022 Days sales outstanding(1) Net debt to adjusted EBITDA(1) Target 80 days Target range 1.0 - 2.0x (1) Net debt to adjusted EBITDA is a non-IFRS measure and days sales outstanding is a
Slide 12: Backlog, 2023 Trends & Outlook
Q4 2022 Q4 2022 Capstone South Riverwalk Red Deer, Alberta, Canada Backlog, 2023 Trends & Outlook Gord Johnston - President and Chief Executive Officer 12
Slide 13: Significant backlog
Significant backlog Backlog ($ billions) Q4 2022 • 14.9% growth since December 31, 2021 • 10.4% organic growth; achieved in every regional and business operating unit • Represents approximately 12 months of work Elaine E. Thompson Elementary School 13 Ashburn, Virginia, USA
Slide 14: Trends and growth – US
Trends and growth – US • New opportunities from IIJA, CHIPS, and IRA TRENDS AND GROWTH IN 2023 • Buildings – healthcare and adaptive re- use of buildings • Water – investments in resilient infrastructure; water equality • Accelerate renewal and energy transition projects • Streamlining supply chain
Slide 15: Trends and growth – Canada
Trends and growth – Canada • Water – ramp up of major projects • Energy & Resources – accelerating TRENDS AND GROWTH IN 2023 focus on energy transition • Infrastructure – continued demand for community development and transit Buffalo Pound Water Treatment Plant Renewal Project 15 Moose Jaw, Saskatch
Slide 16: Trends and growth – Global
Trends and growth – Global • Buildings – strong demand for healthcare, science and technology, and commercial mixed-use TRENDS AND GROWTH IN 2023 developments • Water – continued strength in UK, Australia and New Zealand • Infrastructure – community development growth in the UK; transportation in Au
Slide 17: Outlook: 2023 Financial Targets
Outlook 2023 Financial Targets 2023 Targets Annual Range Net revenue growth 7% to 11% Q4 2022 Adjusted EBITDA as % of net revenue(1) 16% to 17% Adjusted net income as % of net revenue(1) above 7.5% Adjusted diluted EPS growth(1) 9% to 13% Adjusted ROIC (note)(1) above 10.5% (1) Adjusted EBITDA, adju
Slide 18: Q&A
Q&A Q4 2022 Q4 2022 Breazeale Nuclear Reactor Neutron Beam Lab Addition The Pennsylvania State University University Park, Pennsylvania, USA 18 18