Stantec Inc · TSX:STN
Stantec — Q1 2023 Earnings Presentation
16 slides from Stantec's earnings presentation, May 11, 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation May 11, 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: Q1 2023 earnings
Q1 2023 earnings Net revenue Increased earnings KEY DRIVERS $1.2B | ▲ 17% driven by: Aging and overloaded Adjusted EBITDA (1) Organic Net Revenue Growth (1) infrastructure $179M | ▲ 18% 12.2% Q1 2023 Climate change and Adjusted EBITDA Margin (1) Acquisition Growth (1) sustainability 14.6% | ▲ 10bps
Slide 4: United States
United States Gross and net revenue ($ millions) $4.1 Billion BACKLOG Q1 2023 Gross Revenue Net Revenue • 13.8% organic growth • Water, Buildings, and Energy & Resources – double-digit organic growth • Infrastructure – solid organic growth in industrial and residential land development UPSIDE Foods
Slide 5: Canada
Canada Gross and net revenue ($ millions) $1.3 Billion BACKLOG Q1 2023 Gross Revenue Net Revenue • 10.6% organic growth • Environmental Services, Water, and Energy & Resources – double-digit organic growth • Infrastructure – growth driven by bridge work • Buildings – ramp up of a large industrial st
Slide 6: Global
Global Gross and net revenue ($ millions) $0.9 Billion BACKLOG Q1 2023 Gross Revenue Net Revenue • 10.4% organic growth • 4.9% acquisition growth • Water, and Energy & Resources – double-digit organic growth 84 Moorgate Refurbishment 6 London, United Kingdom
Slide 7: We are driven to achieve
We are driven to achieve Q1 2023 #2 Top Construction & Design Firms Modern Healthcare May 2023 7
Slide 8: Q1 2023 Financial Performance
Q1 2023 Q1 2023 York River State Park Fossil Beach Living Shoreline James City County, Virginia, USA Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 8
Slide 9: Q1 2023 financial results
Q1 2023 financial results Gross and net revenue Project margin ($ millions) ($ millions and % of NR) Q1 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
Slide 10: Liquidity and capital resources
Liquidity and capital resources Operating cash flow Capital returned to shareholders ($ millions) ($ millions) Q1 2023 Days sales outstanding(1) Net debt to adjusted EBITDA(1) Target range Target 80 days 1.0 - 2.0x (1) Net debt to adjusted EBITDA is a non-IFRS measure and days sales outstanding is a
Slide 11: 16th Annual Sustainability Report
16th Annual Sustainability Report 60% of our 2022 gross revenue is connected to furthering one or more of our core SDGs 60% 50% Sustainability at Stantec. Every Action. Q1 2023 40% Every Decision. 30% At Stantec, we believe that sustainability is the 20% responsibility of every employee and not just
Slide 12: Backlog, Major Projects & Outlook
Q1 2023 Q1 2023 Brisbane Lions Training and Administration Facility Springfield Central QLD, Australia Backlog, Major Projects & Outlook Gord Johnston - President and Chief Executive Officer 12
Slide 13: Significant backlog
Significant backlog Backlog ($ billions) Q1 2023 • 5.6% growth since December 31, 2022 • 5.8% organic growth; double-digit organic backlog growth in Environmental Services and Water • Represents approximately 13 months of work Mediclinic Welcare Hospital Dubai, United Arab Emirates 13 Image is court
Slide 14: Q1 major project awards
Q1 major project awards Q-Cells Solar Power Manufacturing Coire Glas 1500 MW Pumped Storage Q1 2023 Facility Project • First major pumped storage scheme to be • Largest solar investment in US history built in the UK in over forty years Veterans Memorial Bridge (Kentucky) Homes England’s Technical Se
Slide 15: Outlook
Outlook 2023 Financial Targets 2023 Targets Annual Range Net revenue growth 7% to 11% Q1 2023 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 16: Q&A
Q&A Q1 2023 Q1 2023 North Berwick Shared Paths Glasgow, Scotland 16 16