Stantec Inc · TSX:STN
Stantec — Q3 2024 Earnings Presentation
15 slides from Stantec's earnings presentation, Nov 8, 2024
Slide 1: Third Quarter 2024 Results Presentation
Third Quarter 2024 Results Presentation November 8, 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: Q3 2024 Results
Q3 2024 Results Q3 2024 Net revenue profile $1.5B $275M Net revenue Adjusted EBITDA1 Organic Growth1 increased 15.8%* increased 13.8%* Global 6.5% 25% Q3 2024 Acquisition Growth1 7.8% US 18.0% $1.30 51% Adjusted EBITDA Adjusted EPS1 margin1 decreased 30 bps* increased 14%* Canada 24% * Compared to Q
Slide 4: Sustainability highlights
Q3 2024 Sustainability highlights #1 Canada’s Most Responsible Companies list for 2025 Q3 2024 Newsweek BC Institute of Technology Health Sciences Centre 4 Burnaby, BC
Slide 5: United States
United States $millions, unless otherwise stated 9.0% Net revenue Organic Growth $712 $776 5.6% Acquisition Growth Q3 2024 1.7% Q3 2023 Q3 2024 Highlights • Infrastructure delivered double-digit organic growth spurred on by major transit, rail, roadway infrastructure projects, and residential develo
Slide 6: Canada
Canada $millions, unless otherwise stated 17.6% Net revenue Organic Growth $372 9.1% $316 Acquisition Growth Q3 2024 8.5% Q3 2023 Q3 2024 Highlights Achieved double-digit organic growth in Infrastructure, Buildings and Water • Infrastructure experienced a ramp up of roadway, transit, rail and land d
Slide 7: Global
Global $millions, unless otherwise stated 30.5% Net revenue Organic Growth 5.8% $377 $289 Acquisition Growth Q3 2024 22.0% Q3 2023 Q3 2024 Highlights • Industry leading Water business achieved strong double-digit organic growth driven by long-term framework agreements in the UK, New Zealand, and Aus
Slide 8: Financial Performance
Q3 2024 Financial Performance Vito Culmone Q3 2024 Executive Vice President and Chief Financial Officer Madison, WI, USA 8
Slide 9: Financial results
Q3 2024 Financial results $millions, unless otherwise stated Gross and Project margin Adjusted EBITDA and Adjusted diluted net revenue and % of NR margin as % of NR1 earnings per share1 $1,929 Q3 2024 $1,693 $1,525 $1.30 $1,317 54.3% $1.14 54.8% $828 $721 18.3% 18.0% $241 $275 Q3 2023 Q3 2024 Q3 202
Slide 10: Cash flow, liquidity and capital resources
Cash flow, liquidity and capital resources $millions, unless otherwise stated Operating Capital returned Days sales outstanding cash flow to shareholders (YTD) Target < 80 days 83 81 80 79 77 77 Q3 2024 $296 $261 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $10 $70 Net debt to adjusted EBITDA1 $6
Slide 11: Backlog, Major Projects & Outlook
Q3 2024 Backlog, Major Projects & Outlook Q3 2024 Gord Johnston President and Chief Executive Officer 11
Slide 12: Backlog
Backlog $billions, unless otherwise stated $7.2 $7.3 $7.0 $6.6 $6.4 $6.3 $1.3 $1.4 15.9%* $1.2 $0.9 $1.0 $1.0 Organic Growth* Q3 2024 4.7% $4.2 $4.2 $4.3 $4.3 Acquisition Growth* $4.1 $4.0 9.5% * Relative to Q4 2023 $1.6 $1.7 $1.7 $1.4 $1.3 $1.3 Global United States Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q
Slide 13: Major project awards
Major project awards Q3 2024 Strengthening UK Water Western Canada Data Luma Energy business Campus Centres Awarded Professional Services Framework Awarded third MSA to provide grid modernization with Northern Ireland Water. Awarded MSA to assist in site selection and and resiliency services in Puer
Slide 14: 2024 Financial targets (revised)
2024 Financial targets (revised) Previously 2024 Published Annual Range Range Net revenue growth 12% to 15% 14.5% to 15.0% Q3 2024 Adjusted EBITDA as % of net revenue1 16.5% to 16.9% 16.5% to 16.9% Adjusted net income as % of net revenue1 above 8% above 8% Adjusted diluted EPS growth1 12% to 16% 16%
Slide 15: Q&A
Q3 2024 Q&A BMO Convention Centre 15 Calgary, AB, Canada