Stantec Inc · TSX:STN
Stantec — Investor Presentation (April 2024)
19 slides from Stantec's investor presentation, April 2024
Slide 1: Investor Presentation April 2024
Investor Presentation April 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: Global leader in sustainable engineering, design, and environmental services
Global leader in sustainable engineering, design, and environmental services A GLOBAL LEADER IN SUSTAINABILITY Stantec 2023 Net revenue by business operating unit TSX / NYSE STN Infrastructure 20% 21% Net Revenue1 $5.1B Water Environmental Services 19% Market Cap2 C$12.8B 27% Buildings 13% Energy &
Slide 4: Stantec's value proposition
Stantec’s value proposition • Diverse business lines and customers • Well-positioned for organic growth • Global leader in sustainability #1 Ranked most sustainable • Strong culture & technical expertise corporation among industry peers 2024 Corporate Knights Global 100 • Disciplined capital allocat
Slide 5: Execution of our strategy drives strong results
Execution of our strategy drives strong results Net Revenue Adjusted EBITDA & Margin Adjusted EPS ($ millions) ($ millions & %) ($ per share) $5,066 16.4% 16.2% $4,457 15.8% $831 $3.67 $724 $3.13 $3,636 $574 $2.42 2021 2022 2023 2021 2022 2023 2021 2022 2023 5 (1) Adjusted EBITDA, adjusted EBITDA ma
Slide 6: A global leader in sustainability
A global leader in sustainability Carbon neutral to Global 100 Indigenous climate net zero #1among peers action Carbon neutral Ranked the most Donated sustainability- for second year and sustainable design and linked loan savings to committed to the Canada engineering firm in the Indigenous-led non-
Slide 7: Culture and people – Stantec's differentiators
Culture and people – Stantec’s differentiators One of the lowest Voluntary turnover rates among peers of our size 5% Workforce growth through organic hires in 2023 2023 Women Lead Here The Globe and Mail Top 50 STEM Workplace for Indigenous Professionals 2020 - 2023 American Indian Science and Engin
Slide 8: Sustainability: core to our strategy
Sustainability: core to our strategy Our greatest potential for positive impact comes from the projects we deliver to clients Gross Revenue aligned to UN Sustainable Development Goals 2023 61% 2022 60% 2021 53% 2020 49% 2019 45% $- $1,000 $2,000 $3,000 $4,000 Gross Revenue (CA$ millions) Other 8
Slide 9: Project services related to our top five SDGs
Project services related to our top five SDGs Integrated Water Coire Glas Pumped Open Internet Wānaka Puding Drainage Resources Management Storage Development Masterplan Wetland Reconstruction Plan United Arab Emirates United Kingdom Africa New Zealand Taiwan SDG 6 - Clean Water SDG 7 - Affordable S
Slide 10: Business operating units - overview
Business operating units - overview WATER ENVIRONMENTAL ENVIRONMENTAL INFRASTRUCTURE ENERGY & ENERGY & WATER SERVICES INFRASTRUCTURE BUILDINGS RESOURCES SERVICES RESOURCES $1.1B | 21% $1.0B | 20% $1.4B | 27% $946M | 19% $640M | 13% 2023 net revenue of $5.1 billion 10
Slide 11: Water
Stantec, with 70 years in the Water business, 2023 is recognized as a global leader $1.1B Net revenue 2023 Net revenue We have delivered water solutions since 1954 Water Treatment Water Resources By sector Conveyance We design water projects that improve the health and quality of life across communi
Slide 12: Environmental Services
Environmental Services helps preserve and minimize impacts to environmental, social 2023 and cultural resources $1.0B Net revenue 2023 Net revenue Environmental Services provides a wide array of Buildings conservation, ecosystem restoration, and sustainability Power & Dams services By sector Oil & G
Slide 13: Infrastructure
Infrastructure is a leader in transport system 2023 design and community development $1.4B Net revenue 2023 Net revenue Stantec’s Infrastructure group is at the forefront of integrating transport design and community development into the communities we serve Roadways By sector Community Dev Transit
Slide 14: Buildings
Buildings ranked #1 in Architecture and 2023 Engineering for the last 10 years1 $946M Net revenue 2023 Net revenue Stantec’s Buildings group provides consulting and design services for built, natural, and organizational Healthcare environments Commercial By sector Civic Industrial Buildings We guide
Slide 15: Energy & Resources
Energy & Resources plays a critical role in energy transition 2023 $640M Net revenue 2023 Net revenue Stantec’s Energy & Resources group delivers utility-scale and microgrid renewable energy generation engineering and design services Mining By sector Power We design for increasingly severe weather e
Slide 16: Three-year financial targets
Three-year financial targets STANTEC’S TARGETS (end of 2026) 2026 Net revenue $7.5 billion Focus on Organic net revenue 3-Year CAGR1 above 7% execution and efficiencies will Project margin as % of net revenue1 53% to 56% drive margin enhancement Adjusted EBITDA as % of net revenue1 17% to 18% Adjust
Slide 17: 2024 Financial targets
2024 Financial targets 2024 ANNUAL RANGE Net revenue growth 11% to 15% Adjusted EBITDA as % of net 16.2% to 17.2% revenue1 Adjusted net income as % of net above 8.0% revenue1 Adjusted diluted EPS growth1 12% to 16% Adjusted ROIC1 above 11.0% 1. Adjusted EBITDA, adjusted net income, adjusted diluted
Slide 18: Why invest in Stantec?
Why invest in Stantec? Strong Dividend Growth $0.78 Diverse business lines, geographies, and customers $0.72 $0.66 Significant growth opportunities 2021 2022 2023 Global leader in sustainability Strong Backlog Strong culture & technical expertise $6.3 $5.9 Disciplined capital allocation strategy YE
Slide 19: Q&A
Q&A Q4 AND YEAR END 2023 Sonia Sotomayor Middle School Prince George’s County, Maryland, US 19