Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation August 11, 2022
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: Q2 2022 Highlights
Q2 2022 Highlights Q2 2022 Cardno Top 50 UPDATE CORPORATE KNIGHTS • Cost synergies achieved 18 months • Ranked as one of the Best 50 Corporate ahead of schedule Citizens of Canada focused on ESG • Financial systems integration on track • 13th year Stantec has received this • Hundreds of joint projec
Slide 4: Solid Q2 2022 earnings
Solid Q2 2022 earnings Net revenue KEY DRIVERS Increased earnings $1.1B | ▲ 23% driven by: Aging and overloaded infrastructure Adj EBITDA(1) Organic Net Revenue Growth(1) $187M | ▲ 27% 9.4% Q2 2022 Climate change and sustainability Adj EBITDA Margin(1) Acquisition Growth(1) 16.7% | ▲ 60bps 12.4% Pro
Slide 5: United States
United States Gross and net revenue ($ millions) $3.5 Billion Q2 2022 BACKLOG Gross Revenue Net Revenue • 9.2% organic growth; achieved in every business operating unit • 14.0% acquisition growth • Environmental Services – >80% net revenue growth • Water – double-digit growth • Buildings – momentum
Slide 6: Canada
Canada Gross and net revenue ($ millions) $1.3 Billion Q2 2022 BACKLOG Gross Revenue Net Revenue • 4.9% organic growth • Environmental Services – double-digit growth • Infrastructure – strong housing market in Western Canada; recovery efforts for flooding in British Columbia • Buildings – healthcare
Slide 7: Global
Global Gross and net revenue ($ millions) $1.0 Billion Q2 2022 BACKLOG Gross Revenue Net Revenue • 16.7% organic growth; achieved in every business operating unit • 27.3% acquisition growth • Water – high volumes of asset management and municipal framework projects • Transportation – roadway advisor
Slide 8: Financial Performance
Q2 2022 Q2 2022 Parks and Facilities Yard Development Regina, Saskatchewan, Canada Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 8
Slide 9: Financial results
Q2 2022 Financial results Gross revenue Net revenue ($ millions) ($ millions) Q2 2022 Project margin Adjusted EBITDA and Adjusted EBITDA margin (1) ($ millions and %NR) ($ millions & %NR) 15.4% 53.1% 16.7% 54.0% $339 53.2% 16.1% $1,170 $950 $276 $187 $483 $603 $147 9 (1) Adjusted EBITDA and adjusted
Slide 10: Financial results
Q2 2022 Financial results Net income Adjusted net income (1) ($ millions) ($ millions) Q2 2022 Diluted earnings per share ($) Adjusted diluted earnings per share ($) (1) (1) Adjusted Net Income and adjusted diluted earnings per share are non-IFRS measures discussed in the Definitions section of the
Slide 11: Liquidity and capital resources
Liquidity and capital resources Operating cash flow Capital returned to shareholders ($ millions) ($ millions) Q2 2022 Dividends Share Buybacks Net debt to adjusted EBITDA (1) Days sales outstanding (1) Target < 80 days Target range 1.0 - 2.0x (1) Net debt to adjusted EBITDA and days sales outstandi
Slide 12: Backlog, Major Project Awards & Outlook
Q2 2022 Q2 2022 Doss Elementary School Austin, Texas USA Backlog, Major Project Awards & Outlook Gord Johnston - President and Chief Executive Officer 12
Slide 13: Record backlog
Record backlog Backlog ($ billions) Q2 2022 • 13.3% growth since December 31, 2021 • 13.0% organic growth; achieved in every regional and business operating unit • Represents approximately 14 months of work Échangeur A85 /291 à Saint-Honoré-de-Témiscouata 13 Saint-Honoré-de-Témiscouata, QC, Canada
Slide 14: Major project awards
Major project awards Q2 2022 Region Project Region Project Region Project Area Canada • Buffalo Pound Water Treatment US • Floodplain modeling and mapping • Semiconductors (Nebraska) Canada, Plant Renewal Project (Saskatchewan) US & • Vaccine Production • Multi-year USACE contract for • Iona Island
Slide 15: 2022 Outlook reaffirmed
2022 Outlook reaffirmed Strong trends back robust multi-year growth outlook 2022 Annual June 30, 2022 Targets Range YTD Actuals Geography 2022 regional outlook Net revenue growth 18% to 22% 21.3% United High single-digit organic growth States Q2 2022 Adjusted EBITDA as % of 15.3% to 16.3% 15.6% net
Slide 16: Q&A
Q2 2022 Q&A Éoliennes Belle-Rivière - Val-Éo Saguenay, QC, Canada 16