Stock of the Day

November 16, 2021

Stantec (STN)

$72.90
-$1.89 (-2.5%)
Market Cap: $8.41B

About Stantec

Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. The company also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, it offers planning and design services to clients in residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration sectors; architectural and interior design, and planning services in the science and technology, commercial workplace, higher education, residential, and hospitality markets. Further, the company provides transportation advisory, transport engineering, and technical design; project delivery consultancy services for mining, resources, and industrial infrastructure projects; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; and environmental and cultural resource compliance services. Additionally, it offers consulting services in sustainable building design, energy infrastructure upgrades, sustainable district heating network, and e-mobility; and planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.

Today's Trend

Stantec Inc. (NYSE: STN; TSX: STN) shares have decreased as investors weigh a modest quarterly revenue shortfall against stronger-than-expected earnings, expanding margins and improved profitability guidance.

  • Stantec reported second-quarter adjusted earnings of $1.16 per share, ahead of the $1.15 analyst consensus and up from $0.98 a year earlier. The company also highlighted margin expansion and raised its 2026 adjusted EBITDA outlook, supporting the outlook for improved operating profitability. Stantec delivers strong second quarter 2026 results
  • Management maintained 2026 revenue guidance of approximately $5.1 billion to $5.2 billion and forecast EPS of $4.37 to $4.49, broadly consistent with analyst expectations. The raised EBITDA outlook indicates confidence in cost control and continued margin improvement. Stantec 2026 Q2 results presentation
  • The board declared a quarterly dividend of $0.245 per share, payable October 15 to shareholders of record September 29. The dividend provides ongoing shareholder returns and represents an annualized yield of roughly 1.3%.
  • Stantec’s second-quarter revenue was $1.25 billion, slightly below the $1.26 billion consensus estimate. The small miss may explain the cautious market reaction despite the earnings beat. Stantec surpasses Q2 earnings estimates
  • The results did not deliver a clear top-line beat, leaving investors focused on whether margin gains and the higher EBITDA outlook can offset slower-than-expected revenue growth. Stantec trades at approximately 23 times earnings, which may increase sensitivity to execution and guidance changes.