Stantec Buildings Unit Surges on Page Acquisition

Stantec's strategic acquisition of Page has significantly amplified its Buildings division, propelling segment backlog growth beyond 40%. This move contributes substantially to the engineering and design firm's overall record backlog, which now stands at an impressive C$9.2 billion. The integration of Page's operations is proving to be a powerful catalyst, demonstrating the value of targeted M&A in a competitive market.

The company's total contract backlog experienced a robust year-over-year increase of 17.5%. This expansion is a composite of 7.8% growth attributed to acquisitions and 7% organic expansion. Page emerged as the primary driver of the acquisition-fueled growth, directly contributing to the substantial uplift in the Buildings segment. This highlights Stantec's successful strategy in identifying and integrating complementary businesses to bolster specific service lines.

Beyond backlog expansion, Stantec is also reporting enhanced financial performance. In the second quarter, net revenue climbed 11.5% to C$1.8 billion. Concurrently, adjusted EBITDA saw a healthy rise of 17.1%, reaching C$332.9 million, with an accompanying 90 basis point expansion in the adjusted EBITDA margin to 18.7%. Earnings per share, on an adjusted basis, also improved by 18.4% to C$1.61, reflecting improved operational efficiency and project execution.

The positive momentum has prompted Stantec to elevate its full-year adjusted EBITDA margin target. The revised range is now set between 17.8% and 18.3%, a testament to the company's confidence in its operational capabilities. This upward revision is underpinned by strong project delivery, effective cost management strategies, advancements in digital optimization tools, increased operational scale, and the strategic development of its high-value service centers.

Gord Johnston, President and CEO of Stantec, expressed optimism regarding the company's trajectory. He noted that the fundamental demand drivers for the firm's services remain robust. With a record backlog of C$9.2 billion, Johnston anticipates a notable acceleration in project activity during the latter half of 2026. This outlook suggests a sustained period of growth and execution for the company.

The engineering and design sector, particularly within building services, is experiencing a dynamic period. Increased urbanization, a focus on sustainable infrastructure, and the need for resilient building designs are fueling demand for specialized expertise. Stantec's proactive approach, exemplified by the Page acquisition, positions it well to capitalize on these trends. Comparable transactions in the sector often focus on acquiring specialized design capabilities or expanding geographic reach, mirroring Stantec's strategic rationale.