Stantec Sets New Growth Targets

Stantec, a Canadian sustainable design and engineering company, has unveiled its go-forward plan with ambitious growth targets. The company aims to achieve revenue of 7.5 billion Canadian dollars ($5.54 billion) by the end of 2026 through its strategic growth initiatives. Analysts are already forecasting revenue of C$5.05 billion for the full year of 2023.

Steady Growth Expectations

Over the next three years, Stantec expects to maintain a compounded annual growth rate (CAGR) of over 7%. Additionally, the company anticipates an increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins, aiming for a growth range of 17% to 18%. Adjusted diluted earnings per share (EPS) is also projected to see a CAGR of 15% to 18%.

Outlook for 2024

Looking ahead to 2024, Stantec predicts a net revenue increase between 7% and 12%. The company also forecasts organic net revenue growth in the mid to high single digits. Analysts are optimistic about this projection, expecting revenue to rise to C$5.51 billion.

Three Pillars of Growth

Stantec has outlined three key growth initiatives to fuel its expansion. These initiatives focus on climate solutions, communities and infrastructure of the future, as well as future technology. By embracing these pillars, Stantec aims to stay ahead in the rapidly evolving industry landscape.

Acquisition Strategy

In addition to its organic growth plans, Stantec remains open to strategic acquisitions. The company's Chief Executive, Gord Johnston, revealed that they are actively evaluating multiple firms that align with Stantec's acquisition criteria. This strategic approach allows Stantec to further strengthen its portfolio and enhance its capabilities.