Stantec offers a rare combination of durable organic growth, disciplined acquisitions, and steadily expanding profit margins backed by long‑cycle infrastructure trends.
Meanwhile, the stock trades at 19.9 times the company’s forward earnings forecast, a fair price for a high‑quality compounder with the recurring, regulatory‑driven nature of much of its work in water, environmental services, and energy transition.
STANTEC INC. (Toronto symbol STN) is a leading seller of consulting, project-delivery, design and technology services.
The U.S. provides about 52% of its revenue, followed by Canada (24%) and several other countries spread across six continents (24%).
Stantec tends to use acquisitions to spur its growth. It cuts the risk of this strategy by targeting smaller, easy-to-absorb firms. Moreover, sharing administrative expenses, financing and employee benefits among its businesses helps lower overall costs.
For example, it recently purchased Ryan Hanley, an Irish business that specializes in providing engineering services for water management projects, such as pipelines, and flood control and wastewater systems.
The company also acquired Cosgroves, a New Zealand-based firm that provides a wide range of engineering services, including fire prevention, electrical networks and hydraulic systems.
In 2025, Stantec spent $784.0 million on acquisitions. The biggest of those was the $725.4 million it paid for Page, a Washington D.C.-based provider of architectural and engineering services to clients in the U.S. and Mexico.
Those new businesses helped lift Stantec’s revenue for the three months ended December 31, 2025, by 10.8%, to $1.64 billion from $1.48 billion a year earlier. That matched the consensus forecast. If you exclude acquisitions, revenue increased 3.9%.
Also, earnings before unusual items rose 12.6%, to $1.25 a share (or a total of $142.8 million) from $1.11 a share (or $126.2 million). That beat the consensus estimate of $1.22 a share.
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Stantec’s big dividend increase follows strong resuls
In 2023, Stantec launched a three-part growth plan, including a greater focus on climate solutions (helping clients mitigate the impact of climate change) and infrastructure projects. It also plans to make greater use of artificial intelligence and other technology to improve its efficiency.
Meanwhile, Stantec has raised your quarterly dividend by 8.9%. Starting with the April 2026 payment, investors now receive $0.245 a share instead of $0.225. The new annual rate of $0.98 yields 0.8%.
Including this latest increase, Stantec’s dividend has grown at an average annual rate of 8.2% in the past five years. The stock holds an Above Average TSI Dividend Sustainability Rating.
Stantec expects its revenue will rise between 8.5% and 11.5% in 2026. Earnings should also improve by 15% to 18%. Using the midpoint of that range, it will probably earn $6.17 a share, and the stock trades at an attractive 19.9 times that forecast.
Recommendation in Dividend Advisor: Stantec Inc. is a buy.
