Stantec sits at the intersection of multi-decade infrastructure spending trends, with its Water segment delivering 12.8% growth and the recent Page acquisition positioning it as the second-largest architecture firm in the U.S. with expertise in data centers, advanced manufacturing, and healthcare facilities.
An $8.4 billion backlog provides approximately 13 months of revenue visibility, insulating the company from near-term economic uncertainty while government-funded water infrastructure modernization and AI-driven data center construction accelerate.
STANTEC INC. (Toronto symbol STN; www.stantec.com) is a leading seller of consulting, project-delivery, design and technology services. The U.S. provides 51% of its revenue, followed by Canada (25%) and other countries (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 instance, early this year, the company also bought Ryan Hanley, an Irish business that specializes in engineering services for water management projects, such as pipelines, flood control and wastewater systems; and Cosgroves, a New Zealand-based firm that provides a wide range of engineering services, including fire prevention, electrical networks and hydraulic systems. In all, Stantec paid $36.8 million for those two businesses (net of the cash they held).
In July 2025, Stantec completed its previously announced purchase of Page. Based in Washington D.C., Page provides architectural and engineering services to clients in the U.S. and Mexico. to a wide variety of clients through offices in 20 cities in the U.S. and Mexico. It has not yet said how much it paid for this acquisition.
Meanwhile, the company’s strong reputation continues to help it win new contracts.
For example, Manitoba Hydro has selected Stantec to help improve the reliability of the system that transmits electricity from its stations in the northern part of the province to customers in the south.
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The City of Toronto has awarded Stantec a new contract to help with the rehabilitation of 28 bridges over five years.
This deal is worth $16 million, which is small next to Stantec’s annual revenue of $7.8 billion. However, this is the third contract the company has received under Toronto’s long-term plan to upgrade its bridges. That enhances Stantec’s reputation and should help it win similar contracts from other cities.
Thanks to new contracts like this, Stantec’s order backlog was $8.4 billion as of September 30, 2025. That represents about 13 months of work.
Stantec’s P/E is somewhat high—but not given its growth prospects
Stantec’s revenue for the three months ended September 30, 2025, rose 11.8%, to $1.71 billion from $1.52 billion a year earlier. That matched the consensus forecast. If you exclude acquisitions, revenue increased by 5.6%.
Also, earnings before unusual items rose 17.7%, to $1.53 a share (or a total of $174.1 million) from $1.30 a share (or $147.9 million). That also matched the consensus estimate.
In 2026, Stantec’s earnings will probably rise to $6.05 a share. The stock trades at a high, but reasonable (given its growth prospects) 21.4 times that forecast. The $0.90 dividend yields 0.7%.
Recommendation in Dividend Advisor: Stantec Inc. is a buy.
