Stantec (STN.TO, STN) shares were up 1.4% in after-hours New York trade after the company on Wednesday reported a 15% rise in first-quarter adjusted profit on higher revenue, while declaring a dividend and issuing strong guidance.
The construction and engineering company said its adjusted profit, excluding most one-time items, rose to $152.2 million, or $1.33 per share, from $132.8 million, or $1.16, a year earlier. FactSet expected adjusted EPS of $1.29.
Revenue climbed 9.1% to $1.7 billion, driven by 3.6% organic and 7.2% acquisition-driven growth, in line with FactSet expectations. Adjusted EBITDA rose 13.8% to $287.0 million, with a 16.9% margin, and adjusted EPS increased 14.7% to $1.33.
The company said its contract backlog reached a record $9.0 billion, up 13% and representing about 13 months of work. Stantec also reaffirmed 2026 guidance, targeting 8.5% to 11.5% net revenue growth, adjusted EBITDA margin of 17.6%-18.2%, and 15%-18% adjusted EPS growth. In setting targets and guidance, Stantec assumed an average value for the US dollar of $1.36, GBP of $1.85, and AU of $0.90 for the remainder of the year.
Stantec's board of directors also declared a dividend of $0.245 per share, payable on July 15, to shareholders of record on June 30.
"Stantec's first quarter results reflect sustained global demand for our services and solid operational performance as we continue to drive strong margins and bottom line results," said chief executive Gord Johnston. "We continue to see strong organic growth in our contract backlog which reached a record $9.0 billion, providing strong visibility into future growth across the markets we serve. We expect momentum to build through the year as larger projects ramp up, supporting an acceleration of our organic growth."
The company's shares were last seen up US$1.06 to US$78.99 after hours. They closed down $7.33 to $106.92 on Toronto Stock Exchange.