$STN.TO

CIBC Says Buybacks in E&C, Heavy Equipment Space, Influenced by AI Narrative

CIBC Capital Markets said buyback activity in the engineering & construction and heavy equipment companies it covers appear to be influenced by an artificial intelligence narrative.Citing the most recent SEDI filings, CIBC analyst Krista Friesen observed share-buyback activity at AtkinsRealis (ATRL.TO), Badger Infrastructure (BDGI.TO), Finning International (FTT.TO), RB Global (RBA.TO), and Stantec (STN.TO)."Unsurprisingly, a number of the companies that have been negatively impacted by the current AI narrative have been more active than usual on their buybacks such as Stantec, which has not repurchased shares since 2023," Friesen writes.AtkinsRealis has increased its activity relative to recent quarters; and RB Global recently introduced a normal course issuer bid (NCIB).A "notable" outlier is WSP Global (WSP.TO), which does not have an NCIB in place, but is down nearly 33% YTD due largely to the AI narrative, Friesen adds.Price: $83.66, Change: $-0.25, Percent Change: -0.30%

Black & Veatch-Stantec JV Awarded Single Award Task Order Contract by U.S. Army Corps of Engineers

Stantec (STN.TO, STN) said Wednesday that the U.S. Army Corps of Engineers awarded the Black & Veatch-Stantec joint venture a single award task order contract to provide design and engineering support services for the Brandon Road Interbasin Project (BRIP), "a critical Great Lakes ecosystem protection effort."It is not clear if the $85 million value put on the contract is in CAD or USD.According to Wednesday's statement, the Brandon Road Lock and Dam has been identified as a critical pinch point where layered technologies could prevent the movement of invasive carp populations into the Great Lakes. The contract will provide professional services over an eight-year ordering period to modify the Brandon Road Lock and Dam between the Great Lakes and Mississippi River basins, it said.Black & Veatch and Stantec will lead the design of several site improvements, including a new engineered channel, larger underwater electric and acoustic deterrents, site work on the descending bank lines and new support facilities to house multi-deterrent systems. The BRIP aims to prevent large carp populations from establishing, support ongoing monitoring and management, and protect both ecological and economic resources.Stantec had turned positive on the TSX at last look, having been lower earlier.Price: $103.26, Change: $-0.19, Percent Change: -0.18%

Black & Veatch and Stantec JV To Lead U.S. Army Corps Of Engineers Brandon Road Interbasin Ecosystem Protection Project

TSX Closer: The Index Posts a Fresh Record Close; Morningstar On Best- and Worst-Performing Canada Stocks

The resources-heavy Toronto Stock Exchange closed at a fresh record high on Tuesday, boosted by higher commodity prices and confidence the equity market fundamentals in place for most of the last two months will continue.The S&P/TSX Composite Index closed up 434.57 points, or 1.25%, to 35,169.46, with most sectors higher. The prior record close of 34,830 was set on May 25.The index was led higher by Base Metals, up 4%, followed by the Battery Metals Index, up 2.7%, and then Energy, up 2.4%. In contrast, Health Care was down 1.2% and Telecom down near 0.75%.According to FactSet the TSX was, going in to today, up 10.91% from its 2026 closing low of 31,317.41 hit Friday, March 20, and year to date up 3,022.13 points or 9.53%.Morningstar Canada published a note entitled 'Best- and Worst-Performing Canadian Stocks' in which it notes The Morningstar Canada Large-Mid Cap Index rose 2.35% in May, amid a rally in the communication-services sector. The index tracks the top 90% of the Canadian investable universe by market cap, and each month, Morningstar screens it for the best- and worst-performing companies.Among the best performing stocks of May 2026, Morningstar cited Capstone Copper (CS.TO), HudBay Minerals (HBM.TO), First Quantum Minerals (FM.TO), Air Canada (AC.TO) and Lundin Mining (LUN.TO).Among the worst performing stocks of May 2026, it cited Stantec (STN.TO), GFL Environmental (GFL.TO), Element Fleet Management (EFN.TO), Energy Fuels (EFR.TO) and WSP Global (WSP.TO).Of commodities, gold was higher late afternoon Tuesday, but fell back from early highs as the dollar rose. Gold for July delivery was last seen up US$11.30 to US$4,517.60 per ounce, after earlier touching $4,571.30.Also, West Texas Intermediate crude oil closed higher, rising off session lows following reports Iran is considering a new U.S. peace deal to end the war, a day after prices surged after the two sides appeared to be on the brink of resuming hostilities. WTI crude oil for July delivery closed up $1.60 to settle at US$93.76 per barrel, after earlier touching US$90.12. August Brent oil was up US$1.01 to US$95.99.

CIBC Comments on Ontario's Defence Industrial Strategy Framework

Ontario released its Defence Industrial Strategy framework last week, formalizing defense as a priority area of industrial policy, with a 10-year focus on scaling domestic capacity, technology development and supply chains, notes CIBC Capital Markets.The framework remains high-level, with no specific projects or procurement timelines disclosed as yet.For analyst Krista Friesen, the strategy is another supportive data point for Canadian companies that have exposure to defense spending, including the E&C companies within CIBC's coverage.The framework is structured around four pillars. The first pillar, strengthening the domestic industrial base, aims to expand manufacturing capacity and support production across aerospace, energy and related industrial sectors."This points to increased activity tied to facility construction, plant upgrades and industrial site development. For the E&Cs, this represents potential exposure to the build-out of manufacturing and processing facilities tied to defence supply chains, as well as broader infrastructure required to support production," Freisen writes.The second pillar advances emerging and dual-use technologies, including advanced manufacturing, aerospace systems and related R&D infrastructure.The third pillar aims to boost defense exports, while the fourth pillar is focused on integrating supply chains, linking upstream inputs such as critical minerals with downstream manufacturing, assembly and delivery. "This has cross-sector implications, as defence programs increasingly require coordinated multi-tier supply networks. For covered names, this expands the potential scope across project lifecycles, from front-end engineering to construction and commissioning, and ongoing equipment and operational support," the analyst noted.A fourth pillar includes "integrating supply chains, linking upstream inputs such as critical minerals with downstream manufacturing, assembly and delivery".The framework is being introduced alongside higher defense spending commitments, including $81.8 billion of incremental federal investment over five years. Ontario has also outlined potential economic impacts of up to 43,000 jobs and approximately $6.0 billion of incremental GDP by 2035.Price: $82.08, Change: $-0.64, Percent Change: -0.77%

Stantec JV Up In US Premarket As Picked to Deliver Western Melbourne's 5-Year Water Infrastructure Program

Stantec (STN.TO, STN), in a joint venture with Jacobs, has been picked as engineering services partner for Melbourne's Greater Western Water's five-year infrastructure program, the company said on Tuesday.The joint venture will support the planning, design and delivery of water infrastructure across Melbourne's western region, whose population is forecast to more than double by 2050, a statement said. Jacobs will provide engineering and advisory services for water and wastewater networks, treatment plants and dams. Additional services may include groundwater and surface water assessments, and development of engineering standards.The appointment builds on Jacobs' existing role as Greater Western Water's engineering and delivery partner for the past eight years.Stantec shares were last seen up US$0.96, to US$77.50, in U.S. pre-market trade, albeit they remain at the low end of their 52 week trading range.

Stantec JV With Jacobs To Deliver Greater Western Water's Infrastructure Program

CIBC Lowers Stantec's Price Target to C$160.00 From C$173.00

CIBC Capital Markets maintained its outperformer rating on the shares of Stantec (STN.TO) and reduced its price target to C$160.00 from C$173.00 after the company reported its first quarter results on May 13.Despite Stantec's Q1 results coming in ahead of expectations and maintaining its guidance for 2026, the stock traded down ~6.5%, noted CIBC, which it believes is a reflection of the ongoing uncertainty from the threat of AI."With that said, we maintain our belief that AI can be used as a productivity tool by the engineers, as well as potentially grow its revenue set," said CIBC. "We maintain our Outperformer rating and lower our price target from $173 to $160 as we lower our multiple to reflect the uncertainty in the market created by AI."While Q1 organic growth of 2.8% in the U.S. and 1.1% in Canada is below management's full-year organic growth outlook of mid- to high-single digits, management attributed the softer start to the completion of certain major mission-critical projects in the U.S. Buildings segment and the wind-down of certain Infrastructure projects in Canada, noted CIBC.The company expects organic growth to build sequentially through the balance of the year, supported by a ramp in project activity, new awards, and backlog conversion, further noted CIBC. The company added that procurement cycle activity is picking up in the U.S., and the company expects organic growth to accelerate, supported by demand across all business verticals, added CIBC."In Canada, STN expects project activity to ramp up in Q2, driven by public sector investment and continued demand in Energy & Resources, with additional longer-term upside from early-stage nation-building and defence-related opportunities," said CIBC. "In the Global segment, management expects continued strength in Water and mining activity in Latin America, while expanding hiring and leveraging its global delivery centres to support demand."CIBC also noted that, a theme that emerged from the call was the increasing shift toward larger, bundled project awards, with clients consolidating work into fewer, more integrated programs.Management notes that what were historically "smaller, discrete engagements" are increasingly being packaged into "significantly larger mandates", in some cases with project values at or above $100MM, said CIBC and noted that while these projects can take longer to ramp up, they typically run for three to five years, providing longer-term visibility."Furthermore, these projects can support pricing power, given the limited number of competitors with the capability to execute such complex projects," added CIBC. "STN sees the transition toward these larger projects as positive, with the company also emphasising its ability to balance these longer-duration programmes with smaller projects, maintaining utilization and mitigating any lumpiness in delivery."Price: $107.02, Change: $+0.63, Percent Change: +0.59%

Stantec Q1 Adjusted Earnings Rise 15%, Backs FY26 Outlook As Backlog Hits Record $9 Billion

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.

Stantec Says Annual Sustainability Report Highlights 68% (C$5.5 Billion) In "Sustainability-driven" Revenue