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Analogy 1:

It's like a Deloitte or PwC, but for engineering, architecture, and environmental design instead of financial or IT consulting.

Analogy 2:

Imagine the company that designs all the roads, bridges, water systems, and buildings that make up a modern city or country – like the "master architects and engineers" for the built world, similar to a global firm like AECOM or Jacobs Engineering.

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• Engineering & Design for Buildings: Provides architectural, structural, mechanical, electrical engineering, and interior design services for various building types including commercial, residential, healthcare, and educational facilities.
• Transportation Infrastructure Services: Offers planning, design, and engineering solutions for diverse transportation projects such as roads, bridges, airports, ports, and public transit systems.
• Water & Wastewater Management Services: Delivers consulting, engineering, and design for water supply, treatment, distribution, and wastewater collection and treatment systems, including storm water management and flood control.
• Environmental Consulting & Remediation: Supplies services for environmental impact assessment, permitting, site remediation, monitoring, and sustainability planning across various industries.
• Energy & Resources Sector Services: Specializes in engineering and consulting for power generation, transmission and distribution, renewable energy, mining, and oil & gas projects.
• Community Development & Urban Planning: Encompasses master planning, landscape architecture, land surveying, and site engineering services for urban revitalization, new community developments, and public spaces.

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Stantec (symbol: STN) primarily sells its professional consulting, design, and engineering services to other companies and governmental entities (Business-to-Business and Business-to-Government).

Due to the diversified and project-based nature of its work across numerous sectors and geographies, Stantec does not typically disclose individual "major customers" that consistently account for a significant percentage of its annual revenue. The company works with thousands of clients globally each year, and no single client is reported to represent 10% or more of its revenue. Therefore, specific names of major customer companies with their symbols cannot be provided.

However, its primary customer base, representing its major types of customers, includes:

• Governmental Entities: This broad category includes municipal, provincial/state, and federal governments and their agencies across North America and internationally. These clients commission Stantec for public infrastructure projects (e.g., transportation networks, water and wastewater systems), environmental services, and public facilities (e.g., schools, hospitals, civic buildings).
• Public and Private Utilities: Clients in this category include water authorities, power generation and distribution companies (e.g., electric utilities, gas utilities), and other public service providers. They engage Stantec for the planning, design, and management of essential utility infrastructure and related environmental services.
• Private Sector Corporations and Developers: This diverse group encompasses companies across various industries, such as:
  • Real Estate Developers: For commercial, residential, and mixed-use building projects, land development, and urban planning.
  • Healthcare Systems and Providers: For the design and engineering of hospitals, clinics, medical research facilities, and other healthcare infrastructure.
  • Educational Institutions: For campus planning, facility design, and infrastructure upgrades for universities, colleges, and K-12 schools.
  • Resource Companies: Operating in sectors like mining, oil & gas, and renewable energy (e.g., wind farms, solar projects), seeking expertise for project development, environmental impact assessments, and regulatory compliance.
  • Industrial and Manufacturing Companies: For facility design, operational efficiency improvements, and environmental management services.

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Gord Johnston President & Chief Executive Officer

Gord Johnston joined Stantec in 1990 and has nearly 30 years of experience in the private and public sectors, focusing on the design and project management of infrastructure projects globally. He progressed through various leadership roles, including Water business line leader and executive vice president of the Infrastructure business operating unit, before becoming President and CEO in January 2018. Johnston has been actively involved in Stantec's acquisition and integration efforts, notably with MWH Global, the company's largest acquisition to date. He holds Bachelor of Science and Master of Engineering degrees in civil engineering from the University of Alberta. Furthermore, he completed the Harvard Business School's Leading Professional Services Firms program and the Financial Literacy program for Directors and Executives at the University of Toronto's Rotman School of Management. Johnston has also served on the board of directors for ACEC Canada and as past-president of the Consulting Engineers of Alberta.

Vito Culmone Executive Vice President & Chief Financial Officer

Vito Culmone was appointed Executive Vice President and Chief Financial Officer of Stantec, effective September 3, 2024, succeeding Theresa Jang. He brings over 35 years of financial leadership experience across diverse industries, including aviation, telecommunications, fleet management, and space technology. Prior to joining Stantec, Culmone served as CFO at MDA Space for three and a half years. His previous roles include EVP for finance and CFO at Element Fleet Management, Shaw Communications, and WestJet. Culmone began his career at Price Waterhouse (now PwC) in audit and tax, where he became a chartered accountant. He holds a Bachelor of Commerce degree from the University of Toronto and is a Chartered Professional Accountant and a Fellow of the Chartered Professional Accountants of Ontario. He also serves as a board member and chair of the audit committee for EPCOR.

John Take Executive Vice President, Chief Growth & Innovation Officer

John Take serves as Stantec's Executive Vice President and Chief Growth & Innovation Officer.

Asifa Samji Executive Vice President, Chief Human Resources Officer

Asifa Samji is an Executive Vice President and Stantec's Chief Human Resources Officer, responsible for all human resources functions, including the attraction, retention, and development of the Company's teams. Before her current role, she was the business leader for revenue growth in the Environmental Services business. Samji was recognized with the Women's Executive Network's 2015 Canada's Most Powerful Women Top 100 Award.

Susan Reisbord Executive Vice President, Chief Operating Officer – North America

Susan Reisbord holds the position of Executive Vice President, Chief Operating Officer – North America at Stantec.

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Key Risks to Stantec (STN)

1. Acquisition and Integration Risks: As Stantec pursues global expansion through acquisitions, it faces inherent integration challenges. These include the potential for cultural misalignment and inefficiencies when combining disparate project-management systems, which could negatively impact margins and hinder strategic execution.
2. Intense Competition: Stantec operates in a highly competitive market, contending with both large global engineering firms and specialized local consultancies. This intense competition poses a risk to the company's pricing power and its ability to consistently secure new contracts.
3. Macroeconomic and Geopolitical Risks: Stantec is susceptible to broader macroeconomic factors, market fluctuations, and geopolitical events. These risks encompass potential economic downturns, decreased spending in both the private and public sectors, and shifts in market conditions that could adversely affect demand for Stantec's services.

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Stantec (symbol: STN) operates across several key professional services sectors, with addressable markets varying by service and geographic region. The company provides consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects.

Environmental Consulting Services

• North America: The environmental consulting services market in North America is projected to grow from US$22,461.15 million in 2023 to US$39,436.49 million by 2031, with a compound annual growth rate (CAGR) of 7.3%. In 2024, North America accounted for 35.93% of the global environmental consulting market share.
• Global: The global environmental consulting market size is estimated at USD 46.50 billion in 2025 and is projected to reach USD 62.25 billion by 2030, advancing at a 6.01% CAGR. The market was over USD 51.8 billion in 2025 and is poised to exceed USD 100.01 billion by 2035, growing at over 6.8% CAGR.

Engineering and Design Services (General)

• Global: The global engineering design service market size was valued at approximately $45 billion in 2023 and is projected to reach around $85 billion by 2032, exhibiting a CAGR of 7%. Another estimate for the global engineering design service market size was USD 90.63 billion in 2024, projected to reach USD 148.62 billion by 2032, growing at a CAGR of 4.20%.
• Global: The broader global engineering services market is estimated at US$1,801.75 billion in 2024 and is projected to expand at a 7.6% CAGR to reach US$3,756.09 billion by the end of 2034. Other estimates place the global engineering services market size at USD 3,419.59 billion in 2024, projected to reach USD 4,722.7 billion by 2030 (CAGR of 5.7%). It grew from USD 1.66 trillion in 2024 to USD 1.77 trillion in 2025 and is projected to reach USD 2.84 trillion by 2032, at a CAGR of 6.93%.

Water Infrastructure Engineering and Consulting

• Global: The Water Infrastructure Construction Market size was valued at USD 69.9 billion in 2023 and is projected to reach USD 107.3 billion by 2030, growing at a CAGR of 13.8%.
• Global: The global water infrastructure repair technologies market size was worth around USD 70.17 billion in 2024 and is predicted to grow to around USD 166.43 billion by 2034, with a CAGR of roughly 8.3%. The water infrastructure repair technologies market size has grown from $80 billion in 2024 to $85.96 billion in 2025 (CAGR of 7.5%) and is expected to grow to $116.75 billion in 2029 (CAGR of 8%).
• Global: The global water infrastructure consulting market size was valued at USD 12 billion in 2023 and is forecasted to reach USD 20.4 billion by 2032, growing at a CAGR of 5.9%. The global water engineering services market size is $25.4 billion (as of 2025 Global Report), with $30.2 billion in revenue generated from engineering services for water collection, distribution, treatment, and disposal system projects for 195 countries, with forecasts for 2025 and 2029.

Transportation Infrastructure Engineering and Construction

• North America: The North America Transportation Infrastructure Construction Market size is estimated at USD 287.27 billion in 2025 and is expected to reach USD 362.13 billion by 2030, growing at a CAGR of 4.74%. Another estimate indicates the market was valued at US$214.3 billion in 2024 and is expected to reach around USD 272.4 billion by 2032, growing at a CAGR of 3.04%. It was valued at US$211.8 billion in 2023 and is projected to reach a market valuation of US$288.6 billion by 2032, at a CAGR of 3.5%.
• Global: The Global Transportation Infrastructure Market is projected to be USD 690.4 billion in 2024 and is expected to increase to USD 1334.1 billion by 2035, with a CAGR of 6.17% from 2025 to 2035.

Buildings Engineering, Architecture, and Construction Services

• Global: The global Architectural Engineering and Construction Solutions Market size was USD 8.77 billion in 2024 and is expected to reach USD 18.82 billion by 2033, growing at a CAGR of about 8.8%.
• Global: The global architectural, engineering consultants and related services market grew from $1,456.69 billion in 2022 to $1,525.79 billion in 2023, with a CAGR of 4.7%. It is expected to grow to $1,773.06 billion in 2027, with a CAGR of 3.8%. The Architectural, Engineering, And Construction Services Market was valued at USD 109.2 billion in 2023 and is expected to reach USD 390.8 billion by 2032, growing at a CAGR of 15.24%.
• Global: The global architectural services market value was $376.08 billion in 2023 and is forecast to grow at a CAGR of 4.9% from 2024 to 2030.
• U.S.: The architectural services market in the U.S. is forecast to grow at a CAGR of 4.2% from 2024 to 2030.

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Expected Drivers of Future Revenue Growth for Stantec (STN)

• Strategic Acquisitions: Stantec has consistently leveraged strategic acquisitions to fuel its growth. The company completed several strategic acquisitions in Q2 2025, including Page, Ryan Hanley, and Cosgroves, which contributed to an increased 2025 net revenue outlook. Stantec's 2024-2026 Strategic Plan emphasizes a disciplined approach to accretive acquisitions as a key growth strategy.
• Organic Growth in Core Sectors and Geographies: The company anticipates continued organic revenue growth across its operational regions and business units. Stantec expects mid-to-high single-digit organic growth in Canada and its Global operations, and mid-single-digit growth in the U.S. This growth is fueled by strong demand in critical sectors such as water, transportation, energy transition, and mission-critical projects.
• Public Infrastructure Spending and Supportive Government Policies: Stantec benefits from secular tailwinds driven by aging infrastructure and substantial public infrastructure spending across its primary markets. Government policies in the U.S., Canada, the UK, and Germany are supporting new water projects and broader infrastructure upgrades, thereby increasing demand for Stantec's design and engineering services.
• Strong and Growing Contract Backlog: A significant and expanding contract backlog provides a clear indicator of future revenue. As of Q2 2025, Stantec reported a contract backlog of $7.9 billion, representing a 9.9% year-over-year increase, including 9% organic growth. This strong backlog offers considerable revenue visibility for the coming years.
• Focus on Strategic Growth Initiatives: Stantec's 2024-2026 Strategic Plan outlines three key initiatives to drive organic growth: Climate Solutions, Communities and Infrastructure of the Future, and Future Technology. These initiatives are designed to align with global trends and client challenges, forming a foundational element of Stantec's future revenue generation.

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Share Repurchases

• In 2023, Stantec repurchased 129,036 common shares at an average price of C$77.25, totaling C$10 million.
• No shares were repurchased in 2024 as the company strategically focused on acquisitions.
• Stantec received TSX approval to renew its Normal Course Issuer Bid (NCIB), authorizing the repurchase of up to 2,281,339 common shares (approximately 2% of outstanding shares) between December 13, 2024, and December 12, 2025.

Share Issuance

• In November 2023, Stantec completed a public offering of 3,108,450 common shares, including the over-allotment option, at $92.50 per share, raising approximately $287.5 million in gross proceeds. The proceeds were intended to create additional capacity on its revolving credit facility for future acquisition opportunities and growth initiatives.

Outbound Investments

• In 2024, Stantec acquired several firms including Hydrock (UK), Morrison Hershfield (Canada/US), and ZETCON Engineering (Germany), collectively adding over 2,700 skilled workers in the first four months of the year.
• In 2021, Stantec deployed over $700 million to complete six acquisitions, notably including Cardno, which significantly expanded its presence in Australia and boosted its Environmental Services offering in the United States.
• Stantec signed an agreement to acquire Page, a 1,400-person architecture and engineering firm, in April 2025. This acquisition is expected to position Stantec as the second-largest architecture firm in the US and strengthen its position as the largest integrated engineering and architecture firm in North America.