TSX, NYSE:STN
Stantec Inc. (Stantec or the Company), a global leader in
sustainable design and engineering, today released the highlights
of its 2024 – 2026 Strategic Plan, including its three-year
financial targets and guidance for 2024.
Three-Year Strategic PlanBy the end of 2026,
Stantec aims to achieve:
- Net revenue of $7.5 billion
- Organic net revenue1 growth at a
three-year compound annual growth rate (CAGR) of greater than
7%
- Adjusted EBITDA1 margin in the range
of 17% to 18%
- Adjusted diluted earnings per share
(EPS)1 at a CAGR in the range of 15% to 18%
“While we still have one month to go before completing our 2020
Strategic Plan, we are incredibly proud of what we have
accomplished over the last four years. The hard work and dedication
of our people has delivered significant shareholder value,” said
Gord Johnston, Stantec president and CEO. “Stantec is truly firing
on all cylinders, and that’s why we are so excited to share where
we are going in the next three years, and the continued value we
will create through our bold new Strategic Plan.”
In charting the course for the next phase of Stantec’s journey,
the Company sought to revalidate its understanding of the
challenges that clients and communities are facing, and the drivers
behind them. Stantec has identified key global trends and drivers
that are re-shaping the world and has focused its go-forward plans
on three broad strategic growth initiatives: Climate Solutions,
Communities and Infrastructure of the Future, and Future
Technology. These initiatives form the foundation of Stantec’s
organic growth plans for the next three years.
In addition, Stantec remains committed to its disciplined
approach to growth through strategic, accretive acquisitions. The
Company’s strong balance sheet, now bolstered by proceeds from its
recent common share offering, provides the Company with significant
financial capacity to fund future acquisition opportunities and
growth initiatives.
Stantec’s three-year financial targets reflect ambitious
performance expectations, as the Company continues to raise the bar
on organic and inorganic revenue growth, project execution and
operational efficiency.
“The demand for our services continues to be very robust, and as
we continue on our path of operational excellence, we have further
levers to continue to expand our EBITDA margin and grow earnings,”
said Johnston. “We also continue to actively evaluate multiple
firms that meet our strategic acquisition criteria. With our new
Strategic Plan, we are confident that we will deliver superior
financial performance through our greatest asset – our people.”
Stantec will host its Investor Day in Boston today at 9 am ET,
where members of the Company’s executive leadership team will
outline the 2024 – 2026 Strategic Plan in more detail. Interested
parties are invited to join the live webcast. To register for the
live webcast, please click here.
The live webcast, along with a copy of the presentation, can be
accessed through Stantec’s investor relations website on
the Events and Presentations page.
Please register for the webcast at least 15 minutes prior to the
start of the event to receive login details. For those unable to
view the event live, a replay will be available on Stantec’s
website shortly after the event.
1 Organic net revenue, adjusted EBITDA, adjusted EBITDA
margin, and adjusted diluted earnings per share are non-IFRS
measures (discussed in the Definitions section of Stantec’s Q3 2023
MD&A).
2024 – 2026 Strategic Plan Financial
Targets
|
Targets (end of 2026) |
2024 – 2026 |
| (In
millions of Canadian dollars, unless otherwise stated) |
|
| 2026 Net revenue |
$7.5 billion |
| Organic net revenue 3-year
CAGR(1) |
above 7% |
| Project margin as % of net
revenue(1) |
53% to 56% |
| Adjusted EBITDA as % of net
revenue(1) |
17% to 18% |
| Adjusted net income as % of
net revenue(1) |
above 8.5% |
| Adjusted diluted EPS 3-year
CAGR (1) |
15% to 18% |
| Adjusted ROIC(1) |
above 11.0% |
| Free
cash flow to net income(1) |
above 1.0x |
| Note 1: Organic
net revenue, project margin, adjusted EBITDA, adjusted net income,
adjusted diluted EPS, adjusted ROIC, and free cash flow are
non-IFRS and other financial measures (discussed in the Definition
section of Stantec’s Q3 2023 Management’s Discussion and
Analysis). |
| |
2024 Outlook
For 2024, Stantec has established the following targets:
Stantec’s 2024 Financial Targets
|
Targets |
2024 |
| (In
millions of Canadian dollars, unless otherwise stated) |
|
| Net revenue growth |
7% to 12% |
| Adjusted EBITDA as % of net
revenue(1) |
16.2% to 17.2% |
| Adjusted net income as % of
net revenue(1) |
above 8.0% |
| Adjusted diluted EPS
growth(1) |
11% to 16% |
|
Adjusted ROIC(1) |
above 11% |
| Note 1: Adjusted
EBITDA, adjusted net income, adjusted diluted EPS, and adjusted
ROIC are non-IFRS and other financial measures (discussed in the
Definition section of our Q3 2023 Management’s Discussion and
Analysis).In setting targets and guidance, the Company assumed an
average value for the US dollar of $1.35, GBP $1.70, and AU $0.90.
For all other underlying assumptions, please see the Appendix of
Stantec’s 2024 – 2026 Strategic Plan. |
| |
Stantec expects that net revenue will increase between 7% and
12% in 2024, with organic net revenue growth in the mid to high
single digits. Stantec continues to see high levels of activity in
all regions. Organic growth in the US and Global regions is
expected to be in the mid to high single digits. In Canada, organic
growth is expected to be in the mid single digits.
About StantecCommunities are fundamental.
Whether around the corner or across the globe, they provide a
foundation, a sense of place and of belonging. That’s why at
Stantec, we always design with community in
mind.
We care about the communities we serve—because they’re our
communities too. This allows us to assess what’s needed and connect
our expertise, to appreciate nuances and envision what’s never been
considered, to bring together diverse perspectives so we can
collaborate toward a shared success.
We’re designers, engineers, scientists, and project managers,
innovating together at the intersection of community, creativity,
and client relationships. Balancing these priorities results in
projects that advance the quality of life in communities across the
globe.
Stantec trades on the TSX and the NYSE under the symbol STN.
Visit us at stantec.com or find us on social media.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this news release constitute
forward-looking information and statements within the meaning of
applicable securities law (collectively, "forward-looking
statements"). Forward looking statements in this news release
include but are not limited to: the financial targets of our
Strategic Plan (including our annual net organic revenue growth,
adjusted EBITDA, adjusted earnings per share, and adjusted ROIC
targets), our expectations regarding our strategic growth
initiatives; execution and operational efficiencies; continued
organic growth; and our 2024 Financial Guidance. These statements
describe management’s expectations as of December 5, 2023, and are
provided for the purpose of providing information about
management’s current expectations and plans relating to the future.
Readers are cautioned that this information may not be appropriate
for other purposes. Stantec does not undertake any obligations to
publicly update or revise any forward-looking statements except as
required by law.
In determining our forward-looking statements, we consider
material factors and assumptions we believe to be reasonable as at
December 5, 2023, including assumptions about the performance of
the Canadian, US, and global economies in 2024 and beyond, and
their effect on our business, the impact of inflation and
increasing interest rates, the state of and access to global and
local capital and credit markets, and the expected benefits of
future acquisitions and the expected synergies to be realized as a
result thereof.
By their nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties.
Readers are cautioned not to place undue reliance on our
forward-looking statements since a number of factors could cause
actual future results, conditions, actions, or events to differ
materially from the targets, expectations, estimates, or intentions
expressed in these forward-looking statements. Risk factors
include, but are not limited to, the effects of cybersecurity
breaches, competition for skilled employees, geopolitical events,
the effects of workplace health and safety incidents and global
economic conditions, among others. Investors and the public should
carefully consider these factors, other uncertainties, and
potential events, as well as the inherent uncertainty of
forward-looking statements when relying on these statements to make
decisions about our Company. For more information about how other
material risk factors could affect our results, please refer to the
Risk Factor section in our 2022 Annual Report incorporated herein
by reference. Readers can access our Annual Report online by
visiting EDGAR on the SEC website at sec.gov or by visiting the CSA
website at sedarplus.ca or on Stantec’s website at stantec.com.
Investor ContactJess NieukerkStantec Investor
RelationsPh: (587) 579-2086jess.nieukerk@stantec.com
Media ContactAshley Warnock
Stantec Media Relations
Ph: (403) 472-0122
ashley.warnock@stantec.com
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Design with community in mind
Grafico Azioni Stantec (NYSE:STN)
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Da Dic 2024 a Gen 2025
Grafico Azioni Stantec (NYSE:STN)
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Da Gen 2024 a Gen 2025
