GET DAILY SIGNALSStantec (STN) Delivers +21.2% EPS Growth and Record Margins in Q3 2026
Key Takeaways
- Net revenue rose 9.4% year over year to $1.86 billion in the third quarter of 2026, supported by both organic growth and acquisitions.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 16.6% to $377.1 million, with a record 20.2% margin.
- Diluted EPS (earnings per share) reached $1.60, up 21.2%, while adjusted EPS climbed 23.5% to $1.89.
- Backlog reached $9.2 billion as of September 30, 2026, up 11.6% year over year and equal to roughly 13 months of work.
- Management raised its full-year 2026 profitability outlook, now targeting an adjusted EBITDA margin of 18.3%–18.5% and adjusted EPS growth of 17%–19%.
- The board declared a quarterly dividend of $0.245 per share, payable January 15, 2027.
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Earnings Context and Why It Matters
Stantec's third-quarter 2026 report serves as an important indicator for the global engineering, architecture, and environmental consulting industry, where infrastructure spending and sustainability projects continue to support demand. The company carried strong momentum into the quarter, and I was interested to see whether margin expansion and backlog growth would hold up amid a competitive labor market and the integration of recent acquisitions such as Page in the U.S. and Niche in Australia. These results matter because they show how well Stantec is turning revenue growth into higher profitability, a key focus for a firm that has emphasized cost discipline and operational efficiency alongside strategic expansion.
Reported Results
For the quarter ended September 30, 2026, Stantec reported net revenue of $1,864.9 million, up 9.4% from $1,705.4 million in the same period a year earlier. Gross revenue reached $2,353.1 million. Net income increased to $179.6 million from $150.0 million, while diluted EPS rose 21.2% to $1.60 from $1.32.
Profitability stood out in the report. Adjusted EBITDA grew 16.6% to $377.1 million, and the adjusted EBITDA margin expanded 120 basis points to a record 20.2%. Adjusted net income rose to $212.1 million from $174.1 million, lifting adjusted EPS by 23.5% to $1.89 from $1.53. The company pointed to solid project margins and lower administrative and marketing expenses as a percentage of net revenue, which reflects its emphasis on operational efficiency and controlled discretionary spending.
Backlog stood at $9.2 billion at the end of the quarter, an 11.6% increase from the prior year, representing approximately 13 months of work. I also checked this using Tickeron’s AI Screener to see how STN compares to others in the industry. Reflecting confidence in the outlook, management raised its 2026 profitability guidance, now expecting an adjusted EBITDA margin of 18.3% to 18.5% and adjusted EPS growth of 17% to 19%.
Market Reaction and Investor Sentiment
Stantec's third-quarter results support a constructive view of the company's ability to expand margins while maintaining revenue growth. The record adjusted EBITDA margin and the upward revision to full-year profitability guidance are likely to be received positively, especially since margin performance has been a key area of attention. A recent analyst rating on the stock stood at Buy with a C$124.00 price target, reflecting a generally favorable assessment of the company's positioning. Sentiment around the report will also be influenced by the strength of backlog growth, which offers visibility into future revenue, and by the company's disciplined capital allocation, including share repurchases and the dividend declaration.
Forward Outlook and Key Factors to Monitor
Following this earnings report, investors will be watching whether Stantec can sustain its record-level profitability into the fourth quarter and beyond. The company's raised guidance signals management's confidence, but execution against that higher bar will remain in focus, particularly as it integrates recently acquired businesses such as Page and Niche.
Several factors are worth monitoring. Demand trends across the Water, Buildings, and Energy sectors have been supportive, and any shift in public infrastructure funding or client spending could influence organic growth. Backlog conversion will be another key indicator, since the $9.2 billion backlog represents meaningful future revenue visibility.
Margin sustainability is equally important. Stantec's gains have come partly from disciplined management of administrative and marketing costs, and investors will look for evidence that these efficiencies are durable rather than temporary. Labor costs and wage inflation in a competitive engineering talent market also remain a watch item, along with foreign exchange movements given the company's Canadian-dollar reporting and substantial U.S. and global operations.
Finally, capital allocation will stay in the spotlight. Continued share repurchases under the normal course issuer bid and the recently declared dividend reflect a shareholder-friendly approach, and further M&A activity could add both growth and integration risk to the outlook.
Enhancing My Research with Tickeron Tools
In my own analysis, I often rely on Tickeron’s AI Screener to scan for comparable companies and monitor sector trends. It allows me to apply customizable filters for fundamentals, technical patterns, and performance metrics, which helps surface ideas efficiently when evaluating names like STN. This approach has become a regular part of how I cross-check earnings data against broader market opportunities.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
STN in upward trend: price rose above 50-day moving average on October 22, 2026
STN moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend. In 28 of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on STN as a result. In 57 of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
The Moving Average Convergence Divergence (MACD) for STN just turned positive on October 13, 2026. Looking at past instances where STN's MACD turned positive, the stock continued to rise in 27 of 45 cases over the following month. The odds of a continued upward trend are 60%.
The 10-day moving average for STN crossed bullishly above the 50-day moving average on October 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 53%.
Following a +3.32% 3-day Advance, the price is estimated to grow further. Considering data from situations where STN advanced for three days, in 170 of 313 cases, the price rose further within the following month. The odds of a continued upward trend are 54%.
The Aroon Indicator entered an Uptrend today. In 140 of 285 cases where STN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 49%.
Bearish Trend Analysis
The 10-day RSI Indicator for STN moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In 11 of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at 44%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 71 cases where STN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 61%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where STN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
STN broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. STN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 54 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 63 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock slightly better than average.
The Tickeron Valuation Rating of 81 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.462) is normal, around the industry mean (15.143). P/E Ratio (16.781) is within average values for comparable stocks, (167.534). Projected Growth (PEG Ratio) (5.750) is also within normal values, averaging (3.522). Dividend Yield (0.009) settles around the average of (0.215) among similar stocks. P/S Ratio (1.304) is also within normal values, averaging (2.886).
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of engineering, architecture, and related professional services
Industry EngineeringConstruction
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