Stantec Inc. (NYSE:STN), an international professional services company in the design and consulting industry, stock rose 0.41% (As on November 11, 11:24:49 AM UTC-4, Source: Google Finance) after the company beats the revenue estimates for the third quarter of FY 22. Adjusted net income grew 18.2%. Contract backlog stands at $6.2 billion at September 30, 2022, achieving a new record and reflecting 15.1% organic growth from December 31, 2021. Like net revenue, organic backlog growth was achieved across all the regional and business operating units. Double-digit organic backlog growth continued in US operations, which led the regions with 20.9%, and in Infrastructure, Buildings, and Energy & Resources. Contract backlog represents approximately 14 months of work—an increase of one month from December 31, 2021. Operating cash flows amounted to an inflow of $93.1 million compared to an inflow of $101.0 million in the prior period reflecting the expected disruptions from the Cardno integration, particularly the financial system migration. Net debt to adjusted EBITDA (on a trailing twelve-month basis) at September 30, 2022 was 1.9x, remaining within Stantec’s internal target range of 1.0x to 2.0x.

STN in the third quarter of FY 22 has reported the adjusted earnings per share of 67 cents, matching the analysts’ estimates for the adjusted earnings per share of 67 cents, according the Zacks Investment Research. The company had reported the adjusted revenue growth of 24.3 percent to $889.3 million in the third quarter of FY 22, beating the analysts’ estimates for revenue of $877.4 million. This is generated on the strength of 11.0% organic growth and 12.9% acquisition growth. Consistent with the first half of 2022, every regional and business operating unit delivered organic net revenue growth in the third quarter. Project margin increased $120.0 million or 23.7% to $627.0 million as a result of net revenue growth. As a percentage of net revenue, Stantec delivered a 54.1% project margin. Backlog at the end of September 30, 2022 reached an all-time high of $6.2 billion, driven primarily by organic growth of 15.1% since December 31, 2021.

Additionally, the company has declared a dividend of $0.18 per share, payable on January 17, 2023, to shareholders of record on December 30, 2022. Stantec reaffirms full year 2022 guidance for adjusted diluted EPS growth of 22% to 26% and net revenue growth of 18% to 22%, both compared to 2021, and for adjusted EBITDA margin in the range of 15.3% to 16.3%.