Stantec Inc (NYSE:STN), a global leader in sustainable engineering, architecture and environmental consulting, stock fell 3.60% (As on August 14, 11:23:10 AM UTC-4, Source: Google Finance) after the company posted inline earnings for the second quarter of FY25. Contract backlog of $7.9 billion, up 9.9% year-over-year, including 9% organic growth. The company acquired Cosgroves, a 90-person industry-leading firm, expanding buildings engineering capabilities in New Zealand and closed the acquisition of Page, a 1,400 person US-based design, architecture and engineering firm

STN in the second quarter of FY25 has reported the adjusted earnings per share of 98 cents, which matches the analysts’ estimates for the adjusted earnings per share of 98 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 6.9 percent to $1.15 billion in the second quarter of FY25, missing the analysts’ estimates for revenue of $1.18 billion. This is primarily driven by 4.8% organic growth. Organic growth was achieved in each of Stantec’s regional and business operating units, with Canada, the United States and Global achieving 6.2%, 4.4% and 4.3% organic growth, respectively. Most notably, Water achieved 12.4% organic growth and Energy & Resources delivered 9.5% organic growth. Second quarter 2025 adjusted EBITDA increased 15.0% or $37.1 million, and adjusted EBITDA margin was 17.8%, up 120 basis points compared to the second quarter of 2024.

Stantec now expects to achieve net revenue growth of 10% to 12% in 2025, increasing the range from 7% to 10%, due to the acquisitions completed during the second quarter and the closing of the acquisition of Page in July, and supported by the Company’s continued expectations to achieve net revenue growth in the mid- to high-single digits. Stantec’s US organic growth outlook has now moderated slightly to mid-single digits related to slower procurement cycles persisting in the public sector in the near term, and elevated caution in the private sectors particularly for larger projects. The Company continues to expect that Canada’s organic net revenue growth to be in the mid- to high-single digits, driven by continuing strong momentum and elevated backlog levels. Stantec also continues to expect organic net revenue growth in Global in the mid to high single-digits, driven by continued high levels of activity in the Water business under the ongoing UK Asset Management Program (AMP) and framework agreements and positive demand fundamentals in the Energy & Resources business.