Stantec Inc. (STN) AI Stock Analysis

Stantec Inc., based in Edmonton, Canada, provides comprehensive engineering, architecture, and environmental consulting services worldwide. Operating across Canada, the United States, and international markets, the company's service portfolio includes interior design, landscape architecture, surveying, project management, and project economics. Stantec delivers integrated solutions across structural, mechanical, electrical, plumbing, and hydraulics engineering disciplines. It also offers specialized technical support in sustainable transportation advisory, planning and analytics, transport engineering, and design. Additionally, Stantec conducts paleontological and archaeological services for rail, transportation, water, power, and energy sectors to address environmental and cultural resource regulatory requirements.

Between FY2021 and FY2025, Stantec increased its revenue from $4.58B to $8.14B, achieving a 5-year revenue CAGR of 17.0%. Net income advanced from $200.7M in FY2021 to $479.0M in FY2025, as net margin expanded from 4.4% to 5.9%. Over the same timeframe, diluted EPS grew from $2.41 to $5.30, and operating cash flow rose from $397.0M to $862.2M. While gross margin decreased from 42.9% in FY2021 to 39.0% in FY2025, operating margin improved from 6.9% to 9.2%. In the latest quarter ended June 30, 2026, revenue increased 11.5% year-over-year, and earnings grew 11.2% year-over-year, bringing trailing twelve-month revenue to $6.82B.

As of June 30, 2026, Stantec held $377.3M in cash and short-term investments against $2.73B in total debt, resulting in net debt of $2.35B. Total assets stood at $8.23B compared to shareholders' equity of $3.39B, yielding a debt-to-equity ratio of 0.80 and a current ratio of 1.50. In FY2025, the company generated $862.2M in operating cash flow and invested $71.8M in capital expenditures, leaving $790.4M in free cash flow. Capital allocation in FY2025 included $100.9M in dividends paid, while the 5-year share count change was an increase of 1.7%.

Stantec trades at a trailing P/E of 21.6x and a forward P/E of 14.3x, both below the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its enterprise value of $9.65B reflects an EV/EBITDA multiple of 11.6x, compared to the peer median of 13.9x. The stock trades at a price-to-sales ratio of 1.1x versus the sector peer median of 1.5x. Over the past year, Stantec shares generated a return of -36.6%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year period, the stock gained 47.0%, compared to 83.0% for the index.

Stantec pays a quarterly dividend with an annualized forward payout of $0.69 per share, equating to a 1.00% dividend yield based on its last close of $69.28. The company has paid dividends for 15 consecutive years, delivering a 5-year annualized dividend growth rate of 6.9%. The dividend payout ratio stands at 12.9%, with the last ex-dividend date on September 29, 2026.

Stantec holds 4 Strong Buy and 7 Buy recommendations, with no Hold, Sell, or Strong Sell ratings among 11 tracked analysts. The mean price target is $94.28, implying 36.1% upside from the last closing price of $69.28. Consensus forecasts project FY2026 EPS of $6.20 on revenue of $7.08B, followed by FY2027 EPS of $6.92 on revenue of $7.48B. Stantec has exceeded EPS estimates in 3 of the last 4 quarters, and its next earnings release is scheduled for November 12, 2026.

This page is an AI-written research summary of Stantec Inc. (STN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: STN income statement, STN balance sheet, STN key metrics, STN analyst forecast, STN chart. See the STN stock overview for the latest quote and news.