Stantec Inc · TSX:STN
Stantec — Q3 2022 Earnings Presentation
15 slides from Stantec's earnings presentation, Nov 11, 2022
Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation November 11, 2022
Slide 2: Cautionary statement
Cautionary statement This presentation contains non-IFRS and other financial measures and forward-looking statements, including a discussion of our business targets, expectations, and outlook. We caution readers not to place undue reliance on our forward-looking statements since a number of factors
Slide 3: Record Q3 2022 earnings
Record Q3 2022 earnings Net revenue Increased earnings KEY DRIVERS $1.2B | ▲ 24% driven by: Aging and overloaded Adjusted EBITDA (1) Organic Net Revenue Growth (1) infrastructure $193M | ▲ 24% 11.0% Q3 2022 Climate change and Adjusted EBITDA Margin (1) Acquisition Growth (1) sustainability 16.7% | 1
Slide 4: United States
United States Gross and net revenue ($ millions) $3.9 Billion BACKLOG Q3 2022 Gross Revenue Net Revenue • 11.9% organic growth; achieved in every business operating unit • 13.3% acquisition growth • Water, Infrastructure and Energy & Resources – double digit organic growth • Net Revenues from Enviro
Slide 5: Canada
Canada Gross and net revenue ($ millions) $1.3 Billion BACKLOG Q3 2022 Gross Revenue Net Revenue • 7.2% organic growth • Environmental Services – high demand for permitting and archeological services • Energy & Resources – double digit growth with energy transition initiatives • Infrastructure – str
Slide 6: Global
Global Gross and net revenue ($ millions) $1.0 Billion BACKLOG Q3 2022 Gross Revenue Net Revenue • 14.1% organic growth; achieved in every business operating unit • 30.1% acquisition growth • Water – strong organic growth across the UK and New Zealand • Infrastructure – double digit organic growth •
Slide 7: Q3 2022 Financial Performance
Q3 2022 Q3 2022 British Columbia Institute of Technology Health Sciences Centre Burnaby, British Columbia, Canada Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 7
Slide 8: Financial results
Q3 2022 Financial results Gross revenue Net revenue ($ millions) ($ millions) Q3 2022 Project margin Adjusted EBITDA and Adjusted EBITDA margin (1) ($ millions and %NR) ($ millions & %NR) $193 $432 $532 $156 8 (1) Adjusted EBITDA and adjusted EBITDA margin are non-IFRS measures discussed in the Defi
Slide 9: Financial results
Q3 2022 Financial results Net income Adjusted net income (1) ($ millions) ($ millions) Q3 2022 Diluted earnings per share ($) Adjusted diluted earnings per share ($) (1) (1) Adjusted net income and adjusted diluted earnings per share are non-IFRS measures discussed in the Definitions section of the
Slide 10: Liquidity and capital resources
Liquidity and capital resources Operating cash flow Capital returned to shareholders ($ millions) ($ millions) Q3 2022 Dividends Share Buybacks Days sales outstanding (1) Net debt to adjusted EBITDA (1) Target 80 days Target range 1.0 - 2.0x (1) Net debt to adjusted EBITDA and days sales outstanding
Slide 11: Backlog, Major Project Awards & Outlook
Q3 2022 Q3 2022 Muldraugh Water Treatment Plant Fort Knox, Texas, US Backlog, Major Project Awards & Outlook Gord Johnston - President and Chief Executive Officer 11
Slide 12: Record backlog
Record backlog Backlog ($ billions) Q3 2022 • 20.2% growth since December 31, 2021 • 15.1% organic growth; achieved in every regional and business operating unit • Represents approximately 14 months of work Stella’s Place Ambulatory Mental Health Hub 12 Toronto, Ontario, Canada
Slide 13: Q3 major project awards
Q3 major project awards Q3 2022 Region Project Region Project Region Project Area US • Western Slope Bridge & Structures US • Alternative Water Source Program Canada • Bio-fuels Project (Colorado) (Illinois) • Underground/System Hardening Canada • Metrolinx GTA Project (Ontario) (California) • Cape
Slide 14: Outlook
Outlook 2022 Financial Targets 2022 Sept 30, 2022 Targets Annual Range YTD Actuals Net revenue growth 18% to 22% 22.3% Q3 2022 Adjusted EBITDA as % of net revenue(1) 15.3% to 16.3% 16.0% Adjusted net income as % of net revenue(1) >7.5% 7.7% Adjusted ROIC (revised) (1,2) >10.0% (note) 2022 Adjusted d
Slide 15: Q&A
Q3 2022 Q&A Albany Skyway Albany, New York, US 15