STANTEC INC
For the period ended Dec 31, 2025. Filed Feb 25, 2026.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2025 · Filed Feb 25, 2026
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Contents
EX-99.2 · Project Margin
Project Margin
Project marginis calculated as net revenue minus direct payroll costs. Direct payroll costs include salaries and related fringe benefits for labor hours directly associated with completing projects. Labor costs and related fringe benefits for labor hours not directly associated with completing projects are included in administrative and marketing expenses.
In general, project margin fluctuations depend on the particular mix of projects in progress and on project execution. The fluctuations reflect our business model, which is based on providing services across diverse geographic locations, business operating units, and all phases of the infrastructure and facilities project life cycle.
Project margin increased $333.3 million, or 10.4%. As a percentage of net revenue, project margin slightly decreased by 20 basis points to 54.3% and remained in line with our expectations. Net revenue growth driven by strong public and private investments contributed to project margin increases. As a percentage of net revenue, the decrease in project margin is due to a change in project mix in in the United States.
| Project Margin by Reportable Segment | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| (In millions of Canadian dollars, except percentages) | $ | % of Net Revenue | $ | % of Net Revenue |
| Canada | 829.3 | 53.6% | 756.7 | 53.0% |
| United States | 1,850.4 | 54.9% | 1,686.1 | 55.5% |
| Global | 849.3 | 53.8% | 752.9 | 53.8% |
| Total | 3,529.0 | 54.3% | 3,195.7 | 54.5% |
| Management's Discussion and Analysis | ||
|---|---|---|
| December 31, 2025 | M-14 | Stantec Inc. |
| Project Margin by Business Operating Unit | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| (In millions of Canadian dollars, except percentages) | $ | % of Net Revenue | $ | % of Net Revenue |
| Infrastructure | 914.8 | 53.6% | 869.1 | 53.3% |
| Water | 768.5 | 54.3% | 687.3 | 55.4% |
| Buildings | 822.5 | 53.5% | 684.3 | 54.1% |
| Environmental Services | 640.2 | 57.1% | 618.1 | 56.9% |
| Energy & Resources | 383.0 | 53.7% | 336.9 | 52.5% |
| Total | 3,529.0 | 54.3% | 3,195.7 | 54.5% |
In Canada, project margin increased $72.6 million to $829.3 million, and as a percentage of net revenue, project margin increased 60 basis points. A strong volume of higher margin work in Energy & Resources and Water contributed to project margin increases.
Project margin in the United States increased $164.3 million, and as a percentage of net revenue, decreased 60 basis points to 54.9%. The decrease in project margin as a percentage of net revenue was driven by a change in project mix in Water and Buildings. As well, certain project recoveries in Buildings also contributed to margin increases in 2024.
Project margin in our Global operations increased $96.4 million to $849.3 million and as a percentage of net revenue remained consistent at 53.8%. Project recoveries in our Energy & Resources business was offset by a decrease in project margin in Water due to a shift in project mix.
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