Stantec Inc

Welcome to Stantec's first quarter 2025 results webcast and conference call. Leading the call today are Gord Johnston, President and Chief Executive Officer, and Vito Comoni, Executive Vice President and Chief Financial Officer. Stantec invites those dialing in to view the slide presentation, which is available in the Investors section at stantec.com. Today's call is also webcast. Please be advised that if you have dialed in while also viewing the webcast, You should mute your computer as there is a delay between the call and the webcast. All information provided during this conference call is subject to the forward-looking statement qualification set out on slide two, detailed in Stantex Management's discussion and analysis and incorporated in full for the purposes of today's call. Unless otherwise noted, dollar amounts discussed in today's call are expressed in Canadian dollars and are generally rounded. With that, I'll turn the call over to Mr. Gord Johnston.

Good morning and thank you for joining us today.

Snantec had a very strong start to 2025, delivering organic growth in each of our regional and business operating units, most notably in Canada, with double digit organic growth. Amid a dynamic market environment, we continue to thrive in a resilient industry driven by macro factors, including water security, aging infrastructure, emerging technologies, and the expansion of advanced manufacturing. As a result, in the first quarter, we delivered net revenue of $1.6 billion, up 13.3% year over year. This was underpinned by 5.9% organic and 3.2% acquisition growth. With our focus on solid project execution and operational excellence, we grew our adjusted EBITDA by over 19%, with an enhanced margin of 16.2%. We also delivered adjusted EPS growth of 29% compared to Q1 2024. I'm also pleased to announce that we started off the year strong on the M&A front with two strategic acquisitions. In early April, Stantec entered into a definitive agreement to purchase Page, a 1,400-person architecture and engineering firm headquartered in Washington, D.C., which delivered over $300 million U.S. in net revenue last year. The acquisition of Page will deepen Stantec's expertise and resources in key growth areas such as advanced manufacturing, data centers, and healthcare, while adding new capabilities in clean room design and fabrication facilities. The acquisition will result in Stantec becoming the second largest architectural firm in North America. It also significantly strengthens our position as the largest integrated engineering and architecture firm. We expect the Page acquisition to close in Q3. We also announced the acquisition of Ryan Hanley, a 150-person engineering and environmental consultancy firm in Ireland, expanding our presence in the country. Consistent with over 145 acquisitions that we've completed over the last 30 years, these acquisitions will deliver strong shareholder value and contribute to the target that we've set out in our 2024 to 2026 strategic plan. And we look forward to welcoming over 1,500 talented individuals to the Stantec team.