Stantec Inc

which is available in the investor 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 the conference call is subject to the forward-looking statement qualification set out on slide two, detailed in Stantec's management discussion and analysis and incorporated in full for the purpose 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 will turn the call over to Mr. Gord Johnston.

Good morning, and thank you for joining us today. Before I get into our Q2 results, I'm pleased to announce that on July 31st, we closed the acquisition of Page. In early April, we announced the acquisition And in the interim period, we were working on various regulatory approvals prior to the formal close. PAGE is a very strong U.S.-based architecture and engineering firm headquartered in Washington, D.C. The acquisition complements our buildings business and helps bolster our services in key growth sectors, including healthcare, advanced manufacturing, data centers and mission critical, academic, science and technology, and civic markets. In addition, I'd also like to highlight that on June 27, we acquired Cosgroves, a 90 person firm expanding our buildings engineering capabilities in New Zealand. And as we previously announced, we acquired Ryan Hanley back in April, bolstering our offerings in the Irish water sector. I'd like to welcome the 1500 talented individuals from PAGE, Cosgroves and Ryan Hanley to the Stantec team which has now grown to over 34,000 employees. I'm also pleased to share that Stantec continues to earn recognition through a range of accolades from respected industry and media organizations. We're honored to be ranked the number one architecture firm in healthcare worldwide by Modern Healthcare's 2025 construction and design survey. In addition, Time Magazine ranked us fifth on its 2025 list of Canada's best companies and among the top 50 of the world's 500 most sustainable companies. Now let's focus on our results. Stantec has delivered very strong results in the first half of 2025, delivering organic growth across all of our regions and business operating units. Public infrastructure spending and private investments continues to be a key driver of growth in 2025, with strong demand across the water, transportation, mining, energy transition and mission-critical sectors. In the second quarter, we delivered net revenue of $1.6 billion, up 6.9% year-over-year, which was primarily driven by 4.8% organic growth. Our energy and resources business delivered high single-digit organic growth, and water achieved 12.4% organic growth. With our focus on solid project execution and operational excellence, we grew our adjusted EBITDA by 15%, with an enhanced margin of 17.8%. We also delivered EPS growth, adjusted EPS growth of over 21% compared to Q2 2024. Looking at our results in each of our geographies. In the US, our Q2 net revenue increased by 5.7%, which was supported by organic growth of 4.4%. From a trend perspective, we saw improvements in U.S. organic growth compared to the first quarter. Client demand for mission critical science and technology and civic all contribute to growth in our buildings business. Growth in environmental services was mainly driven by our energy transition, mining and industrial infrastructure sectors, as well as the continued work for a large scale utility provider. Growth in water was driven by large public sector water supply and wastewater treatment projects. And energy and resources growth saw the ramp up of a major hydropower dam project in the southwest. In Canada, net revenue grew by 6.2%, underpinned completely by organic growth. The continued momentum on major wastewater projects contributed to over 30% organic growth in water. Consistent progress on major industrial process projects drove double-digit organic growth in energy and resources. Solid growth in infrastructure was supported by land development projects in Alberta. And public sector investment in Western Canada drove growth in our buildings business, primarily in our healthcare and civic markets. Finally, our global business delivered net revenue growth of 10.5% in the second quarter, with 4.3% organic, and 3.6% acquisition growth, as well as positive foreign exchange impacts. Our industry leading water business delivered double digit organic growth across the UK, Australia and New Zealand through long term framework agreements and public sector investment in water infrastructure. The ramp up of new projects in Chile and Peru drove double digit organic growth in energy and resources as the growing need for energy transition solutions continues to drive demand in mining for copper. And we also achieved double-digit organic growth in our German business due to continued momentum on a major public sector energy transportation project and increased volume on transit and rail projects. Now I'll turn the call over to Vito to review our Q2 financial results in more detail.

Thank you, Gordon. Good morning, everyone. Stantec's positive momentum continues as seen with our second quarter results, a position in us to deliver another exceptional year. In Q2, we achieved gross revenue of approximately $2 billion and net revenue of $1.6 billion, an increase of 6.9% compared to Q2 2024. This was primarily driven by 4.8% organic growth. As a percentage of net revenue, our project's margins remained in line with our expectations at 54.2%. We achieved a very strong adjusted EBITDA margin of 17.8% in the quarter, 120 basis point increase compared to last year. The increase in margin primarily reflects lower admin and marketing expenses as a percentage of net revenue due to lower claim provisions and discretionary spending. And our adjusted EPS in the quarter increased over 21% to $1.36. Our Q2 results build on a strong first quarter, and on a year-to-date basis, our adjusted EBITDA margin is 17%, a full 1%, ahead of the first half of 2024. In addition, our adjusted EPS is up a very robust 24.9%. With our year-to-date performance and the closure of the page acquisition, we are very well positioned to increase guidance across various metrics, which Gord will speak to shortly. Turning to our cash flow, liquidity, and capital resources, Year-to-date operating cash flows are up 100% compared to 2024 from $117 million to $235 million, reflecting continued strong revenue growth, operational performance, and continued strong collection efforts. DSO at the end of the second quarter was 73 days, a decrease of four days compared to the first quarter of 2025. This is well below our internal target of 80 days or lower. Our net debt to adjusted EBITDA ratio at June 30th was 1.1 times, essentially in line with where we closed out the first quarter and remaining well within our internal target range of one to two times. I'd like to take a minute to highlight some recent financing transactions we completed in Q2. I characterize these as being in the normal course of our business and reflecting the significant growth in our operations over the last few years. On June 10th, we issued $425 million senior unsecured notes bearing an interest rate of 4.374% per annum for a seven year term. These notes were assigned an investment grade rating, excuse me, investment grade credit rating of triple V by a DBRS Limited. Also in mid June, we increased our unsecured revolver credit facility to 1.2 billion up from $800 million and we extended the maturity date out to June 30th. Both of these financing transactions were well oversubscribed and reflect the credit community's deep understanding and confidence in our sector and company. We appreciate the continued support. As Gord noted, we closed the page acquisition on July 31st, and post-closing, our remaining credit capacity is just over $1 billion, and our balance sheet remains very strong. Gord, I'll now hand the call back to you.