Stantec Inc

Welcome to Stantec's third quarter 2025 results webcasting conference call. Leading the call today are Gord Johnston, President and Chief Executive Officer, and Vito Camoni, 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 the conference call is subject to the forward-looking statement. Qualifications set out on slide two detailed in Stantec's Management Discussion and Annals 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 Gord Johnston.

Good morning, everyone, and thank you for joining us today. I'm pleased to announce that Stantec delivered robust performance in the third quarter, generating organic growth across all our regions and business operating units. Global trends across water, transportation, energy transition and mission critical sectors continue to drive strong demand for our services. And our diversification across sectors and geographies creates resilience within our operations. Net revenue grew to $1.7 billion in the third quarter, an increase of almost 12% compared to Q3 of last year, driven by organic and acquisition growth, each over 5%. Most notably, our water business delivered almost 13% organic growth. Energy and resources delivered nearly 10%. We grew adjusted EBITDA by close to 18% year over year with a record margin of 19%. We also delivered adjusted EPS growth of 17.7% compared to Q3 2024. Looking at our results in each of our geographies, in the US, net revenue increased over 14% in the third quarter, which was driven by 4.6% organic growth and almost 9% acquisition growth. In our buildings business, net revenue increased by more than 40% in Q3 and over 20% year to date, driven by our acquisition of Page and continued organic growth. The integration of Page is going very well, and already we're seeing many revenue synergies from the acquisition. We expect to have completed the financial integration into our systems by year end. Private and public sector investments, particularly admission critical, science and technology and civic supported growth in buildings. Organic growth was also driven by our water and environmental services businesses. Large public sector water supply and wastewater treatment projects contributed to double digit growth in water and energy transition mining and infrastructure sectors, as well as the continued work for a large utility provider, supported growth in environmental services. In Canada, net revenue grew 7.6% in the quarter, driven completely by organic growth. We delivered double digit growth in our water and energy and resources businesses and high single digit growth in infrastructure. The continued momentum on major wastewater projects contributed to over 20% organic growth in water. Continued work on major industrial process projects also drove double-digit organic growth in energy and resources. Solid growth in infrastructure was supported by land development projects in Alberta, airport sector projects in Quebec, as well as transit and rail projects and bridge sector work in eastern Canada. Public sector investment drove growth in buildings, primarily in our healthcare and civic markets. Finally, our global business delivered net revenue growth of almost 11% in the third quarter, achieving 5.5% organic and 2.8% acquisition growth, along with positive foreign exchange impacts. Our industry-leading water business continued to deliver consecutive double-digit organic growth through long-term framework agreements and public sector investment in water infrastructure across the UK, Australia and New Zealand. The wrap-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. We also achieved double-digit organic growth in our German infrastructure business, due to continued momentum on a major electrical transmission project and increased volume on transit and rail projects. Now I'll turn the call over to Vito to review our third quarter financial results in more detail.

Thank you, Gord, and good morning, everyone. We are very pleased with Stantec's third quarter financial results, which demonstrate the continued momentum of our business and the resilience of our operating model. Robust demand for our services combined with favorable global trends allows us to continue achieving record-setting results. In Q3, we achieved gross revenue of $2.1 billion and net revenue of $1.7 billion, an increase of 11.8% compared to Q3 of 2024. This was driven by 5.6% organic growth and 5.2% acquisition growth. As a percentage of net revenue, our project margins once again remained in line with our expectations at 54.4%. We achieved an all-time high adjusted EBITDA margin of 19% in the quarter, a 100 basis point increase compared to Q3 of last year. The increase in margin primarily reflects lower administration and marketing expenses, the percentage of that revenue due to our discipline management of operations and higher utilization. And our adjusted EPS in the quarter increased 17.7% to $1.53. Turning to our cash flow liquidity and capital resources, our year-to-date operating cash flows are up 86% compared to 2024, from $296 million to $551 million, reflecting strong revenue growth, strong operational performance, and continuing strong collection efforts. DSO at the end of the third quarter was 73 days, a decrease of four days compared to year-end 2024, and in line with our Q2. Our net debt to adjusted EBITDA ratio at September 30th was one and a half times, reflecting the funding of our recent acquisition of PAGE. This remains within our internal range, target range of one to two times, and positions us well for continued M&A. And as we have stated before, we are comfortable going above this range for a period of time, for the right acquisition. Gord, I now hand the call back to you. Great.