Stantec, a sustainable design and engineering company, has reported a net revenue of $1.5bn in the third quarter (Q3) 2024, an increase of 15.8% from Q3 2023.

This increase is primarily driven by 7.8% acquisition and 6.5% organic net revenue growth.

The company's Water and Buildings businesses achieved double-digit organic growth, although the Energy & Resources unit did not contribute to this increase.

Net income rose by 1.9% to $103.2m in Q3 2024 while diluted earnings per share (EPS) was $0.90, compared to $0.91 in Q3 2023.

The increase in net income was driven primarily by strong net revenue growth, though this was partly offset by a noncash lease impairment charge of $13.7m related to the company’s real estate optimisation strategy, as well as higher administrative and marketing expenses as a percentage of net revenue.

Adjusted net income increased 16.7% to $147.9m and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 13.8% to $274.6m in Q3 2024.

As of 30 September 2024, the company's contract backlog reached $7.3bn, reflecting a 9.5% growth from acquisitions and a 4.7% increase in organic growth compared to 31 December 2023.

On 7 November 2024, the company's board of directors declared a dividend of $0.21 per share, scheduled for payment on 15 January 2025, to shareholders of record as of 31 December 2024.

Stantec president and CEO Gord Johnston said: “Stantec’s momentum continued throughout the third quarter of 2024, showcasing exceptional growth in both revenue and earnings.”

"With our strong third-quarter results, 2024 is looking to be another record-setting year. We now expect to be near the high end of our previously disclosed net revenue range, and we are raising our adjusted EPS outlook for the year.”

Stantec is now projecting 2024 net revenue growth to fall within the range of 14.5% to 15.0%, up from the previous forecast of 12% to 15%. The company’s target range for adjusted EBITDA margin remains unchanged at 16.5% to 16.9%.