STN - Earnings call transcript Q2 2022

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Operator

Welcome to Stantec's Second Quarter 2022 Earnings Results Webcast and Conference Call. Leading the call today are Gord Johnston, President and Chief Executive Officer; and Theresa Jang, 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. are this set is detailed call. out management and during forward-looking to in provided for discussion qualification full statement on analysis information conference of subject call the Stantec's the All purposes in today's incorporated slide X, otherwise in call in amounts are rounded. discussed are dollars and generally dollar noted, expressed Unless today's Canadian go ahead. Please

Gord Johnston

of Good to report pleased morning We're operational financial today. and very and thank us you performance. strong for quarter joining another

against year-to-date will quarter Our are objectives. are targets results our second on well remain we strategic for that, as very that, for and touch results. to deliver before we such, the quarter want two highlights There And to tracking turning financial our I the confident year. on our

integration on progressing XX rate the at our already and we identify an additional There's be stages integration line Australia target complete, in a savings. in financial The migration million in is is of systems is We've very Zealand run of and The of the first expectations synergies, we is New with US$XX achieved months done. and flight nicely. the lot ahead and we're for transaction. The to update schedule transition. US the in full the and opportunities of is The final progressing Oracle that continue well time to outlined is Cardno. in still largely

the to before be end this However, completed the expect of we year.

recognized highlight our ESG. of that leadership second is Stantec continues The we for to be are that proud very in

have sustainable making. long-standing diversity, to more ESG executive safety, Stantec impact executive for is Corporate scores best recognized Knights. proud difference of advancing having employee, commitment receiving our recognition top clean year that by towards quartile XX and a a citizens time, health and of earned This XXth were recognition, the we future, we're that Canada's the one and and this For real We're Board gender honored to is this investments. affirms very racial diversity, corporate as

to now QX results. our Turning

pleased generated about and towards revenue about delivered in organic And these key of geographic we a XX% our are every the delivered talk XX% the in of of of organic business which to which organic units. generated net each QX spoken revenue, consistent our EPS. previously, common I've completed delivered and of recently with growth business, regions then ongoing increase was our to more need the of in XX% We call. our the acquisitions. one We net our thread increase by growth. through is the XX% end Services a growth capitalize This drivers A for have adjusted skills ability reflects that many in I'll projects was Environmental X.X% on and from

financial Western continues to also Our closer by The expansion our with a reflect increase XX project US margin quarter technology. acquisitions organic XX% Infrastructure Australia care the Recent increased permitting restoration had reflects point delivered strong And gather manufacturing a in The remarkably the spur addition strength now of Global under QX very very Taking in regions projects, favorable combined growth, in XX% continued level the margin, and address growth revenue by XX%. environmental science grew U.S., archeological business XX% to the the performing the recovery acquisitions needs organic perform a capacity, work further and the and Stantec And geographic Mining In Stantec business driven our in another with that and playing transportation resources Environmental business major organic buildings with behind rounding programs. XX net and shifted growth. and we're activity X% another on EBITDA margin. results in resources. and in to advanced public flooding investment Western an Community food diversification assessment, the adjusted each to demand well on pleased of arising global of growth a revenue increased the increase and Net maturing delivering regions. to in and its X% into cultural need very quarter. Every basis up Consistent from grew our net and to at on its turn sectors. high continued the of Buildings QX, had that permitting results our for of level support well, last momentum housing Global New continued our for our look Cardno organic energy momentum. team our almost Global, delivering Transportation. acquisition delivering and point activity the growth care strong basis growth growth, Canada the strength in address net with QX ramped organic QX the to results our across the several organic ecosystem US. strong semiconductor revenue, multiple region contributor reflection all driven our is quarter. growth that, our industrial and pleased organic grew together Environmental water revenue growing quarter. growth, to growth units, to in industrial, re-shoring US delivered and for restrictions. financial strong global has energy growth on post delivered services. health by generated Organic we're in Water We're delivering we as growth the investment strong and revenue as framework which in the projects reflect Development of the strong in client the this unit delivered the British water and And of review And made US. themes production over well, has amount has COVID across to the of I'll project in acquisition to in transition occurring perform robust biggest out in technology extreme initiatives, the business market of call Water growth. Services a very continued double-digit security years. to in also the be year-to-date recent major positioned organically Sector The in XX% and of science geographic civic, growth. banner. strong efforts doubled out also commodity U.K., continued continued quarter, last of listing in pandemic-related of significant sector in and business way health is recovery Infrastructure Canada. acquisition have to deliver And more Investment organic demand Services in and with prices, of Canada year. occurred with by from a XX%, units. and growth in growth did efforts. activity ongoing XX% is work the strength of very Theresa, And double-digit Zealand monitoring growth on in With growth. strong our scarcity detail. Columbia's continues

Theresa Jang

Thank everyone. you Gord and good morning

EBITDA margin project delivered increase was very revenue, $XX a and in and our XX% project the slightly the and points margin increase percentage Adjusted and and as continued overall and diligence to by by higher Project XX.X%, points quarter, reflecting business. EBITDA strong XX heightened revenue basis per in basis XX% million gross share, as than $X.XX a XXXX focus net adjusted overall had with from QX pursuits. performance a As Gord of strong of across reflects execution EPS costs. net our acquisition-related and respectively. increased by we XX% XX% in grew was XX noted, this our on We higher resulting offset Net income decreased EBITDA, business. growth an

to flow million self-insurance QX already million adjusted matters in our of Australia an Cardno per and investments very call. flow a the held factors financial our quarter. the growth. and income timing, extent, we've from QX cash during recorded Adjusted in the earnings year. both after which by system as these the an first also Cardno stronger reflecting cash and the times migration associated $X.XX second Operating XX% XX% to in QX. effect earnings of increased, with capital respectively to processing share, net underlying support the of equity in also We seen pickup which working And value Cash to by in disrupted revenue the year organic financial fair outflow for this primarily decreased We operations. impacted quarter second liabilities. normalize $XX to due our will unrealized for loss EPS causal strong dissipates migrations cash occurring system this operations the occur purely the flows outlined $X particularly migrations lesser U.S. contribute flows Australia to was of integration, and was end the had as flows for cash view quarter investment of the we as half and was To

days. from NCIB to the be our to over earlier cash is for million. flow days with our quarter, $XX operating XXX,XXX with three repurchasing DSO shares continue our in in active We the year change just Consistent XX up last

acquisitions other past these the end at with our times, the of All upper coupled the funding XX in our resulted X.X of adjusted internal Cardno range. debt in and net factors EBITDA being to months of

cash outlook. to I'm of back range middle flow going to and return of remainder leverage our to our by review now, our the that backlog Gord normalizes call year, the this turn As I'm our year-end. to over will the confident target

Gord Johnston

Theresa. Thanks,

very very, and organically since Our by unit. XX% XX% achieved and each growth Energy again strong to growth. XX% region back geographic outlook in Most in end and and Buildings notably, record achieved every a continues XXXX grew operating almost growth billion. in of also over Infrastructure, and delivered organic at growth we We double-digit the business Resources be in $X.X

us. high work, Our months represents approximately XX backlog of watermark is which a for

outlook comment I recession. of on briefly want a the potential as Before inflation turn a possible and to the slowdown remainder for the I result risk year, a the of to of

technology consistent and we to that feedback capacity production. translate situation the including different change slowdown pursuit a Vancouver, Treatment fulfillment pressing increases two aging program change to is were to winning to vaccine material a not of management in help continue dozens production industries, awarded Natural also that domestic address the In project Vancouver. Canada, won constraints significant continue carefully the by in clients our of into cost activity capital which this centers being adaptation capacity infrastructure, Saskatchewan to won reach project ever in Nebraska across semiconductors, their a our monitor and need is with reshoring Hawaii of and climate objectives. Island Plant projects in up investments we've to seen logistics our project any we're received climate and the have Wastewater of Scotland the contract Water support outweighed in Pound Department units. Program constraints, as the and the all in floodplain are operations, program shore and that was The We business of undertaken is goals And United we Indianapolis, production for in with climate and number mapping. we projects. to-date. in we respect risk of imperatives States, reshoring and production, in successful by Renewal which And the clients Treatment including With awards challenges, largest support transportation consulting And discussed decarbonization. Metro supply. the or transportation Iona these In our Resources healthcare major and And of there business with and domestic modeling working to to global with Project water Plant in awards on conduct Buffalo clean and framework

into these areas. significant flowing are funding We seeing government

achieve to As confident the are year, very the rest of in forward financial our targets. we our ability look we

never and late has in investment $X we and by moving cost billion higher and water forward helping Our past our projects areas some Significant to see XX also and instances, federal the over investment $XX In this $XXX of clients Act. for opportunities US manufacturing. accelerate. resiliency, go robust, reshoring From manufacturers and and $XX private both critical and private been federal manufacturing, escalation; funding including House infrastructure manufacturers. Private of the than in CHIPS billions continue our example advance. project healthcare this to top food brings will the semiconductor in of forward projects to funding no billion especially, better having is with act towards directed a chip the and and are even backlog July this well construction. was plant five provide will passed of CHIP expect the Stantec grown critical of scale semiconductor months with supply Passage to we with industrial. move And support is working for US Science of many at expertise. Tenant dollars there's billion drive remains is And investment XX already strength the multidiscipline and semiconductor to ability that this billion

the for Europe critical bringing has architects, engineers passed all Our roles reassure into production opportunity reality. to so transportation also and water legislation is play Stantec facilities experts, environmental tremendous. similar in these semiconductor

remainder we Stantec the turn not start and the I the for to well-positioned the back very the remains questions. of has at call opportunities of I'll for ahead. the With outlook the our ahead, Operator? provided from XXXX to capitalize on believe guidance that, changed year Looking operator

Operator

Thank Markets. go Please you. take ahead. first from will our Instructions] question now BMO Devin [Operator from Dodge Capital We

Devin Dodge

bid Good in X right months really been The to your and Theresa. to has morning, the year-to-date maybe pipeline that months Thanks. impressive. speak how to ago? Can see backlog Good compares you morning, you now looks growth XX what Gord. how

Gord Johnston

system You opportunity we have opportunities Stantec know, that call seeing the our we're a pipeline. we

we're it's do of seeing come And in backlog. track interesting that projects we the in. so strengthening continued projects that And

in pipeline. sorry or -- the that think I so, And

bid think that do see pipeline, as through I these in the the they'll projects we process. come So

year so I through see the into progress for growing And and backlog support we think, as this XXXX. even rest further, positive we either of the

Devin Dodge

Okay.

significant just into is expected maybe half with efforts on there year? then hiring that. I'm to addition speak understand, the of if just was trying this the And Okay. of workforce? to second expand in to to continue QX employees net a Can you and your success continuing in your if the

Gord Johnston

Yes, absolutely.

this one to so, through our we've about things a we -- And period net is of staff of the employee of importer talked of continue base. to uncertainty, that be that, we want

talked all we so, confirm we about And of XXXX, QX XXXX through can and people us. XXXX, of in through hired as who previously left than I more now

up people And to so, headcount little our over fact, XX,XXX continues a in to And we're now. grow.

onboarding had in efforts. success we've So, those

the for base our that We for the employee continue to grow organically year. and to continue we of remainder look

Devin Dodge

Thanks The that. Congrats QX. really turn over. Okay. result is for I'll it on good.

Gord Johnston

Great. Thanks, Devin.

Operator

Bout We Please will now take our next question CIBC. from from Jacob go ahead.

Jacob Bout

morning. Good

Gord Johnston

Good Jacob. morning,

Theresa Jang

Good morning.

Jacob Bout

growth to some XXXX? organic you business. quarters of ahead, So do or synergies through double-digit strong a to you this revenue maybe step Environment going the and Cardno? And see expect talk Do the expect into change from in Water the in normalize

Gord Johnston

robust. business really, environmental really to The Sure. continues be

projects. that North else now archeological sub projects was And where, to geography, larger to that hire of hire where Where they previously so have we would offer out synergies and -- stronger I but think on just not sets geography, Cardno types more as in seeing diverse and we're we're our take of work. of not to well. a America, in continue And forward, perhaps or that Cardno projects, combined geographically do different our was really it. for And have one to in positive we in sort someone to see in global operations strong this Stantec more these clients skill performance going Stantec the group are

our went we generate group seeing expectations. into synergy really good that So, between We actually, synergies. it have we'd integration a lot has good transaction, when there. certainly we exceeded of And and we're the -- linkages, foresaw the

Jacob Bout

acquisitions, and Cox|McLain now, how Cardno in or the maybe talk you M&A with thinking you're just are mix? from an rightsized market strategically, end environmental perspective through your And for

Gord Johnston

Yes. The continues business environmental to expand.

to are grown the So environmental They at of well. Paleo together even Cardno as this we've continued practice significantly Stantec There Cox|McLain. with year opportunities though, business. size are our that a grow bringing

we're would additional lot to in environmental for in there's there. the a -- really that going of So, firms midsized We're fill continue geographies us. to US look

types these with firms. conversations in of always we're So,

to what an not, absolutely an we consider environmental growth acquisition perspective. and both yes done in organic space from the So, ourselves be

Jacob Bout

you. Thank

Gord Johnston

Jacob. Thanks, Great.

Operator

ATB will from Please from Chris now Murray We go take question Capital next our ahead. Markets.

Chris Murray

first that. couple about Yes, Maybe, just my is thanks, a rate SG&A with guess we've of more things quarters now I thinking in question call costs. folks. run books and like had a it in activity your that of offices back normal

have about we able the to you the further you're existing confidence in so of how thinking some guys be go far wondering, real or should Just as growth we add with initiatives leverage needing being feeling estate about really how to support SG&A, forward? and undertaken to your

Theresa Jang

Sure.

as we're that to are has as in been relative not would to to and admin and travel be that our out to as still last lower of than was pre-COVID, more the are -- begin we seeing So to kind return see year expectation expected established so and far costs continue to marketing certainly that they business people levels. that discretionary higher also and that pre-pandemic costs had the They clients. get

going And that our increased a rise. had this don't admin expect but contribution so they costs continue year, has I to to that are to

integration our degree have being that those Barton seeing those. you think costs, Cardno, also this noted in costs and do bucket levels acquisition of off. they in have Willmore, afield. year, and -- significant cost impact I with We're the associated farther some Cox|McLain as in higher They of

in do those we costs have increase so an And well. as

things a going think I ways in off. leveled but contribute those so, to are lot have of And together

And around. business higher our admin development we well there's to as there. so are think is other and efforts that elements, there's as investments on we're way on many And sort takes as forward. costs we're costs through always far all I slightly that as move of flow pursuits. major contributing puts There and that making continuing to focus the

the Our recall about marketing. you continue real that as strategy began and that well be asked and to on our like? certainly, admin look you'll talked early by we had our to is we sort consolidate that many and have there. opportunities and relative office that so locations to our And we're they we about landscape continuing of about estate, footprint evaluating are process now deliver track, Cardno optimization to which where through we and concerned, outside XX% advance are spaces on midway what that to of will year of last that reducing footprint Where there on sits XXXX believe

Chris Murray

Okay.

of guys leverage able that support that over a one little some maybe feel you have buying I wanting about. quarters get to but just maybe thinking but just Now of question to Thank the the near And to inside very one with your further much. you the is improve cash maybe the How back being the stock. second walk flow, range, of bit that's close pressure next the it. acquisitions? Cardno, to we've a your are on. level curious you half you're and few things again free then do cash of top kind you. helpful. back range. of There's lot Right the Theresa to maybe thing now operating leverage Do flows any also you're I guess at about you other going top as this noticed noted should as really down or you still know in for

Theresa Jang

Yes, for sure.

confident migration temporary already out I'm We're So the half integration I of the in -- that that the evidence see this a Cardno. we as as do of come of financial year. second the particularly, somewhat being of in half seeing the noted of piece as comments, at normalize year the quite my of first And dynamic. will again, that, we

space so, think And way I ambitions. wouldn't It's feel remains much facilities. it growth any to hampers capital in our cash I and Access to as that me on our to available pressure. strong. don't say I terms in of always us our flows maximize have possible credit important as

And plan our the M&A And to continue this them as execute we'll opportunities through so, on will our we rest come fund I of as we year continue journey think on and that appropriately. up, beyond. just that

I and capacity on think have were in size the to balance sheet kinds and for having out said acquisitions that we'll pursuing. without continue go and the scale tap we we markets our of equity good have to

Chris Murray

Thanks, Okay. folks.

Gord Johnston

Chris. Thanks

Operator

from Markets. Desjardins We Capital Kypreos now next question Michael your will take from

Michael Kypreos

Yes. and everyone. Thank you morning, good

Gord Johnston

Michael. morning, Good

Michael Kypreos

you. Thanks. Thank

Some your active have of few peers in M&A the in last been very months.

you have still transaction, With thought less? larger it small or or the early with success of medium a X,XXX is the employees Cardno, to about

Gord Johnston

quarters kind acquisitions of we'll our marketplace. the of about continue have some And activity stick talking certainly the to we look seen all of at we've we in of that couple over been different last sizes. to knitting. As well But

believe long-term to be for We of are sustainability shareholder making what and accretion. Stantec decisions the we value long-term

So in about types different we'll probably yes, firms, looking at all geographies and course, due to with that. talk And different different more we're of sizes. opportunity an you have

Michael Kypreos

seen color. infrastructure or for it on, Thank Have And signs, US or a more plan. story? any you. then just more XXXX a the really of you is early Thanks still the any maybe secondly clarity Biden

Gord Johnston

Yes.

Reduction generating projects, that of into And the with beyond that. continue and will So think will five projects on from as several I we well. And to But XXXX, so semiconductor while revenue power IIJA. from more second EV, infrastructure additional to we're are course, to of And Act XXXX fuels, with currently and -- could in that big support on. We're through we a -- But XX related and that, coming then top disbursed world. seeing we and agencies. Act related really really perspective from and of and also as IIJA, is and for do to the it the more the renewable projects working this manufacturing continue that certainly renewable to from in working be industry. on various we've talked there's perspective, It development to years CHIPS manufacturers year charging out. the strengthen, will been Science see, has about, half addition around are even semiconductor the that the see, provide now. the from we Inflation of what spur additional the some that from But the do already funding the supports one the

lot for Stantec So, overall, of our supports through and and strong XXXX for a industry the coming of I think we remainder XXXX see beyond.

Michael Kypreos

Perfect. Thank Great color looking third forward you. to and quarter.

Gord Johnston

Thanks, Great. Michael

Operator

We take from next ahead. Mark Bank. Please question will now our Neville from Scotia go

Mark Neville

Hi. Good Good morning, morning, Theresa. Gord.

Gord Johnston

Good morning, Mark.

Theresa Jang

Mark. morning, Good

Mark Neville

Earlier that's project in won. or that you've morning. on date I you Gord pursuits synergies, estate so that it's million But want to and the already has said, cost Anything you $XX But your million lot Good like Is would comments talking additive? achieved clarify, be real been from correct? -- synergies some the about side. a I you're just to more think $XX revenue Cardno. the revenue when

Gord Johnston

working but that side, include Well, but in things, IT right. that have through we things of that disclose real million number cost and side. didn't underway. hundreds and revenue That on joint that The about separately insurance sorts $XX and you're, the from on we've all addition that we of would would we estate. systems, the include was And been are spoke -- actually, those projects on to that, the

that's are rate just really the synergy that -- can up achieved yes have really isn't so, was doing spoke we our coming run $XX we how of talked we about And I million together. with the integration that think the Cardno's cost strong schedule just Stantec and the cost teams way This the and only we working that that reduce that ideas, had already, ahead that of because collectively about, same. and on

reduce you and cost. this Stantec they're collectively, did sometimes saying And we if could coming

positive. So extremely it's actually been

Mark Neville

on And Great. Again taking like material? opportunity just the real estate Cardno, think XX% of be you footprint it your out. guys would That's great. at were I

from XXXX. So, just I

So size to the Cardno. just curious I'm opportunity

Theresa Jang

do It's work. continuing for just know. we're stage. when we're Mark not to that enough but Yes. be significant I quantify We're think, We'll further far it have say, me, hard along. But more to this along to could yet, to at

Mark Neville

the just two-part question. Got it. And on guess follow-up a I M&A.

Just main in questions. something with so focus response in Theresa, the I comfortable to to of feel -- in would you well, Cardno part. integration o Chris’ the doing going second terms think the is and sooner,

-- You this I -- mentioned he said. how something about sure wasn't like wasn't equity Thanks. didn't I quite

Gord Johnston

M&A we're with part. Sure. Maybe, first -- very to I'll as is these are always really substantial We well. start opportunities levels going A Cardno, opportunities, firms lot in discussion It's -- say when really different come. it very, of on and they're opportunistic. more of the ready you for is

there on No, something was would. would to we And that think come, so if don't ready off was it? hold I we

our I other think been. others we'd keep Theresa pass and going But forward to we'll forward. question. maybe We're for be when discipline ready that because I'll time do we just also move And to won't and to move act something, it have the is right.

Theresa Jang

Yes.

strong I Mark end response no. we're to out really cash this question And hamper changed. this flowing what towards at that trying point that from make of as is leverage being at M&A doing and us our response a our the not to is such that the year, has of range, and rest business upper point of I was like the So in the look the

couple temporary So normalize. we've that that flows seen a half of first for but year, cash dynamics this of disrupted will the

balance have sheet. And so that strong will we a to extent

capacity of sheet our lots general fund size to think have the able will on to balance that of about. acquisitions we We be

to my off thinking concern bigger over far required a size certainly issue on the part we're acquisitions levered as as and of completely and the that be table. acquisition But in scale equity and not about take I'd kind can't we've I a the and equity. Now done, there's

Mark Neville

can one mentioned Got a you semiconductor it. ask Gord, few And last if times I manufacturing. question.

foundries significant to go an these opportunity you how guys are Just up? for chip

Gord Johnston

permitting a What's the goes and manufacturing water inside like we of the that do interesting the it. general just high-purity manufacture work. the chips think the other that water and to building Yes. facility semiconductor the equipment of all actual the wastewater site like water rest can you All buildings, do about civil when than Stantec the

so And building clients experience that what's these them firm inside there's we're of provide number that and that. others to everything attractive except talking have for the particularly we that's with that multidisciplinary one a as who do can

on because So there's But seeing. semiconductor it's an panels, other reshoring of a these focused I equipment days, facilities about other we're talking think everyone's lot just set a and that's addition things on certainly I more we're We're to We've like energy in of area different that. solar vaccine area. an production we're in, on think doing facilities. lot on that but semiconductors, working maybe mind that even manufacturing, working renewable it's sort

So a it's and we're for work Mark lot like an of really us. exciting area that doing

these very, So I strong years is think a to many things all for tailwind of us come. very actually for also for combined

Mark Neville

for Thanks Thanks. yes, Good and the Right. good quarter color. luck.

Gord Johnston

you. Thank Great.

Operator

our Please James. now Raymond from will We go take from next question ahead. Bryan Fast

Bryan Fast

Good Gord, morning, Theresa. Yes.

Gord Johnston

Good morning.

Bryan Fast

I as health a just look the guess, backlog, the guess maybe you higher seeing rate I back comments backlog macro rescoped are backdrop. of you just shifting the given and at some or projects, pared on

Gord Johnston

Yes.

the it's interesting in the project margin healthy. healthy. it's look is So at or backlog, The very as we gross there margin

pushing I about good mentioned about some maybe that, but prepared seen to right, we've people material. feel we projects in remarks, really and haven't up talking as seen So the are the we -- them the nothing

that, on in project re-scope assignment to is point seeing And could we your we're to we how see cost anything an is projects? about with are the sometimes so at we getting and clients cost. inflation from escalation lower a What to our it seeing are bring additional

this it. it's value in to So cases increasing actually our fees, of many because component engineering

really for the is backlog all. cancellations, material it But hasn't pushing the right been to So to this closely? it's -- us watching something point we're at or has it not out Absolutely.

Bryan Fast

And helpful. then, at then, Canada? That's Is look Thanks. in margin, about should that up saw and QX And as we forward? trends when Global similar how to we related Canada was going think project those trends we down. U.S. just mix were and where

Theresa Jang

there around Canada quarter Yeah. that In mix dynamic a this lower. little a had bit particular was project

execute. priced we deliver its it's our and subject -- to going always is we've on it's to to then well talking project And business price mix at. dynamics, about Our it we're what well projects be its these our ability those how

have elements. seen those and And around focus increased so discipline we an

to And only the middle And we so on nose kind this that forward, continue. expect the I XX% XX% it in talk would that as of being that of we would hit quarter. right in about look

Bryan Fast

me, Thanks. That's great it Okay. for quarter.

Gord Johnston

Great. Thank you.

Operator

We next take our Gillies now Please will from go question from ahead. Stifel. Ian

Ian Gillies

everyone. Good morning,

Gord Johnston

Ian. morning, Good

Ian Gillies

it of How sizing view Following the about we your some having change year and ago was an you're employee back the If -- does the went itself? your maybe X,XXX on bigger target kind perspective? size you the Cardno. with bigger. if obviously count M&A presented to experience And an right from it go substantially success a was less, given people willing opportunity was today or Cardno of even questions are now to

Gord Johnston

Yeah.

cultural of fit on is I the business and think for that's it so for depends exactly successful is the there. it's acquisition Cardno us. so the the all right And said the as huge was type reason being opportunity. right you And that that, us

And additive we be at that I the look fit, with the saw reasons think would it right right to transacting so absolutely, would right Ian. cultural for us we if the absolutely firm,

Ian Gillies

should or high the it very, and stay has around mentioned And the organic strong revert term prepared helpful. quite if just remarks. you was hoping corporate organic That's five think the may now when and of may the And maturity been get in in very for thoughts the kind growth revenue quarters segment growth switching foreseeable towards whether average I to to for Global the future. side, Okay. that your your mean you to or

Theresa Jang

Yeah.

would such Ian it going multiple been spectacular years, high that to double-digit it's organic Global. growth. expect that year has not think I have really or for over pretty this I

think I will normalize. it

We haven't this But I I completed next will our so not be you planning for would where could of next that suspect year yet, year, that we as repeat it it strong growth. land. kind organic will think that tell can't

Ian Gillies

over. back And I very call turn the helpful. thanks That's helpful. will

Gord Johnston

Sure. Ian. Thanks,

Operator

We take our will ahead. from from Markets. Please RBC next now Capital [Operator question Sabahat Instructions] Khan go

Sabahat Khan

good Hey, and Thanks great. morning.

slightly on we the you provide consider? there QX for we when do can that and in guidance, line you should I think to puts is looks first on margins the the and margin any rest kind guess So about EBITDA commentary of the half takes think, any – ahead. QX, picture year I roughly How of of cadence for big

Theresa Jang

EBITDA be the when of and Well, QX including I to slightly that's about QX generally think generally tend QX busiest, our less. earnings and you when think quarter margin cadence QX our and margin the higher we are

to in little they'll remains that think focused QX robust that's range delivering. and bit remain generally think our my XX.X% expectation, – then year. this XX.X% you the target I I But on come shape a I in So that got moving realistic for we're see what it towards. for quite would us That be expect same And to still to be QX. of back would

Sabahat Khan

Great. really management about think focused the the management. of you of sort kind on of, a that that indicated want about capabilities your forward of more A side design, the the And of one of How you things kind of want right or project growth that as to then I few of we piece in have peers you pursuing work is business? kind your bigger I kind kind want now? just Okay. area strategy to versus What's program think product picture add? going side get perspective you feel that of of to on you that the mix business. do or

Gord Johnston

Yeah.

of absolutely. Our the business is piece attractive program very a management

about looking about And spoke so the area. we undertaking. project it's expand that are a Plant massive think always When there, Project, Iona the Wastewater that Island we you into Treatment to

will there five will And program more. – be or so management, for years it the

nice can really client. are our long-duration where a these long-term difference we make projects So for

continue that area grow an further absolutely we're even is it looking Sabahat. So to to

Sabahat Khan

Great. Okay. few that and just year the guess, from one last those US some kind to last think flow last starting assume quarters indicate getting you over last I bigger you the through want we on quarter should going. one, they this I growth that side, wins year then that just reported And did with were those the projects late are of you underway?

Gord Johnston

announced. we're revenue what from while awards and number that That's Yes. seeing. a to get really the to takes these previously awards for It for beginning larger little happen generate US of absolutely now we the a going Absolutely. are that funding we

Sabahat Khan

Great. so much color. for Thanks the

Gord Johnston

Great. Thanks, Sabahat.

Operator

call in no queue. are to to further additional turn remarks. questions or the I'd back closing the there your As like speakers for any

Gord Johnston

thanks today, through come in we and continue executing we to again to Well, with XXXX to plan. connecting on forward evolve our for look just months the weeks as us joining and you

thanks So, everyone. much very

Theresa Jang

you. Thank

Operator

That gentlemen conference your and you will conclude Thank Thank today's for disconnect. now call. you. participation. you, may Ladies

Stantec (STN) 11 Aug 222022 Q2 Earnings call transcript