Maxim Sytchev • National Bank Financial

Answer

President and CEO Gord Johnston confirmed that disaster preparedness work is shifting from FEMA to state and local governments, and Stantec is actively engaged in discussions with these agencies. He described the M&A environment as 'increasingly active,' anticipating that a number of assets will come to market in the next 6 to 12 months.

Ask Fintool Equity Research AI

Answer

Executive Gordon Johnston noted that political platforms in Canada and the U.K. remain supportive of infrastructure spending, and he expects the Australian market to strengthen. He confirmed the U.K.'s AMP8 program began in April and is ramping up as anticipated, with hiring and new work orders proceeding on schedule. Executive Vito Culmone added that the Water business in Australia continues to be exceptionally strong.

Ask Fintool Equity Research AI

Answer

Executive Gordon Johnston stated that potential Canadian tariffs would have a minimal impact on Stantec's business segments. He noted IIJA-related work is progressing with high single-digit growth in U.S. Transportation. He clarified that Buildings growth is broad-based, driven by healthcare, civic, and education sectors, not just data centers. Finally, he reported that the ZETCON integration in Germany is performing "extremely well," even above expectations.

Ask Fintool Equity Research AI

Answer

CEO Gordon Johnston stated that M&A seller multiple expectations remain consistent. He clarified that the Environmental Services business is well-diversified and remains busy, with recent slowness in Canada being due to very high prior-year comparisons. He also noted that while PFAS is an opportunity, Stantec's Water business is so diversified that its overall performance is not materially dependent on PFAS-related work.

Ask Fintool Equity Research AI

Answer

CEO Andrew Hider noted a growing cross-selling funnel from acquisitions. CFO Ryan McLeod confirmed integrations are on track, the impact from research funding is immaterial, and medium-term margin expansion is expected, though not necessarily linear. Regarding M&A, McLeod stated it is 'business as usual,' but the near-term priority is deleveraging the balance sheet, which will govern the pace of large-scale acquisitions.

Ask Fintool Equity Research AI

Answer

CEO Andrew Hider confirmed the Life Sciences backlog is diversified beyond GLP-1s, including radiopharma, wearables, and automated pharmacies. CFO Ryan McLeod explained that while the smaller transportation business helps working capital, this is offset by inventory-intensive product acquisitions. He reiterated the goal of getting below 15% non-cash working capital as a percentage of revenue and guided for a normalized effective tax rate in the mid-20% range.

Ask Fintool Equity Research AI

Answer

CEO Andrew Hider confirmed that while GLP-1 is a sustained growth area with over eight customers, the life sciences backlog is diversified across radiopharmaceuticals, diabetes-related wearables, and automated pharmacies. CFO Ryan McLeod stated that while lower transportation revenue helps working capital, new product-based businesses provide an offset, but he expects to get below the 15% target in fiscal '26. He guided to a normalized effective tax rate in the mid-20% range for the upcoming year.

Ask Fintool Equity Research AI

Answer

Andrew Hider, Chief Executive Officer, explained the European EV win is with a past OEM customer and will be supported by their multi-region global footprint. He noted that while grid storage is an area of focus, nuclear is currently showing stronger growth. He estimated the nuclear revenue ramp-up from new announcements is likely more than 12 months out. Ryan McLeod, Chief Financial Officer, stated the higher tax rate is expected to continue in the short term and confirmed that working capital, excluding the EV dispute, is running slightly above the 15% target, with progress being made.

Ask Fintool Equity Research AI

Answer

CFO Eric Guerin noted that services like RBFS are performing well despite the rate environment and highlighted VeriTread as a growth area. CEO Jim Kessler clarified that transportation services are primarily focused on the CC&T business. Guerin added that he sees no significant factors that would materially change the take rate in the second half of the year.

Ask Fintool Equity Research AI

Answer

CEO Jim Kessler explained that premium pricing is achieved by balancing liquidity and price across various auction channels, enhancing marketing, and providing buyers with better data, such as vehicle trim levels. CFO Eric Guerin and Kessler added that CapEx is for both existing needs and future growth, like the expansion in Australia, with all investments analyzed for their return potential.

Ask Fintool Equity Research AI

Answer

CEO Jim Kessler stated that take rate improvements have come from both the commercial and automotive sides of the business and expressed optimism for future increases via additional services. He reported a record high percentage of vehicles sold to international buyers, attributing this to an operational focus on increasing the inventory of 'run and drive' vehicles, which are more attractive to this buyer base.

Ask Fintool Equity Research AI

Answer

CEO Jim Kessler clarified that the company plans to begin accepting cars at its Australian facilities in the mid-summer. He noted that the first vehicle sales would occur sometime after that initial phase, following the completion of necessary processes like title transfers.

Ask Fintool Equity Research AI

Answer

CEO Jay Hennick explained that the segment, likely to be renamed 'Engineering and other,' has massive potential. He outlined a 5-year vision involving high single-digit internal growth plus significant acquisitive growth. He emphasized that Colliers' key differentiator is its partnership model, where management teams of acquired firms take a significant equity stake, which has been a great competitive advantage.

Ask Fintool Equity Research AI