Stantec Achieves Record Financial Performance in 2025 with Strong Growth Outlook
Edmonton-based engineering and consulting giant Stantec Inc. has concluded the 2025 fiscal year with unprecedented financial success, reporting record-setting income and substantial revenue growth. The company's strategic focus on defense contracts and cutting-edge data center projects has positioned it for continued expansion in the coming year.
Financial Milestones and Revenue Surge
Stantec generated approximately $6.5 billion in net revenue during 2025, marking a significant increase of nearly 11 percent compared to the previous year. This impressive financial performance translated into a more than 32 percent rise in income, injecting an additional $118 million into the company's operations. The firm's leadership has expressed confidence in maintaining this upward trajectory, projecting revenue growth between 8.5 percent and 11.5 percent for 2026.
Strategic Defense Projects Driving Growth
Chief Executive Gord Johnston emphasized that Stantec's Canadian projects have been instrumental in delivering this strong growth, with several initiatives stemming from public investments. The company's expertise in extreme climate conditions has proven particularly valuable in Arctic development projects.
Among the notable initiatives is the Grays Bay road and port project in Nunavut, where Stantec is collaborating with Inuit-owned partners to construct a more than 200-kilometer all-season road. This infrastructure development aims to enhance accessibility to the Canadian Arctic region. Upon completion, the deep-sea Arctic port will accommodate both cargo vessels and Canadian Navy ships, demonstrating the project's dual-purpose significance.
Johnston highlighted additional defense-related work, stating, "We're also involved in facilities to support the North American Aerospace Defense Command, and we're doing work for the Canadian Department of National Defence to deliver facility upgrades for the Canadian Armed Forces." The company recently secured a major design-build contract for Defense Construction Canada's Multi-Mission Aircraft hangar, currently underway in Nova Scotia.
International Expansion and U.S. Defense Contracts
Stantec's success extends beyond Canadian borders, with the company experiencing increased activity from United States public investment. In January, Stantec announced a partnership with consulting firm AECOM Technology Corp. that resulted in a US$144 million contract to modernize a U.S. Navy Shipyard in Maine. This international expansion demonstrates the company's growing influence in the global defense sector.
Venturing into AI Data Center Development
Beyond defense contracts, Stantec is making significant strides in the technology sector through its involvement in artificial intelligence data center projects. Johnston revealed that the company was recently selected by an AI firm to design the initial 300 to 350 megawatt phase of a large data center campus, with potential expansion to one gigawatt capacity.
Additionally, Stantec announced last spring that it was chosen by Calgary-based Beacon AI Centers to provide comprehensive technical services for constructing six data center campuses across five separate municipalities in Alberta. These ventures into AI infrastructure represent a strategic diversification of the company's portfolio and position it at the forefront of technological innovation.
Global Operations and Future Prospects
With operations spanning the globe, Stantec has established itself as a leader in engineering and consulting services. The company's ability to secure high-value contracts in both defense and technology sectors underscores its competitive advantage and adaptability to evolving market demands.
The combination of Arctic infrastructure development, defense facility upgrades, and AI data center design positions Stantec for sustained growth in the coming years. As public and private investments continue to flow into infrastructure and technology projects, the Edmonton-based firm appears well-positioned to capitalize on these opportunities and maintain its record-setting financial performance.
