Stantec Inc. – Overview 

Company History & Organizational Structure 

Founded in 1954 in Edmonton, Alberta, Stantec Inc. is a global professional services firm specializing in design, engineering, architecture, and environmental services. Originally focused on civil engineering and hydrology, it has grown substantially through both organic expansion and over 100 acquisitions, building a multi-disciplinary, integrated service model. 

Stantec positions itself as a community-centric, purpose-driven firm, with the slogan: 
 

“Design with community in mind.” Its combination of local relationships and global expertise gives it a competitive edge in winning high-value, long-duration projects. 

Stantec operates a matrix organizational structure, combining geographic business centers with sector-based business lines. This allows for local autonomy in client relationships while leveraging global expertise and standardized processes across disciplines. 

As of year-end 2024, Stantec employed approximately 32,000 people across six continents, operating out of over 450 locations globally. This includes architects, engineers, environmental scientists, and project managers.  

Stantec delivers consulting and project services across the entire infrastructure lifecycle, from feasibility and permitting through design, construction management, and post-occupancy evaluation. 

It is publicly traded on both the TSX and NYSE under the symbol STN. 

Key Operating Segments 

1. Water (design, treatment, conveyance) 
2. Buildings (healthcare, education, civic, commercial) 
3. Infrastructure (roads, bridges, airports, transit) 
4. Energy & Resources (hydropower, mining, renewables) 
5. Environmental Services (impact assessments, permitting, remediation, ESG advisory) 

Customer Base 

a. Government agencies (municipal, provincial/state, federal) 
b. Private developers and corporations 
c. Utilities and infrastructure owners 
d. Indigenous and First Nations communities 
e. Public-private partnerships (P3s) 

Their projects often span multi-year engagements, involving complex stakeholder environments and integrated, multidisciplinary teams. 

Industry Context 
 

Stantec operates in the AEC (Architecture, Engineering & Construction) industry, particularly within the professional and technical services segment. This market is cyclical, heavily influenced by: 
 

a. Government infrastructure spending 
b. Real estate and urban development cycles 
c. Energy and environmental regulations 
d. Climate resilience and sustainability priorities 
 

Obviously, the impact on factors such as employment and consumer confidence in the sector due to recent US policy uncertainty has been significant[1]. 
 

The global market for engineering and design services is both vast and expanding: as of 2024, it was estimated at roughly US $1.8 trillion and is projected to grow at a compound annual growth rate of 5-7% through 2034, driven by infrastructure renewal, energy transition projects, and the digitization of core industries[2,3,4]. This growth is underpinned by rising demands in key sectors such as energy & power and transportation (expected to expand alongside urbanization trends)[2,3,4].  
 

Within this competitive landscape, Stantec ranks among the top global design firms— listed at #12 in ENR’s 2024 Top 150 Global Design Firms—and competes directly with firms like WSP Global (rank 4), AECOM (rank 5), and Jacobs Solutions (rank 3)[5]. Stantec differentiates itself through its strong emphasis on environmental sciences, lifecycle project economics, and community-focused design, positioning the firm to address challenges such as 
aging infrastructure, climate resilience, and sustainable urban development[6]. 
 

As detailed in their 10-K report, Stantec Inc. aims to hold competitive positioning with their four value creators centering on the client experience, and emphases on sustainability, innovation, and efficiency. Of concern is the additional belief that they have a competitive advantage in acquisitions, which will be unlikely to pan out in the long run as most M&A activities are value destroying[7] and Stantec Inc. would be remiss to find themselves joining the 
array of other businesses that have made the same claim. 
 

Main Revenue Drivers 
 

It should be noted that, due to the nature and purpose of the case study, the financial statements have not been fully and properly assessed for things such as reasonable assumptions made during fair value assessments in the notes to the financial statements and so on. In particular, the change in accounting standards regarding considerations during business combinations may or may not be bad news; our team did not investigate this here. The analysis in the appendix may appear deceptively comprehensive if this is not accounted for.  
 

Key components of Stantec’s business model: 
 

1. Geographic diversification: similar business offered across countries 
2. Service diversification: services offered in various sectors through their business operating units (segments described above) 
3. Design focus: higher margins and risk management conferred by focusing on the design phase of the projects Stantec is involved with 
4. Life-cycle solutions: provide services across the entire project life cycle 
 

The business model allows Stantec Inc. to be adaptable across diverse segments and mitigate risk. For example, to account for seasonality of revenues by shifting business focus.  
 

According to their 2024 annual report (see Appendix A for financial statements):
- Net revenue was $5.4 billion CAD, an increase driven by strong performance across all geographic regions and business lines. 

- Revenue is well-diversified, with government infrastructure and environmental services contributing significantly to growth. 

-Recurring revenue from long-term public contracts and framework agreements provides stability. 
- Acquisitions, including a major US-based water services firm, helped expand both market share and expertise. 
 

Stantec Inc. has made frequent acquisitions over the last two years; acquiring Environmental Systems Design Inc. in 2023, and ZETCON, Morrison Hershfield Group Inc., and Hydrock Holdings Limited in 2024. Net revenue increased 15.8%, with about half (7.5%) being attributed to acquisitions.  
 

Stantec’s strategic initiatives are somewhat unclear. Their strategic plan for 2024-2026 appears to outline goals rather than strategies, and the strategies are effectively portrayed as ‘market trend following’ and acquisitions. The acquisitions will be unlikely to drive sustainable growth, and adjusting services with market demand is only a very basic strategy. Additionally, the top line focus should likely be adjusted to emphasize bottom-line items (net margins). From their public facing documents, their strategic initiatives do not appear compelling. 
 

Generally, although the company has suggested they have a strategic advantage in acquiring new companies- this is almost definitely not true, and they are likely overpaying. Most acquisitions, generally, have been shown to not be worth their cost[1] and the company’s acquisitions have increased substantially. Although ROE and ROIC are generally stable, looking at goodwill a little deeper show ~39% of their total assets are goodwill. There is currently no 
account for goodwill impairments, but the company should probably prepare for them. Additionally, some companies cover up malfeasance or poor performance with M&A- is it possible that’s what is going on here? Maybe. 
 

In Canada, Stantec’s operations grew at 14.5% (net revenue), driven by public sector investment. In the United States, revenue increased 13.3%, which appeared to be driven by growth diversified across public and private sector segments. Global net revenue grew fastest at 23.2%, notably in the Buildings segment in the Middle East. The highest percentage of revenues occur in the US (figure 1), despite margins being considerably higher in Canada (figure 2). This  operational mismatch is likely a result of operational constraints, such as seasonality (if margins are high, demand is likely high as well). Across services, revenues are less concentrated (figure 3) and margins are generally consistent (figure 4). There appears to be some potential for increasing diversification in Energy & Resources, given margins and revenue concentration (figure 3 & 4).  

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Figure 1. Revenues by Geography. There is a very clear skew to the US. Canada is the second highest revenue center by geography.

 

 

 

 

 

 

 

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Figure 2. Margins by Geography. Canada is clearly leading margins, with the US coming last.

 

 

 

 

 

 

 

 

 

 

 

 

 

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Figure 3. Revenues by Segment. Generally an even distribution in the 15-20% range, except to energy and resources, which generates significantly less revenue.

 

 

 

 

 

 

 

 

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Figure 4. Segment Margins and Revenues. Generally margins are even (within 41-45%) without much change from 2023 to 2024.

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Key Risks

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1. Talent acquisition and retention: As a knowledge-based business, Stantec identifies employee retention and succession as a critical risk. Attracting talent is important to staying competitive and avoiding issues such as project delays.

2. Project execution and key personnel dependency: Complex infrastructure projects require experienced project managers and discipline leads.

3. Regulatory and political risk: Revenue is tied to public infrastructure policy and funding cycles. This also includes regulations for safety measures and the like. This can impact the demand for projects, in addition to litigation and general legal department costs.

4. IT and cybersecurity: Digital delivery and remote collaboration heighten exposure. This can result in data loss, interruptions, and reputational damage. Additionally, Stantec Inc. is required to keep up with ever-evolving data privacy regulations.

5. Climate and ESG exposure: Growing expectations for sustainability performance—both for clients and internally. Additionally, erratic weather patterns are likely to increase in frequency over time due to climate change, bringing additional risk.

6. Health and safety: failure to reasonably prevent injury, illness, and so on of its employees could result in reputational damage, litigation costs, and more. This could also impact the ability to retain talent. These risks also result from general geopolitical exposure, such as proximity to the Russia-Ukraine conflict.

7. Participation in joint arrangements and involvement with subcontractors: Stantec Inc. engages with several joint ventures and subcontractors. They need to manage the performance of these groups, or they may be confronted with some of the risks outlined elsewhere, such as reputational damage.

8. Acquisition-related risks: Stantec Inc. is involved with many acquisitions and faces a slew of risks such as upward pressure on pricing, failure to capture synergistic benefits post-acquisition, disruptions in acquired businesses and the management of them, and so on.

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Stantec Inc. employs an Enterprise Risk Management program to identify and manage company risks and uncertainties. This includes a framework for identification and management, risk profile reviews, consideration of the interactions across risks, embedding risk management into the company’s activities, ensures dynamism and inclusivity by engaging multiple sources within the organization during risk management, and reporting to the executives and other committees. There are several committees involved in risk management: Audit & Risk Committee, Sustainability and Safety Committee, Corporate Governance and Compensation Committee, and, of course, the C-Suite. Generally, the key risks all have resources devoted to their mitigation, such as cybersecurity training programs.

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Notable Operational Features

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• ISO-certified Quality Management System, implemented enterprise-wide

• Use of a proprietary Project Management Framework (PMF) to ensure consistent project delivery

• Robust Enterprise Risk Management (ERM) system integrated into planning

• Emphasis on sustainable design, with over 60% of new projects having climate resilience or ESG elements

• Investment in digital engineering and BIM (Building Information Modeling)

• Active diversity, equity, and inclusion (DEI) programs with measurable targets

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Key Person Risk

 

Generally, key person risk refers to the reliance of a business on specific people for very important functions, making them very difficult to replace. This can make it difficult for top staff to exit the business, operate the business to scale, or continue operations under stress. For example, it is often a problem for small business owners to take a step back from their business at any moment.

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There are a few ways companies come to have key person risk but they typically result from concentration of key processes to a few individuals, and this can be resolved by reducing knowledge concentration and standardizing processes as much as possible.

 

Knowledge concentration can be reduced by hiring additional staff, developing cross-training procedures, implementing knowledge management tools, using checklists, frameworks, and other aids, and requiring the documentation of processes and client information. Standardized processes can be developed across the business units and are necessary for facilitating scale. Critical workflows should be documented, templates for invoicing, quoting, and so on, should be implemented and used, and processes should be continually monitored and updated.

 

It should be clear that reducing key person risk requires some scale. This means several things including the ability to generate clients reliably, capitalizing on the opportunity to scale, and having some internal or external capital input, amongst other things.

 

The rest of this case study is dedicated to examining the training processes, in a reasonable amount of detail (given that much information is private), at Stantec Inc.

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Training Procedures

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Stantec uses a blended learning model that combines formal and informal training to support career progression. This includes an extensive onboarding program that covers the company’s systems, ethics, safety, and values. The training programs use a variety of learning modalities such as eLearning modules, instructor-led sessions, "Lunch & Learn" seminars, and project-based experiential development and professional development support including tuition assistance for continuing education and support with professional licensing and CEU credits. Some training is part of health and safety requirements as per OSHA.

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Stantec Inc. has different procedures for each career stream with annual goals and regular assessments and include items such as succession planning for leadership roles. All procedures use feedback and metrics to adjust training over time.

Some areas of concern appear to be in terms of compensation and growth, and inconsistencies across business units (as they operate a decentralized model, and this likely comes about from aggressive M&A activities).

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Some insight from people purported to work at Stantec Inc. has suggested that compensation is not tied to individual performance enough and instead focuses on the business unit’s overall profitability. This hurts the company’s ability to motivate its employees and to get them to feel like a part of a whole. In the case of a construction crew, metrics could be tied to days absent and inspection failure rate of individually managed activities (example: for home building, does framing pass inspection?). This could then translate into a percentage of a maximum bonus given to individuals. Of course, its important not to make metrics too granular, as tracking items such as square footage completed per employee may be difficult and costly in construction, unless a prior agreement regarding the scope of work is reached.

 

Inconsistencies present across business units suggest a lack of control or standardization in some respects. Of course, when a company has many heterogeneous units, it requires some flexibility in procedure as each unit operates in a different market segment. Still, a top-down discipline should be imposed for consistency and scale.

 

What makes a training process effective?

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1. Clear Learning Objectives. This allows the measurement of success metrics to adjust training procedures and provides employees with a clear ‘why’ during training. If employees can understand the end goals or why the information is important, then they will, at the least, be more willing and able to learn. This should focus on the competencies or performance outcomes (what the trainee should be able to do). One framework that can be used is SMART goals: Specific, Measurable, Achievable, Relevant, Time-bound. This provides the components to make objectives clear and useful (for assessment, as an example).

 

2. Needs Assessment / Gap Analysis. Assess the current skills of the workforce and compare them to the skills desired by the company, use this to develop specific training areas or to focus on the improvements required in training modules. This data can be collected using surveys, interviews, observation, and other performance data (if eLearning modules, average score can be collected and compared cross-sectionally and intertemporally).

 

3. Modular Design and Sequencing. Break down content into logical modules or units and use scaffolding: start with foundational skills and build up to more detailed or complex tasks. This gives employees the context to place the more minute details within. This is most obviously placed within any direct learning modules and could be implemented during monitored work (such as internships) but typically requires people with a certain respect for theory to lead on the fly discussions with foundations.

 

4. Active Learning and Engagement. Incorporate hands-on practice, scenarios, role-playing, simulations, and real-world tasks. For many companies, this could include practice sheets or practice work and monitoring.

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5. Feedback and Assessments. Include formative assessments (quizzes, checkpoints) and summative assessments (final evaluations). Use immediate feedback (works best, and is much better than spaced feedback) to correct mistakes, improve performance, and reinforce learning. Feedback is also used, partially, for reinforcement, whereby rewards (as a concept), such as Stantec’s use of continuing-education credits or renewals, boost motivation tied to learning and, thereby, enhance learning.

 

6. Spaced Repetition and Reinforcement. Reinforce key ideas over time rather than in one-off sessions. This reinforces the neural connections of memories by reactivating the pathways associated with them. Spacing for repetition (as opposed to feedback) works much better than condensed repetition (feedback is associated with memory formation; repetition is associated with memory consolidation). Companies typically implement weekly team meetings, which, at least partially, fulfill this need.

 

7. Efficient Delivery. Choose the right format: in-person, online, hybrid, asynchronous, or synchronous. Using a variety of formats and visuals is typically appropriate for larger scale training procedures. Use technology (LMS, mobile apps, VR/AR for simulation) for scalability (imposed discipline and consistency) and engagement. As mentioned, Stantec Inc. utilizes a blended delivery where self-paced eLearning is mixed with live, hands-on sessions ensures both flexibility and practice.

 

8. Evaluation of Effectiveness. Use models like Kirkpatrick’s Four Levels to assess: Reaction (learner satisfaction); Learning (knowledge/skill gain); Behavior (on-the-job application); Results (impact on business/performance).

 

Frameworks are useful for anchoring any processes that are created and can be expanded past learning processes to other activities, such as product or service process design. One for developing learning processes is Gagne’s Nine Events of Instruction, designed to quickly assess the criteria of good instruction.

 

Gagné’s Nine Events of Instruction

1. Gain attention (stimulate interest)

2. Inform learners of objectives

3. Stimulate recall of prior learning

4. Present the content

5. Provide learning guidance

6. Elicit performance (practice)

7. Provide feedback

8. Assess performance

9. Enhance retention and transfer

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A Hypothetical Training Procedure

 

There is no way to know (legally) exactly what Stantec Inc. does regarding their training procedures and passing on knowledge but here is a hypothetical proposal for training processes at Stantec Inc. regarding mining services from the engineering department perspective. This set of steps can generally be passed on to other procedures as well, as the same questions are typically asked across processes: Who has the responsibility for what? What deliverables are created? What tech do we need? How does the process get integrated across the organization?

 

Training Program Overview

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Goal: Deliver consistent, high-quality engineering support to mining field operations by training staff in estimation, job scheduling, troubleshooting, and quality assurance.

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Duration: 12 weeks initial training + ongoing monthly refreshers.

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Tools Used in Training

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Excel Templates: Job costing, labor/material pricing, markup automation. Uses Microsoft Excel (most recommended, although Google Sheets or other can be used, the functionality is limited as complexity through automation, for example increases). Excel can be used for custom templates, automated markup calculations, and dynamic costing models. The Power Query tool and VBA/macros can be used for automation.

 

Whiteboard System: Job assignment visual aid (manual backup) for field and office use. Makes it easier to convey ideas across teams. Trello or Miro can be used; both are not needed. Trello: Kanban board for assigning jobs/tasks visually. Miro: Whiteboard-like visual workspace for manual planning; supports drag-and-drop. Either can be used on tablets in the field, or printed/exported for physical backup.

 

Retention: Anki can be used to create flashcards that can be shared across the organization. Incorporate spaced repetition as per recommendations above.

 

SOPs / Playbooks: Standard task execution. Microsoft Office is recommended. Word documents can store checklists, Vizio can be used to create flowcharts, and OneDrive can store the documentation to share across the organization easily. Additionally, there are other uses for Microsoft Office software that are found in the same place. It is very important that this documentation stays organized and is easy and intuitive to sort through, especially as companies scale. Some large companies also have custom directories created with private web domain hosting, though the company would likely need to be quite large to benefit from this switch.

 

CRM / Dispatch Software: Client/job tracking and management, technician assignment. Hubspot is recommended and comes with several other features such as email marketing. Again, many companies have custom CRMs, though this can reduce integration capabilities with other software, such as Conversions API for Meta Marketing purposes.

 

QC Checklist App: Field data collection. Can simply use Excel for this purpose, though other apps such as Fulcrum can also be used, but are unnecessary given Excel is used for other functions as well.

 

Timeline & Milestones

 

Week 1-2: Onboarding + Tools Training (Excel, CRM)

• Introduce company structure, key personnel, and safety protocols.

• Train on core tools used for job estimation, costing, and client/job tracking.

• Company Orientation: Provide org chart, contact list, policy handbook.

• Excel for Estimation: Complete a guided costing exercise using labor/material/markup.

• CRM System Training: Add test clients and simulate a job entry.

• Job Costing Concepts: Pass basic costing knowledge check (labor rates, material costs, markup).

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Week 3-4: Shadowing Estimation + Basic Scheduling

• Observe senior staff during real job estimations.

• Learn scheduling basics for technician and equipment allocation.

• Estimation Shadowing: Document real estimates using company templates

• Basic Job Scheduling: Create mock schedule using job specs and technician availability

• Whiteboard System Orientation: Fill in and update manual whiteboard for 1-week simulated job flow

• Review Session: Feedback on documentation and schedule accuracy

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Week 4-8: Independent Job Estimation, QC Assistance

• Complete small job estimates independently under supervision.

• Assist in quality control (QC) tasks to learn execution standards.

• Small Job Estimation: Complete independent estimates, reviewed by senior staff.

• QC Field Checklist Use: Conduct QC on jobs using digital or paper checklist, with review.

• Estimate Review + Feedback: Revise estimates based on feedback; document learnings.

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Week 9-12: Troubleshooting Support, Lead Partial Job Assignments

• Begin leading small portions of job execution (e.g., crew coordination).

• Develop real-time problem-solving skills under supervision.

• Partial Job Assignment: Plan and lead labor/materials for part of a job (e.g., setup, equipment delivery).

• Troubleshooting Simulations: Resolve real-time issues with mentor oversight.

• Team Debrief Participation: Document takeaways and suggest improvements per job.

• Ongoing Tool Use: Independently update CRM and cost sheets for assigned tasks.

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Ongoing: Monthly reviews + SOP updates

• Continuously improve performance, update processes, and reinforce learning.

• Monthly Performance Reviews: Skills assessment, goal setting, training needs log.

• SOP & Playbook Update Sessions: Propose and document SOP updates per month.

• Cross-Training: Complete one job estimate outside comfort zone (e.g., different service line).

• Refresher Training: Complete quiz or task to refresh costing/scheduling tools.

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Figure 5. Training timeline.

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Knowledge Transfer and SOPs

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-SOP Writing: Weekly (post-job debrief).

-Checklists: Built into job templates (Excel + laminated sheets, for physical carry).

-Playbooks: Quarterly update with field input.

-Digital Repository: Shared folder or job costing software plugin.

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Challenges and Resistance Expected

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• Resistance to SOPs à Involve field staff in SOP creation

• Reliance on Physical Whiteboards à Gradual transition to digital, keep manual backup

• Tool Learning Curve à Hands-on workshops, cheat sheets

• Absence of Lead Staff à Cross-training + clear delegation protocols

 

Consequence

 

By providing a detailed and standard training procedure for onboarding engineers in the mining segment that incorporates items such as cross-training, the main effect is to facilitate scale and knowledge transfer, reducing reliance on any single individual. Additionally, the development of training procedures also gives the company some space to reflect on its processes and improvements may be identified.

 

This procedure is expected to increase estimation accuracy and efficiency, streamline job scheduling and resource allocation, improve troubleshooting and field support, enhance quality assurance and compliance, improve knowledge retention and cross-training impact, and enhance long-term productivity and financial impact, among other things. One additional, underrated component of in-house training is control over company culture, which can manifest in productivity and so on.

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References

[1] Association of Consulting Engineering Companies‑Canada. (2024, July 14). Economic assessment and 5‑year forecast of the engineering and design services industry in Canada. ACEC Research Institute. Retrieved July 25, 2025, from https://www.acec.org/resource/economic-assessment-and-5-year-forecast-of-the-engineering-and-design-services-industry-in-canada/

[2] Fact.MR. (2024). Engineering services market size, share, growth, trends, and forecast 2024–2034. Retrieved from https://www.factmr.com/report/engineering-services-market

[3] Deloitte Research Center for Energy & Industrials. (2024, November 4). 2025 engineering and construction industry outlook. Deloitte Insights. Retrieved July 25, 2025, from https://www2.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html

[4] Mordor Intelligence Inc. (2025, May 9). Engineering services market size, trends & industry overview. Mordor Intelligence.

[5] Engineering News-Record (ENR). (2024). Top 150 global design firms 2024 rankings. Retrieved from https://www.enr.com/toplists/2024-Top-150-global-design-firms

[6] Stantec. (2025). About us. Stantec Inc. Retrieved July 25, 2025, from https://www.stantec.com/en/about-us

[7] McCaffrey, P. (2019, February 28). Aswath Damodaran on acquisitions: Just say no. CFA Institute Enterprising Investor. Retrieved from https://blogs.cfainstitute.org/investor/2019/02/28/aswath-damodaran-on-acquisitions-just-say-no/

 

Appendix

Appendix A. Financial Statements Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure A1. Stantec Balance Sheet. The use of debt is very moderate with the D/E and leverage being relatively low. Liquidity needs appear to be met until looking at the cash ratio, which is low, even for the industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

​​Figure A2. Stantec Income Statement. Interest coverage ratio is good and would typically land Stantec in the investment grade credit rating range. ROIC and ROE are both above an estimated cost of equity of around 8%. Gross margins are healthy, net margins are somewhat tight.

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Figure A3. Stantec Cash Flow Statement. The CFO/EBIT is not concerning for the time period observed.