Mr. Gord Johnston reports

STANTEC ANNOUNCES 2024 - 2026 STRATEGIC PLAN TO DELIVER PURPOSE DRIVEN GROWTH

Stantec Inc. has released the highlights of its 2024 to 2026 strategic plan, including its three-year financial targets and guidance for 2024.

Three-year strategic plan

By the end of 2026, Stantec aims to achieve:

• Net revenue of $7.5-billion;
• Organic net revenue growth at a three-year compound annual growth rate (CAGR) of greater than 7 per cent;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin in the range of 17 per cent to 18 per cent;
• Adjusted diluted earnings per share (EPS) at a CAGR in the range of 15 per cent to 18 per cent.

"While we still have one month to go before completing our 2020 strategic plan, we are incredibly proud of what we have accomplished over the last four years. The hard work and dedication of our people has delivered significant shareholder value," said Gord Johnston, Stantec president and chief executive officer. "Stantec is truly firing on all cylinders, and that's why we are so excited to share where we are going in the next three years, and the continued value we will create through our bold new strategic plan."

In charting the course for the next phase of Stantec's journey, the company sought to revalidate its understanding of the challenges that clients and communities are facing, and the drivers behind them. Stantec has identified key global trends and drivers that are reshaping the world, and has focused its go-forward plans on three broad strategic growth initiatives: climate solutions; communities and infrastructure of the future; and future technology. These initiatives form the foundation of Stantec's organic growth plans for the next three years.

In addition, Stantec remains committed to its disciplined approach to growth through strategic, accretive acquisitions. The company's strong balance sheet, now bolstered by proceeds from its recent common share offering, provides the company with significant financial capacity to finance future acquisition opportunities and growth initiatives.

Stantec's three-year financial targets reflect ambitious performance expectations, as the company continues to raise the bar on organic and inorganic revenue growth, project execution, and operational efficiency.

"The demand for our services continues to be very robust, and as we continue on our path of operational excellence, we have further levers to continue to expand our EBITDA margin and grow earnings," said Mr. Johnston. "We also continue to actively evaluate multiple firms that meet our strategic acquisition criteria. With our new strategic plan, we are confident that we will deliver superior financial performance through our greatest asset -- our people."

Stantec will host its investor day in Boston today at 9 a.m. ET, where members of the company's executive leadership team will outline the 2024 to 2026 strategic plan in more detail. Interested parties are invited to join the live webcast. Register for the live webcast on-line.

The live webcast, along with a copy of the presentation, can be accessed through Stantec's investor relations website on the events and presentations page. Please register for the webcast at least 15 minutes prior to the start of the event to receive login details. For those unable to view the event live, a replay will be available on Stantec's website shortly after the event.

Two thousand twenty-four outlook

For 2024, Stantec has established the targets as shown in the table entitled "Stantec's 2024 financial targets."

Stantec expects that net revenue will increase between 7 per cent and 12 per cent in 2024, with organic net revenue growth in the mid- to high-single digits. Stantec continues to see high levels of activity in all regions. Organic growth in the United States and global regions is expected to be in the mid- to high-single digits. In Canada, organic growth is expected to be in the mid-single digits.

About Stantec Inc.

Communities are fundamental. Whether around the corner or across the globe, they provide a foundation, and a sense of place and of belonging. That is why at Stantec, it always designs with community in mind.

Stantec cares about the communities it serves because they are its communities too. This allows it to assess what is needed and connect its expertise, to appreciate nuances and envision what has never been considered, and to bring together diverse perspectives so it can collaborate toward a shared success.

Stantec consists of designers, engineers, scientists and project managers, innovating together at the intersection of community, creativity and client relationships. Balancing these priorities results in projects that advance the quality of life in communities across the globe.

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