Stantec Inc. (NYSE:STN) Q1 2023 Earnings Conference Call May 11, 2023 10:00 AM ET
Company Participants
Gord Johnston - President and Chief Executive Officer
Theresa Jang - Executive Vice President and Chief Financial Officer
Conference Call Participants
Chris Murray - ATB Capital Markets
Sabahat Khan - RBC Capital Markets
Ian Gillies - Stifel
Frederic Bastien - Raymond James
Operator
Welcome to Stantec's First Quarter 2023 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. [Operator Instructions]
All information provided during this conference call is subject to the forward-looking statement qualification set out on Slide 2, detailed in Stantec's management's discussion and analysis and incorporated in full for the purposes of today's call. Unless otherwise noted, dollar amounts discussed in today's call are expressed in Canadian dollars and are generally rounded.
With that, I am pleased to turn the call over to Mr. Gord Johnston.
Gord Johnston
Good morning, and thank you for joining us today. I'm happy to report that we are off to an excellent start for the year. We delivered net revenue growth for the first quarter of 17%, reaching $1.2 billion. This was driven by over 12% organic growth. Market dynamics remained very favorable over the quarter and through strong operational performance, we were able to deliver double-digit organic net revenue growth in each of our geographic regions.
We also delivered solid organic growth in each of our business segments, most notably in Water, which generated over 24% organic growth, 11% in Buildings, and 16% in Energy & Resources. These results reflect our strong market positioning as we continue to build on the macro themes of aging infrastructure, climate change and re-shoring of domestic production.
Looking at our operating regions, net revenue in the U.S. increased 21% with organic net revenue growth of 14%. Robust public and private sector spending continues to drive growth. We also benefited from the strong U.S. dollar in the quarter, which contributed approximately 7% of the increase in net revenue. We saw double-digit growth in Water, Buildings and Energy & Resources.
Our Water business continues to be a leader in the U.S., achieving significant wins across all megatrends, including water reuse, climate resiliency, and large-scale water security projects. Buildings continues to be very active based on momentum from investments in healthcare, civic, industrial and the science and technology sectors and Energy & Resources continue to drive growth through the acceleration of mining and significant reservoir and dam projects.