Stantec Inc. (NYSE:STN) Q3 2022 Earnings Conference Call November 11, 2022 9:00 AM ET
Company Participants
Gord Johnston - President and Chief Executive Officer
Theresa Jang - Executive Vice President and Chief Financial Officer
Conference Call Participants
Yuri Lynk - Canaccord Genuity
Devin Dodge - BMO
Jacob Bout - CIBC
Chris Murray - ATB Capital Markets
Sabahat Khan - RBC
Maxim Sytchev - National Bank Financial
Benoit Poirier - Desjardins
Michael Tupholme - TD Securities
Ian Gillies – Stifel
Operator
Welcome to Stantec's Third Quarter 2022 Earnings Results 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. Please be advised that, if you have dialed in while also viewing the webcast you should mute your computer as there is a delay between the call and the webcast. All information provided during this conference call is subject to the forward-looking statement qualification set out on slide two, detailed in Stantec's management discussion and analysis are 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 very pleased to report record third quarter results that delivered in line with our expectations. Our results reflect strong operational performance and the ongoing solid execution of our strategic plan, delivering both top and bottom line growth.
We generated a 24% increase in net revenue, reaching approximately $1.2 billion, propelled by the key drivers that we've noted over the course of this year; aging infrastructure, climate change, and sustainability, and the reassuring of domestic production. Net revenue was driven by double-digit organic growth of 11% and acquisition growth of 13%. We continued to drive organic growth in each of our geographic regions and business units.
Notably, water, and energy and resources delivered 16% and 17% organic growth, respectively. And environmental service continues to have a very strong year, with over 9% organic growth and a 47% net revenue increase overall. Water environmental services continue to account for 40% of our business, which speaks to the strong weighting of our business towards addressing climate change and sustainability challenges. We achieved solid project and EBITDA margins of 54.1% and 16.7%, respectively, and this performance translated into adjusted diluted earnings per share of $0.86 for the quarter.