Operating cash flow trailed net income (OCF/NI at 0.79) in 2026Q2 due to $123.2M working capital absorption, but low capex (1.1% of revenue) and $175.9M buybacks highlight capital allocation.
Stantec Inc. (STN) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 744.24M | 862.2M | 603.1M | 544.7M | 304.3M | 397M | 603.8M | 452.5M | 172.6M | 263.7M | 285.69M | 205.52M | 207.22M | 272.13M | 180.54M | 114.59M | 114.78M | 99.98M | 160.03M | 87.5M | 93.39M | 57.31M | 77.35M | 16.89M | 35.95M | 13.43M | 39.1M | 6.9M | 12M | 300K | 4M |
| Operating CF Margin % | - | 10.6% | 8.04% | 8.41% | 5.36% | 8.67% | 16.26% | 12.16% | 4.03% | 5.13% | 6.64% | 7.14% | 8.19% | 12.17% | 9.59% | 8.31% | 7.59% | 8.04% | 11.84% | 9.17% | 11.44% | 10.93% | 14.85% | 3.67% | 8.39% | 3.76% | 14.72% | 3.26% | 6.47% | 0.23% | 3.45% |
| Operating CF Growth % | -35.49% | 42.96% | 10.72% | 79% | -23.35% | -34.25% | 33.44% | 162.17% | -34.55% | -7.7% | 39.01% | -0.82% | -23.85% | 50.73% | 57.56% | -0.17% | 14.81% | -37.53% | 82.89% | -6.31% | 62.94% | -25.9% | 357.89% | -53.02% | 167.65% | -65.65% | 466.74% | -42.5% | 3900% | -92.5% | - |
| Net Income | 505.21M | 479.01M | 361.5M | 331.2M | 247M | 200.7M | 159.1M | 194.4M | 47.4M | 97M | 130.55M | 156.38M | 164.5M | 146.2M | 120.9M | 12.66M | 93.59M | 55.94M | 29.02M | 69.28M | 60.18M | 40.62M | 30.19M | 25.07M | 20.85M | 15.38M | 11.23M | 8.6M | 7.2M | 5.3M | 4.3M |
| Depreciation & Amortization | 382.16M | 351.41M | 318.6M | 283.6M | 283.5M | 221.8M | 228.8M | 242.84M | 115.1M | 134.8M | 126.83M | 83.73M | 62.95M | 53.62M | 47.88M | 136.33M | 42M | 44.37M | 36.08M | 22.74M | 21.74M | 14.93M | 12.91M | 10.84M | 9.5M | 8.76M | 5.39M | 4.8M | 3.7M | 2.2M | 1.7M |
| Stock-Based Compensation | 13.8M | 0 | 43M | 60.1M | 26M | 46.7M | 16.4M | 18.1M | 5.3M | 9.5M | 8.91M | 11.2M | 7.66M | 12.71M | 7.51M | 5.58M | 2.82M | 3.98M | 5.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 49.91M | 27.88M | -42.4M | -45.6M | -43.2M | -4.4M | -21.9M | 0 | 0 | -26.4M | 12.56M | -6.3M | -1.03M | -7.43M | -1.07M | 4.28M | -2.51M | -5.87M | -5.73M | -5.16M | -2.24M | 143.04K | -3.6M | 4.51M | 379K | 0 | 0 | 0 | 0 | -400K | 500K |
| Other Non-Cash Items | 83.39M | 126.2M | 98.6M | 22.7M | 45M | 58.6M | 141.1M | -2.84M | 10.1M | -35.4M | 9.36M | 472K | 1.23M | 14.09M | 7.47M | 2.81M | 204K | 35.11M | 66.86M | 7.47M | 7.27M | -1.33M | 305K | 77K | 13M | -10.71M | 0 | 2.4M | 1.1M | 2.4M | 400K |
| Working Capital Changes | -290.23M | -122.3M | -176.2M | -107.3M | -254M | -126.4M | 80.3M | 0 | 0 | 84.2M | -2.53M | -39.97M | -28.09M | 52.94M | -2.16M | -47.07M | -21.33M | -33.55M | 28.68M | -5.9M | 7.23M | -9.55M | 37.54M | -23.6M | -6.95M | 0 | 22.49M | -8.9M | 0 | -9.5M | -2.6M |
| Change in Receivables | -160.18M | 21.88M | -167.5M | -120.1M | -211.7M | -8.4M | 119.6M | 0 | 0 | 70.7M | 32.77M | -7.9M | 14.83M | 19.25M | -4.38M | 11.92M | 11.59M | 37.3M | 23.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | -22.8M | 65.8M | 0 | 0 | 0 | 218.5M | -4.44M | 5.46M | -56.98M | -12.58M | 9.35M | -35.81M | 0 | 0 | 0 | 0 | 0 | 0 | 30.22M | 0 | -5.73M | 0 | 0 | 0 | 0 | -2.1M | -2M |
| Change in Payables | -223.95M | -108.61M | 0 | -54.4M | 22.8M | -65.8M | 0 | 0 | 0 | -172.8M | 1.7M | -21.1M | 2.32M | 32.73M | -17.76M | -15.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -470.67M | -533.66M | -605M | -201.7M | -73.8M | -764.8M | -102M | -135.2M | -266.1M | 60.3M | -1.14B | -252.39M | -174.32M | -117.43M | -143.34M | -99.38M | -91.6M | -103.22M | -127.66M | -135.17M | -15.55M | -114.6M | -10.15M | -33.49M | -29.23M | -11.42M | -37.99M | -9.7M | -10.5M | -17.8M | -3.1M |
| Capital Expenditures | -78.34M | -71.84M | -99M | -100.6M | -74.9M | -50.6M | -31.2M | -60.3M | -134.2M | -66.8M | -65.83M | -41.67M | -46.07M | -57.13M | -31.75M | -25.79M | -28.99M | -20.43M | -35.64M | -27.29M | -18.92M | -17.01M | -17.49M | -28.71M | -17.44M | -10.69M | -18.89M | -10.3M | -11.3M | -18.1M | 0 |
| CapEx % of Revenue | 0.97% | 0.88% | 1.32% | 1.55% | 1.32% | 1.11% | 0.84% | 1.62% | 3.13% | 1.3% | 1.53% | 1.45% | 1.82% | 2.55% | 1.69% | 1.87% | 1.92% | 1.64% | 2.64% | 2.86% | 2.32% | 3.24% | 3.36% | 6.24% | 4.07% | 2.99% | 7.11% | 4.86% | 6.09% | 13.76% | - |
| Acquisitions | -417.2M | -453.63M | -555M | -75.6M | -50.4M | -702.5M | -50.6M | -77.1M | -142.5M | 256.9M | -1.07B | -203.46M | -123.71M | -43.54M | -102.02M | -76.43M | -66.99M | -73.08M | -92.09M | -105.35M | 7.61M | -91.38M | -18.84M | -6.05M | -17.41M | -3.79M | -19.64M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.3M | 2.3M | 15.2M | 12.1M | 13.1M | 2.1M | 500K | 2.2M | 10.6M | -458.4M | -260K | -4.69M | 11.53M | 3.68M | 845K | 466K | 412K | -1.73M | -6.18M | 1.21M | -4.35M | -6.89M | -9.56M | -369K | 1.86M | 1.92M | 270K | 600K | 800K | 300K | 300K |
| Cash from Financing | -278.46M | -139.39M | -152.1M | -134M | -296.7M | 276.5M | -412.6M | -286M | 18M | -281.1M | 995.14M | -44.3M | -24.73M | -54.15M | -31.27M | -41.87M | 26.45M | -84.14M | 53.79M | 33.88M | -77.41M | 47.85M | -35.97M | -21.33M | 29.68M | -12.58M | 1.24M | -2.2M | -3.1M | 24.4M | -2.6M |
| Debt Issued (Net) | 121.56M | 110.91M | -50.2M | -326.2M | -171.2M | 358.3M | -322.8M | -199.7M | 105.2M | -218.2M | 485.7M | -15.44M | -1.68M | -40.88M | -20.88M | -157.55M | 28.29M | -86.49M | 61.51M | 32.25M | -78.26M | 49.05M | -38.74M | -20.59M | 11.92M | -12.59M | -15.83M | -1.3M | -3M | 5.6M | -500K |
| Equity Issued (Net) | -175.9M | 0 | 0 | 267.8M | -65.3M | -50.7M | -80.3M | -41.2M | -67.8M | -6.5M | -18.2M | 9.48M | 10.59M | 16.5M | 10.21M | -8.21M | -1.84M | 2.35M | -7.71M | 1.63M | 849.25K | 765.21K | 2.77M | -741K | 17.6M | -153K | 16.99M | -1M | -500K | 14.2M | -2.6M |
| Dividends Paid | -105.05M | -100.92M | -94M | -84.9M | -78.2M | -72.3M | -68M | -64M | -61.3M | -55.5M | -46.11M | -38.33M | -33.64M | -29.78M | -20.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -175.9M | 0 | 0 | -10M | -65.3M | -50.7M | -80.3M | -41.2M | -74.7M | -14.4M | -18.2M | 0 | 0 | 0 | 0 | -11.07M | -4.89M | 0 | -8.91M | -293.97K | -1.02M | -195.37K | -720K | -1.39M | -880K | -2.29M | -525K | -1M | -500K | 0 | -2.6M |
| Other Financing | -119.08M | -149.38M | -7.9M | 9.3M | 18M | 41.2M | 58.5M | 18.9M | -100K | -900K | 573.74M | 0 | 0 | 0 | 0 | 123.89M | 0 | 0 | 0 | 0 | 0 | -1.97M | 0 | 0 | 155K | 159K | 81K | 100K | 400K | 4.6M | 500K |
| Net Change in Cash | 32.57M | 179.9M | -124.4M | 204.6M | -38.4M | -98.1M | 80.8M | 18.8M | -54.3M | 28.6M | 143.56M | -86.36M | 10.67M | 102.32M | 5.64M | -26.62M | 48.04M | -89.29M | 89.8M | -14.19M | 220.18K | -9.75M | 30.55M | -39.01M | 36.35M | -10.57M | 2.36M | -5M | -1.5M | 6.5M | -1.6M |
| Free Cash Flow | 665.9M | 790.36M | 504.1M | 444.1M | 229.4M | 346.4M | 569.6M | 392.2M | 38.4M | 196.9M | 219.86M | 163.84M | 161.15M | 215M | 148.79M | 88.8M | 85.8M | 79.55M | 124.39M | 60.21M | 74.47M | 40.31M | 59.86M | -11.82M | 18.51M | 2.75M | 20.21M | -3.4M | 700K | -17.8M | 4M |
| FCF Margin % | 8.21% | 9.71% | 6.72% | 6.85% | 4.04% | 7.57% | 15.34% | 10.54% | 0.9% | 3.83% | 5.11% | 5.69% | 6.37% | 9.61% | 7.9% | 6.44% | 5.67% | 6.4% | 9.2% | 6.31% | 9.12% | 7.68% | 11.49% | -2.57% | 4.32% | 0.77% | 7.61% | -1.6% | 0.38% | -13.54% | 3.45% |
| FCF Growth % | 2.91% | 56.79% | 13.51% | 93.59% | -33.78% | -39.19% | 45.23% | 921.35% | -80.5% | -10.44% | 34.19% | 1.67% | -25.05% | 44.5% | 67.56% | 3.5% | 7.85% | -36.05% | 106.6% | -19.15% | 84.75% | -32.67% | 606.46% | -163.86% | 574.32% | -86.42% | 694.44% | -585.71% | 103.93% | -545% | - |
| FCF per Share | 5.86 | 6.93 | 4.42 | 3.99 | 2.06 | 3.10 | 5.09 | 3.52 | 0.34 | 1.72 | 2.05 | 1.73 | 1.71 | 2.31 | 1.62 | 0.97 | 0.93 | 0.87 | 1.35 | 0.65 | 0.81 | 0.49 | 0.79 | -0.15 | 0.25 | 0.04 | 0.35 | -0.06 | 0.01 | -0.35 | 0.08 |
| FCF Conversion (FCF/Net Income) | 1.32x | 1.80x | 1.67x | 1.72x | 1.23x | 1.98x | 4.50x | 3.03x | 3.64x | 2.72x | 2.19x | 1.31x | 1.26x | 1.86x | 1.49x | 9.05x | 1.23x | 1.79x | 5.52x | 1.26x | 1.55x | 1.41x | 2.56x | 0.67x | 1.72x | 0.87x | 3.48x | 0.80x | 1.67x | 0.06x | 0.93x |
| Interest Paid | 34.7M | 0 | 0 | 83.5M | 61.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 43.7M | 0 | 112.7M | 143.6M | 91.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying STN stock.
Stantec Inc. (STN) generated $862.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Stantec Inc. (STN) generated $790.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Stantec Inc. (STN) spent $71.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Stantec Inc. (STN) returned $100.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Fixed-price contract cost overruns
Earnings Quality Masked by Working Capital Swings
Stantec's operating cash flow trailed net income in 2026Q2, with OCF/NI at 0.79, per the latest quarterly report, as working capital absorbed $123.2M, suggesting earnings quality is pressured by project timing.
The gap between net income and operating cash flow is pronounced in 2026Q1, where OCF was -$2.3M against $111.1M net income, driven by a $256.5M working capital outflow. This pattern recurs in Q2 quarters, indicating that revenue recognition under percentage-of-completion may not align with cash collections. Investors should monitor whether this is a seasonal pattern or a sign of deteriorating receivables management.
FCF Volatility Masks Underlying Strength
Free cash flow swung from -$23.9M in 2026Q1 to $98.6M in 2026Q2, per reported figures, with FCF margin recovering to 5.5% from -1.2%, reflecting the lumpy nature of project-based cash flows.
The trajectory shows strong FCF in Q4 quarters (e.g., $289.6M in 2025Q4) but weak in Q1 and Q2, suggesting a seasonal pattern tied to working capital cycles. The 2026Q2 FCF of $98.6M is below the year-ago $115.0M, indicating a slight deceleration despite revenue growth. This volatility may obscure the underlying cash generation capacity, which appears stable when annualized.
Working Capital Swings Dominate Cash Flow
Working capital changes consumed $123.2M in 2026Q2 and $256.5M in 2026Q1, as reported in the cash flow statement, indicating that project timing and client payments are the primary drivers of quarterly cash flow variability.
The consistent negative working capital in Q1 and Q2 quarters (e.g., -$112.5M in 2025Q1, -$138.5M in 2024Q2) suggests a seasonal build-up of receivables and unbilled work, likely due to project acceleration. The positive swings in Q4 (e.g., $160.3M in 2024Q4) indicate strong collections at year-end. This pattern implies that Stantec's cash conversion is heavily dependent on the timing of milestone billings, which may be a source of risk if clients delay payments.
Low Capital Intensity Supports FCF
Capital expenditures averaged just 1.1% of revenue in 2026Q2, per the cash flow statement, indicating a low capital intensity typical of engineering services, allowing most operating cash flow to convert to free cash flow.
CapEx has remained modest, ranging from $3.1M to $40.3M per quarter, with no clear growth trend. This suggests that Stantec's asset base is primarily human capital, and maintenance capex is minimal. The low capital intensity supports the company's ability to generate strong FCF margins in quarters with favorable working capital, but it also means that growth is dependent on acquisitions rather than organic capacity expansion.
Buybacks and Acquisitions Shape Cash Allocation
Stantec deployed $175.9M on share repurchases in 2026Q2, per the cash flow statement, while acquisitions consumed $417.1M in 2025Q3, indicating a dual strategy of returning capital and pursuing growth via M&A.
The $175.9M buyback in 2026Q2 is a notable departure from prior quarters, where buybacks were zero, suggesting management may view the stock as undervalued. Acquisitions have been sporadic but significant, with $431.3M in 2024Q1 and $417.1M in 2025Q3, reflecting an ongoing M&A strategy. Dividends have been stable at ~$25M per quarter, indicating a commitment to shareholder returns. The balance between buybacks and acquisitions will be key to future cash flow allocation.
What the Cash Flow Statement Obscures
Stock-based compensation totaled $5.5M in 2026Q2, per the cash flow statement, but acquisition-related costs and capitalized costs may be understated, potentially overstating operating cash flow relative to true economic earnings.
The cash flow statement shows SBC as a non-cash add-back, but the company's frequent acquisitions may involve significant integration costs that are not fully captured in operating cash flow. Additionally, the use of percentage-of-completion accounting may allow for revenue recognition ahead of cash collections, which could inflate reported earnings. Investors should scrutinize the sustainability of cash generation, particularly if acquisition activity continues to require substantial cash outlays.