Covid-19 and this ‘exceptional year’ puts dampers on Stantec’s revenue and profit growth in 2020, but management is more than happy with small retractions.
The 22,000-strong Edmonton-headquartered engineering and consultancy firm, Stantec, has reported its financial results for the 2020 calendar year. Stantec CEO Gord Johnston used the platform to celebrate the firm’s "record earnings" and much improved share price, but arguably the firm’s ability to maintain revenues, profit margins and order book - in the COVID year - should be seen as the major victory.
Investors have clearly reacted well to Stantec’s management of their finances throughout the pandemic. In the four years prior to the outbreak of COVID-19 (2016-2019), Stantec’s share price averaged around C$31, but this week it is hovering at around C$51 after huge gains were made throughout 2020 and the early part of this year. Stock has risen 21% alone since the start of 2021. Investors clearly see Stantec as a safe haven during these uncertain times.