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.2 - Stantec Inc.'s Unaudited Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Statements of Financial Position
(Unaudited)
March 31,
2026		December 31,
2025
(In millions of Canadian dollars)
Notes$$
ASSETS
Current
Cash and cash equivalents
3a
357.7 398.1 
Trade and other receivables41,348.8 1,306.5 
Unbilled receivables794.8 761.6 
Contract assets132.0 111.2 
Income taxes recoverable118.0 127.5 
Prepaid expenses100.8 66.7 
Other assets518.2 19.2 
Total current assets2,870.3 2,790.8 
Non-current
Property and equipment312.3 308.4 
Lease assets563.8 545.4 
Goodwill

3,270.5 3,221.8 
Intangible assets

561.2 594.5 
Net employee defined benefit asset1288.1 87.4 
Deferred tax assets116.1 115.4 
Other assets5262.4 293.2 
Total assets8,044.7 7,956.9 
LIABILITIES AND EQUITY
Current
Bank indebtedness
6
17.5 29.6 
Trade and other payables
3a
1,017.3 1,125.3 
Lease liabilities106.7 113.6 
Deferred revenue572.0 581.7 
Income taxes payable36.3 26.5 
Long-term debt
6,11
265.5 291.0 
Provisions757.5 46.5 
Other liabilities860.0 51.8 
Total current liabilities2,132.8 2,266.0 
Non-current
Lease liabilities621.0 585.4 
Long-term debt
6,11
1,577.3 1,527.3 
Provisions7187.3 191.2 
Net employee defined benefit liability1220.7 18.9 
Deferred tax liabilities72.0 72.6 
Other liabilities858.2 55.1 
Total liabilities4,669.3 4,716.5 
Total shareholders’ equity3,375.4 3,240.4 
Total liabilities and equity8,044.7 7,956.9 
See accompanying notes

F-1
Stantec Inc.

Interim Condensed Consolidated Statements of Income
(Unaudited)
For the quarter ended
March 31,
20262025
(In millions of Canadian dollars, except per share amounts)
Notes$$
Gross revenue2,067.7 1,923.6 
Less subconsultant and other direct expenses373.4 370.6 
Net revenue1,694.3 1,553.0 
Direct payroll costs12780.2 709.5 
Project margin914.1 843.5 
Administrative and marketing expenses
9,11,12
648.3 612.0 
Depreciation of property and equipment17.7 17.6 
Depreciation of lease assets34.5 32.2 
Amortization of intangible assets42.6 28.7 
Net interest expense and other net finance expense
13
24.1 21.4 
Other expense
140.3 1.6 
Income before income taxes 146.6 130.0 
Income taxes
Current34.5 32.5 
Deferred1.3 (2.6)
Total income taxes35.8 29.9 
Net income for the period110.8 100.1 
Weighted average number of shares outstanding - basic and diluted114,066,995 114,066,995 
Shares outstanding, end of the period114,066,995 114,066,995 
Earnings per share - basic and diluted0.97 0.88 
See accompanying notes

F-2
Stantec Inc.

Interim Condensed Consolidated Statements
of Comprehensive Income
(Unaudited)
For the quarter ended
March 31,
20262025
(In millions of Canadian dollars)
Notes
$$
Net income for the period110.8 100.1 
Other comprehensive income (loss)
Items that may be reclassified to net income in subsequent periods:
Exchange differences on translation of foreign operations1155.4 18.5 
Net unrealized (loss) gain on financial instruments
5,11
(3.3)1.3 
Other comprehensive income for the period, net of tax
52.1 19.8 
Total comprehensive income for the period, net of tax162.9 119.9 
See accompanying notes

F-3
Stantec Inc.

Interim Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited)
Shares
Outstanding
(note 9)
Share
Capital
Contributed
Surplus
Retained
Earnings
Accumulated Other
Comprehensive
Income
Total
(In millions of Canadian dollars, except shares)
#$$$$$
Balance, December 31, 2024114,066,995 1,271.3 5.5 1,370.4 297.9 2,945.1 
Net income100.1 100.1 
Other comprehensive income19.8 19.8 
Total comprehensive income100.1 19.8 119.9 
Dividends declared(25.7)(25.7)
Balance, March 31, 2025114,066,995 1,271.3 5.5 1,444.8 317.7 3,039.3 
Balance, December 31, 2025114,066,995 1,271.3 5.5 1,747.0 216.6 3,240.4 
Net income110.8 110.8 
Other comprehensive income
52.1 52.1 
Total comprehensive income110.8 52.1 162.9 
Dividends declared (note 9)
(27.9)(27.9)
Balance, March 31, 2026114,066,995 1,271.3 5.5 1,829.9 268.7 3,375.4 
See accompanying notes

F-4
Stantec Inc.

Interim Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the quarter ended
March 31,
20262025
(In millions of Canadian dollars)
Notes$$
OPERATING ACTIVITIES
Net income110.8 100.1 
Add (deduct) items not affecting cash:
Depreciation of property and equipment17.7 17.6 
Depreciation of lease assets34.5 32.2 
Amortization of intangible assets42.6 28.7 
Share-based compensation914.1 12.0 
Provisions723.5 21.3 
Other non-cash items10.3 1.3 
253.5 213.2 
Trade and other receivables(33.2)138.4 
Unbilled receivables(34.6)(61.9)
Contract assets(20.8)(11.3)
Prepaid expenses(34.2)(18.3)
Income taxes net recoverable20.4 (0.9)
Trade and other payables and other accruals(144.7)(142.9)
Deferred revenue(8.7)(15.6)
(255.8)(112.5)
Net cash flows (used in) from operating activities
(2.3)100.7 
INVESTING ACTIVITIES
Purchase of investments held for self-insured liabilities5(48.4)(41.4)
Proceeds from sale of investments held for self-insured liabilities572.9 34.5 
Purchase of property and equipment and intangible assets(21.5)(16.1)
Other0.4 1.4 
Net cash flows from (used in) investing activities
3.4 (21.6)
FINANCING ACTIVITIES
Net proceeds from revolving credit facility
674.0 55.0 
Repayment of notes payable and other financing obligations6(57.5)(51.2)
Net repayment of bank indebtedness
(12.1)— 
Net lease payments

(41.9)(33.7)
Payment of dividends to shareholders9(25.7)(23.9)
Net cash flows used in financing activities
(63.2)(53.8)
Foreign exchange gain on cash held in foreign currency
8.7 0.2 
Net (decrease) increase in cash and cash equivalents
(53.4)25.5 
Cash and cash equivalents, December 31, 2025 as originally presented
398.1 — 
Impact of change in accounting policy on January 1, 2026
3a
13.0 — 
Revised cash and cash equivalents, beginning of the period
411.1 228.5 
Cash and cash equivalents, end of the period357.7 254.0 
See accompanying notes

F-5
Stantec Inc.


Index to the Notes to the Unaudited Interim Condensed Consolidated Financial StatementsNote Page
F-7
F-7
F-7
4
F-8
5
F-9
6
F-9
7
F-11
8
F-11
9
F-11
10
F-12
11
F-13
12
F-15
13
F-15
14
Other Expense
F-16
15
F-16
16
F-17
17
F-18
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-6
Stantec Inc.

Notes to the Unaudited Interim Condensed
Consolidated Financial Statements

1.Corporate Information
The interim condensed consolidated financial statements (consolidated financial statements) of Stantec Inc., its subsidiaries, and its structured entities (the Company) for the quarter ended March 31, 2026, were authorized for issuance in accordance with a resolution of the Company’s Audit and Risk Committee on May 13, 2026. The Company was incorporated under the Canada Business Corporations Act on March 23, 1984. Its shares are traded on the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE) under the symbol STN. The Company’s registered office is located at Suite 300, 10220 - 103 Avenue, Edmonton, Alberta. The Company is domiciled in Canada.

Stantec is a global leader in sustainable engineering, architecture, and environmental consulting. Our professionals deliver the expertise, technology, and innovation communities need to manage aging infrastructure, demographic and population changes, the energy transition, and more. The Company’s services include engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics, from initial project concept and planning through to design, construction administration, commissioning, maintenance, decommissioning, and remediation.

2.Basis of Preparation
These consolidated financial statements for the quarter ended March 31, 2026 were prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. These consolidated financial statements do not include all information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Company’s December 31, 2025 annual consolidated financial statements. These consolidated financial statements are presented in Canadian dollars and all values are rounded to the nearest million ($000,000), except where otherwise indicated.

The accounting policies applied when preparing the Company’s consolidated financial statements are consistent with those followed when preparing the annual consolidated financial statements for the year ended December 31, 2025 except as described in note 3.

The preparation of these consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses, assets, and liabilities. The significant judgments made by management when applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Company’s December 31, 2025 annual consolidated financial statements.

3.Recent Accounting Pronouncements and Changes to Accounting Policies
a) Recent adoptions
On January 1, 2026, the Company adopted the International Accounting Standards Board (IASB) issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) on a retrospective basis. The amendments clarify that financial liabilities are derecognized on the settlement date, subject to an accounting policy choice for certain financial liabilities settled through an electronic payment system; clarify the classification and measurement requirements for financial assets with Environmental, Social, and Governance linked and non-recourse features; and add certain disclosure requirements.

Adopting the amendments resulted in a change in the accounting policy for derecognition of liabilities settled with cash. Previously, the Company derecognized liabilities settled with cash on payment instruction. Under the new policy, the Company has elected to apply the optional exception to derecognize financial liabilities settled through
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-7
Stantec Inc.

qualifying electronic payment systems on payment instruction, while financial liabilities settled through other methods are derecognized on settlement.

The amendments apply retrospectively; however, the Company was not required to restate prior periods to reflect their application under transitional provisions. The adjustment to cash and cash equivalents and trade and other payables at January 1, 2026 is reflected in the consolidated statements of cash flows. The amendments did not have any other material effects on the consolidated financial statements of the Company.

b) Future adoptions
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1 Presentation of Financial Statements and will be accompanied by limited amendments to IAS 7 Statement of Cash Flows, IAS 33 Earnings per Share, and IAS 34 Interim Financial Reporting. IFRS 18 will introduce a defined structure for the statement of profit or loss and add disclosures about management-defined performance measures (MPMs) and new principles for aggregation and disaggregation of information. The standard will be effective for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted.

The Company is currently assessing the impact of these new and amended accounting standards on its presentation and disclosure. The most significant expected impacts identified through its preliminary assessment are described below:
•Statement of Income or Loss: Although the adoption of IFRS 18 will have no impact on the Company’s net income or loss, the presentation of the Company’s consolidated statements of income or loss will change, including the reclassification of income and expenses into operating, investing, and financing categories and the presentation of two new subtotals, ‘operating profit or loss’ and ‘profit or loss before financing and income taxes’.
•Statement of Cash Flows: The consequential amendments to IAS 7 will result in a change to the starting point for determining cash flows from operations from ‘net income or loss’ to ‘operating profit or loss’, as well as the reclassification of interest and dividends received and interest paid from operating activities to investing and financing activities, respectively.
•Notes to the Financial Statements: Certain financial measures and related information currently reported as ‘Non-IFRS and Other Financial Measures’ in the Company’s management discussion & analysis are expected to be MPMs under IFRS 18, resulting in additional disclosures in the notes to the consolidated financial statements.

The actual impacts of adopting the new and amended accounting standards on January 1, 2027 may change as the Company has not finalized its assessment.

4.Trade and Other Receivables
March 31,
2026		December 31,
2025
$$
Trade receivables, net of expected credit losses of $4.0 (2025 – $3.0)
1,283.4 1,260.2 
Holdbacks and other47.6 31.8 
Insurance receivables17.8 14.5 
Trade and other receivables1,348.8 1,306.5 

The aging analysis of gross trade receivables is as follows:
Total1–3031–6061–9091–120121+
$$$$$$
March 31, 20261,287.4 778.7 257.1 90.5 51.8 109.3 
December 31, 20251,263.2 741.2 274.7 106.1 41.0 100.2 

Information about the Company’s exposure to credit risks for trade and other receivables is included in note 11.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-8
Stantec Inc.

5.Other Assets

March 31,
2026		December 31,
2025
Notes
$$
Financial assets
Investments held for self-insured liabilities
10
189.2 215.1 
Holdbacks on long-term contracts23.8 26.1 
Derivative financial instruments
10,11
13.2 16.2 
Insurance recovery assets5.1 5.1 
Other34.1 33.8 
Non-financial assets
Other15.2 16.1 
280.6 312.4 
Less current portion - financial16.5 17.6 
Less current portion - non-financial1.7 1.6 
Long-term portion262.4 293.2 

Financial assets — Other primarily includes sublease receivables and deposits. Non-financial assets — Other primarily includes transaction costs on long-term debt, investment tax credits, and investments in joint ventures and associates.

Investments held for self-insured liabilities include government and corporate bonds that are classified as fair value through other comprehensive income with unrealized gains (losses) recorded in other comprehensive income. Investments also include equity securities that are classified as fair value through profit and loss with gains (losses) recorded in net income.

6.Long-Term Debt
March 31,
2026		December 31,
2025
$$
Senior unsecured notes971.8 971.6 
Revolving credit facilities
90.0 16.0 
Term loan and bilateral facilities407.7 407.5 
Notes payable342.3 364.7 
Other financing obligations31.0 58.5 
1,842.8 1,818.3 
Less current portion265.5 291.0 
Long-term portion1,577.3 1,527.3 

Senior unsecured notes
The Company's senior unsecured notes (the notes) consist of:
•$300 of notes that mature on October 8, 2027, bearing interest at a fixed rate of 2.048% per annum;
•$250 of notes that mature on June 27, 2030, bearing interest at a fixed rate of 5.393% per annum; and
•$425 of notes that mature on June 10, 2032, bearing interest at a fixed rate of 4.374% per annum.

The notes rank pari passu with all other debt and future indebtedness of the Company.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-9
Stantec Inc.


Revolving credit, term loan, and bilateral facilities
The Company has syndicated senior credit facilities, structured as a sustainability-linked loan, consisting of an unsecured senior revolving credit facility in the maximum amount of $1.2 billion, unsecured senior term loan of $310 in two tranches, and access to additional funds of $600, subject to approval and under the same terms and conditions. The senior revolving credit and term loan facilities may be repaid from time to time at the option of the Company and mature at various dates before June 11, 2030.

The funds available under the senior revolving credit facility are reduced by overdrafts and outstanding letters of credit issued pursuant to the facility agreement. At March 31, 2026, $1,101.7 (December 31, 2025 - $1,164.1) was available under the senior revolving credit facility.

The Company also has unsecured bilateral credit facilities, including a term facility of $100 maturing on June 26, 2026, and a revolving facility of US$100 maturing on July 15, 2027.

The average interest rate for the revolving credit facilities and term loan facilities at March 31, 2026, was 3.81% (December 31, 2025 – 3.77%).

The Company is subject to restrictive covenants related to its revolving credit facility, term loan and bilateral facilities, and senior unsecured notes, which are measured quarterly. These covenants are consistent with those disclosed in the Company’s annual consolidated financial statements for the year ended December 31, 2025. The Company was in compliance with these covenants as at and throughout the quarter ended March 31, 2026.

Bank indebtedness
The Company has an uncommitted unsecured multicurrency credit facility of up to £20 and an overdraft facility of up to AU$5, repayable on demand. Bank indebtedness also includes overdrafts drawn under the terms of the Company’s syndicated senior credit facilities.

Notes payable and other finance obligations
Notes payable consists primarily of notes payable for acquisitions and are due at various times from 2026 to 2028. Repayment is contingent on selling shareholders complying with the terms of the acquisition agreements.

The Company has other financing obligations for software (included in intangible assets), equipment, and leasehold improvements. These obligations expire at various dates before February 2029.

Letter of credit and surety facilities
The Company issues letters of credit within its revolving credit facility and has separate facilities outside of its revolving credit facility that provide letters of credit. The Company also enters into bonds for certain projects.

Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-10
Stantec Inc.

7.Provisions
Self-insured
liabilities
ClaimsLease
restoration		Onerous contractsTotal
$$$$$
January 1, 2026
119.1 63.9 35.5 19.2 237.7 
Current period provisions10.7 22.1 1.0 3.2 37.0 
Paid or otherwise settled(14.3)(11.6)(0.6)(6.0)(32.5)
Impact of foreign exchange1.3 0.9 0.3 0.1 2.6 
116.8 75.3 36.2 16.5 244.8 
Less current portion10.4 34.1 4.3 8.7 57.5 
Long-term portion106.4 41.2 31.9 7.8 187.3 

8.Other Liabilities
March 31,
2026		December 31,
2025
$$
Cash-settled share-based compensation90.6 81.1 
Other27.6 25.8 
118.2 106.9 
Less current portion60.0 51.8 
Long-term portion58.2 55.1 

9.Share Capital
Authorized
UnlimitedCommon shares, with no par value
UnlimitedPreferred shares issuable in series, with attributes designated by the board of directors

Common shares
The Company has approval to repurchase up to 2,281,339 common shares during the period March 12, 2026 to March 11, 2027, and an Automatic Share Purchase Plan (ASPP) which allows a broker, in its sole discretion and based on the parameters established by the Company, to purchase common shares for cancellation under the Normal Course Issuer Bid (NCIB) at any time during predetermined trading blackout periods. During the first quarter of 2026 and 2025, no shares were repurchased for cancellation. As at March 31, 2026 and December 31, 2025, no liability was recorded in the Company’s consolidated statements of financial position in connection with the ASPP.

Dividends
Holders of common shares are entitled to receive dividends when declared by the Company’s board of directors. The table below describes the dividends paid in 2026:
Dividend per SharePaid
Date DeclaredRecord DatePayment Date$$
November 13, 2025December 31, 2025January 15, 20260.225 25.7 
February 25, 2026March 31, 2026April 15, 20260.245 — 

At March 31, 2026, trade and other payables included $27.9 related to the dividends declared on February 25, 2026.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-11
Stantec Inc.


Share-based payment transactions
During the first quarter of 2026, the Company recognized a net share-based compensation expense of $14.1 (March 31, 2025 - $12.0) in administrative and marketing expenses in the consolidated statements of income, comprised of share-based compensation expense of $9.7 (March 31, 2025 - $17.2) and a hedge impact of $4.4 (March 31, 2025 - offset by a hedge impact of $5.2) (note 11).

10. Fair Value Measurements
All financial instruments carried at fair value are categorized into one of the following:
•Level 1 – quoted market prices
•Level 2 – valuation techniques (market observable)
•Level 3 – valuation techniques (non-market observable)
When forming estimates, the Company uses the most observable inputs available for valuation purposes. If a fair value measurement reflects inputs of different levels within the hierarchy, the financial instrument is categorized based on the lowest level of significant input.

When determining fair value, the Company considers the principal or most advantageous market in which it would transact and the assumptions that market participants would use when pricing the asset or liability. The Company measures certain financial assets and liabilities at fair value on a recurring basis.

For financial instruments recognized at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorizations at the end of each reporting period.

In the first quarter of 2026, no changes were made to the method of determining fair value and no transfers were made between levels of the hierarchy.

The following tables summarize the Company’s fair value hierarchy for those assets and liabilities measured and adjusted to fair value on a recurring basis:
Carrying
Amount		Level 1Level 2Level 3
At March 31, 2026
Notes$$$$
Assets
Investments held for self-insured liabilities5189.2 — 189.2 — 
Derivative financial instruments
5,11
13.2 — 13.2 — 
Liabilities
Notes payable
6
342.3 — — 342.3 
Derivative financial instruments
8,11
5.9 5.9 
At December 31, 2025
Assets
Investments held for self-insured liabilities
5
215.1 — 215.1 — 
Derivative financial instruments
5,11
16.2 — 16.2 — 
Liabilities
Notes payable
6
364.7 — — 364.7 
Derivative financial instruments
11
3.8 — 3.8 — 

Investments held for self-insured liabilities consist of government and corporate bonds and equity securities. Fair value of bonds is determined using observable prices of debt with characteristics and maturities that are similar to the bonds being valued. Fair value of equities is determined using the reported net asset value per share of the
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-12
Stantec Inc.

investment funds. The funds derive their value from observable quoted prices of the equities owned that are traded in an active market.

The fair value of notes payable includes a forfeiture assumption which is not based on observable market data and as such, the valuation method is classified as level 3 in the fair value hierarchy. The forfeiture assumption is based on historical forfeiture experience, which has not been significant. For payments with terms greater than one year, the estimated liability is discounted using market rates of interest.

The following tables summarize the Company’s fair value hierarchy for those liabilities that were not measured at fair value but are required to be disclosed at fair value on a recurring basis:
Carrying
Amount		Level 1Level 2Level 3
At March 31, 2026
Note$$$$
Senior unsecured notes6971.8 — 986.0 — 
At December 31, 2025
Senior unsecured notes6971.6 — 979.4 — 

The fair value of senior unsecured notes is determined by calculating the present value of future payments using observable benchmark interest rates and credit spreads for debt with similar characteristics and maturities.
11.Financial Instruments
Total return swaps on share-based compensation units
The Company has total return swap (TRS) agreements with financial institutions to manage its exposure to changes in the fair value of the Company's shares for certain cash-settled share-based payment obligations. The Company has designated the TRSs related to its restricted share units (RSUs) as a cash flow hedge, with a notional amount of $31.7 maturing between 2026 and 2028. The fair value of the TRSs are based on the difference between the hedged price and the fair value of the Company’s common shares and are recorded in other assets and other liabilities (notes 5 and 8).

As at March 31, 2026, the TRSs related to the Company's RSUs had a fair value of $3.4 (December 31, 2025 - $6.1). During the first quarter of 2026, a loss of $2.7 ($2.0 net of tax) (March 31, 2025 - gain of $2.1 ($1.6 net of tax)) was recognized in other comprehensive income and a loss of $1.2 (March 31, 2025 - gain of $2.3) was reclassified to the consolidated statements of income in administrative and marketing expenses. The TRSs related to the Company's performance share units (PSUs) and deferred share units (DSUs), for which hedge accounting was not applied, had an aggregate fair value of $3.8 at March 31, 2026 (December 31, 2025 - $7.0) and a net unrealized loss of $3.2 (March 31, 2025 – net unrealized gain of $2.9) which was recognized in administrative and marketing expenses in the consolidated statements of income.

Credit risk
Assets that subject the Company to credit risk consist primarily of cash and cash equivalents, trade and other receivables, unbilled receivables, contract assets, investments held for self-insured liabilities, holdbacks on long-term contracts, and other financial assets. The Company’s maximum amount of credit risk exposure is limited to the carrying amount of these assets, which at March 31, 2026, was $2,898.7 (December 31, 2025 – $2,873.7).

The Company limits its exposure to credit risk by placing its cash and cash equivalents in high-quality credit institutions. Investments held for self-insured liabilities include corporate bonds and equity securities. The Company believes the risk associated with corporate bonds and equity securities is mitigated by the overall quality and mix of the Company’s investment portfolio. Virtually all bonds held by the Company are investment grade, and none are past due. The Company monitors changes in credit risk by tracking published external credit ratings.

The Company mitigates the risk associated with trade and other receivables, unbilled receivables, contract assets, and holdbacks on long-term contracts by providing services to diverse clients in various industries and sectors of the economy. In addition, management reviews trade and other receivables past due on an ongoing basis to identify
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-13
Stantec Inc.

matters that could potentially delay the collection of funds at an early stage. The Company does not concentrate its credit risk in any particular client, industry, or economic sector.

The Company monitors trade receivables to an internal target of days of revenue in trade receivables. At March 31, 2026, the days of revenue in trade receivables was 58 days (December 31, 2025 – 55 days).

Price risk
The Company’s investments held for self-insured liabilities are exposed to price risk arising from changes in the market values of the equity securities. This risk is mitigated because the portfolio of equity funds is monitored regularly and appropriately diversified. For the Company's investments held for self-insured liabilities, a 5% increase or decrease in equity prices at March 31, 2026, would increase or decrease the Company’s net income by $2.5 (March 31, 2025 - $2.8), respectively.

The Company is also exposed to changes in its share price arising from its cash-settled share-based payments as the Company's obligation under these arrangements are based on the price of the Company's shares. The Company mitigates a portion of its exposure to this risk for its PSUs, RSUs, and DSUs by entering into TRSs.

Liquidity risk
The Company meets its liquidity needs through various sources, including cash generated from operations, issuing senior unsecured notes, borrowings from its $1.2 billion senior revolving credit facility, US$100 bilateral revolving credit facility, term loan and bilateral facilities, multicurrency and overdraft credit facilities, and the issuance of common shares. The unused capacity of the credit facilities at March 31, 2026, was $1,265.3 (December 31, 2025 – $1,325.4) and the Company also has access to additional funds of $600 under its syndicated credit facilities (note 6). The Company believes that it has sufficient resources to meet obligations associated with its financial liabilities.

Interest rate risk
The Company is subject to interest rate cash flow risk to the extent that its credit and term loan facilities are based on floating interest rates. The Company is also subject to interest rate pricing risk to the extent that its investments held for self-insured liabilities include fixed-rate government and corporate bonds. If the interest rate on the Company’s credit and term loan facilities at March 31, 2026, was 1% higher or lower, with all other variables held constant, net income would decrease or increase by $1.0 (March 31, 2025 - $1.4), respectively.

Foreign exchange risk
Foreign exchange risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Foreign exchange gains or losses in net income arise on the translation of foreign currency-denominated assets and liabilities (such as trade and other receivables, bank indebtedness, trade and other payables, and long-term debt) held in the Company's Canadian operations and foreign subsidiaries. The Company manages its exposure to foreign exchange fluctuations on these items by matching foreign currency assets with foreign currency liabilities and through the use of foreign currency forward contracts.

Foreign exchange fluctuations may also arise on the translation of foreign subsidiaries, where the functional currency is different from the Canadian dollar, and are recorded in other comprehensive income. During the first quarter of 2026, the Company recorded exchange differences on translation of foreign operations of $55.4 through other comprehensive income (loss), of which $41.8 related to goodwill. The Company does not hedge for this foreign exchange risk.

Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-14
Stantec Inc.

12.Employee Costs
For the quarter ended
March 31,
20262025
Notes
$$
Wages, salaries, and benefits1,231.7 1,125.3 
Pension costs36.7 33.4 
Net share-based compensation
9
14.1 12.0 
Total employee costs1,282.5 1,170.7 
Direct labor780.2 709.5 
Indirect labor502.3 461.2 
Total employee costs1,282.5 1,170.7 

Direct labor costs include salaries, wages, and related fringe benefits (including pension costs) for labor hours directly associated with the completion of projects. Bonuses, share-based compensation, termination payments, and salaries, wages, and related fringe benefits (including pension costs) for labor hours not directly associated with the completion of projects are included in indirect labor costs. Indirect labor costs are included in administrative and marketing expenses in the consolidated statements of income.

Employee defined benefit plans - conversion of bulk annuity
In February 2026, the Company converted its bulk buy-in annuity policy for a section of the UK pension scheme into buy-out annuity contracts. This conversion settled $103.1 of the Company’s defined benefit obligation and reduced the related plan assets by an equal amount. As a result, there was no net impact on the Company’s net employee defined benefit asset, net income, other comprehensive income, or cash flows.

13.Net Interest Expense and Other Net Finance Expense
For the quarter ended
March 31,
20262025
$$
Total net interest expense23.8 21.0 
Other net finance expense0.3 0.4 
Net interest expense and other net finance expense24.1 21.4 

Interest expense on the Company’s long-term debt and bank indebtedness for the first quarter of 2026 was $19.6 (March 31, 2025 – $15.5) (note 6). Interest on lease liabilities during the first quarter of 2026 was $8.7 (March 31, 2025 - $7.4).

Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-15
Stantec Inc.

14.Other Expense
For the quarter ended
March 31,
20262025
$$
Realized gain on investments(5.5)(7.3)
Unrealized loss on equity securities
7.9 8.7 
Other(2.1)0.2 
Total other expense
0.3 1.6 

15.Cash Flow Information
A reconciliation of liabilities arising from financing activities for the quarter ended March 31, 2026, is as follows: 
Senior Unsecured Notes
Revolving Credit,
Term Loan, Bilateral Facilities
Notes
Payable		Other Financing ObligationsLease LiabilitiesTotal
$$$$ $$
January 1, 2026
971.6 423.5 364.7 58.5 699.0 2,517.3 
Statement of cash flows
Net proceeds (repayments)— 74.0 (27.5)(30.0)(41.9)(25.4)
Non-cash changes
Foreign exchange— — 4.7 0.4 7.3 12.4 
Additions and modifications— — — 1.9 62.8 64.7 
Other0.2 0.2 0.4 0.2 0.5 1.5 
March 31, 2026971.8 497.7 342.3 31.0 727.7 2,570.5 


A reconciliation of liabilities arising from financing activities for the quarter ended March 31, 2025, is as follows: 
Senior Unsecured Notes
Revolving Credit,
Term Loan, Bilateral Facilities
Notes
Payable		Other Financing ObligationsLease LiabilitiesTotal
$$$$$$
January 1, 2025
548.1 661.6 116.8 57.0 642.2 2,025.7 
Statement of cash flows
Net proceeds (repayments)— 55.0 (29.1)(22.1)(33.7)(29.9)
Non-cash changes
Foreign exchange— — 1.8 — 3.5 5.3 
Additions and modifications— — — 17.3 17.1 34.4 
Other0.1 0.5 (0.2)0.5 0.9 1.8 
March 31, 2025548.2 717.1 89.3 52.7 630.0 2,037.3 

Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-16
Stantec Inc.

For the quarter ended
March 31,
20262025
$$
Supplemental disclosure
Income taxes paid, net of recoveries
9.1 31.9 
Interest paid, net of receipts
13.4 15.7 

16.Segmented Information
The Company provides comprehensive professional services worldwide. It considers the basis on which it is organized, including geographic areas, to identify its reportable segments. Operating segments of the Company are defined as components of the Company for which separate financial information is available and are evaluated regularly by the chief operating decision maker when allocating resources and assessing performance. The Company’s operating segments are based on its regional geographic areas.

The Company’s reportable segments are Canada, United States, and Global. These reportable segments provide professional consulting in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics services in the area of infrastructure and facilities.

Segment performance is evaluated by the chief operating decision maker based on project margin and is measured consistently with project margin in the consolidated financial statements. Reconciliations of project margin to net income before taxes is included in the consolidated statements of income.

Reportable segments

For the quarter ended March 31, 2026
CanadaUnited StatesGlobalConsolidated
$$$$
Gross revenue from external customers433.9 1,135.7 498.1 2,067.7 
Less subconsultants and other direct expenses
    and net revenue inter-segment allocations		57.6 243.2 72.6 373.4 
Total net revenue376.3 892.5 425.5 1,694.3 
Direct payroll costs179.5 400.7 200.0 780.2 
Project margin196.8 491.8 225.5 914.1 


For the quarter ended March 31, 2025
CanadaUnited StatesGlobalConsolidated
$$$$
Gross revenue from external customers425.7 1,051.8 446.1 1,923.6 
Less subconsultants and other direct expenses
    and net revenue inter-segment allocations		53.6 246.9 70.1 370.6 
Total net revenue372.1 804.9 376.0 1,553.0 
Direct payroll costs172.6 361.2 175.7 709.5 
Project margin199.5 443.7 200.3 843.5 


Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-17
Stantec Inc.

The following tables disclose the disaggregation of non-current assets by geographic area and revenue by geographic area and services:

Geographic information
Non-Current AssetsGross Revenue
March 31,December 31,For the quarter ended
March 31,
2026202520262025
$$$$
Canada662.1 664.8 433.9 425.7 
United States2,799.4 2,766.8 1,135.7 1,051.8 
United Kingdom357.8 363.8 194.5 167.7 
Australia330.6 321.1 102.2 92.6 
Other geographies557.9 553.6 201.4 185.8 
4,707.8 4,670.1 2,067.7 1,923.6 

Non-current assets consist of property and equipment, lease assets, goodwill, and intangible assets. Geographic information is attributed to countries based on the location of the assets.

Gross revenue is attributed to countries based on the location of the project.

Gross revenue by services
For the quarter ended
March 31,
20262025
$$
Buildings538.2 435.0 
Infrastructure506.3 514.4 
Water462.6 422.8 
Environmental Services343.3 344.8 
Energy & Resources217.3 206.6 
Total gross revenue from external customers2,067.7 1,923.6 

Performance will fluctuate quarter to quarter. The first and fourth quarters historically have lower revenue generation and project activity because of holidays and weather conditions in the northern hemisphere. Despite this quarterly fluctuation, the Company has concluded that it is not highly seasonal in accordance with IAS 34.

Customers
The Company has a large number of clients in various industries and sectors of the economy. No individual customer exceeds 10% of the Company’s gross revenue.

17.Events after the Reporting Period
UK pension scheme
In April 2026, the Company entered into a bulk annuity policy for another section of the UK pension scheme. Future cash flows from this bulk annuity will match the amount and timing of certain benefits payable under the scheme. The bulk annuity does not extinguish the Company's risks and obligations under the plan.

Dividends
On May 13, 2026, the Company declared a dividend of $0.245 per share, payable on July 15, 2026, to shareholders of record on June 30, 2026.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
In millions of Canadian dollars except number of shares and per share data
March 31, 2026
F-18
Stantec Inc.