Stantec Inc (STN) 2023 Q4 法說會逐字稿

Welcome to Stantec's year-end and fourth-quarter 2023 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 on the Investors section at stantec.com.

歡迎參加 Stantec 2023 年終及第四季業績網路直播及電話會議。今天主持電話會議的是總裁兼執行長 Gord Johnston 和執行副總裁兼財務長 Theresa Jang。Stantec邀請所有撥入電話會議的人士觀看幻燈片演示，該演示可在stantec.com網站的投資者專區找到。

Today's call is also webcast. Please be advised that if you have dialed in while also viewing the webcast, you should (inaudible) 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, qualifications set out on slide 2, detailed and Stantec management discussion and analysts and incorporated in full for the purposes of today's call.

今天的電話會議也進行了網路直播。請注意，如果您在撥打電話的同時觀看網路直播，您應該（聽不清楚）調整您的電腦，因為通話和網路直播之間存在延遲。本次電話會議中提供的所有資訊均受第 2 頁幻燈片中列出的前瞻性聲明、限定條件、詳細內容以及 Stantec 管理層和分析師的討論的約束，並已完整納入本次電話會議。

Unless otherwise noted, dollar amounts discussed on today's call are expressed in Canadian dollars and are generally rounded.

除非另有說明，今天電話會議中討論的金額均以加元表示，並且通常會進行四捨五入。

With that, I'm pleased to turn the call over to Mr. Gord Johnston.

接下來，我很高興將電話交給戈德約翰斯頓先生。

Good morning, and thank you for joining us today. 2023 was a remarkable year for Stantec, and I'm very proud of what we accomplished. We achieved record financial results and delivered our best year ever for organic net revenue growth. We grew our employee base by 5% through organic hires, another record, while maintaining our best-in-class employee retention rates. And for our fifth consecutive year, Stantec has been ranked by Corporate Knights as the top 10 global leader in sustainability. And once again, we ranked first amongst our peers.

早安，感謝各位今天蒞臨。 2023年對Stantec來說是意義非凡的一年，我為我們所取得的成就感到非常自豪。我們取得了創紀錄的財務業績，並實現了有史以來最好的有機淨收入成長。我們透過自然招聘使員工人數增加了 5%，並創下了一項紀錄，同時保持了業內最佳的員工留任率。Stantec 連續第五年被 Corporate Knights 評為全球十大永續發展領導者之一。我們再次在同行中名列第一。

None of this would have been possible without the dedication, passion and commitment of our employees, and I'd like to thank each individual for their contributions. We started 2024 strong from an M&A perspective and have already closed both the ZETCON and the Morrison Hershfield acquisitions. These are the most top-in-class firms. And with the addition of their talented employees to the Stantec team, we are now sitting at over 30,000 people around the world. Closing these acquisitions early in the year helps us jumpstart our new 2024 to 2026 strategic plan.

如果沒有我們員工的奉獻、熱情和投入，這一切都不可能實現，我要感謝每一位員工的貢獻。從併購的角度來看，我們在 2024 年伊始就勢頭強勁，已經完成了對 ZETCON 和 Morrison Hershfield 的收購。這些都是業界頂尖的公司。隨著他們優秀員工的加入，Stantec 團隊現在在全球擁有超過 30,000 名員工。今年年初完成這些收購有助於我們快速啟動新的 2024 年至 2026 年策略計畫。

Turning to our 2023 financial results. Overall, we grew net revenue by 14% year over year, with almost 10% coming from organic growth. Market demand in 2023 was particularly robust in our water and environmental service business units and in the US, with each delivering double-digit growth for the year. Our strong operational performance drove record high adjusted EBITDA of $831 million and an EBITDA margin of 16.4%. And as a result, we delivered significant adjusted EPS growth of 17%, achieving a record high of $3.67.

接下來來看看我們2023年的財務表現。總體而言，我們的淨收入年增了 14%，其中近 10% 來自內生成長。2023 年，我們的水務和環境服務業務部門以及美國市場需求尤為強勁，這兩個部門全年均實現了兩位數的成長。我們強勁的營運業績推動調整後 EBITDA 達到創紀錄的 8.31 億美元，EBITDA 利潤率為 16.4%。因此，我們實現了 17% 的顯著調整後每股收益成長，創下 3.67 美元的歷史新高。

Our US business achieved very strong results, with over 18% growth in net revenue for the year, more than 12% of which came from organic growth. In 2023, we achieved an organic growth in every one of our business units with water, building and energy and resources each delivering double-digit organic growth. The demand in the public sector and industrial projects as well as large-scale water security projects drove a 25% increase in organic growth for our water business.

我們的美國業務取得了非常強勁的業績，全年淨收入成長超過 18%，其中超過 12% 來自內生成長。2023年，我們所有業務部門都實現了有機成長，其中水務、建築、能源和資源等業務部門均實現了兩位數的有機成長。公共部門和工業項目以及大型水安全項目的需求推動了我們水務業務的有機成長 25%。

Our buildings business benefited from higher activity levels in healthcare, industrial and science and technology projects, and energy and resources continue to support Puerto Rico's hurricane recovery, including the upgrading of its power grid, contributing to solid revenue growth. So overall, a very, very solid year for our US operation.

我們的建築業務受益於醫療保健、工業和科技項目活動的增加，能源和資源繼續支持波多黎各的颶風災後重建，包括電網升級，從而促進了收入的穩健增長。總的來說，對於我們在美國的業務而言，這是非常非常穩健的一年。

In Canada, we achieved greater than 8% organic net revenue growth, which surpassed our expectations for the year. Environmental services, infrastructure and water each delivered double-digit organic growth. Strong demand for permitting and archaeological work drove growth for environmental services, particularly in Western Canada for the midstream energy sector and in Ontario for large-scale transportation projects.

在加拿大，我們實現了超過 8% 的有機淨收入成長，超出了我們對今年的預期。環境服務、基礎設施和水務產業均實現了兩位數的有機成長。對許可和考古工作的強勁需求推動了環境服務的成長，尤其是在加拿大西部的中游能源產業和安大略省的大型交通項目方面。

Activity on environmental impact assessments in the renewable energy sector also contributed to revenue growth. Infrastructure revenue growth was driven by heightened activities around bridge and roadway work in Western Canada. And our expertise on large wastewater infrastructure projects drove growth in water, especially from work on the Iona BC and the Barrie, Ontario wastewater treatment facilities.

再生能源領域環境影響評估活動也促進了收入成長。基礎設施收入成長主要得益於加拿大西部橋樑和道路工程活動的增加。我們在大型污水基礎設施專案方面的專業知識推動了水務業務的成長，特別是來自卑詩省艾奧納和安大略省巴里污水處理廠的專案。

Moving to global, we delivered 6.5% organic growth, driven by double-digit growth in water and energy and resources. Our industry-leading water business remains very active, supporting long-term framework agreements and investments in water infrastructure in the UK, New Zealand and Australia.

放眼全球，我們實現了 6.5% 的有機成長，這主要得益於水資源、能源和資源領域兩位數的成長。我們行業領先的水務業務仍然非常活躍，支持英國、紐西蘭和澳洲的水利基礎設施長期框架協議和投資。

In energy and resources, double-digit organic growth was driven by the advancement of our work on the Coire Glas pump storage energy project and increased activity related to the National Grid framework in the UK. [ESR] are also continued their work on mining activities around copper and other metals that support the energy transition.

在能源和資源領域，兩位數的內生成長主要得益於我們在Coire Glas抽水蓄能計畫上的進展以及與英國國家電網框架相關的業務活動的增加。 [ESR] 也持續進行銅礦和其他支持能源轉型金屬的開採活動。

And now I'll turn the call over to Theresa to review our financial results in more detail.

現在我將把電話交給特蕾莎，讓她更詳細地回顧我們的財務表現。

Thanks, Gord. Good morning, everyone. We closed out the year with a solid quarter of performance in Q4, contributing to another record year for Stantec. In Q4, gross revenue was up 6% compared to Q4 22 at $1.6 billion, while net revenue was up 10% at $1.2 billion. Project margin was right in the middle of our targeted range of 53% to 55%, but decreased 100 basis points compared to Q4 last year, in part due to changes in project mix in the US. This, along with the quarter's 90 basis point impact from the revaluation of our long-term incentive plan, contributed to the reduction in adjusted EBITDA margin to 15.7%.

謝謝你，戈爾德。各位早安。我們在第四季取得了穩健的業績，為全年畫上了圓滿的句號，也助力 Stantec 再創佳績。第四季度，總營收較 2022 年第四季成長 6%，達到 16 億美元；淨收入成長 10%，達到 12 億美元。專案利潤率正好處於我們 53% 至 55% 的目標範圍內，但與去年第四季相比下降了 100 個基點，部分原因是美國專案組合的變化。這一點，加上本季長期激勵計畫重新評估帶來的 90 個基點的影響，導致調整後的 EBITDA 利潤率下降至 15.7%。

Diluted EPS in the quarter was $0.66 and adjusted diluted EPS was $0.82, both consistent with last year. Excluding the effect of the asset revaluation, our Q4 adjusted EPS was $0.90. Turning to our full-year 2023 results, we generated gross revenue of $6.5 billion and net revenue of $5.1 billion, a 14% increase for both over 2022. Project margin for 2023 was a solid 54.2%, consistent with last year. And adjusted EBITDA increased by 15% to $831 million.

本季稀釋後每股收益為 0.66 美元，調整後稀釋後每股收益為 0.82 美元，均與去年同期持平。剔除資產重估的影響，我們第四季調整後的每股盈餘為 0.90 美元。展望 2023 年全年業績，我們實現了 65 億美元的總收入和 51 億美元的淨收入，均比 2022 年增長了 14%。2023 年專案利潤率為 54.2%，與去年持平。調整後 EBITDA 成長 15% 至 8.31 億美元。

We increased our adjusted EBITDA margin by 20 basis points to 16.4% within our targeted range. This was despite a 70 basis point impact from LTF revaluation, resulting from the 64% depreciation in our share price for the year. Excluding this, adjusted EBITDA margin was 17.1%. Our full-year diluted earnings per share reached a record high of $2.98, and our adjusted diluted EPS was $3.67, up 34% and 17%, respectively despite the $0.24 unfavorable impact from the LTF revaluation.

我們將調整後的 EBITDA 利潤率提高了 20 個基點，達到 16.4%，符合我們的目標範圍。儘管由於 LTF 重估導致股價在一年內下跌 64%，造成了 70 個基點的影響，但情況依然如此。剔除此因素後，調整後的 EBITDA 利潤率為 17.1%。儘管受到 LTF 重估帶來的 0.24 美元不利影響，但我們全年稀釋後每股收益仍達到創紀錄的 2.98 美元，調整後稀釋後每股收益為 3.67 美元，分別增長了 34% 和 17%。

Increased earnings also reflect the successful completion of our 2023 real estate strategy. We're pleased to have achieved the targets we set out three years ago by delivering approximately $0.38 of incremental adjusted EPS and reducing our real estate footprint by over 30% from our 2019 baseline.

收益成長也反映了我們 2023 年房地產策略的成功完成。我們很高興實現了三年前製定的目標，實現了約 0.38 美元的增量調整後每股收益，並將我們的房地產規模比 2019 年的基準減少了 30% 以上。

Now turning to our liquidity and capital resources. 2023 was one of our strongest years for operating cash flow generation at $545 million compared to $304 million in 2022. Cash flow this year benefited from a full year of operations postcard no integration as well as increased revenues and diligent management of our working capital, as shown by our four-day reduction in DSO from 81 days to 77 days.

現在來看看我們的流動性和資本資源。 2023年是我們經營現金流最強勁的年份之一，達到5.45億美元，而2022年為3.04億美元。今年的現金流得益於全年營運明信片無需整合，以及收入增加和對營運資金的認真管理，正如我們的應收帳款週轉天數從 81 天減少到 77 天所表明的那樣。

Increases in operating cash flow were partially offset by higher tax installment payments, driven in part by the impact of US Section 174 and higher interest payments. In 2023, we returned more to our shareholders in dividends, but we were less active with share buybacks compared to 2022.

經營現金流的增加部分被更高的稅款分期付款所抵消，這部分是由於美國第 174 條的影響以及更高的利息支出所致。2023年，我們向股東發放了更多股息，但與2022年相比，我們在股票回購方面有所減少。

And as at December 31, our net debt to adjusted EBITDA was one times, well within our internal leverage range of one to two times, positioning us very well to fund our acquisitions of ZETCON and Morrison Hershfield in the first quarter of 2024.

截至 12 月 31 日，我們的淨債務與調整後 EBITDA 比率為 1 倍，遠低於我們 1 到 2 倍的內部槓桿率範圍，這使我們能夠很好地為 2024 年第一季度收購 ZETCON 和 Morrison Hershfield 提供資金。

And with that, I'll turn the call back to Gord.

就這樣，我把電話轉回給戈爾德。

Thanks, Theresa. In the fourth quarter, we reported backlog of $6.3 billion. Backlog has grown organically by 5% since December 2022 and continued to grow in each of our geographic regions, with global posting double-digit organic growth. Compared to the third quarter, our backlog grew organically a native currency, but was offset by foreign currency fluctuations. Our ability to grow backlog in Q4, which is generally softer as a result of seasonality, clearly demonstrates the strength of the market.

謝謝你，特蕾莎。第四季度，我們報告的積壓訂單為 63 億美元。自 2022 年 12 月以來，積壓訂單實現了 5% 的有機增長，並且在我們各個地理區域都持續增長，全球範圍內實現了兩位數的有機增長。與第三季相比，我們的積壓訂單以本國貨幣計算實現了有機成長，但被外匯波動抵消了這一增長。第四季通常受季節性因素影響而較為疲軟，但我們仍能實現訂單積壓成長，這清楚地表明了市場的強勁勢頭。

Backlog in water continued to strengthen with a 23% organic increase, supported by project wins in wastewater treatment, advanced manufacturing, consultancy frameworks and master planning services. Buildings also had a number of strong winds, translating into solid high single-digit organic growth. We continue to see demand for our expertise in healthcare, multipurpose buildings and advanced manufacturing and industrial facilities. Our backlog represents approximately 12 months of work.

水務領域的積壓訂單持續增加，有機成長 23%，這得益於廢水處理、先進製造、諮詢架構和總體規劃服務等領域的專案中標。建築物也經歷了多次強風，轉化為穩健的高個位數有機成長。我們持續看到市場對我們在醫療保健、多功能建築以及先進製造和工業設施方面的專業知識的需求。我們積壓的工作量大約相當於 12 個月的工作量。

We continue to capture significant opportunities in the fourth quarter. We were selected to provide a full suite of architectural engineering and environmental services for a $1 billion lithium ion battery manufacturing facility in British Columbia. E-One Moli's facility will include our research and development complex with a fully integrated green roof as well as a seven story mass timber office building.

我們在第四季繼續把握重大機會。我們被選中為位於不列顛哥倫比亞省的一家價值 10 億美元的鋰離子電池製造廠提供全套建築工程和環境服務。E-One Moli 的設施將包括我們的研發綜合體（配備完全整合的綠色屋頂）以及一棟七層樓高的木造辦公大樓。

Our buildings team was selected to design the first Comprehensive Cancer Hospital in Dubai. At over 600,000 square feet, the hospital will be designed recognizing best-in-class building strategies and practices in sustainability. Stantec is consistently ranked as a top five design firm in the health space. And as we've talked about in the last number of quarters, the UK water appointments are starting to ramp up. This quarter, on average, we were appointed to the Northumbrian and water capital delivery framework and to the Severn Trent Water Engineering and Design Consultancy framework.

我們的建築團隊被選中設計杜拜第一家綜合癌症醫院。該醫院佔地超過 60 萬平方英尺，其設計將秉承一流的永續發展建築策略和實踐。Stantec 一直名列醫療保健領域前五名設計公司。正如我們在過去幾個季度所討論的那樣，英國水務部門的任命工作正在逐步增加。本季度，我們平均被委任參與諾森伯蘭郡水務資本交付架構和塞文特倫特水務工程設計諮詢架構。

We were also pointed to the capital work's PMO framework with Irish Water. Each of these wins secures work for the next five years with the option to extend beyond that period by agreement. We are also very pleased to announce this morning that we were selected to provide integrated design services for Agratas, new battery manufacturing facility in the UK. This is one of the most significant investments in the UK and the factory will be one of the largest of its kind in Europe.

我們也了解到愛爾蘭水務公司的基建工程專案管理辦公室架構。這些中標項目均確保了未來五年的工作，並可透過協議選擇延長期限。今天上午，我們非常高興地宣布，我們被選中為英國新建電池製造廠 Agratas 提供整合設計服務。這是英國最重要的投資項目之一，該工廠將成為歐洲同類工廠中規模最大的工廠之一。

This project award is a testament to the breadth and depth of Stantec's expertise in advanced manufacturing, and we look forward to working closely with Agratas to support the successful completion of this project.

該專案的中標證明了 Stantec 在先進製造領域的廣度和深度，我們期待與 Agratas 密切合作，支持該專案的成功完成。

Looking at 2024, we continue to see high levels of activity in all regions, and we've now updated our targets to include Morrison Hershfield. We have raised our net revenue growth target for the year from 11% to 15% and expect organic net revenue growth to be in the mid- to high-single digits. For US and global, we expect mid- to high-single digit organic revenue growth. And in Canada, we're guiding to mid-single-digit growth.

展望 2024 年，我們繼續看到所有地區都保持著高水準的活動，我們現在已經更新了目標，將 Morrison Hershfield 納入其中。我們將今年的淨收入成長目標從 11% 提高到 15%，預計有機淨收入成長將達到中高個位數。我們預計美國和全球市場的有機收入將實現中高個位數成長。在加拿大，我們預計成長率將達到中等個位數。

Our EBITDA margin target for the year is in the range of 16.2% to 17.2%. And finally, we have revised our adjusted diluted EPS growth to now be in the range of 12% to 16%. While we're only two months into 2024, we are very confident in being able to achieve these targets. And we remain very optimistic for what's to come.

我們今年的 EBITDA 利潤率目標在 16.2% 至 17.2% 之間。最後，我們將調整後的稀釋每股盈餘成長率修正為 12% 至 16%。雖然2024年才過去兩個月，但我們非常有信心能夠實現這些目標。我們對未來依然非常樂觀。

Before opening the call to Q&A, I want to comment briefly on the announcement of Agratasplanned retirement. We have been extremely fortunate to have Theresa on the Stantec team for the last 5.5 years. She's added tremendous value to the company and has ensured Stantec is in a very strong financial position. While Theresa will remain in her role as CFO until her successor is in place, ensuring a smooth transition, I want to thank her for all of our efforts and everything that she is done for Stantec over the years.

在正式開始問答環節之前，我想就 Agratasplanned 的退休計畫公告做個簡短評論。在過去的 5.5 年裡，我們非常幸運地擁有像 Theresa 這樣優秀的 Stantec 團隊成員。她為公司創造了巨大的價值，並確保了史坦泰克公司擁有非常穩健的財務狀況。在繼任者到位之前，Theresa 將繼續擔任財務長一職，以確保平穩過渡。在此，我要感謝她多年來為 Stantec 所做的一切努力和貢獻。

And with that, we'll turn the call back to the operator for questions. Operator.

至此，我們將把電話轉回給接線生，以便回答問題。操作員。

(Operator Instructions)

（操作說明）

Benoit Peroir, Desjardins.

貝諾瓦·佩羅伊爾，德斯雅爾丹。

Yes, thank you very much and good morning, everyone. And Theresa, wish you all the best for your upcoming retirement. You will be missed for sure. Gord, you mentioned that you're looking at both external and internal candidates, I was just curious if there's any criteria that you are looking for the CFO search. Any color about the timing for finding the new CFO?

是的，非常感謝，大家早安。特蕾莎，祝你退休生活一切順利。你一定會被大家想念的。戈爾德，你提到你在考慮外部和內部候選人，我只是好奇你在尋找財務長時是否有任何標準。關於尋找新任財務長的時間安排，有什麼最新消息嗎？

Yes. Well, the search is underway, Benoit. We've been working on it for a couple of months already. And so we're looking forward to, now that the information is out in public, to really gearing up a little bit further on it. As we mentioned in the prepared remarks, Theresa isn't going anywhere. So while we want to be respectful of her wish to retire, we certainly are going to work through this in a planned and orderly fashion. And we hope it certainly will be in 2024, hoping in the next quarter or two.

是的。貝努瓦，搜尋工作已經開始了。我們已經為此努力了幾個月了。既然資訊已經公開，我們期待著能進一步為此做好準備。正如我們在準備好的演講稿中提到的，特蕾莎不會離開。因此，雖然我們尊重她退休的意願，但我們一定會以有計劃、有條不紊的方式處理此事。我們希望它肯定能在 2024 年實現，最好是在未來一兩個季度內實現。

Okay. And looking at the AMP8 program in the UK, one of your US peers stated that although the funding cycle only officially starts in April 2025, it looks like that they are already seeing multiple UK water clients going out for procurement to be ready. Was just curious, are you seeing this as well?

好的。就英國的 AMP8 專案而言，你們的一位美國同行表示，儘管資金週期要到 2025 年 4 月才正式開始，但他們似乎已經看到許多英國水務客戶開始進行採購，以做好準備。我只是好奇，你們那邊也看到這種狀況了嗎？

Oh, absolutely. We've already secured many, many awards for AMP8. And in fact, some of the planning awards that we've gotten, we've been awarded by clients to help them prepare for and a so we're actually already working on preparatory planning type work to get ready for AMP8. So we're actually already working on preparatory planning type work to get ready for. So as soon as that April 2025 hits, we're ready to go.

當然。我們已經憑藉 AMP8 獲得了許多許多獎項。事實上，我們獲得的一些規劃獎項是由客戶授予我們的，目的是幫助他們做好準備，所以我們實際上已經在進行一些準備規劃工作，為 AMP8 做好準備。所以，我們其實已經在進行一些準備性的規劃工作了。所以，一旦到了 2025 年 4 月，我們就準備出發了。

But, as we mentioned in the prepared remarks, a couple of more with Northumbrian and others that we secured this year. So we've already got well over half, approaching 60% or 70% of our anticipated wins that have already been issued, procured and awarded.

但是，正如我們在準備好的演講稿中提到的，今年我們也與諾森伯蘭郡和其他一些地方達成了協議。因此，我們已經獲得了超過一半的預期中標項目，接近 60% 或 70%，這些項目已經發布、採購和授予。

Okay, okay. That's great color. And just in terms of free cash flow, it looks like that the US 174 R&D law remains in place. Could you provide a dollar amount and win for 2024? And what could be the implication in terms of a free cash flow conversion from net earnings?

好的，好的。顏色真好看。就自由現金流而言，美國 174 號研發法案似乎仍然有效。能否提供2024年的獎金金額及中獎金額？那麼，從淨利轉化為自由現金流會有什麼影響呢？

Sure. So you know, this Section 174 has been in place for two years now. And so we saw an impact in 2022 and '23. And so as we look year over year, we would expect the impact to be roughly the same. We think of roughly $30 million to $40 million of additional cash taxes as a result of that rule remaining in place. So again, year over year, it won't create an impact. And we'll keep watching to see if that relief package comes is ultimately approved or not.

當然。你知道，第 174 條已經實施兩年了。因此，我們在 2022 年和 2023 年看到了影響。因此，如果我們逐年觀察，預期影響大致相同。我們認為，如果該規則繼續有效，將增加約 3,000 萬至 4,000 萬美元的現金稅。所以，從長遠來看，這不會產生影響。我們將繼續關注，看看這項救助方案最終是否獲得批准。

Okay. And maybe last question for me. Obviously, very solid organic growth environment. I was just curious if you could provide more color about the impact of pricing inflation these days on organic growth?

好的。也許這是我最後一個問題了。顯然，有機成長環境非常穩固。我只是好奇您能否更詳細地談談目前物價通膨對自然成長的影響？

What we've seen over the past couple of years is that, as we came into 2024, there still is salary pressures, but not to the same degree that we saw it in previous years. So there certainly is -- and as you know, in previous years, we've been successful in passing along the majority, if not all of that salary increases to our clients.

過去幾年我們看到的情況是，進入 2024 年，薪資壓力依然存在，但程度不如前幾年嚴重。所以確實有——而且正如您所知，在前幾年，我們已經成功地將大部分（如果不是全部）薪資增長轉嫁給了我們的客戶。

So we see that there certainly is some inflation, some increase in our fees into the organic growth numbers that we're putting out. But I'd say it's plus or minus half would be fee increases and and plus or minus half is just additional organic growth.

因此，我們看到，在我們公佈的自然成長數據中，確實存在一些通貨膨脹，有些費用增加。但我認為，其中一半左右是費用上漲，另一半左右是額外的自然成長。

Okay. That's great. Thank you very much and congrats again.

好的。那太棒了。非常感謝，再次恭喜！

Thanks, Benoit.

謝謝你，貝努瓦。

Yuri Lynk, Canaccord Genuity.

Yuri Lynk，Canaccord Genuity。

Hey, good morning. And Theresa -- I'd like to echo Benoit's congratulations to Theresa on your retirement.

嘿，早安。還有，特蕾莎——我想和貝努瓦一樣，恭喜特蕾莎退休。

Thank you.

謝謝。

Yes, no problem. So just trying to, I don't know who wants to take this, just on the guidance, trying to square some of the moving parts in there. So your calling for mid- to high-single-digit organic growth in the US, but the backlog there grew organically only 2%, but we kind of have the opposite story in global where you have a very strong double-digit organic growth in backlog and you're calling from mid-single-digits revenue growth. So can you maybe a little more detail on how we get to those growth rates?

好的，沒問題。所以，我不知道誰願意接手，只是在指導下，試著理清其中的一些環節。所以你預測美國市場將實現中高個位數的有機增長，但美國的積壓訂單有機增長僅為 2%，而全球市場的情況則恰恰相反，積壓訂單實現了非常強勁的兩位數有機增長，而你預測的收入增長卻只有中個位數。那麼，您能否更詳細地說明一下我們是如何得出這些成長率的呢？

Yes. I think when it comes to trying to triangulate how things move from backlog into revenue and what we're seeing in our projections, I think you just have to keep in mind that there's always a couple of dynamics at play. One is that when we report backlog, it is a point in time and it does require us to have everything buttoned up contractually before that work goes into our backlog.

是的。我認為，在試圖將積壓訂單轉換為收入以及我們在預測中看到的情況進行三角測量時，你必須記住，總是有一些動態因素在起作用。一是當我們報告積壓工作時，它指的是某個時間點，並且要求我們在將工作納入積壓工作之前，所有合約事宜都已敲定。

But of course, our business leaders have a line of sight to work that is at near final or in negotiation and they look at the bidding activity. And those are the things that they factor into their organic growth projections.

當然，我們的業務領導者會關注那些接近尾聲或正在談判中的項目，他們會關注投標活動。而這些因素都納入了他們有機的成長預測中。

The other thing that, to keep in mind as well, is that there's often work that comes through MSAs that really don't come into backlog until the past quarter are issues. So it shows up and then it is worse through pretty quickly. So that would be the primary reason, Yuri, that you wouldn't necessarily see a straight line from backlog growth until organic growth projections.

另一點要記住的是，透過 MSA 產生的一些工作，直到上個季度才真正進入積壓工作。所以它一出現，情況就會很快惡化。所以，尤里，這大概就是積壓訂單成長與自然成長預測之間不一定有直線關係的主要原因。

Okay. That makes a lot of sense. Theresa, while I've got you, just so I can check my math, where would you peg your pro forma debt to EBITDA ratio at the end of the year?

好的。這很有道理。特蕾莎，趁你還在，為了核對我的計算，你覺得年底的預期債務與 EBITDA 比率應該是多少？

At the end of the year, I mean, we -- I would say at the end of the year, assuming no further acquisitions, which is kind of the way we approach our planning and our projections, we should see, again, to the lower end of the range. The equity offering we did in November really did what we intended for it to do, was it gave us the additional capacity to fund that positions while knowing that we had ZETCON and Morrison Hershfield to fund in the first quarter here. So we're in really good shape. And so as the year unfolds and cash flow, it remains a focus for us to turn over quickly. I would say that we should be in the end of the lower half of our range.

我的意思是，到年底，我們——我想說，到年底，假設不再進行任何收購（這正是我們進行規劃和預測的方式），我們應該會看到，再次達到預期範圍的下限。我們在 11 月進行的股權發行確實達到了我們預期的效果，它使我們有額外的能力為這些職位提供資金，同時我們也知道我們在第一季要為 ZETCON 和 Morrison Hershfield 提供資金。所以我們目前狀況非常好。因此，隨著時間的推移和現金流的變化，快速週轉仍然是我們的重點。我認為我們應該處於目標範圍下半部的結尾。

Okay. Last one, just quickly a bit of a nitty-gritty one. You do mention specifically that you've included Morrison Hershfield in your updated guidance, you don't mention ZETCON. Safe to assume that's also in there?

好的。最後一個問題，簡單說說一些細節問題。您在更新的指南中特別提到了 Morrison Hershfield，但沒有提到 ZETCON。可以肯定地說，那也包含在裡面嗎？

Yes. So ZETCON was included in the guidance when we rolled it out in December. And so incrementally, we now have MH in there too. But yes, that definitely both our in our current guidance.

是的。因此，我們在 12 月推出指導方針時，將 ZETCON 納入其中。因此，我們現在也逐漸把MH納入了。是的，這絕對是我們目前指導方針中的兩點。

That makes sense. Okay, thanks. I'll turn it over.

這很有道理。好的，謝謝。我把它翻過來。

Jacob Bout, CIBC.

Jacob Bout，加拿大帝國商業銀行。

Good morning. I had a question on your organic growth. It was quite strong in the quarter. But when I look at infrastructure in particular, you were on the low single digit, I think was around 3% on a net basis. What happened there, especially as we think about the US? Was the organic growth a little better in the US or? And then what type of improvement are you expecting year on year specifically on infrastructure organic growth?

早安.我有一個關於你們有機成長的問題。本季表現相當強勁。但當我特別關注基礎設施時，我認為你們的淨成長率只有個位數，大約在 3% 左右。那裡究竟發生了什麼事？尤其是當我們想到美國時？美國的有機成長情況是否略好？那麼，您預期基礎設施的自然成長方面，每年會有怎樣的改善？

Yes, and you know, the -- it's interesting as you think of infrastructure, primarily for us, that's the transportation business and as we talk about the -- and land development, of course, a lot of it, the focus has been on the transportation business. And when you talk about the US, of course, we see that continuing to ramp up. The IIJA continues to roll out and you've heard it from us and others, it's always a little bit slower, but it's continuing to to ramp up. And so we're seeing the continued support for that business as we evolve through 2024 and move into subsequent years. So we're not concerned about that.

是的，你知道，有趣的是，當你想到基礎設施時，對我們來說，主要是交通運輸業務，而當我們談到土地開發時，當然，很多時候，重點都放在了交通運輸業務上。當然，說到美國，我們看到這種情況還在不斷加劇。IIJA 仍在繼續推廣，正如我們和其他人所說，它的推廣速度總是有點慢，但它正在不斷加快。因此，隨著我們發展到 2024 年以及未來幾年，我們看到了對這項業務的持續支持。所以我們並不擔心。

The second question, just on mix. When you look at infra, water, environmental service, building, are you happy with the mix right now? Where would you like to bulk up? And maybe just comment quickly on what ZETCON and Morrison Hershfield bring to the table?

第二個問題，只是關於混合搭配。從基礎設施、水務、環境服務和建築等方面來看，您對目前的綜合狀況滿意嗎？你想在哪些部位增肌？或許可以簡單評論一下 ZETCON 和 Morrison Hershfield 能為公司帶來什麼？

Yeah, so in general, we're very happy with our current mix. I think that -- so when you look at Morrison Hershfield, it's primarily with a lot of expertise in the building segment as well as in transportation. So again, two core areas for us that will continue to move forward. ZETCON is very active also in the transportation space and primarily from a project management and construction management perspective. So roadways, bridges beginning to get involved in some of the electrical grid work in Germany as well.

是的，總的來說，我們對目前的組合非常滿意。我認為——所以當你審視 Morrison Hershfield 時，你會發現它主要在建築領域以及交通運輸領域擁有豐富的專業知識。所以，這仍然是我們將繼續推進的兩個核心領域。ZETCON 在交通運輸領域也非常活躍，主要從專案管理和施工管理的角度出發。因此，德國的道路和橋樑也開始參與一些電網建設工作。

So again, all sort of the core activity that we've got and none of -- neither of those on their own are really going to materially move our overall split between our various business operating units.

所以，再說一遍，我們所有的這些核心活動，都不是——這兩項活動本身都不會真正實質地改變我們各個業務營運部門之間的整體比例。

Thank you.

謝謝。

Michael Doumet, Scotiabank.

Michael Doumet，加拿大豐業銀行。

Hey. Good morning, Gordon, Theresa, very impressive pace of organic hires. Just wondering if you could comment on the extent of the improvement in labor availability this year or now versus last year? And if you can comment on whether you're looking to maintain that pace of organic hires into 2024?

嘿。早安，戈登，特蕾莎，你們的自然招募速度非常驚人。我想請問您能否談談今年或目前勞動力供應情況與去年相比改善的程度？請問貴公司是否計劃在 2024 年維持這種自然招募的速度？

Right. And so yes, good question. A couple of things there. Firstly, we have really ramped up the pace of hiring over the last number of years, doing a lot of -- and a lot of the hires interestingly, are both -- it's a bit divergent. One is that the we continue to hire at the entry level in order to continue to fill out that portion of our demographic profile. So a lot of hiring at the new graduate level, people in their first 5 or 10 years of their career.

正確的。是的，問得好。有兩件事需要說明。首先，過去幾年我們確實加快了招募速度，做了很多——而且有趣的是，很多招募都是兩者兼具——這有點不同。一方面，我們繼續招募入門級員工，以繼續完善我們的人口統計資料。因此，公司大量招募應屆畢業生以及工作經驗在 5 到 10 年內的人員。

But one thing that we've seen evolve with the last couple of years as we are continuing to get more and more of these large projects that we're bringing in a lot of more senior staff as well, people with 30, 35 years of experience and and we're becoming increasingly attractive to those folks also. So we're seeing labor availability. It's tight out there, no question. But our brand, the type of projects that we're bringing to the table really is enabling us to continue with that hiring.

但在過去幾年裡，隨著我們不斷獲得越來越多的大型項目，我們看到一個變化：我們也引進了許多資深員工，他們擁有 30 年、35 年的經驗，我們對這些人才的吸引力也越來越大。所以我們看到勞動力供應充足。競爭非常激烈，這點毋庸置疑。但是，我們的品牌以及我們正在推行的項目類型，確實使我們能夠繼續進行招募。

And to your question about do we see that continuing? Absolutely. When you look at the organic growth numbers that we're putting up our expectations or guidance for this year, that will require continued hiring. And we -- I wouldn't say it's easy, but we've been very successful of bringing this people on.

至於你問的這種情況是否會持續下去？絕對地。當你看到我們今年對有機成長的預期或指導數據時，你會發現這需要持續招募。我不會說這很容易，但我們在招募這些人方面非常成功。

Great color. Thanks., Gordon. And maybe, if I turn to the EBITDA margin, in '23, 16.3% or 17.1% [x altib]. So about 80 basis points difference, I guess, between the two. And then if I look at your '24 EBITDA guide, you're effectively calling for a 40 basis points margin expansion. Just wondering what is assumed the [Delta] what is assumed in terms of underlying margin improvement in '24?

顏色很棒。謝謝你，戈登。如果我轉向 EBITDA 利潤率，那麼 2023 年可能是 16.3% 或 17.1% [x altib]。所以，我估計兩者之間大約相差 80 個基點。然後，如果我看一下你們的 2024 年 EBITDA 指引，你們實際上是要求利潤率提高 40 個基點。我想知道[Delta]的假設是什麼？它假設2024年的潛在利潤率改善幅度是多少？

Yes. So the way that we established our guidance is that we assume -- we use the share price at the end of that reporting periods. So in this case, at the end of December 2023, and we project our (inaudible) on that basis because -- as you know, you have no idea how your share price is going to move over the course of the year. And so we don't try to bake in any kind of guesses one way or the other.

是的。因此，我們制定業績指引的方式是，我們假設－我們使用報告期末的股價。所以，在這種情況下，到 2023 年 12 月底，我們以此為基礎預測我們的（聽不清楚），因為—如您所知，您根本不知道您的股價在一年中會如何波動。因此，我們不試圖在結果中加入任何猜測。

And so as you think about our EBITDA margin from the 16.4% thatwe reported for 2023 relative to our guided range of 16.2% to 17.2%, that is all margin improvements. And that is incorporated into our current target and assumes a steady share price for our [LTE].

因此，當我們考慮我們 2023 年的 EBITDA 利潤率時，我們報告的 EBITDA 利潤率為 16.4%，而我們先前的預期範圍為 16.2% 至 17.2%，這完全是利潤率的提高。這一點已納入我們目前的目標，並假設我們的股價保持穩定。[LTE]。

All righty. Thank you.

好的。謝謝。

You're welcome.

不客氣。

Thank you.

謝謝。

Devin Dodge, BMO Capital Markets.

Devin Dodge，BMO資本市場。

Yes, thanks. Good morning. I wanted to pick up on Michael's last question there, Look, the headwind from [Elseb] revaluation, clearly a high-class problem to have. I believe there's been some effort towards insulating this impact from near-term results, is there a framework or a sensitivity that you can provide in terms of how it changes in the stock price impact and that could cause? And how much of that has been hedged in 2024?

好的，謝謝。早安.我想就麥可的最後一個問題做個回應。你看，[Elseb] 重估帶來的不利影響，顯然是一個幸福的煩惱。我認為目前已經有一些措施來避免這種影響對近期業績造成衝擊，您能否提供一個框架或敏感性分析，說明這種影響如何變化以及可能造成的後果？2024 年有多少風險已經進行了避險？

Sure. So you're right. We have put out a total return swaps on a component of our [LTI] program. So there's three tranches of units, two of which are based purely on share price movement and one tranch, which is a bigger tranch. Unfortunately, that current performance share units that are based on share price movement and our relative TSR. And so we have hedged the majority of the component that is purely sensitive to share price movement.

當然。你說得對。我們已經對[LTI]計劃的某個組成部分推出了總收益互換。所以共有三批單位，其中兩批完全基於股價變動，還有一批規模較大。遺憾的是，目前以股價走勢及我們相對總股東報酬率的績效份額單位為基礎。因此，我們已經對沖了大部分完全受股價波動影響的成分股。

And so even as we've been talking through the year about identifying the revaluation impact, that's already net of haven't hedged as that component of our units. So that -- it does make it hard for us. We don't hedge the performance share units because we can't get hedge accounting treatment on them and makes the results that even noisier.

因此，儘管我們今年一直在討論如何確定重估的影響，但這已經扣除了我們單位中尚未對沖的這部分影響。所以——這確實給我們帶來了困難。我們不進行績效份額對沖，因為我們無法對它們進行對沖會計處理，這會使結果更加嘈雜。

So it's hard to give a sensitivity because every quarter quarter, we accrue another tranche of a three-year program, that number then gets multiplied by a share price, the whole at number of units you have outstanding gets revalued at the current share price and then we put it through a Monte Carlo simulation to try and peg what that TSR impact is. And now is the pace is that you just can't give a sensitivity or an estimation for.

因此很難給出敏感度，因為每個季度，我們都會累積三年計劃的另一批資金，然後該數字乘以股價，您所有流通在外的單位總數將按當前股價重新估值，然後我們將其放入蒙特卡羅模擬中，以嘗試確定 TSR 的影響。而現在的發展速度，你根本無法對其進行敏感度測試或估算。

It's an accounting requirement. And so it's hard to say how accurate that that the stimulation process is. And that's the primary reason that it's very hard to give an estimation.

這是會計方面的要求。因此，很難說這種刺激過程的準確性如何。這就是很難做出估算的主要原因。

Okay. Good call there. I appreciate the live moving part there. Okay, maybe just switching over to M&A. I was just wondering, are you seeing more interest from employee owned firms that maybe finding it challenging to fund their growth plans? And just wondering if those discussions and negotiations with employee-owned firms, were they different much from when you're looking to acquire from a single owner?

好的。做得好。我喜歡其中生動有趣的部分。好吧，或許應該轉到併購領域。我只是想問一下，您是否注意到越來越多的員工持股公司對投資感興趣，這些公司可能在籌集成長計畫資金方面面臨挑戰？我想知道，與員工持股公司進行的討論和談判，與從單一所有者手中收購公司時的情況有很大不同嗎？

Yes, we're absolutely seeing increasing discussions with employee owned firms and both ZETCON and Morrison Hershfield fell squarely into that category. and one of the -- a couple of things that are of note there with those discussions. Certainly what we're finding is one, the key ones is as they're thinking about shared transition from one generation to the next.

是的，我們確實看到與員工持股公司的討論越來越多，ZETCON 和 Morrison Hershfield 都屬於這一類。在這些討論中，有幾點值得注意。當然，我們發現的關鍵一點是，他們正在思考如何實現世代之間的共同過渡。

And those ones, particularly Morrison Hershfield as well as the number of other discussions that we have ongoing, are just related to the other folks coming up through the organization, those 30, somethings and 40 somethings with not having the ability to to acquire shares in many major metropolitan areas, you know, it's a struggle to buy a house.

而這些，特別是 Morrison Hershfield 以及我們正在進行的其他許多討論，都與組織中其他正在成長的人有關，那些三四十歲的人，他們沒有能力在許多大都市地區獲得股份，你知道，買房都很困難。

And so they're not finding that they're having the funds to buy in. So these -- as the older generation is retiring, there's not the new guys coming into to take over that firm and interbuy them out, lots of interest and saying with different doing that type of work, but just not the ability to defund share purchases.

因此，他們發現自己沒有足夠的資金來購買股份。所以，隨著老一輩退休，沒有新人接管公司並進行內部收購，很多人對從事這類工作很感興趣，也有很多不同的想法，但就是沒有能力停止股票購買。

The other thing that we're seeing with some employee owned firms is that the investment required not so much, you know, certainly for growth, but also for some of the digital transformations that we see coming, AI increasing demands in both financial and from a knowledge base to keep up with some cyber threats and so on. So we're seeing a number of employee owned firms beginning to struggle with funding some of those things as well. And so that's generating a lot of the ongoing conversation.

我們看到一些員工持股公司的另一個特點是，所需的投資不僅是為了成長，也是為了應對我們預見的數位轉型，人工智慧在財務和知識庫方面都提出了更高的要求，以應對一些網路威脅等等。因此，我們看到許多員工持股公司也開始在為其中一些項目籌集資金方面遇到困難。因此，這引發了許多持續的討論。

A couple of things, though, that you mentioned is a talking with an employee firm own firm different, then that others may be a public deals and that is true. The one thing that we find and in a huge benefit for Stantec in these discussions is that employee owned firms are extremely sensitive to culture. They built this firm, they own this firm for many decades.

不過，你提到的幾點是，與員工公司自己的公司交談與其他人談論公共交易有所不同，這是事實。在這些討論中，我們發現的一點，也是Stantec公司獲得的巨大好處是，員工持股的公司對企業文化非常敏感。他們創建了這家公司，他們擁有這家公司幾十年了。

And so who they would transition this firm to from a cultural perspective is very important. And certainly, we're very comfortable there with the cultural alignment that we bring to a number of these firms. So yes, they are a little bit different.

因此，從文化角度來看，他們會把這家公司過渡給誰非常重要。當然，我們對自身為這些公司帶來的文化契合度感到非常滿意。是的，它們確實有些不同。

All right, excellent color. Thanks for that. I'll turn it over.

好的，顏色很棒。謝謝。我把它翻過來。

Thank you.

謝謝。

Maxim Sytchev, NBF.

馬克西姆·西切夫，NBF。

Hi, good morning. And Theresa, all the best on your future endeavors.

您好，早安。特蕾莎，祝你未來一切順利。

Thank you.

謝謝。

I was wondering just impossible to get a bit more color on the energy market, which witnessed a slight retraction. Just curious to see what's going on there. Thanks.

我當時很想知道，能源市場的情況究竟如何，目前還出現了小幅回調，但似乎很難獲得更多資訊。只是好奇那裡發生了什麼事。謝謝。

So a couple of things we're seeing there is certainly a fee on the renewable side, a lot -- still a lot of activity as we talk about pump storage. We talk about solar and wind and some things, but you are seeing some slowdown in some of the offshore wind projects and things, seeing some stress in some of the suppliers, equipment suppliers.

所以我們看到兩件事：一是再生能源方面肯定要收費，二是抽水蓄能方面仍然有很多活動。我們談論太陽能、風能等等，但你會發現一些離岸風電專案進度放緩，一些供應商、設備供應商也面臨一些壓力。

Also you're seeing in Western Canada, in Alberta in particular, you know, a pause on new renewables. So that's our that non-new renewable power assets, slowing things there a little bit as well. But we -- so we're continuing to monitor all those things. We're not seeing any particular long-term systemic issues. We still are projecting good organic growth for the year in that sector.

此外，在加拿大西部，尤其是在阿爾伯塔省，可以看到新的再生能源計畫出現了停滯。所以，我們那些非新增再生能源資產也稍微減緩了這方面的發展速度。但是我們——所以我們會繼續關注所有這些事情。我們沒有發現任何特別的長期系統性問題。我們仍然預計該行業今年將實現良好的內生成長。

Okay. And you've seen, I guess, sort of negative spillover effect into your environmental and water business because I think typically there's some subcontracting going on, right?

好的。我想，您也看到了，這對您的環境和水務業務產生了某種負面的溢出效應，因為我認為通常情況下都會有一些分包活動，對吧？

Yes. No, no, we're not seeing any at this point, Max.

是的。不，不，目前我們還沒有看到任何跡象，Max。

Okay. Super helpful, thanks so much. And then in terms of obviously, people are asking questions around sort of employee-owned firms. But curious to see what's happening with some of the private equity owners and if potentially that could open up an additional sort of venue for targets from an M&A perspective? Thank you.

好的。非常有用，非常感謝。然後很明顯，人們都在詢問有關員工持股公司的問題。但我很好奇一些私募股權所有者的動向，以及這是否有可能從併購角度為目標公司開闢另一種途徑？謝謝。

Yes, we absolutely have seen a number of PE-owned or backed firms in initial stages of conversation as they're nearing the end of their investment cycle. So I do think in addition to employee-owned firms, we'll see more and more PE firms coming to market through the year.

是的，我們確實看到一些私募股權擁有或支持的公司在投資週期接近尾聲時，正處於初步洽談階段。所以我認為，除了員工持股公司之外，今年我們還會看到越來越多的私募股權公司進入市場。

Okay. Thank you so much. That's it for me.

好的。太感謝了。就這些了。

Thanks, Max.

謝謝你，馬克斯。

Thank you. I'm showing no further questions at this time. I would now like to turn it back to Gord Johnston for closing remarks.

謝謝。我目前沒有其他問題要問。現在我謹將發言權交還給戈德·約翰斯頓，請他作總結發言。

Great. Well, thanks again for joining us today. We're very pleased with our Q4 and full-year 2023 performance, and we're really optimistic about the outlook here for 2024. So thanks again, and goodbye.

偉大的。再次感謝您今天收看我們的節目。我們對 2023 年第四季和全年的業績非常滿意，並且對 2024 年的前景非常樂觀。再次感謝，再見。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線了。