Posted 1/17/2024, 11:00:00 AM
Engineering Firms Soar 200% in 5 Years Outpacing Big Tech With Focus on Billable Hours, Disciplined Growth, and Infrastructure Spending
- Stantec and WSP shares have soared over 200% in 5 years, beating out big tech stocks and making engineering consulting sexy
- They focused on per-hour fees that rise with inflation rather than fixed-price contracts, and expanded beyond just energy into areas like water
- They used acquisitions to diversify revenue by geography and business line, but did so profitably and with discipline
- They benefitted from ESG tailwinds and infrastructure stimulus spending, especially in transportation
- Careful not to take on too much debt or overestimate what they could take on; one bad deal can undo it all