WSP Reports Solid Second Quarter 2020 Results with Strong Cash Flow Generation and Margin Profile
WSP is pleased to report solid performance in Q2 2020, which exceeded management’s ambitions resulting in strong free cash flow and an increased adjusted EBITDA margin.
Some of the Q2 financial highlights included:
Revenues and net revenues of $2.2 billion and $1.7 billion, down from 4.5% and 1.2%, respectively, compared to Q2 2019.
Organic growth in net revenues contracted for 5.3% for the quarter. Good organic growth in the APAC reportable segment was offset by organic contraction in the other segments.
Backlog stood at $8.6 billion, representing another record high of 11.5 months of revenues, up $479.2 million or 5.9% from $8.1 billion when compared to Q4 2019, and up $658.3 million, or 8.3% when compared to Q2 2019. Backlog organic growth reached 4.3% compared to Q4 2019, and 5.2% compared to Q2 2019.
Adjusted EBITDA of $276.1 million, up $10.7 million, or 4.0%, compared to $265.4 million in Q2 2019. Adjusted EBITDA margin at 15.8%, compared to 15.0% in Q2 2019. Improved margin in the APAC and EMEIA reportable segments were partially offset by lower margins in Canada.
DSO stood at 72 days, a historical best, compared to 80 days in Q2 2019.
Cash inflows from operating activities of $509.9 million in Q2 2020, compared to 124.3 million in Q2 2019.
Quarterly dividend declared of $0.375 per share, with a 53.7% Dividend Reinvestment Plan (“DRIP”) participation.
“As COVID-19 reached pandemic status, I reaffirmed our commitment to being operationally resilient to continue meeting the needs of our clients and communities during these unprecedented times. I am pleased with our Q2 performance as we achieved solid results in addition to exceeding our cash flow and margin objectives set last quarter,” said Alexandre L’Heureux, WSP’s President and CEO. “As the initial shock of the pandemic is behind us, and our regions and markets are redefining their new normal in view of the lingering uncertainty, we are updating our outlook for the year ending December 31, 2020. Founded on the objectives set in the second quarter, this outlook is being provided as we continue to rigorously monitor the developments across our regions,” he added.
Additional details on our financial results and Outlook for the year ending December 31, 2020 can be found in the official press release.
A conference call discussing these results will be held tomorrow, August 6th, 2020 at 8 a.m.(EST). The conference call details and other relevant materials are available under “Investors”/“Presentations and Events” section of this website.