Some of the Q2 financial highlights included:
- Revenues and net revenues of $2,025.9 million and $1,541.1 million, up 18.0% and 17.1%, respectively, compared to Q2 2017.
- Consolidated organic growth in net revenues of 8.7% for the quarter, spanning across all reportable segments and slightly ahead of Management's expectations.
- Adjusted EBITDA margin at 11.0%, compared to 10.7% in Q2 2017.
- Backlog at $6,706.9 million, representing 10.3 months of revenues, stable when compared to Q1 2018 and up $842.3 million, or 14.4% compared to Q2 2017. Backlog organic growth stood at 7.8% compared to Q2 2017 and 4.9% for the six-month period ended June 30, 2018.
- DSO stood at 79 days, a three-day improvement compared to Q2 2017 and slightly better than Management's expectations.
- Quarterly dividend declared of $0.375 per share, with a 49.8% Dividend Reinvestment Plan (“DRIP”) participation.
- Full year 2018 financial outlook once again reiterated.
Acquisition of Louis Berger: Expected to close in Q4 2018
On July 30, 2018, WSP announced that it entered into an agreement relating to the acquisition of Berger Group Holdings, Inc., the parent company of the group of companies doing business under the umbrella name of Louis Berger, a US-headquartered leading international professional services firm mainly active in the Transportation & Infrastructure and Environmental & Water sectors, as well as in Master Planning.
Louis Berger has approximately 5,000 employees, predominantly located in offices across the United States, with an additional presence across Continental Europe, the Middle East, Africa, Asia (mainly India) and Latin America. The Acquisition is expected to be completed in the fourth quarter of 2018, subject to customary closing conditions.
“We are pleased with our performance this quarter, as all of our reportable segments posted solid organic growth in net revenues and we continued to execute on our strategic priorities. The acquisition of Louis Berger, once completed, will enable WSP to reach the objectives of its 2015-2018 Strategic Plan since upon closing and integration of the acquisition, WSP anticipates headcount of approximately 48,000 employees and surpassing the $6 billion mark in net revenues. Our efforts will now focus on the integration of Louis Berger and on finalizing our 2019-2021 Strategic Plan,” commented Alexandre L’Heureux, President & CEO of WSP. “Based on our solid first-half results and with the continued momentum in the business, we are confident in our ability to continue growing and delivering value for our clients and shareholders, and are therefore reiterating our 2018 outlook.”
Additional details on our second quarter results can be found in the official press release.