WSP reports Q2 2025 results

• Strong free cash flow generation
• Robust margin expansion with an 80 basis points increase in adjusted EBITDA margin
• Enhanced financial outlook with profitability now expected to reach the higher end of the range

MONTREAL, QUEBEC - August 6, 2025 - WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”), one of the world's leading professional services firms, today announced financial results for the second quarter and six-month period ended June 28, 2025.

WSP delivered strong performance in Q2 2025 including an 80 basis points increase in adjusted EBITDA margin⁽²⁾, when compared to Q2 2024. Free cash inflow increased significantly over the prior year while days sales outstanding ("DSO") reached a historical best for a second quarter of any of the Corporation's fiscal years. The 2025 financial outlook for adjusted EBITDA is now expected to reach the higher end of the range.

_{(1) Total of segments measure. Quantitative reconciliations of net revenues to revenues are presented below under the caption "Non-IFRS and other financial measures".
(2) Non-IFRS financial measure or non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar measures or ratios used by other issuers. Quantitative reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and other financial measures". This press release incorporates by reference section 19, “Glossary of segment reporting, non-IFRS and other financial measures”, of WSP’s Management's Discussion and Analysis ("MD&A") for the second quarter and six-month period ended June 28, 2025, filed on SEDAR+ at www.sedarplus.ca, which includes explanations of the composition and usefulness of these non-IFRS financial measures and non-IFRS ratios. 
(3) This press release incorporates by reference section 19, “Glossary of segment reporting, non-IFRS and other financial measures”, of WSP’s MD&A for the second quarter and six-month period ended June 28, 2025, filed on SEDAR+ at www.sedarplus.ca, which explains the composition of the supplemental financial measures, as well as the usefulness of the net debt to adjusted EBITDA ratio, which is a capital management measure composed of the ratio of net debt to adjusted EBITDA for the trailing twelve-month period. Net debt is defined as long-term debt, including current portions but excluding lease liabilities, and net of cash, and was $3.65 billion as at June 28, 2025. Adjusted EBITDA for the trailing twelve-month period ended June 28, 2025 was $2.39 billion.} 

Financial highlights for the second quarter and six-month period ended June 28, 2025

• Revenues and net revenues for the quarter reached $4.51 billion and $3.48 billion, up 14.6% and 16.3%, respectively, compared to the second quarter of 2024. The increase was mainly attributable to acquisition growth(1) of 10.4% and net revenue organic growth(1) of 3.5%.  The POWER Engineers, Incorporated ("POWER") business has experienced organic growth in the mid-teens in the first six months of 2025, as compared to its results in the corresponding period prior to the acquisition by WSP. Canada, the UK, and the US (including POWER) generated high single-digit growth in net revenue in the quarter.
• Backlog as at June 28, 2025 reached $16.3 billion, up 10.9% in the twelve-month period, and representing 11.0 months of revenues.⁽²⁾Backlog increased in the Nordics, Australia and New Zealand with a positive trend in pipeline of opportunities.
• Adjusted EBITDA in the quarter grew to $632.8 million, compared to $519.9 million in the second quarter of 2024, representing an increase of 21.7%. Adjusted EBITDA margin for the quarter stood at 18.2%, compared to 17.4% in Q2 2024, an increase of 80 bps, mainly due to a continued focus on productivity. Optimization and right-sizing costs impacted adjusted EBITDA by 50 bps in the quarter.
• EBIT in the quarter stood at $396.7 million, up $69.5 million or 21.2%, compared to the second quarter of 2024. This  improvement was mainly attributable to an increase in adjusted EBITDA, partially offset by higher integration costs in the second quarter of 2025, principally due to the acquisition of POWER in 2024.
• Adjusted net earnings for the quarter reached $306.6 million, or $2.35 per share, up 29.9% and 24.3%, respectively,  compared to the second quarter of 2024. The increase was mainly attributable to higher adjusted EBITDA.
• Net earnings attributable to shareholders for the quarter reached $279.4 million, or $2.14 per share, up 51.8% and 44.6%, respectively, compared to $184.1 million, or $1.48 per share, in the second quarter of 2024. The increase was mainly due to  higher adjusted EBITDA, as well as unrealized gains on derivative financial instruments compared to losses in the comparable periods.
• DSO as at June 28, 2025 stood at 69 days, compared to 79 days as at June 29, 2024. This level of DSO marks a historical best for a second quarter of any of the Corporation's fiscal years.
• Cash inflows from operating activities were $821.7 million in the six-month period ended June 28, 2025, an increase compared to $193.1 million in the corresponding period in 2024. Free cash inflow was $572.5 million for the six-month period ended June 28, 2025, representing an improvement of $622.3 million compared to free cash outflow of $49.8 million in the corresponding period in 2024. The trailing twelve months of free cash flow amounted to $1,506.8 million, representing 1.9 times the net earnings attributable to shareholders(3) (the trailing twelve months of cash inflows from operating activities was $2,010.5 million).
• Net debt to adjusted EBITDA ratio stood at 1.5x, within Management's target range of 1.0x to 2.0x. 
• Quarterly dividend declared of $0.375 per share, or $48.9 million, which was paid subsequent to the end of the second quarter on July 15, 2025. 
• The adjusted EBITDA outlook is now expected to reach the higher end of the $2.50 billion to $2.55 billion range issued as part of WSP's financial outlook on February 12, 2025. This is due to continued performance in Canada, the Americas, and EMEIA while net revenues in the APAC reportable segment are expected to conclude the year with low- to-mid single digit organic contraction. Management's net revenues outlook range stands unchanged between $13.5B to $14.0B. WSP's other 2025 financial target ranges set forth in the press release dated February 12, 2025 remain unchanged. The 2025 financial outlook excludes the expected contribution of acquisitions that are not completed as of August 6, 2025 such as Ricardo plc.

“Our second-quarter results reflect the strength of our diversified platform and the disciplined execution of our strategic plan. As we continue to navigate the evolving geopolitical environment, our teams remain positive and focused on delivering value to our clients and shareholders. With a healthy backlog, strong free cash flow generation, and solid fundamentals across key markets, we are moving ahead into the second half of the year with an enhanced outlook,” said Alexandre L’Heureux, President and CEO of WSP.

Dividend

The Board of Directors of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about October 15, 2025, to shareholders of record at the close of business on September 30, 2025.

Financial Report

This release incorporates the financial reports for the second quarter of 2025, including the Corporation's unaudited interim condensed consolidated financial statements for the six-month period ended on June 28, 2025 and MD&A for the second quarter and six-month period ended on June 28, 2025, which are available on our website at www.wsp.com. These documents are also available on SEDAR+ at www.sedarplus.ca. 

Webcast

WSP will hold a conference call and webcast from 8:00 a.m. to 9:00 a.m. (Eastern Time) on August 7, 2025, to discuss these results. 

To participate in the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the conference call can be accessed using this link. For those unable to attend, a replay will be available within 24 hours following the call under the "Investors" section of the website. 

A presentation on the second quarter of 2025 results will be accessible on August 6, 2025, after market close under the “Investors” section of www.wsp.com. 

_{(1) Supplementary financial measures. Net revenue organic growth represents the period-over-period change in net revenues, excluding net revenues of businesses acquired or divested in the twelve months following the acquisition or prior to the divestiture, expressed as a percentage of the comparable period net revenues, adjusted to exclude net revenues of divested businesses, all calculated to exclude the impact of foreign exchange. Net revenue acquisition growth represents the current period net revenues of acquired businesses in the twelve months following the acquisition, expressed as a percentage of the comparable period net revenues, all calculated to exclude the impact of foreign exchange.
(2) Based on revenues for the trailing twelve-month period, incorporating a full twelve months of revenues for all acquisitions.
(3) Non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar ratios used by other issuers. The ratio of free cash flow to net earnings attributable to shareholders for the trailing twelve months ended June 29, 2024 was 1.0.This press release incorporates by reference section 19, “Glossary of segment reporting, non-IFRS and other financial measures” of WSP's MD&A for the second quarter and six-month period ended June 28, 2025, filed on SEDAR+ at www.sedarplus.ca for explanations of the composition and usefulness of this non-IFRS ratio.}

Result of operations

Consolidated statements of financial position

(in millions of Canadian dollars)
References to notes refer to notes in the unaudited interim condensed consolidated financial statements of the relevant period.

Consolidated statements of cash flow

All amounts shown in this press release are expressed in Canadian dollars, unless otherwise indicated. All quarterly information disclosed in this press release is based on unaudited figures.

NON-IFRS AND OTHER FINANCIAL MEASURES

The Corporation's unaudited interim condensed financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. WSP uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with International Financial Reporting Standards Accounting Standards (“IFRS”). Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure prescribes disclosure requirements that apply to the following types of measures used by the Corporation: (i) non-IFRS financial measures; (ii) non-IFRS ratios; (iii) total of segments measures; (iv) capital management measures; and (v) supplementary financial measures.

In this press release, the following non-IFRS and other financial measures may be used by the Corporation: net revenues; adjusted EBITDA; adjusted EBITDA margin; adjusted net earnings; adjusted net earnings per share; free cash flow; the ratio of trailing twelve months of free cash flow to trailing twelve months of net earnings attributable to shareholders; organic net revenue growth (contraction), acquisition net revenue growth; divestiture net revenue impact; organic backlog growth (contraction); days sales outstanding (“DSO”); and net debt to adjusted EBITDA ratio. Additional details for these non-IFRS and other financial measures can be found in section 19, “Glossary of segment reporting, non-IFRS and other financial measures” of WSP’s MD&A for the second quarter and six-month period ended June 28, 2025, which is posted on WSP’s website at www.wsp.com, and filed on SEDAR+ at www.sedarplus.ca. Reconciliations of non-IFRS financial measures and total of segments measures to the most directly comparable IFRS measures are provided below.

Management believes that these non-IFRS and other financial measures provide useful information to investors regarding the Corporation’s financial condition and results of operations as they provide key metrics of its performance. These non-IFRS and other financial measures are not recognized under IFRS, do not have any standardized meanings prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

Forward-looking statements

Certain information contained in this press release is not based on historical or current facts and may constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) under Canadian securities laws. Forward-looking statements may include estimates, plans, strategic ambitions, objectives, expectations, opinions, forecasts, projections, guidance, outlook or other statements that are not statements of fact. 

Forward-looking statements made by the Corporation in this press release include, without limitation, statements about the 2025 financial outlook; our ambitions; our future growth and potential; our profitability; the payment of dividends; our proposed strategy, and our operating performance.

Forward-looking statements made by the Corporation are based on a number of operational and other assumptions believed by the Corporation to be reasonable as at the date such statements were made, including assumptions set out through this press release and including, without limitation, the following principal assumptions about: general economic and political conditions; organic growth (contraction) expectations; economic and market assumptions regarding the competition; the state of the global economy and the economies of the regions in which the Corporation operates; the state of and access to global and local capital and credit markets; interest rates; working capital requirements; the collection of accounts receivable; the Corporation obtaining new contract awards; the type of contracts entered into by the Corporation; the anticipated margins under new contract awards; the utilization of the Corporation’s workforce; the ability of the Corporation to attract new clients; the ability of the Corporation to retain current clients; changes in contract performance; project delivery; the Corporation’s competitors; the ability of the Corporation to successfully integrate businesses; the acquisition and integration of businesses in the future; the Corporation’s ability to manage growth; external factors affecting the global operations of the Corporation; the state of the Corporation’s backlog and pipeline of opportunities in various reportable segments; the joint arrangements into which the Corporation has entered or will enter; the capital investments made by the public and private sectors; relationships with suppliers and subconsultants; relationships with management, key professionals and other employees of the Corporation; the maintenance of sufficient insurance; the management of environmental, social and health and safety risks; the sufficiency of the Corporation’s current and planned information systems, communications technology and other technology; compliance with laws and regulations; future legal proceedings; the sufficiency of internal and disclosure controls; the regulatory environment; impairment of goodwill; foreign currency fluctuation; the expected benefits of acquisitions and the expected synergies to be realized as a result thereof; the tax legislation and regulations to which the Corporation is subject and the state of the Corporation’s benefit plans; as well as the assumptions underlying the 2025 financial outlook set out in the Corporation's press release dated February 12, 2025. 

Although WSP believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. In evaluating these forward-looking statements, investors should specifically consider various risk factors, which, if realized, could cause the Corporation's actual results or events to differ materially from those expressed or implied in forward-looking statements. Such risk factors include, but are not limited to, the rising complexity of the geopolitical landscape and macroeconomic developments; the failure to maintain our competitive positioning in rapidly changing competitive market; the failure to effectively adopt, integrate, and leverage existing and emerging technologies in our operations; failure to implement sufficient corporate and business initiatives; increases in real estate costs; the deterioration of our financial position or net cash position; our working capital requirements; our accounts receivable; our increased indebtedness and raising capital; the impairment of long-lived assets; our foreign currency exposure; our income taxes; as well as other risks detailed from time to time in reports filed by the Corporation with securities regulators or securities commissions or other documents that the Corporation makes public, which may cause actual results or events to differ materially from the results expressed or implied in any forward-looking statement.

These and other risk factors that could cause actual results or events to differ materially from our expectations expressed in, or implied by, our forward-looking statements are discussed in greater detail in section 20, “Risk Factors” of the Corporation’s MD&A for the fourth quarter and year ended December 31, 2024 and as supplemented by section 17, “Risk Factors” of WSP's MD&A for the second quarter and six-month period ended June 28, 2025, which are available on SEDAR+ at www.sedarplus.ca. Actual results and events may be significantly different from what we currently expect because of the risks associated with our business, industry and global economy and of the assumptions made in relation to these risks. As such, there can be no assurance that actual results will be consistent with forward-looking statements.

The forward-looking statements contained in this press release describe the Corporation’s expectations as of the date hereof and, accordingly, are subject to change after such date. Except as required under Canadian securities legislation, the Corporation does not assume any obligation to publicly update or to revise any forward-looking statements made in this press release or otherwise, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The Corporation may also make oral forward-looking statements from time to time. The Corporation advises that the above paragraphs and the risk factors set forth in section 20, “Risk factors” of the Corporation’s MD&A for the fourth quarter and year ended December 31, 2024, and as supplemented by section 17, “Risk Factors” of the Corporation's MD&A for the second quarter and six-month period ended June 28, 2025 should be read for a description of certain factors that could cause the actual results of the Corporation to differ materially from the results expressed or implied in any oral forward-looking statements. Readers should not place undue reliance on forward-looking statements.

About WSP 

WSP is one of the world’s leading professional services firms, uniting its engineering, advisory and science-based expertise to shape communities to advance humanity. From local beginnings to a globe-spanning presence today, WSP operates in over 50 countries and employs approximately 73,000 professionals, known as Visioneers. Together they pioneer solutions and deliver innovative projects in the transportation, infrastructure, environment, building, energy, water, and mining and metals sectors. WSP is publicly listed on the Toronto Stock Exchange (TSX:WSP). 

For more information, please contact:
Alain Michaud
Chief Financial Officer
WSP Global Inc.
[email protected]
Phone: 438-843-7317