WSP closes Q2 2026 with accelerating growth, record backlog and enhanced financial outlook

WSP reported a quarter of accelerating operating momentum, highlighted by stronger organic growth, record backlog, expanding margins, and on-track integration of TRC. Net revenues reached the high end of management’s outlook range, adjusted EBITDA exceeded expectations, and backlog reached an all-time high of $20.1 billion.

_{(1) Total of segments measure. Quantitative reconciliations of net revenues to revenues are presented below under the caption "Non-IFRS and other 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. Organic backlog growth (contraction) represents firm order intake less revenues for the period, both calculated to exclude the impact of foreign exchange, and also excluding order intake through business acquisitions in the period, net of divestitures, expressed as a percentage of the opening backlog for the period.}

_{(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 the six-month period ended June 26, 2026, 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) Supplementary financial measure. Days sales outstanding ("DSO") represents the average number of days to convert the Corporation's trade receivables (net of sales taxes) and costs and anticipated profits in excess of billings, net of billings in excess of costs and anticipated profits, into cash.}

_{(4) This capital management measure is the ratio of net debt to annualized adjusted EBITDA for the trailing twelve-month period, including twelve months of results for all businesses acquired during the period, which was $3.04 billion for the trailing twelve-month period ended June 26, 2026. Net debt is defined as long-term debt, including current portions but excluding lease liabilities, and net of cash, and was $6.89 billion as at June 26, 2026.}

Financial highlights for the second quarter ended June 26, 2026

• Revenues and net revenues for the quarter reached $5.40 billion and $4.27 billion, up 9% and 22.9%, respectively, compared to the second quarter of 2025. Net revenue achieved the higher end of management's outlook range for the quarter of $4.10 billion to $4.30 billion. Net revenue organic growth⁽¹⁾ of 5.0% was driven by growth across all reportable segments. Net revenue acquisition growth⁽¹⁾ of 17.1% was principally driven by the acquisitions of TRC completed in February 2026 and Ricardo plc (“Ricardo”) in October 2025. TRC's Power & Energy market sector achieved double-digit net revenue growth as compared to its results in the corresponding period prior to the acquisition by WSP and the integration is progressing as planned.
  
  
• Backlog reached a new record level of $20.1 billion as at June 26, 2026, up 2% in the twelve-month period and representing 11.6 months of revenues.⁽²⁾ Organic backlog growth⁽¹⁾ in the twelve-month period was 5.7%, reflecting healthy demand across the portfolio and reinforcing management's confidence in future revenue growth.
  
  
• Adjusted EBITDA in the quarter grew to $815.0 million, compared to $632.8 million in the second quarter of 2025, representing an increase of 8%, and exceeding management's quarterly outlook range of $770.0 million to $810.0 million.
  
  
• Adjusted EBITDA margin for the quarter increased 90 bps, reaching 1%, compared to 18.2% in the second quarter of 2025. The improvement is mainly attributable to increased productivity in the US and Canada, as well as lower optimization and right-sizing costs.
  
  
• EBIT in the quarter stood at $491.7 million, up $95.0 million or 9%, compared to the second quarter of 2025. The increase was mainly attributable to higher adjusted EBITDA, partially offset by higher acquisition and integration costs.
  
  
• Adjusted net earnings for the quarter reached $388.6 million, or $2.88 per share, up by $82.0 million, or $0.53 per share, compared to the second quarter of 2025. The increase was mainly attributable to higher adjusted EBITDA.
  
  
• Net earnings attributable to shareholders for the quarter stood at $246.1 million, compared to $279.4 million in the second quarter of 2025, or $1.83 per share, down from $2.14 per share in the comparable period. Higher adjusted EBITDA was more than offset by increased acquisition and integration costs, larger unrealized losses on derivative financial instruments and higher amortization and depreciation costs.
  
  
• DSO as at June 26, 2026 stood at 71 days, compared to 69 days as at June 28, 2025.
  
  
• Cash inflows from operating activities were $553.6 million in the six-month period ended June 26, 2026, a decrease compared to $821.7 million in the corresponding period in 2025, the latter of which benefitted from $195.0 million inflow from the sale of some eligible trade receivables under the factoring arrangement in early 2025.
  
  
• Free cash flow was $254.8 million for the six-month period ended June 26, 2026, and the trailing twelve months of free cash flow amounted to $1.40 billion, representing 5 times the net earnings attributable to shareholders([3]) (the trailing twelve months of cash inflows from operating activities was $1.98 billion).
  
  
• The leverage ratio stood at 2.3x, slightly above Management's target range of 1.0x to 2.0x, and is expected to return to the target range by year end.
  
  
• Quarterly dividend declared of $0.375 per share, or $50.5 million, which was paid subsequent to the end of the second quarter on July 15, 2026.

_{(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. Organic backlog growth (contraction) represents firm order intake less revenues for the period, both calculated to exclude the impact of foreign exchange, and also excluding order intake through business acquisitions in the period, net of divestitures, expressed as a percentage of the opening backlog for the period.}

_{(2) Based on revenues for the trailing twelve-month period ended June 26, 2026, 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 28, 2025 was 1.9. 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 the six-month period  ended June 26, 2026, filed on SEDAR+ at www.sedarplus.ca, which includes explanations of the composition and usefulness of this non-IFRS ratio.} 

“Our second quarter results demonstrate that WSP’s momentum continues to build. Organic growth accelerated, backlog reached a record level, margins expanded by 90 basis points, and TRC is performing as expected. Most importantly, our leading indicators are strengthening simultaneously, giving us increased confidence in our outlook for the remainder of the year and beyond,” said Alexandre L’Heureux, President and CEO of WSP. “What is particularly encouraging is that our margin expansion was driven by productivity improvements and the benefits of scale. Combined with a record backlog and a strong pipeline of opportunities, we believe the business is exiting the second quarter with stronger momentum than when it entered the year.” 

2026 Financial Outlook

Strong execution during the first half of 2026, accelerating backlog growth, and sustained margin performance have increased management’s confidence in achieving its full-year net revenue and adjusted EBITDA targets.

_{* This information constitutes forward-looking information, based on multiple estimates and assumptions about future events. This outlook is provided to assist analysts and shareholders in forming their respective views on the third quarter of 2026 and year ending December 31, 2026. The reader is cautioned that using this information for other purposes may be inappropriate. Actual results may differ and such differences may be material. Please read the full discussion under the section below titled "Forward-Looking Statements".}

The 2026 financial outlook issued on February 25, 2026 (as revised on May 6, 2026) is reiterated with the exception of the above changes. Expectations regarding the increased net revenues and adjusted EBITDA for the full-year 2026 and Q3 2026 are set out above. The above outlook for the full-year and third quarter of 2026 reflects the assumptions set forth in our press release dated February 25, 2026 (as updated on May 6, 2026), with the increased confidence to achieve the 2026 net revenues and adjusted EBITDA outlook given the strong performance in the first half of 2026. Acquisition, integration and reorganization costs are now expected to range between $285 million and $305 million (previously expected to range between $210 million and $230 million). The above outlook also assumes that foreign exchange rates, inflation and interest rates as well as effective income tax rates will remain consistent throughout Q3 and Q4 2026. The Corporation did not consider the financial impact of any dispositions, mergers, business combinations, or other transactions that may be announced or completed after the publication of this press release.

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, 2026, to shareholders of record at the close of business on September 30, 2026.

Financial Report

This press release incorporates by reference the financial reports for the second quarter and the six-month period ended June 26, 2026, including the Corporation's unaudited interim condensed consolidated financial statements for the second quarter and the six-month period ended June 26, 2026 and MD&A for the second quarter and the six-month period ended June 26, 2026, 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 9:00 a.m. to 10:00 a.m. (Eastern Time) on August 6, 2026, 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 of the results for the second quarter and the six-month period ended June 26, 2026 will be accessible on August 5, 2026, after market close under the “Investors” section of www.wsp.com.

Result of operations

Consolidated statements of financial position

(in millions of Canadian dollars)

Consolidated statements of cash flow

(in millions of Canadian dollars)

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

NON-IFRS AND OTHER FINANCIAL MEASURES 

The Corporation's unaudited interim condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards Accounting Standards (“IFRS”), including 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 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; net revenue organic growth (contraction), net revenue acquisition growth; divestiture net revenue impact; organic backlog growth (contraction); days sales outstanding (“DSO”); and leverage 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 the six-month period ended June 26, 2026, 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, including references to assumptions.

Forward-looking statements made by the Corporation in this press release include, without limitation, statements about the  financial outlook for the full year and third quarter of 2026, including the anticipated net revenues, adjusted EBITDA and acquisition, integration and reorganization costs, and their underlying assumptions; the expected return of the leverage ratio to the target range by year-end; our strategic ambitions; our future growth and potential; our profitability; the payment of dividends; our proposed strategy and our operating performance; and our aim to capture market opportunities and deliver long-term value for our stakeholders.

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: the realization of the expected strategic, financial and other benefits of the TRC acquisition in the timeframe anticipated; general economic and political conditions; organic growth 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 2025-2027 Global Strategic Action Plan issued on February 12, 2025 and the 2026 financial outlook set out in the Corporation's press releases dated February 25, 2026 and May 6, 2026.

To the extent any forward-looking statement in this press release constitutes financial outlook or future-oriented financial information within the meaning of applicable Canadian securities laws, such information is intended to provide investors with information regarding the Corporation, including the Corporation’s assessment of future financial plans, and may not be appropriate for other purposes. Financial outlook (including assumptions about future events, including economic conditions and proposed courses of action, based on the Corporation’s assessment of the relevant information currently available), as with forward-looking statements generally, is based on current estimates, expectations and assumptions and is subject to inherent risks and uncertainties and other factors.

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, 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, 2025 and as supplemented by section 17, “Risk Factors” of our MD&A for the second quarter and the six-month period ended June 26, 2026, which are available on SEDAR+ at www.sedarplus.ca and which sections are incorporated herein by reference. 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 may be required under Canadian securities laws, the Corporation does not assume any obligation to publicly update or to revise any forward-looking statements made in this press release, 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, 2025, and as supplemented by section 17, “Risk Factors” of our MD&A for the second quarter  and the six-month period ended June 26, 2026 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 engineering, science and infrastructure solutions firms, uniting its multidisciplinary 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 83,000 professionals, known as Visioneers. Together, they pioneer solutions and deliver innovative projects in the transportation, infrastructure, environment, building, energy, water, 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