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WSP Reports Robust Q2 2021 Results and Increases Financial Guidance

WSP reports robust results for the second quarter of 2021 driven by strong performance from recent acquisitions and better than anticipated organic growth, resulting in improved margins. Considering the results to date and current outlook, financial guidance for fiscal 2021 is revised upwards. 

Some of the Q2 2021 financial highlights include:

  • Revenues and net revenues for the quarter reached $2.6 billion and $2.0 billion, up 19.3% and up 16.1%, respectively, compared to Q2 2020.

  • Golder delivered better than anticipated results with double-digit organic growth in the second quarter of 2021 compared to its results in 2020. Integration activities are progressing very well.

  • Backlog stood at $9.6 billion, representing 11.2 months of revenues, up 14.4% in the six-month period, mainly due to acquisition growth. On a constant currency basis, backlog grew organically by 1.1% compared to backlog as at December 31, 2020.

  • Adjusted EBITDA of $342.6 million, up $66.5 million or 24.1%, compared to $276.1 million in Q2 2020, largely due to the contribution of recent acquisitions. No significant government subsidies were received during the second quarter.

  • Adjusted EBITDA margin for the quarter reached 16.9%, compared to 15.8% in Q2 2020. The improvement in adjusted EBITDA margin is mainly attributable to the higher margin profile of recent acquisitions and better productivity across the regions.

  • DSO stood at 70 days, compared to 72 days in Q2 2020.

  • Quarterly dividend declared of $0.375 per share, with a 56.2% Dividend Reinvestment Plan (“DRIP”) participation.

  • Financial outlook for 2021 increased with an adjusted EBITDA now expected to fall in the range of $1.275 billion to $1.325 billion (previously expected to fall in the range of $1.22 billion to $1.29 billion).

 

“On the basis of our strong performance, we feel confident in revising our 2021 outlook upwards. Our recently completed acquisitions, including the transformative addition of Golder, are integrating well and thus far exceeding performance expectations,” said Alexandre L’Heureux, President and CEO of WSP. “All of this, along with recent significant wins through competitive proposals and signs of increased investment in infrastructure and environmental programs, makes us optimistic for a continued positive momentum for 2021,” he added.

Additional details on our financial performance can be found in the official press release.