WSP Reports Q2 2025 Results

Executive Summary

• WSP Global Inc. reported strong financial results for the second quarter and six-month period ended June 28, 2025, driven by significant revenue growth and margin expansion.
• The company announced an enhanced financial outlook, raising its adjusted EBITDA expectation to the higher end of the previously stated range ($2.50 billion to $2.55 billion).
• Key operational metrics improved significantly, including a historical best Days Sales Outstanding (DSO) of 69 days and a substantial increase in free cash flow generation.

Key Details

• Q2 2025 Financial Performance:
  • Revenues: $4,508.3 million (up 14.6% YoY).
  • Net Revenues: $3,476.0 million (up 16.3% YoY).
  • Adjusted EBITDA: $632.8 million (up 21.7% YoY).
  • Adjusted EBITDA Margin: 18.2% (up 80 basis points YoY).
  • Net Earnings Attributable to Shareholders: $279.4 million ($2.14 per share), up 51.8% YoY.
  • Adjusted Net Earnings: $306.6 million ($2.35 per share), up 29.9% YoY.
• Six-Month Period Performance (Jan-Jun 2025):
  • Revenues: $8,897.2 million.
  • Net Revenues: $6,823.3 million.
  • Adjusted EBITDA: $1,166.7 million.
  • Net Earnings Attributable to Shareholders: $423.5 million ($3.25 per share).
  • Cash Inflows from Operating Activities: $821.7 million.
  • Free Cash Inflow: $572.5 million (compared to a $49.8 million outflow in the prior year period).
• Growth Drivers:
  • Acquisition growth contributed 10.4% to net revenue.
  • Organic net revenue growth was 3.5%.
  • POWER Engineers business experienced organic growth in the mid-teens in the first six months of 2025.
  • High single-digit growth in net revenue generated in Canada, the UK, and the US (including POWER).
• Operational Metrics:
  • Backlog: $16,313.0 million as of June 28, 2025 (up 10.9% over 12 months), representing 11.0 months of revenues.
  • Days Sales Outstanding (DSO): 69 days (down from 79 days in Q2 2024), marking a historical best for a second quarter.
  • Net Debt to Adjusted EBITDA Ratio: 1.5x (within the target range of 1.0x to 2.0x).
  • Net Debt: $3.65 billion.
  • Trailing Twelve Months (TTM) Free Cash Flow: $1,506.8 million (1.9x TTM net earnings).
• Outlook Updates:
  • Adjusted EBITDA for 2025 is now expected to reach the higher end of the $2.50 billion to $2.55 billion range.
  • Net Revenues outlook remains unchanged at $13.5 billion to $14.0 billion.
  • APAC segment net revenues are expected to conclude the year with low- to-mid single digit organic contraction.
  • Outlook excludes expected contributions from incomplete acquisitions (e.g., Ricardo plc).
• Dividends:
  • Quarterly dividend declared: $0.375 per share ($48.9 million total).
  • Previous dividend paid subsequent to Q2 end on July 15, 2025.
  • Upcoming dividend payable on or about October 15, 2025, to shareholders of record at close of business on September 30, 2025.

Notable Quotes

• “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.