WSP releases strong Q4 2025 results and issues 2026 financial outlook

Executive Summary

• WSP Global reported record‑high 2025 results, with revenues of C$18.29 bn and adjusted EBITDA of C$2.56 bn, both exceeding the upper ends of management’s revised outlook.
• Fourth‑quarter 2025 revenue reached C$4.85 bn (up 4.1%) and net earnings rose 53.6% YoY to C$256.3 mn; adjusted EBITDA grew 9.4% to C$694.1 mn.
• The Board declared a quarterly dividend of $0.375 per share (payable April 15, 2026) and a full‑year dividend of $1.50 per share.

Key Details

• Revenue & Net Revenue – FY 2025: C$18.285 bn (+13.1% YoY); Net revenue C$13.959 bn (+14.7%). Q4 2025: Revenue C$4,854.1 mn (+4.1% QoQ); Net revenue C$3,672.7 mn (+8.2%).
• Adjusted EBITDA – FY 2025: C$2,561.2 mn (+17.2%) vs. outlook high‑end C$2.560 bn; Q4 2025: C$694.1 mn (+9.4%). Adjusted EBITDA margin FY 2025 18.3% (up 0.3 ppt).
• Net Earnings – FY 2025: C$964.3 mn (+41.6%) = $7.38 per share; Q4 2025: C$256.3 mn (+53.6%) = $1.96 per share. Gains driven by higher adjusted EBITDA and unrealized derivative gains.
• Free Cash Flow – FY 2025: C$1,714.1 mn (record); Q4 2025: C$826.7 mn. Cash from operations FY 2025: C$2,246 mn.
• Backlog – Record $17.146 bn at year‑end (11.0 months of revenue), up 9.9% YoY.
• DSO – Reduced to a record low 63 days (down from 72 days).
• Net Debt / Adjusted EBITDA – 0.9× at year‑end, below target range 1.0–2.0×; reflects cash from common‑share issuance used partly for the TRC acquisition.
• Dividends – Quarterly dividend $0.375 per share (payable ~April 15, 2026); full‑year dividend $1.50 per share ($197.4 mn).
• Capital Structure – Issued common shares net of costs C$949 mn in FY 2025; repaid borrowings under credit facilities (C$718 mn outflow). No senior unsecured notes issued in FY 2025.
• Acquisitions – Integration of TRC Companies completed Feb 24, 2026; acquisition of POWER Engineers contributed to strong segment performance.
• Guidance for 2026 – Management provided target ranges (e.g., Adjusted EBITDA $3.0‑$3.18 bn; Net revenues $16‑$17 bn) and outlined assumptions such as mid‑single‑digit organic growth in Canada & Americas, stable APAC revenue, capital expenditures $250‑$280 mn, ERP costs $50‑$65 mn, effective tax rate 26‑29%.
• Conference Call – Webcast scheduled for Feb 26, 2026, 8:00–9:00 a.m. ET to discuss results.

Notable Quotes

“Closing out the first year of our 2025–2027 strategic cycle, I’m proud of our strong performance… We enter 2026 with optimism and purpose, committed to capturing opportunities and delivering long‑term value for our stakeholders,” – Alexandre L’Heureux, President & CEO.