John Wood Group (WG) H1 2025 earnings summary

Executive summary

• Published full year 2024 annual report and H1 2025 interim results, marking a milestone after a challenging period and enabling progress on the Sidara acquisition.

• Revenue declined 13% year-over-year to $2.4 billion, reflecting lower pass-through activity, project delays, and client hesitancy amid financial uncertainty.

• Decisive actions taken to reinforce governance, including leadership changes, external accounting experts, and enhanced controls.

• Free cash outflow increased to $404 million, driven by lower EBIT, higher exceptional costs, and a significant unwind of working capital.

• Net debt (excluding leases) rose to $1.1 billion, up $390 million from December 2024, due to lack of receivables financing and cash outflows.

Financial highlights

• 2024 revenue was $5.5 billion, down 1% year-over-year; adjusted EBIT fell 52% to $81 million, including $55 million of non-recurring review charges.

• Statutory loss of $2.8 billion in 2024, driven by a $2.2 billion goodwill and intangible asset impairment and $267 million from revised revenue recognition on a legacy project.

• Statutory operating loss narrowed to $5 million from $828 million in the prior year, with loss for the period at $72 million.

• Free cash outflow of $153 million in 2024; net debt at year-end was $683 million, broadly flat year-over-year after $170 million in disposals.

• H1 2025 revenue declined 13% year-over-year to $2.4 billion; adjusted EBIT down 38% to $63 million (excluding review charges).

Outlook and guidance

• No financial guidance provided due to ongoing uncertainty and complexity in both internal and client environments.

• Order book at June 30, 2025, was $6.5 billion, up from $5.8 billion at December 31, 2024.

• Sidara acquisition expected to complete in H1 2026, with a shareholder vote scheduled for November 17, 2025.

• The Sidara acquisition, if approved, will inject $450 million in capital and extend debt maturities, enhancing liquidity and stability.