John Wood Group (WG) Trading Update summary

Group performance and financial highlights

• Q3 revenue increased 1% year-on-year to $1,486 million, with strong Operations growth offsetting weaker Consulting and Projects.

• Adjusted EBITDA for the first nine months rose 4%, driven by Operations and margin expansion in both Operations and Consulting.

• Group EBITDA declined in Q3 due to disappointing project performance, particularly in minerals, life sciences, and chemicals.

• The simplification program is on track, delivering $60 million in annualised cost savings and supporting margin expansion.

• Full-year guidance is confirmed for high single-digit adjusted EBITDA growth and broadly flat net debt, assuming completion of the EthosEnergy sale.

Business unit performance and strategic actions

• Consulting grew EBITDA despite a weaker top line, benefiting from higher pricing and a shift to higher-margin work.

• Projects segment faced EBITDA decline due to overheads and market weakness, especially in minerals, life sciences, and chemicals; actions are underway to improve billability and cost structure.

• Operations delivered 9% Q3 and 8% YTD revenue growth, driven by higher activity in Europe, Middle East, and a major LNG win in Australia.

• Group order book at September 2024 was $5.4 billion, down 8% year-on-year, reflecting both market softness and timing of large awards.

• Major contract wins include a six-year Shell LNG contract in Australia, a $40 million sustainable packaging plant in Singapore, a $200 million BC Hydro grid deal, and an engineering contract with Aramco in Saudi Arabia.

Portfolio management and sustainability

• Sustainable solutions now represent 46% of the pipeline, up from 39% at half-year.

• Disposals of non-core businesses are expected to generate $125 million in net cash in 2024, plus $40 million in loan notes.

• Sale of CEC Controls completed for $30 million; EthosEnergy sale agreed, with regulatory approvals ongoing.