John Wood Group (WG) Trading Update summary

Trading and financial performance

• Adjusted EBITDA for HY24 reached approximately $210 million, up 4%, with margin expansion to 7.4% from 6.8% due to improved pricing and strong Operations performance.

• Revenue declined by about 6% to $2.8 billion, reflecting a strategic shift away from EPC work and ongoing weakness in the minerals business.

• The order book increased 2% year-on-year to $6.1 billion, with sustainable solutions comprising over 40% of the pipeline.

• The simplification programme has already secured $25 million in annualised savings, targeting $60 million by 2025.

Outlook and guidance

• Full year outlook reconfirmed, expecting high single-digit adjusted EBITDA growth before disposals, with performance weighted to the second half.

• Net debt at year-end 2024 is expected to be similar to 2023 after planned disposals complete in H2.

• 2025 EBITDA growth is expected to exceed the medium-term target, supported by the full benefit of the simplification programme.

• Significant free cash flow is anticipated in 2025, driven by improved profitability and cash conversion.

Strategic initiatives and assumptions

• The simplification programme targets $60 million in annualised savings from 2025, with $10 million benefit expected in 2024.

• Margin expansion is driven by topline growth, evolving business mix, and improved pricing.

• Profit forecasts are based on stable market conditions, no material adverse events, and consistent execution of strategy.

• Directors confirm profit forecasts remain valid and are compiled on consistent accounting policies and principal assumptions.