WSP Global (WSP) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong revenue and earnings growth, with net revenue organic growth of 3.7% (5.5% normalized for fewer US billable days) and robust project backlog, reaching a record $16.6 billion, up 16.6% year-over-year.

• Adjusted EBITDA increased by 19.7% to $533.9 million, with a stable margin of 16.0%.

• Net earnings attributable to shareholders rose 13.6% to $144.1 million, with adjusted net earnings up 18.2% to $229.1 million.

• Integration of POWER Engineers is progressing well, contributing to organic growth and higher acquisition/integration costs.

• The business remains resilient and diversified, with a strategic focus on operational efficiency and sustainable financial performance.

Financial highlights

• Revenues rose 22% year-over-year to $4.39 billion; net revenues up 20% to $3.35 billion.

• Adjusted EBITDA margin was 16.0% for the quarter.

• Free cash inflow was $115.9 million, a $241.1 million improvement from Q1 2024, with DSO at 70 days.

• Net debt to adjusted EBITDA ratio at 1.8x, or 1.7x including full-year EBITDA from acquisitions.

• Dividend of $0.375 per share declared for Q1 2025, totaling $48.9 million.

Outlook and guidance

• 2025 financial outlook reaffirmed, with robust margin improvement and compelling organic growth expected.

• Management expects continued growth, supported by a robust backlog and diversified market exposure.

• Rightsizing and optimization costs in EMEA and APAC are included in the outlook.

• North America expected to continue leading growth in 2025, with optimism for medium- to long-term improvement in APAC.