WSP Global (WSP) Q2 2024 earnings summary

Executive summary

• Delivered strong Q2 2024 results with robust organic growth and significant profitability increase, leading to an upward revision of the 2024 financial outlook and supported by healthy market conditions and productivity initiatives.

• Achieved 8.0% organic net revenue growth in Q2 2024, led by the US, Canada, UK, and New Zealand, with double-digit growth in the Americas and a healthy backlog.

• Completed several strategic acquisitions, expanding capabilities and geographic reach, with a strong M&A pipeline.

• Recognized for ESG leadership and sustainability, with increased SDG-linked revenue and multiple industry awards.

• First half of 2024 saw organic growth of approximately 7.0%, adjusted EBITDA up 10.4%, and adjusted EPS up 17.5%.

Financial highlights

• Q2 2024 revenues reached $3.93B (CAD 4B), up 8.5% year-over-year; net revenues were $2.99B (CAD 3B), up 9.1%.

• Adjusted EBITDA grew 12.6% to $519.9M (CAD 520M), with margin up 50 bps to 17.4%.

• Adjusted net earnings were $236M ($1.89/share), up 21% year-over-year; net earnings attributable to shareholders $184.1M ($1.48/share).

• Free cash inflow for Q2 was $75.4M, a significant improvement from the prior year; cash inflows from operating activities were $203.5M.

• Backlog reached a record $14.7B, representing 11.9 months of revenue.

Outlook and guidance

• 2024 net revenues now expected between $11.4B–$11.8B; adjusted EBITDA between $2.1B–$2.14B (18.3% margin at midpoint).

• Organic growth guidance raised to 6–8% (constant currency).

• Margin improvement and strong free cash flow conversion expected to continue in H2 2024; management expects continued strong market demand and productivity gains.