WSP Global (WSP) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered robust results with double-digit revenue and net earnings growth, record-low DSO, and significant free cash flow generation.

• Backlog reached $16.3 billion, up 10.9% year-over-year, representing 11 months of revenue.

• High single-digit organic/net revenue growth in Canada, U.K., and U.S.; POWER Engineers posted mid-teens organic growth post-acquisition.

• Strategic acquisitions of Lexica and Ricardo to strengthen healthcare, life sciences, and advisory capabilities; Ricardo acquisition expected to close in Q4 2025.

• ERP rollout now live in 15 countries, supporting productivity and billing improvements.

Financial highlights

• Revenues rose 14.6% to $4.51B, net revenues up 16.3% to $3.48B year-over-year.

• Adjusted EBITDA grew 21.7% to $633M, margin up 80bps to 18.2%.

• Adjusted net earnings reached $307M, or $2.35 per share, up 30% and 24% year-over-year.

• Free cash flow for the six-month period was $572.5M, a $622.3M improvement year-over-year.

• Net debt to adjusted EBITDA ratio at 1.5x, within target range, supporting capital flexibility.

Outlook and guidance

• Adjusted EBITDA for 2025 now expected at the higher end of the $2.50B–$2.55B range, driven by strong performance in key regions.

• Net revenue outlook unchanged at $13.5–$14B; organic growth guidance of 5–8% (constant currency).

• APAC segment expected to see low- to mid-single-digit organic contraction.

• 2025 outlook excludes contributions from pending acquisitions like Ricardo.

• Seasonal trends indicate stronger revenue and earnings in Q3 and Q4.