WSP Global (WSP) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with double-digit revenue and adjusted EBITDA growth year-over-year, driven by robust organic growth across all segments, especially in the US, Canada, Middle East, and UK.

• Backlog reached a record $14.8 billion (CAD 14.8 billion), representing 11.6 months of revenues, reflecting sustained demand and a strong project pipeline.

• Announced appointment of Mark Naysmith as Global COO effective January 2025 to drive global operations and growth.

• Closed the strategic acquisition of POWER Engineers for US$1.78 billion on October 1, 2024, adding about 4,000 employees and enhancing capabilities in the power and energy sector.

• Major project wins in data centers, airport expansions, and infrastructure upgrades across multiple geographies.

Financial highlights

• Q3 2024 revenues reached $3.98 billion (CAD 4 billion), up 10.7%–11% year-over-year; net revenues were $3.0 billion, up 9.6%–10%.

• Adjusted EBITDA was $585.4 million (CAD 585 million), up 12.3% (12%), with a margin of 19.5% (up 40 bps year-over-year).

• Adjusted net earnings were $279.8 million (CAD 280 million), or $2.24 per share, up 13%–13.6% year-over-year.

• Net earnings attributable to shareholders increased 30.3% to $203.6 million ($1.63 per share).

• Trailing twelve months free cash flow reached $852.3 million, up $587 million year-over-year.

Outlook and guidance

• 2024 net revenue guidance raised/reiterated to $11.8–$12.1 billion; adjusted EBITDA guidance to $2.155–$2.175 billion.

• Organic net revenue growth expected in the mid to high single digits in Canada and Americas, mid single digit in EMEIA, and low single digit in APAC.

• Targeting 100% conversion of net earnings to free cash flow for 2024.

• Outlook revised to include the POWER Engineers acquisition.

• Acquisition, integration, and reorganization costs expected at $120–135 million, including POWER Engineers.