WSP Global (WSP) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2024 results, surpassing expectations with robust net revenue growth, elevated organic growth, enhanced profitability, and strong operational cash flows, led by the US and Canada.

• Achieved 23% net revenue growth in Q4 and 12% for the full year, with 7.5% organic growth for the year and 10% in Q4; all segments contributed.

• Completed 16 strategic acquisitions during the 2022-2024 cycle, including POWER Engineers, which posted 16% organic net revenue growth in Q4.

• Ended the year with a record backlog of $15.6 billion, representing 10.9 months of revenues and supporting future growth.

• Free cash flow more than doubled to $884.5M, representing 1.3x net earnings.

Financial highlights

• Q4 2024 revenues rose 25.3% to $4.7B and net revenues increased 23.1% to $3.4B year-over-year; organic net revenue growth was 10.0%.

• Full-year 2024 revenues reached $16.2B (+12.0%), net revenues $12.2B (+11.7%), and adjusted EBITDA $2.19B (+13.8%).

• Adjusted EBITDA for Q4 was $634M (up 20.8%), with a margin of 18.7%; full-year margin was 18.0%, up 40 bps year-over-year.

• Adjusted net earnings for Q4 were $305M ($2.34/share), up 23% year-over-year; full-year adjusted net earnings were $1.01B ($8.05/share), up 18%.

• Net earnings attributable to shareholders increased 23.9% to $681.4M for the year; Q4 net earnings were $166.9M ($1.28/share), up 27.8%.

Outlook and guidance

• 2025 financial outlook reiterated, with mid to high single-digit organic growth expected across all major segments in Canada and the Americas.

• 2025-2027 Global Strategic Action Plan targets 40% net revenue growth, 50% adjusted EBITDA growth, 60% adjusted net earnings growth, and 70% free cash flow growth by 2027.

• Backlog and project pipeline remain robust, supported by positive market fundamentals and secular trends in core end-markets.

• Confident in market conditions and guidance, with strong proposal activity and backlog expected to rebuild in Q1.

• Positioned to implement the 2025-2027 Global Strategic Action Plan, aiming for further innovation, growth, and profitability.