WSP Global Reports Strong Growth and Record Backlog Amid Strategic Acquisitions

📅 2 weeks ago

WSP Global Inc. announces a record backlog and significant growth in employee numbers, highlighting the company's ongoing expansion in the engineering sector.

MONTREAL – WSP Global Inc. is experiencing a significant turnaround, with its chief executive officer, Alexandre L’Heureux, expressing optimism about the company's current standing compared to six months ago. During a recent earnings call, L’Heureux reflected on the company's progress over the past five years, noting that its U.S. workforce has surged from 9,000 employees to 28,000. He emphasized the importance of recognizing the substantial investments made in the U.S. market, stating that it now represents 50 percent of WSP's business operations. 'We are now starting to reap the benefits of what we built over the last few years,' L’Heureux remarked.
In the second quarter, WSP Global reported a net profit attributable to shareholders of $246.1 million, a decrease from $279.4 million in the same quarter of the previous year. However, RBC analyst Sabahat Khan indicated that WSP's results exceeded his expectations. The company's backlog reached an impressive $20.1 billion as of June 26, marking the strongest demand since 2022. A robust backlog is often indicative of a company’s future revenue potential.
Recent project wins for WSP include a design contract for a new bus line in the greater Seattle area, additional project mandates for a Glencore mine in Argentina, and a contract to design exploratory tunnels beneath the Alps for the ongoing Lyon-Turin high-speed rail line in Europe. L’Heureux also mentioned that there are numerous projects in the pipeline, particularly in Canada, where backlog growth has surged by 14.2 percent. 'I have not seen that in a long, long time,' he stated.
While the role of artificial intelligence in engineering has been a topic of discussion, L’Heureux noted that it has yet to significantly enhance productivity. 'AI tools are … a tool and they are going to continue to support our engineers to hopefully, at some point, provide more efficient design more rapidly,' he mentioned. However, he pointed out that the current uplift in productivity is not greatly influenced by AI.
The company’s Chief Financial Officer, Alain Michaud, indicated that WSP is actively expanding its workforce, with approximately 7,000 technical positions currently open due to the growing project backlog. The total number of employees has risen to about 83,000, compared to 72,600 a year ago and only 7,000 five years prior, a period that saw a remarkable wave of acquisitions and organic growth.
In February, WSP completed its acquisition of TRC Cos., a Connecticut-based firm with 7,000 employees, further solidifying its position as the largest engineering company in the U.S. by revenue. L’Heureux described the timing of expanding into the power and energy sectors as 'very timely,' expressing gratitude for the opportunity to integrate TRC and Ricardo, which was acquired in October 2025.
WSP's earnings per share for the quarter ending June 26 stood at $1.83, down from $2.14 in the previous year, while adjusted earnings per share increased to $2.88 from $2.35. The revenue for the quarter reached $5.4 billion, reflecting a year-over-year increase from $4.5 billion. The company has also updated its revenue outlook, now anticipating net revenues between $16.2 billion and $17 billion, an increase from its original forecast of $16 billion to $17 billion. Adjusted earnings before deductions are expected to range from $3.1 billion to $3.18 billion, up from a previous estimate of $3 billion to $3.18 billion.

Related Posts