WSP reports strong Q2 2024, raises yearly outlook
MONTREAL, CANADA — Professional services firm WSP Global recently announced its financial results for the second quarter of 2024, showcasing a solid performance driven by favorable market conditions and enhanced productivity.
The company has also increased its financial outlook for the remainder of the year.
Financial highlights: Revenue and profitability surge
WSP reported revenues of $3.93 billion for Q2 2024, an 8.5% increase from the same period last year. Net revenues reached $2.99 billion, up 9.1% year-over-year, with an organic growth rate of 8.0%. This growth was led by strong performance in the United States, Canada, the United Kingdom, and New Zealand.
The company’s adjusted EBITDA for the quarter was $519.9 million, a 12.6% increase from Q2 2023. Its adjusted EBITDA margin was 17.4%, up from 16.9% last year. Earnings before net financing expenses and income taxes rose by 34.2% to $327.2 million.
Adjusted net earnings were $236.0 million, or $1.89 per share, marking a 21.2% increase from the previous year. Net earnings attributable to shareholders were $184.1 million, or $1.48 per share, compared to $150.7 million, or $1.21 per share, in Q2 2023.
Record backlog and improved cash flow position
WSP’s backlog reached a record $14.7 billion, representing 11.9 months of revenues.
The company also reported significant improvements in cash flows, with operating activities generating $203.5 million, up from $84.8 million in the same quarter last year.
Free cash inflow was $75.4 million, compared to a free cash outflow of $57.2 million in Q2 2023.
Optimistic financial outlook
Reflecting its strong performance in the first half of 2024, WSP has revised its financial outlook for the year. The company now expects net revenues to be between $11.4 billion and $11.8 billion and adjusted EBITDA to range from $2.1 billion to $2.14 billion.
“Our teams delivered a strong second quarter, once again led by robust organic growth and increased profitability to close out a successful first half,” said Alexandre L’Heureux, WSP’s President and CEO.
“Benefitting from a strong financial position and vigorous underlying fundamentals, we have great confidence in what lies ahead and consequently are increasing our financial outlook for the remainder of 2024.”
