--- title: "WSP Global Q4 Earnings Call Highlights" type: "News" locale: "en" url: "https://longbridge.com/en/news/277359155.md" description: "WSP Global (TSE:WSP) reported strong Q4 and full-year fiscal 2025 results, highlighting organic growth of 5.9%, margin expansion, and record free cash flow of CAD 1.7 billion. Revenue increased 13% to CAD 18 billion, with adjusted EBITDA up 17% to CAD 2.5 billion. The company completed strategic acquisitions, including TRC and Power Engineers, and expects 2026 net revenue growth of over 18%. Guidance for Q1 2026 includes net revenue of CAD 3.575 to CAD 3.775 billion and adjusted EBITDA of CAD 590 to CAD 630 million, with a focus on free cash flow conversion exceeding 100%." datetime: "2026-03-01T14:16:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277359155.md) - [en](https://longbridge.com/en/news/277359155.md) - [zh-HK](https://longbridge.com/zh-HK/news/277359155.md) --- # WSP Global Q4 Earnings Call Highlights WSP Global TSE: WSP used its fourth-quarter and full-year fiscal 2025 earnings call to highlight what management described as strong execution against its strategic plan, including organic growth, margin expansion, and record cash generation. Executives also spent a significant portion of the discussion addressing investor concerns about artificial intelligence (AI) and how the company expects the technology to affect its business model. ## 2025 performance: organic growth, margin expansion, and record free cash flow President and CEO Alexandre L’Heureux said 2025 marked the end of “a year of strong execution,” noting the company’s three-year strategic plan—**Pioneering Change for Empowered Growth**—and the completion of strategic acquisitions, including Ricardo and TRC. He said fourth-quarter organic net revenue growth was **5.9%** when excluding the impact of lower emergency response services volume in the U.S. versus the prior year and revisions to significant Canadian projects in 2024. Chief Financial Officer Alain Michaud reported that for the full year, **revenue increased 13% to CAD 18 billion** and **net revenue increased 15% to CAD 14 billion**, compared with 2024. He said backlog reached a record **CAD 17 billion**, up **10%** over the last 12 months. On profitability, Michaud said **adjusted EBITDA in Q4 was CAD 694 million**, up about **9%** year-over-year, and adjusted EBITDA margin in the quarter was **18.9%** versus **18.7%** in Q4 2024. For the full year, adjusted EBITDA totaled **CAD 2.5 billion**, up **17%**, with adjusted EBITDA margin of **18.3%**, which management said represents about **40 basis points** of improvement from 2024. Michaud added that the company absorbed rightsizing and restructuring costs in 2025 that reduced margins by about **40 basis points**, implying underlying margin expansion of roughly **80 basis points** before those costs. Cash flow was a key focus. L’Heureux and Michaud both pointed to a record **CAD 1.7 billion** in free cash flow for 2025, with Michaud stating free cash flow represented **180%** of net earnings attributable to shareholders. Days sales outstanding (DSO) ended the year at a record low **63 days**. ## TRC and Power Engineers: building scale in power and energy L’Heureux said WSP had deployed approximately **CAD 7 billion** over the last 15 months into the power and energy sector through the acquisitions of TRC and Power Engineers. He described TRC as a “premier U.S. power and energy brand” with about **8,000 professionals** and said the combination expands WSP’s offering across the value chain, including advisory, digital, and program management capabilities. Michaud said net debt to adjusted EBITDA was **0.9x** at year-end 2025, reflecting cash raised through a common share issuance to fund part of the TRC acquisition. Following the closing of TRC earlier in the week, he said the company’s **pro forma** net debt to adjusted EBITDA was approximately **2.3x**. The company also discussed portfolio actions. Michaud said WSP disposed of certain non-core businesses over the last 12 months, including an underground storage business in the U.S. and a rail business in Germany, and discontinued operations in various areas in Asia and EMEA. These activities represented about **1%** of 2025 net revenue. ## 2026 outlook: growth, margin improvement, and free cash flow conversion targets For 2026, Michaud provided guidance that includes contributions from recent acquisitions, notably TRC and Ricardo. He said WSP expects: - **Net revenue of $16 billion to $17 billion**, representing total net revenue growth of over **18%** at the midpoint - **Adjusted EBITDA of $3.0 billion to $3.18 billion** - **Organic net revenue growth of 4% to 7%** - At the midpoint of the EBITDA range, about **40 basis points** of margin improvement in 2026 Michaud said the net revenue outlook reflects about **$150 million** of impact from recent disposals and the annualization of 2025 disposals and discontinued operations. Regionally, he said WSP expects Canada and the Americas to deliver mid- to high-single-digit organic growth, EMEA mid-single-digit organic growth, and APAC stable net revenue versus 2025. For the first quarter of 2026, he guided to net revenue of **CAD 3.575 billion to CAD 3.775 billion** and adjusted EBITDA of **CAD 590 million to CAD 630 million**. He noted fewer billable days in Q1 are expected to reduce organic growth by about **1.5%**, with offsets expected in Q2 and Q4. On free cash flow and leverage, Michaud told analysts the company is still targeting “far beyond” 100% free cash flow conversion and said the firm expects to end 2026 with leverage around **1.6x to 1.7x**, supported in part by ERP-driven working capital improvements. He added that Power Engineers was onboarded to the ERP platform on January 1, 2026, and that about **80%** of WSP’s EBITDA is now on the new platform, with additional regions to be onboarded in 2026. On margin guidance, management cited acquisition mix. Michaud said Ricardo carries a lower margin profile and is expected to be a **15 to 20 basis point drag** on 2026 margin, while TRC is also at a slightly lower margin than WSP at close, creating potential upside as integration progresses. ## AI strategy: “augment,” not replace, and deepen client work L’Heureux addressed what he described as market speculation about AI displacing professional services firms, arguing that WSP’s work is tied to the physical world and safety-critical accountability. He said WSP is proactively embracing AI as a productivity enhancer and value driver for clients, but framed it as an enabler rather than a substitute for engineering judgment, regulatory compliance, stakeholder engagement, and professional liability. He also said more than **60%** of WSP’s work is fixed price, and argued clients are increasingly looking for solutions and outcomes rather than lower prices. Management said technology has historically improved productivity, but that clients are now often asking for more analysis and more scenarios, not fewer deliverables. Chief Technology Officer Chadi Habib provided an update on WSP’s partnership with Microsoft launched about a year ago. Habib said WSP had three objectives in that alliance, including deploying AI tools for frontline staff, supporting Microsoft’s data center objectives as a client, and co-creating products with “client zeros.” He said two solutions are now in production with four clients and that WSP is targeting a general availability release in March. Habib also said WSP is pursuing an ecosystem approach to partnerships, citing work with startups such as UrbanLogiq and Fathom, as well as targeted partnerships with Google in transportation and with Schneider in property and buildings. He emphasized protecting WSP’s intellectual property and domain expertise as “non-negotiable.” In Q&A, management also discussed AI’s potential impact on M&A evaluation, with L’Heureux saying digital capabilities are now assessed more closely during due diligence. He cited TRC as an example, stating TRC has roughly **$150 million (U.S.)** in digital offerings within its business, and said WSP sees opportunities to expand those capabilities across its global network. ## About WSP Global TSE: WSP WSP Global Inc provides engineering and design services to clients in the Transportation & Infrastructure, Property and Buildings, Environment, Power and Energy, Resources, and Industry sectors. It also offers strategic advisory services. The firm operates through four reportable segments namely, Canada, Americas ( US and Latin America), EMEIA (Europe, Middle East, India and Africa), and APAC (Asia Pacific, comprising Australia, New Zealand and Asia). ## Featured Stories - Five stocks we like better than WSP Global - The gold chart Wall Street is terrified of… - This makes me furious - America’s 1776 happening again - Buy this Gold Stock Before May 2026 - “Fed Proof” Your Bank Account with THESE 4 Simple Steps _This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com._ ## Should You Invest $1,000 in WSP Global Right Now? Before you consider WSP Global, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and WSP Global wasn't on the list. While WSP Global currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here ### Related Stocks - [WSP.UK](https://longbridge.com/en/quote/WSP.UK.md) ## Related News & Research - [11:34 ETCompost Turning Machine Market to Reach USD 185 Million by 2036 as Mechanized Organic Waste Processing Gains Momentum Worldwide](https://longbridge.com/en/news/286794505.md) - [08:47 ETOrganic Payment Gateways Helps Virtual Veterinary Clinics Reduce Payment Gateway Shutdown Risks](https://longbridge.com/en/news/286915468.md) - [Nevada Organic Phosphate reports encouraging preliminary results from Murdock Mountain drill hole MM26-7](https://longbridge.com/en/news/287063142.md) - [22:13 ETGLOB Investors Have Opportunity to Lead Globant S.A. Securities Fraud Lawsuit](https://longbridge.com/en/news/286842370.md) - [03:15 ETCIGL, YOOV Deadline: CIGL, YOOV Investors Have Opportunity to Lead Concorde International Group Ltd. Securities Fraud Lawsuit](https://longbridge.com/en/news/287021785.md)