In This Article:
-
Q4 Revenue: $4.7 billion, up 25% compared to Q4 2023.
-
Q4 Net Revenue: $3.4 billion, up 23% compared to Q4 2023.
-
Full Year Revenue: $16.2 billion, up 12% compared to 2023.
-
Full Year Net Revenue: $12.2 billion, up 12% compared to 2023.
-
Organic Growth: 7.5% for the year, 10% in Q4.
-
Adjusted EBITDA (Q4): $634 million, up 21% compared to Q4 2023.
-
Adjusted EBITDA Margin (Q4): 18.7%, compared to 19% in Q4 2023.
-
Full Year Adjusted EBITDA: $2.185 billion, up 14% compared to 2023.
-
Adjusted Net Earnings (Q4): $305 million or $2.34 per share, up 23% and 17% respectively.
-
Full Year Adjusted Net Earnings: $1.01 billion or $8.05 per share, up 18% and 17% respectively.
-
Free Cash Flow: $885 million, more than doubled compared to last year.
-
Backlog: $15.6 billion, representing 10.9 months of revenues.
-
Net Debt Position: 1.8 times adjusted EBITDA.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
WSP Global Inc (WSPOF) reported a significant 23% increase in net revenues for Q4 and a 12% increase for the full year compared to 2023.
-
The company achieved a 40-basis-point increase in EBITDA margin in Q4, despite restructuring activities in Asia.
-
Free cash flow more than doubled compared to the previous year, reaching $885 million.
-
The integration of POWER Engineers, acquired in October 2024, is progressing well, with the entity posting 16% organic growth in Q4.
-
WSP Global Inc (WSPOF) ended the year with a robust backlog of $15.6 billion, representing 10.9 months of revenues, indicating sustainable demand for services.
Negative Points
-
Adjusted EBITDA margins slightly decreased to 18.7% in Q4 from 19% in the same quarter of 2023, due to restructuring activities in Asia and a higher mix of lower-margin emergency response services in the US.
-
The APAC region experienced margin pressures, with the company taking steps to optimize operations for future success.
-
The company's net debt position stands at 1.8 times, which, while within management's target range, reflects higher interest on long-term debt.
-
The backlog duration was shorter this quarter, which could indicate potential challenges in maintaining long-term project pipelines.
-
The M&A landscape is expected to be quieter in the first half of 2025 due to policy fluidity and market instability, potentially impacting growth through acquisitions.
Q & A Highlights
Q: Within the mid- to high-single-digit organic growth expectations for Canada and the Americas in 2025, how do you expect growth rates to differ between transportation, environment, property, and power sectors? A: Alain Michaud, CFO: Generally, growth should be strong across all sectors with no significant variances between them.