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Financial highlights for fiscal year 2024

• Revenues and net revenues increased by 12.0% and 11.7%, respectively, compared to 2023, growing to $16.17 billion and $12.17 billion, respectively, with net revenue exceeding the high end of Management's updated outlook range for the year of $11.80 billion to $12.10 billion, largely due to higher demand for emergency response services following hurricanes in the US. The increase year-over-year was mainly due to organic growth of 7.5% and acquisition growth of 3.7%⁽¹⁾. Organic growth was led by the US and Canada.

• Backlog as at December 31, 2024 reached a new record level of $15.6 billion, representing 10.9 months of revenues,⁽²⁾ up 10.9% in the year.

• Adjusted EBITDA grew to $2.186 billion, up 13.8%, compared to $1.921 billion in 2023, exceeding the high end of Management's updated outlook range for the year, which stood at $2.155 billion to $2.175 billion.

• Adjusted EBITDA margin increased to 18.0%, compared to 17.6% in 2023, mainly attributable to increased productivity, partially offset by the performance in Asia.

• EBIT stood at $1.27 billion, up 33.9% compared to 2023, mainly due to an increase in adjusted EBITDA, as well as impairment of long-lived assets recognized in 2023.

• Adjusted net earnings of $1.01 billion, or $8.05 per share, increased by $154.9 million or $1.15 per share, compared to 2023. The respective increases of 18.0% and 16.7% in these metrics was mainly attributable to higher adjusted EBITDA, partially offset by higher interest on long-term debt.

• Net earnings attributable to shareholders reached $681.4 million, or $5.40 per share, up $131.4 million, or $0.99 per share, compared to 2023. The increase was mainly due to higher adjusted EBITDA and impairment of long-lived assets recognized in the fourth quarter of 2023, partially offset by higher net financing expenses.

• DSO as at December 31, 2024 stood at 72 days, ending at the lower end of Management's outlook range, compared to 76 days as at December 31, 2023.

• Cash inflows from operating activities increased to $1,381.9 million in 2024 compared to $986.3 million in 2023. Free cash flow was $884.5 million for the year, more than double compared to $432.7 million in 2023. Free cash flow represented 1.3 times the net earnings attributable to shareholders.⁽²⁾ The improvement in free cash flow was mainly due to higher adjusted EBITDA, lower working capital usage, lower income taxes paid and the disposal of a building.

• Net debt to adjusted EBITDA ratio stood at 1.8x, within Management's target range of 1.0x to 2.0x. Incorporating a full twelve months of adjusted EBITDA of all acquired businesses, the net debt to adjusted EBITDA ratio would be 1.7x.

• Full year dividend declared of $1.50 per share, or $189.2 million.
  

“I am incredibly proud of our performance in the final year of our 2022-2024 strategic cycle,” said Alexandre L’Heureux, President and CEO of WSP. “Robust demand for our services and sustained growth in key regions enabled us to deliver above expectations for 2024 and the three-year period. As we begin executing on our 2025-2027 Global Strategic Action Plan, we intend to push boundaries even further, drive greater innovation, growth, profitability, and unleash the limitless potential of WSP on the road to becoming a leading brand in the professional services universe.”

FINANCIAL OUTLOOK 2025
The financial outlook for 2025 was included in the press release issued on February 12, 2025 as part of the launch of the 2025-2027 Global Strategic Action Plan.

DIVIDEND
The Board of Directors of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about April 15, 2025, to shareholders of record at the close of business on March 31, 2025.

FINANCIAL REPORT
This release incorporates the financial reports for the fourth quarter of 2024, including the audited consolidated financial statements for the year ended on December 31, 2024 and the Management's Discussion and Analysis ("MD&A") of the Corporation for the fourth quarter and year ended on December 31, 2024, which are available on our website at www.wsp.com. These documents are also available on SEDAR+ at www.sedarplus.ca.

WEBCAST
WSP will hold a conference call and webcast from 8:00 a.m. to 9:00 a.m. (Eastern Time) on February 27, 2025, to discuss these results.

To participate in the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the conference call can be accessed using this link. For those unable to attend, a replay will be available within 24 hours following the call under the "Investors" section of the website.

A presentation of the fourth quarter and year end 2024 highlights and results will be accessible on February 26, 2025, after market close under the “Investors” section of the WSP website at www.wsp.com.

RESULTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of Canadian dollars)
References to notes refer to notes in the audited consolidated financial statements of the relevant period.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars)
References to notes refer to notes in the audited consolidated financial statements of the relevant period.

All amounts shown in this press release are expressed in Canadian dollars, unless otherwise indicated. All quarterly information disclosed in this press release is based on unaudited figures.

NON-IFRS AND OTHER FINANCIAL MEASURES
The Corporation's financial statements are prepared in accordance with IFRS as issued by the International Accounting Standards Board. WSP uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with IFRS. Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure prescribes disclosure requirements that apply to the following types of measures used by the Corporation: (i) non-IFRS financial measures; (ii) non-IFRS ratios; (iii) total of segments measures; (iv) capital management measures; and (v) supplementary financial measures.

In this press release, the following non-IFRS and other financial measures are used by the Corporation: net revenues; adjusted EBITDA; adjusted EBITDA margin; adjusted net earnings; adjusted net earnings per share; free cash flow; trailing twelve months of free cash flow to trailing twelve months of net earnings attributable to shareholders; organic net revenue growth (contraction), acquisition net revenue growth; divestiture net revenue impact; organic backlog growth (contraction); days sales outstanding (“DSO”); and net debt to adjusted EBITDA ratio. Additional details for these non-IFRS and other financial measures can be found in section 22, “Glossary of segment reporting, non-IFRS and other financial measures” of WSP’s MD&A for the fourth quarter and year ended December 31, 2024, which is posted on WSP’s website at www.wsp.com, and filed on SEDAR+ at www.sedarplus.ca. Reconciliations of non-IFRS financial measures and total of segments measures to the most directly comparable IFRS measures are provided below.

Management believes that these non-IFRS and other financial measures provide useful information to investors regarding the Corporation’s financial condition and results of operations as they provide key metrics of its performance. These non-IFRS and other financial measures are not recognized under IFRS, do not have any standardized meanings prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

FORWARD-LOOKING STATEMENTS
Certain information contained in this press release are not based on historical or current facts and may constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) under Canadian securities laws. Forward-looking statements may include estimates, plans, strategic ambitions, objectives, expectations, opinions, forecasts, projections, guidance, outlook or other statements that are not statements of fact.

Forward-looking statements made by the Corporation in this press release include, without limitation, statements about our ambitions; our development of innovation; our future growth and potential; our profitability; the payment of dividends; our proposed strategy, and our operating performance; and statements about the 2025-2027 Global Strategic Action Plan.

Forward-looking statements made by the Corporation are based on a number of operational and other assumptions believed by the Corporation to be reasonable as at the date such statements were made, including assumptions set out through this press release and including, without limitation, the following principal assumptions about: general economic and political conditions; organic growth expectations; economic and market assumptions regarding the competition; the state of the global economy and the economies of the regions in which the Corporation operates; the state of and access to global and local capital and credit markets; interest rates; working capital requirements; the collection of accounts receivable; the Corporation obtaining new contract awards; the type of contracts entered into by the Corporation; the anticipated margins under new contract awards; the utilization of the Corporation’s workforce; the ability of the Corporation to attract new clients; the ability of the Corporation to retain current clients; changes in contract performance; project delivery; the Corporation’s competitors; the ability of the Corporation to successfully integrate businesses; the acquisition and integration of businesses in the future; the Corporation’s ability to manage growth; external factors affecting the global operations of the Corporation; the state of the Corporation’s backlog and pipeline of opportunities in various reportable segments; the joint arrangements into which the Corporation has entered or will enter; the capital investments made by the public and private sectors; relationships with suppliers and subconsultants; relationships with management, key professionals and other employees of the Corporation; the maintenance of sufficient insurance; the management of environmental, social and health and safety risks; the sufficiency of the Corporation’s current and planned information systems, communications technology and other technology; compliance with laws and regulations; future legal proceedings; the sufficiency of internal and disclosure controls; the regulatory environment; impairment of goodwill; foreign currency fluctuation; the expected benefits of acquisitions and the expected synergies to be realized as a result thereof; the tax legislation and regulations to which the Corporation is subject and the state of the Corporation’s benefit plans.

Although WSP believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. In evaluating these forward-looking statements, investors should specifically consider various risk factors, which, if realized, could cause the Corporation's actual results or events to differ materially from those expressed or implied in forward-looking statements. Such risk factors include, but are not limited to, failure to implement sufficient corporate and business initiatives; increases in real estate costs; the deterioration of our financial position or net cash position; our working capital requirements; our accounts receivable; our increased indebtedness and raising capital; the impairment of long-lived assets; our foreign currency exposure; our income taxes; as well as other risks detailed from time to time in reports filed by the Corporation with securities regulators or securities commissions or other documents that the Corporation makes public, which may cause actual results or events to differ materially from the results expressed or implied in any forward-looking statement.

These and other risk factors that could cause actual results or events to differ materially from our expectations expressed in, or implied by, our forward-looking statements are discussed in greater detail in section 20, “Risk Factors” of the Corporation’s MD&A for the fourth quarter and year ended December 31, 2024 which is available on SEDAR+ at www.sedarplus.ca. Actual results and events may be significantly different from what we currently expect because of the risks associated with our business, industry and global economy and of the assumptions made in relation to these risks. As such, there can be no assurance that actual results will be consistent with forward-looking statements.

The forward-looking statements contained in this press release describe the Corporation’s expectations as of the date hereof and, accordingly, are subject to change after such date. Except as required under Canadian securities legislation, the Corporation does not assume any obligation to publicly update or to revise any forward-looking statements made in this press release or otherwise, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The Corporation may also make oral forward-looking statements from time to time. The Corporation advises that the above paragraphs and the risk factors set forth in section 20, “Risk factors” should be read for a description of certain factors that could cause the actual results of the Corporation to differ materially from the results expressed or implied in any oral forward-looking statements. Readers should not place undue reliance on forward-looking statements.

ABOUT WSP
WSP is one of the world’s leading professional services firms, uniting its engineering, advisory and science-based expertise to shape communities to advance humanity. From local beginnings to a globe-spanning presence today, WSP operates in over 50 countries and employs approximately 73,000 professionals, known as Visioneers. Together they pioneer solutions and deliver innovative projects in the transportation, infrastructure, environment, building, energy, water, and mining and metals sectors. WSP is publicly listed on the Toronto Stock Exchange (TSX:WSP).