WSP Global raises financial outlook as it looks to grow across its core business

MONTREAL — WSP Global Inc. raised its financial outlook as it said it's looking to grow its business across its core markets.

WSP chief executive Alexandre L’Heureux told a conference call with financial analysts to discuss the company’s latest results that the firm continues to build on the momentum from the first half of the year in addition to closing "significant transactions."

“We achieved solid organic net revenue growth across all our segments,” said L’Heureux.

Since June, the engineering firm has closed six acquisitions including the environment and infrastructure business of John Wood Group.

That's despite walking away from the acquisition of British consulting firm RPS Group in October due to a rival offer by Tetra Tech Inc.

“These acquisitions support our regional and global ambitions by reinforcing our service offerings in key sectors and strengthening our presence in key geographies," says L'Heureux.

The company says it now expects its net revenue to be between $8.80 billion and $8.90 billion, up from earlier expectations for between $8.25 billion and $8.75 billion. Its adjusted earnings before interest, taxes, depreciation and amortization are now expected to be between $1.51 billion and $1.53 billion, up from between $1.43 billion and $1.49 billion.

In its latest quarter, WSP reported net earnings attributable to shareholders of $127.5 million or $1.05 per share on $2.89 billion in revenue compared with a profit of $139.0 million or $1.18 per share on $2.65 billion in revenue a year earlier.

On an adjusted basis, WSP says it earned $193.4 million or $1.59 per share in its latest quarter, up from an adjusted profit of $179.7 million or $1.53 per share in the same quarter last year.

RBC Dominion Securities analyst Sabahat Khan says the company is well positioned to deliver on its 2024 targets given its well-diversified geographic and end-market exposure.

This report by The Canadian Press was first published Nov. 10, 2022.

Companies in this story: (TSX:WSP)

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