Canadian engineering firm WSP Global Inc. reported strong revenue growth for the quarter ended June 26, surpassing analyst expectations and raising its full-year financial guidance. The Montreal-based company’s shares rose 5 percent, closing at $189.99 on the Toronto Stock Exchange following the announcement.
WSP posted net revenue of $4.3 billion for the quarter, marking a 23 percent increase compared with the same period last year. This growth included a 5 percent rise from its existing operations, with all regions showing positive results, particularly Canada and the United States. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 29 percent year-over-year to $815 million, or $2.88 per share, exceeding the $2.82 per share forecast by analysts. Meanwhile, net earnings declined to $246 million, or $1.83 per share, down from the previous year due in part to higher acquisition and integration expenses.
WSP’s project portfolio features high-profile undertakings such as the Purple Line subway extension in Los Angeles, a significant and complex transit infrastructure project in the U.S. During the quarter, its backlog of booked but incomplete work reached a record $20.1 billion.
Despite rising investor concerns that artificial intelligence (AI) could erode profit margins in the engineering consulting sector by automating tasks traditionally performed by consultants, WSP’s results suggest growing earnings visibility. Raymond James analyst Frederic Bastien noted that while AI’s impact remains subject to debate, the company’s strong quarterly performance points to continued resilience.
The sector has recently faced pressure, with shares of major firms including WSP and Stantec Inc. declining amid fears that AI-driven automation could reduce consulting fees. However, industry analysts highlight a more nuanced outlook. National Bank analyst Maxim Sytchev, following a presentation by WSP on its technology strategy, reported that the company views AI primarily as a growth opportunity rather than a cost-cutting measure. WSP is implementing digital tools to streamline complex processes, accelerate project delivery, and enable its staff to handle more work efficiently—a crucial factor in a labor-constrained industry.
Bastien further suggested that AI might widen the competitive gap between large engineering firms with the resources to invest in advanced digital tools and smaller competitors, potentially strengthening WSP’s market position.
In addition to organic growth, WSP is pursuing acquisitions to expand its expertise and operational scale. The company recently made a renewed non-binding offer to acquire Amsterdam-based Arcadis, valuing the Dutch consultancy at approximately €4.7 billion (about $7.56 billion). Arcadis, whose largest shareholder is the employee-managed foundation Lovinklaan, has rejected the bid as undervaluing the firm. WSP’s leadership emphasized the strategic benefits of merging the two companies, with CEO Alexandre L’Heureux describing ongoing talks as constructive and respectful and framing the potential transaction as friendly.
No further details on the takeover were provided, but WSP indicated that combining with Arcadis would accelerate its growth trajectory.