John Wood ((GB:WG)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for John Wood Company highlighted significant challenges, with a generally negative sentiment due to declines in revenue and EBIT, high net debt levels, and a statutory loss driven by impairments. Despite these hurdles, there were some positive notes, including an improved order book and progress on the Sidara acquisition, though the overall financial performance and liquidity issues cast a shadow over the outlook.
Order Book Growth
The earnings call revealed a positive development in the company’s order book, which grew to $6.5 billion as of June 30, 2025, up from $5.8 billion at the end of 2024. This growth was primarily driven by large EPCM opportunities and renewals in operations, signaling potential future revenue streams.
Sidara Acquisition Progress
Progress on the Sidara acquisition was a key highlight, with the publication of financial statements meeting conditions related to the offer. A shareholder vote is scheduled, which, if approved, will lead to a $250 million capital injection and an extension of debt facilities to 2028, providing a much-needed boost to liquidity.
Revenue Decline
The company reported a revenue decline for 2024, with total revenue falling to $5.5 billion, a 1% decrease from the previous year. This decline was particularly pronounced in the consulting segment, which saw significant challenges.
Adjusted EBIT Decrease
Adjusted EBIT for 2024 was reported at $81 million, marking a substantial 52% decrease from 2023. This decline was attributed to underlying profitability issues across all business units, reflecting broader operational challenges.
Consulting Segment Losses
The consulting segment faced severe difficulties, with adjusted EBIT plummeting by 68% to $20 million. This was largely due to $22 million in losses on a contract within Digital Consulting, highlighting specific areas of concern.
Net Debt Levels
Net debt levels remained broadly flat at $683 million by the end of 2024, although the average net debt throughout the year was significantly higher at $8 billion, indicating ongoing financial pressures.
Statutory Loss
A statutory loss of $2.8 billion was recorded, driven mainly by a $2.2 billion impairment of goodwill and intangible assets, underscoring the financial challenges faced by the company.
H1 2025 Revenue and EBIT Decline
The first half of 2025 saw further declines, with revenue down 13% to $2.4 billion and adjusted EBIT falling by 38% compared to the previous year, reflecting continued operational difficulties.
Liquidity Challenges
Liquidity challenges were a significant issue, impacting trading and new business acquisition due to restricted access to uncommitted financing facilities, highlighting the need for improved financial stability.
Forward-Looking Guidance
Looking ahead, the company has not provided specific financial guidance due to ongoing uncertainties. However, the Sidara acquisition remains a focal point, with a shareholder vote scheduled for November 17, 2025, aiming to secure a $250 million capital injection and extend debt facilities to 2028. This move is seen as crucial for improving liquidity and stability in the coming years.
In summary, the earnings call for John Wood Company painted a challenging picture, with significant declines in key financial metrics and ongoing liquidity issues. While there were positive developments in the order book and Sidara acquisition progress, the overall sentiment was negative, reflecting the hurdles the company faces in stabilizing its financial position.