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WSP Global (TSE:WSP)
TSX:WSP

WSP Global (WSP) AI Stock Analysis

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WSP Global

(TSX:WSP)

Rating:78Outperform
Price Target:
C$309.00
▲(9.73%Upside)
WSP Global's strong financial performance and positive earnings call highlights, such as robust growth in North America and a record backlog, are significant factors for the stock's score. The high valuation and technical analysis reflecting mixed signals slightly temper the overall positive outlook. Notable corporate events further support strategic growth, although challenges remain in the APAC region and macroeconomic conditions.
Positive Factors
Mergers and Acquisitions
The proposed acquisition of Power Engineers not only marks a transformative step that will position the engineering consultancy at the forefront of the energy transition.
Strategic Partnerships
The company announced a 7-year partnership with Microsoft to leverage its engineering expertise and develop new digital solutions for the industry.
Negative Factors
Financial Dependencies
It draws financial support from Street and WSP’s four anchor shareholders, leaving the door open for similar deals in the EMEIA or APAC regions.

WSP Global (WSP) vs. iShares MSCI Canada ETF (EWC)

WSP Global Business Overview & Revenue Model

Company DescriptionWSP Global Inc. is a leading global engineering and professional services firm headquartered in Montreal, Canada. The company operates in various sectors, including transportation and infrastructure, property and buildings, environment, industry, and resources. WSP provides a wide range of services, such as consulting, engineering, design, and project management, to public and private sector clients worldwide. Its multidisciplinary approach allows it to deliver innovative solutions to complex engineering challenges, enhancing the sustainability and resilience of communities and environments.
How the Company Makes MoneyWSP Global makes money primarily through the provision of engineering and consulting services across its various sectors. Revenue is generated from fees charged for services such as project management, design, consulting, and engineering solutions. The company undertakes projects for government agencies, private sector companies, and other organizations, often working on long-term contracts. Key revenue streams include transportation and infrastructure projects, environmental consulting, building design and engineering, and industrial services. WSP's global presence and reputation for expertise enable it to secure significant contracts and partnerships, which contribute to its earnings. Additionally, strategic acquisitions and mergers enhance its service offerings and market reach, further boosting revenue potential.

WSP Global Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 10.55%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to 2025 with significant growth in North America and successful integration of acquisitions. However, challenges persist in the APAC region, and there are concerns about the macroeconomic environment. Nonetheless, the company remains optimistic about its diversified and resilient platform.
Q1-2025 Updates
Positive Updates
Strong Organic Growth in North America
Net revenue organic growth in Canada was 7%, and the U.S. delivered double-digit organic growth for the fourth consecutive quarter.
POWER Engineers Acquisition Success
POWER Engineers achieved 11% organic growth and significant revenue synergies opportunities, marking a successful integration.
Record Backlog
The backlog reached $16.6 billion, representing 11.3 months of revenue, up 16.6% year-over-year and 3% organically since the beginning of the year.
Strong Cash Flow and Debt Management
Free cash flow increased by $240 million versus last year, with DSO at 70 days, and net debt to adjusted EBITDA ratio stood at 1.8 times.
Positive Market Outlook
Australia's water, power, and mining sectors achieved strong organic growth, and Canada's infrastructure investments are expected to continue.
Negative Updates
Subpar Performance in APAC
The APAC region experienced subpar performance, particularly in the Transport & Infrastructure sector, with necessary optimization and restructuring costs impacting overall margins.
Restructuring Costs Impact Margins
Approximately $20 million in optimization and restructuring costs in EMEA and APAC regions impacted overall margins by 50 basis points.
Macroeconomic Uncertainty
Despite a strong outlook, there is acknowledgment of a fluid macroeconomic environment that may impact future performance.
Company Guidance
In the first quarter of 2025, WSP Global delivered net revenue organic growth of approximately 5.5%, adjusting for fewer billable days in the U.S., with Canada's organic growth reaching 7%. The U.S., contributing 40% of net revenues, achieved a fourth consecutive quarter of double-digit organic growth. The EBITDA margin remained steady at 16%, with significant margin improvements of 130 and 60 basis points in Canada and the Americas, respectively. Despite absorbing $20 million in optimization and restructuring costs in EMEA and APAC, the overall margin impact was limited to 50 basis points. Free cash flow increased by $240 million year-over-year, with days sales outstanding (DSO) at 70 days. The backlog grew organically by 3% since the beginning of the year, reaching a record high of $16.6 billion, or 11.3 months of revenue. The company reaffirmed its financial outlook, anticipating robust margin improvements and a compelling organic growth profile amid a challenging macro environment.

WSP Global Financial Statement Overview

Summary
WSP Global exhibits strong financial performance with significant revenue and profit growth, healthy margins, and robust cash flow generation. However, the slight decline in gross profit margin and increasing debt require careful management.
Income Statement
85
Very Positive
WSP Global demonstrates strong revenue and profit growth with a robust TTM (Trailing-Twelve-Months) revenue increase of 4.97% over the previous year. The company maintains healthy margins, including a TTM Gross Profit Margin of 61.12% and a Net Profit Margin of 4.12%. Continued EBIT and EBITDA growth further strengthen their profitability. However, the slight decline in Gross Profit Margin from the previous annual report indicates potential cost pressures.
Balance Sheet
80
Positive
The balance sheet of WSP Global is solid with a Debt-to-Equity Ratio of 0.65, reflecting moderate leverage. The company has consistently increased its stockholders' equity, contributing to a stable Equity Ratio of 42.44%. Return on Equity (ROE) stands at 8.31%, indicating efficient use of equity capital. However, the increasing total debt over the years could pose a risk if not managed carefully.
Cash Flow
78
Positive
WSP Global shows strong cash flow generation with a 15.65% growth in Free Cash Flow in the TTM period. The Operating Cash Flow to Net Income Ratio of 2.25 indicates robust cash flow relative to net income. However, the Free Cash Flow to Net Income Ratio of 2.02 suggests a high dependency on non-operating activities to generate free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.97B16.17B14.44B11.93B10.28B8.80B
Gross Profit10.37B12.17B2.18B8.96B7.87B6.86B
EBITDA1.97B1.89B1.64B1.26B1.22B937.90M
Net Income698.70M681.40M550.00M431.80M473.60M276.00M
Balance Sheet
Total Assets19.81B20.20B15.58B14.84B11.25B8.84B
Cash, Cash Equivalents and Short-Term Investments562.00M791.50M501.10M603.80M1.07B555.20M
Total Debt5.49B5.66B4.26B4.08B2.80B1.59B
Total Liabilities11.40B11.93B9.25B8.83B6.59B4.76B
Stockholders Equity8.41B8.27B6.33B6.01B4.66B4.08B
Cash Flow
Free Cash Flow1.41B1.22B806.30M648.30M938.90M1.03B
Operating Cash Flow1.57B1.38B986.30M814.80M1.06B1.13B
Investing Cash Flow-2.40B-2.44B-510.40M-2.68B-1.34B-185.30M
Financing Cash Flow844.10M1.31B-597.40M1.42B790.20M-746.30M

WSP Global Technical Analysis

Technical Analysis Sentiment
Positive
Last Price281.61
Price Trends
50DMA
271.79
Positive
100DMA
258.71
Positive
200DMA
252.89
Positive
Market Momentum
MACD
2.85
Negative
RSI
60.71
Neutral
STOCH
79.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WSP, the sentiment is Positive. The current price of 281.61 is above the 20-day moving average (MA) of 275.39, above the 50-day MA of 271.79, and above the 200-day MA of 252.89, indicating a bullish trend. The MACD of 2.85 indicates Negative momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WSP.

WSP Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSBDT
79
Outperform
C$1.64B16.3526.31%2.83%16.14%27.71%
TSSTN
79
Outperform
$17.22B44.6213.13%0.60%15.62%9.66%
TSWSP
78
Outperform
C$36.76B51.249.42%0.53%16.77%21.38%
76
Outperform
$1.71B25.5719.89%1.48%10.97%24.27%
73
Outperform
$16.39B56.258.66%0.08%12.05%1.32%
65
Neutral
$10.85B15.475.22%1.89%3.09%-26.84%
TSARE
55
Neutral
C$1.31B-9.26%3.71%1.70%-154.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WSP
WSP Global
281.61
61.24
27.79%
TSE:ATRL
AtkinsRealis
98.78
41.17
71.45%
TSE:STN
Stantec
150.96
35.55
30.81%
TSE:BDGI
Badger Infrastructure Solutions
50.54
14.14
38.83%
TSE:BDT
Bird Construction
29.65
4.56
18.17%
TSE:ARE
Aecon Group Inc.
20.51
6.18
43.13%

WSP Global Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
WSP Global Strengthens Board with High-Tech Industry Leader
Positive
Jun 18, 2025

WSP Global Inc. has announced the appointment of Pascale Sourisse to its Board of Directors, enhancing its governance with her extensive experience in high-tech industries. Her addition aligns with WSP’s strategic focus on expanding into high-growth areas like digital and advanced manufacturing, aiming to drive sustainable growth and long-term value creation.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$264.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
WSP Global Expands with Acquisition of Ricardo plc
Positive
Jun 11, 2025

WSP Global Inc. has announced its acquisition of Ricardo plc, a UK-based strategic and engineering consultancy firm, for 430 pence per share. This acquisition aligns with WSP’s strategic plan to enhance its capabilities in high-growth sectors such as rail, energy transition, and water solutions. The integration of Ricardo’s expertise will bolster WSP’s service offerings and strengthen its market position in key regions like the UK, Australia, and the Netherlands. The acquisition, valued at approximately £363.1 million, is expected to create new opportunities for WSP by combining its global reach with Ricardo’s specialized knowledge.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$264.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
WSP Global Inc. Shareholders Approve Key Business Items at Annual Meeting
Positive
May 8, 2025

WSP Global Inc. held its annual meeting of shareholders, where approximately 83% of all issued and outstanding common shares were represented. Shareholders voted in favor of all business items, including the election of eight directors and the appointment of PricewaterhouseCoopers LLP as independent auditors. A non-binding advisory vote on executive compensation was also adopted, reflecting shareholder support for the company’s compensation plans. These outcomes reinforce WSP’s stable governance and strategic direction, potentially strengthening its market position and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
WSP Global Reports Strong Q1 2025 Financial Results and Record Backlog
Positive
May 7, 2025

WSP Global Inc. reported strong financial results for the first quarter of 2025, with revenues reaching $4.39 billion, a 22.4% increase from the previous year. The company’s backlog reached a record $16.6 billion, indicating robust future project commitments. Adjusted EBITDA grew by 19.7% to $533.9 million, reflecting improved operational efficiency. Despite higher acquisition and integration costs, primarily due to the acquisition of POWER Engineers, WSP maintained a stable adjusted EBITDA margin of 16.0%. The positive financial performance underscores WSP’s solid industry positioning and growth trajectory, benefiting stakeholders with increased earnings and a strong backlog.

Business Operations and StrategyFinancial Disclosures
WSP Global Inc. Reports Strong Q1 2025 Results with Record Backlog
Positive
May 7, 2025

WSP Global Inc. reported strong financial results for the first quarter of 2025, with revenues reaching $4.39 billion, a 22.4% increase from the previous year. The company’s backlog grew to a record $16.6 billion, reflecting robust demand for its services. Key financial metrics, such as adjusted EBITDA and net earnings, showed significant growth, driven by higher operational performance despite increased acquisition costs. The results underscore WSP’s solid market positioning and its ability to capitalize on growth opportunities, benefiting stakeholders and reinforcing its industry leadership.

Business Operations and Strategy
WSP Global Advances Sustainability with 2024 Report and Future Targets
Positive
Apr 30, 2025

WSP Global Inc. has released its 2024 Global Sustainability Report, highlighting significant achievements in sustainability, including a record 65.1% of SDG-linked revenues and a substantial reduction in greenhouse gas emissions. The company has also improved employee retention and internal leadership promotions, maintaining its ethical standards and sustainability rankings. Looking forward, WSP has set ambitious sustainability targets for 2025-2027 to support its strategic growth and commitment to positive stakeholder impact.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 19, 2025