- Strong year end results surpassing Management's expectations on growth and profitability
- Mid- to high-single-digit net revenue organic growth(4) in the 2022-2024 strategic cycle
- Q4 2024 results exceeding expectations driven by high level of net revenue organic growth
- Strong free cash flow(2) generation
- Robust balance sheet supporting continued growth aspirations
- Well positioned to implement 2025-2027 Global Strategic Action Plan
| Fourth quarters ended | Years ended | |||
| (in millions of dollars, except percentages, per share data, DSO and ratios) | December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 |
| Revenues | $4,664.9 | $3,724.3 | $16,166.8 | $14,437.2 |
| Net revenues(1) | $3,394.0 | $2,756.0 | $12,172.2 | $10,897.0 |
| Earnings before net financing expense and income taxes (EBIT) | $345.4 | $211.0 | $1,268.6 | $947.5 |
| Adjusted EBITDA(2) | $634.3 | $524.9 | $2,185.7 | $1,921.3 |
| Adjusted EBITDA margin(2) | 18.7% | 19.0% | 18.0% | 17.6% |
| Net earnings attributable to shareholders of WSP Global Inc. | $166.9 | $130.6 | $681.4 | $550.0 |
| Basic net earnings per share attributable to shareholders | $1.28 | $1.05 | $5.40 | $4.41 |
| Adjusted net earnings(2) | $305.3 | $247.8 | $1,014.9 | $860.0 |
| Adjusted net earnings per share(2) | $2.34 | $1.99 | $8.05 | $6.90 |
| Cash inflows from operating activities | $773.3 | $776.6 | $1,381.9 | $986.3 |
| Free cash flow(2) | $642.5 | $609.9 | $884.5 | $432.7 |
| As at | December 31, 2024 | December 31, 2023 | ||
| Backlog | $15,604.0 | $14,076.5 | ||
| Approximate number of employees | 72,800 | 66,500 | ||
| DSO(3) | 72 days | 76 days | ||
| Net debt to adjusted EBITDA ratio(3) | 1.8 | 1.5 | ||
| (1) | Total of segments measure. Quantitative reconciliations of net revenues to revenues are presented below under the caption "Non-IFRS and other financial measures". |
| (2) | Non-IFRS financial measure or non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar measures or ratios used by other issuers. Quantitative reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and other financial measures". Adjusted EBITDA margin is defined as adjusted EBITDA expressed as a percentage of net revenues. Adjusted net earnings per share is the ratio of adjusted net earnings divided by the basic weighted average number of shares outstanding for the period. This press release incorporates by reference section 22, "Glossary of segment reporting, non-IFRS and other financial measures”, of WSP's MD&A for the year ended December 31, 2024, filed on SEDAR+ at www.sedarplus.ca, which includes explanations of the composition and usefulness of these non-IFRS financial measures and non-IFRS ratios. |
| (3) | This press release incorporates by reference section 22, "Glossary of segment reporting, non-IFRS and other financial measures”, of WSP's MD&A for the year ended December 31, 2024, filed on SEDAR+ at www.sedarplus.ca, which explains the composition of the supplemental financial measures, as well as the usefulness of the net debt to adjusted EBITDA ratio, which is a capital management measure composed of the ratio of net debt to adjusted EBITDA for the trailing twelve-month period. Net debt is defined as long-term debt, including current portions but excluding lease liabilities, and net of cash. Days sales outstanding ("DSO”) represents the average number of days to convert the Corporation's trade receivables (net of sales taxes) and costs and anticipated profits in excess of billings, net of billings in excess of costs and anticipated profits, into cash. |
| (4) | Supplemental financial measure. Net revenue organic growth represents the period-over-period change in net revenues, excluding net revenues of businesses acquired or divested in the twelve months following the acquisition or prior to the divestiture, expressed as a percentage of the comparable period net revenues, adjusted to exclude net revenues of divested businesses, all calculated to exclude the impact of foreign exchange. |
- Revenues and net revenues for the quarter reached $4.66 billion and $3.39 billion, up 25.3% and 23.1%, respectively, compared to the fourth quarter of 2023. Net revenue organic growth of 10.0% in the quarter was led by the US and Canada. Net revenue organic growth would have been approximately 7.6% if normalized for the fact that the fourth quarter of 2024 benefitted from approximately two additional billable days.
- Adjusted EBITDA in the quarter grew to $634.3 million, compared to $524.9 million in the fourth quarter of 2023, an increase of 20.8%.
- Adjusted EBITDA margin for the quarter stood at 18.7%, compared to 19.0% in the fourth quarter of 2023, due to the performance in Asia and a higher mix of lower-margin emergency response services in the US.
- Earnings before net financing expense and income Taxes (EBIT) in the quarter stood at $345.4 million, up $134.4 million or 63.7%, compared to the fourth quarter of 2023. The increase was mainly attributable to an increase in adjusted EBITDA, as well as impairment of long-lived assets recognized in the fourth quarter of 2023, partially offset by higher acquisition and integration costs in the fourth quarter of 2024 due to the recent acquisition of POWER Engineers, Incorporated.
- Adjusted net earnings for the quarter reached $305.3 million, or $2.34 per share, up 23.2% and 17.6%, respectively, compared to the fourth quarter of 2023. The increase is mainly attributable to higher adjusted EBITDA, partially offset by higher interest on long-term debt.
- Net earnings attributable to shareholders for the quarter reached $166.9 million, or $1.28 per share, up 27.8% and 21.9%, respectively, compared to $130.6 million, or $1.05 per share, in the fourth quarter of 2023. The increase is 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.
- Cash flows from operating activities were $773.3 million in the quarter, and free cash flow reached $642.5 million in the quarter.
- Quarterly dividend declared of $0.375 per share, or $48.9 million, which was paid subsequent to the end of the year on January 15, 2025.
- 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.
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.
| (1) | Based on revenues for the trailing twelve-month period, incorporating a full twelve months of revenues for all acquisitions. |
| (2) | Non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar ratios used by other issuers. The ratio is defined as the trailing twelve months of free cash flow to trailing twelve months of net earnings attributable to shareholders. The ratio of free cash flow to net earnings attributable to shareholders for the year ended December 31, 2023 was 0.8. This press release incorporates by reference section 22, "Glossary of segment reporting, non-IFRS and other financial measures”, of WSP's MD&A for the year ended December 31, 2024, filed on SEDAR+ at www.sedarplus.ca, for references to the non-IFRS financial measure which is a component of this non-IFRS ratio, and the usefulness of this non-IFRS ratio. |
| Fourth quarters ended | Years ended | |||
| (in millions of dollars, except number of shares and per share data) | December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31,
2023 |
| Revenues | $4,664.9 | $3,724.3 | $16,166.8 | $14,437.2 |
| Less: Subconsultants and direct costs | $1,270.9 | $968.3 | $3,994.6 | $3,540.2 |
| Net revenues | $3,394.0 | $2,756.0 | $12,172.2 | $10,897.0 |
| EBIT | $345.4 | $211.0 | $1,268.6 | $947.5 |
| Net financing expense | $118.3 | $47.4 | $340.6 | $202.6 |
| Earnings before income taxes | $227.1 | $163.6 | $928.0 | $744.9 |
| Income tax expense | $60.2 | $32.3 | $246.6 | $191.9 |
| Net earnings | $166.9 | $131.3 | $681.4 | $553.0 |
| Net earnings attributable to: | ||||
| Shareholders of WSP Global Inc. | $166.9 | $130.6 | $681.4 | $550.0 |
| Non-controlling interests | - | $0.7 | - | $3.0 |
| Basic net earnings per share attributable to shareholders | $1.28 | $1.05 | $5.40 | $4.41 |
| Diluted net earnings per share attributable to shareholders | $1.28 | $1.05 | $5.38 | $4.40 |
| Basic weighted average number of shares | 130,208,732 | 124,647,422 | 126,104,722 | 124,603,768 |
| Diluted weighted average number of shares | 130,630,308 | 124,989,583 | 126,539,101 | 124,951,544 |
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.
| As at December 31 | 2024 | 2023 |
| $ | $ | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents (note 28) | 623.5 | 378.0 |
| Trade receivables and other receivables (note 14) | 3,390.7 | 2,726.4 |
| Cost and anticipated profits in excess of billings (note 15) | 2,390.8 | 1,911.6 |
| Prepaid expenses | 396.7 | 239.4 |
| Other financial assets (note 16) | 168.0 | 123.3 |
| Income taxes receivable | 39.2 | 38.4 |
| 7,008.9 | 5,417.1 | |
| Non-current assets | ||
| Right-of-use assets (note 17) | 1,066.6 | 824.2 |
| Intangible assets (note 18) | 1,539.3 | 1,104.1 |
| Property and equipment (note 19) | 493.4 | 435.3 |
| Goodwill (note 20) | 9,451.5 | 7,155.8 |
| Deferred income tax assets (note 12) | 404.1 | 429.3 |
| Other assets (note 21) | 235.4 | 217.3 |
| 13,190.3 | 10,166.0 | |
| Total assets | 20,199.2 | 15,583.1 |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities (note 22) | 3,261.2 | 2,738.2 |
| Billings in excess of costs and anticipated profits (note 15) | 1,652.7 | 1,158.0 |
| Income taxes payable (note 12) | 206.3 | 171.0 |
| Provisions (note 23) | 121.4 | 134.9 |
| Dividends payable to shareholders (note 27) | 48.9 | 46.8 |
| Current portion of lease liabilities (note 17) | 285.0 | 257.5 |
| Current portion of long-term debt (note 24) | 704.9 | 204.2 |
| 6,280.4 | 4,710.6 | |
| Non-current liabilities | ||
| Long-term debt (note 24) | 3,894.5 | 3,058.3 |
| Lease liabilities (note 17) | 907.2 | 744.6 |
| Provisions (note 23) | 466.3 | 399.3 |
| Retirement benefit obligations (note 9) | 202.1 | 187.5 |
| Deferred income tax liabilities (note 12) | 176.2 | 149.4 |
| 5,646.3 | 4,539.1 | |
| Total liabilities | 11,926.7 | 9,249.7 |
| Equity | ||
| Equity attributable to shareholders of WSP Global Inc. | 8,272.5 | 6,328.9 |
| Non-controlling interests | - | 4.5 |
| Total equity | 8,272.5 | 6,333.4 |
| Total liabilities and equity | 20,199.2 | 15,583.1 |
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.
| Years ended December 31 | 2024 | 2023 |
| $ | $ | |
| Operating activities | ||
| Net earnings | 681.4 | 553.0 |
| Adjustments (note 28) | 594.6 | 658.9 |
| Net financing expense (note 11) | 340.6 | 202.6 |
| Income tax expense (note 12) | 246.6 | 191.9 |
| Income taxes paid | (285.4) | (334.4) |
| Change in non-cash working capital items (note 28) | (195.9) | (285.7) |
| Cash inflows from operating activities | 1,381.9 | 986.3 |
| Financing activities | ||
| Issuance of common shares, net of issuance costs (note 25) | 1,115.8 | 5.2 |
| Issuance of senior unsecured notes (note 24) | 995.5 | 496.2 |
| Net repayment of borrowings under credit facilities and other financial liabilities | (9.3) | (364.5) |
| Lease payments (note 17) | (375.7) | (375.1) |
| Net financing expenses paid, excluding interest on lease liabilities | (231.4) | (196.6) |
| Dividends paid to shareholders of WSP Global Inc. | (187.1) | (162.2) |
| Dividends paid to non-controlling interests | - | (0.4) |
| Cash inflows from (outflows used in) financing activities | 1,307.8 | (597.4) |
| Investing activities | ||
| Net disbursements related to business acquisitions and disposals of businesses | (2,340.0) | (354.3) |
| Additions to property and equipment, excluding business acquisitions | (148.3) | (160.3) |
| Additions to identifiable intangible assets, excluding business acquisitions | (15.5) | (20.1) |
| Proceeds from disposal of property and equipment | 42.1 | 1.9 |
| Dividends received from associates | 28.7 | 22.6 |
| Other | (3.6) | (0.2) |
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