Dive Brief:
- WSP posted an earnings trifecta for 2023, with higher profit, revenue and backlog compared to the previous year, according to its full-year report released Wednesday. On a Thursday investor call, WSP CEO and President Alexandre L’Heureux attributed the positive results to the company’s acquisition growth, strong project performance and “significant productivity initiatives.”
- The Montreal-based engineering and design giant reported revenues of CA$14.44 billion ($10.65 billion USD) for the year, up 21% from 2022. Its profits stood at CA$550 million, a 27.4% jump from the previous year, while backlog stood at CA$14.08 billion, a 8.3% increase. The firm also saw a quarterly uptick in revenue and profit, CA$3.72 billion and CA$130.6 million, respectively.
- The firm continues to emphasize its environmental, ESG and clean energy work, which benefitted “from robust momentum across all our geographies,” L'Heureux said on the call. “Our future is not short of growth opportunities as global trends point to a higher demand in all these fields.”
Dive Insight:
WSP CFO Alain Michaud said the company is diversifying and divesting from real estate, and called 2023 “a year of significant consolidation and transformation.”
“On this front, we're very pleased with the progress and are well on track to exceed our 2024 goal of reducing by 20% our real estate costs and footprint,” said Michaud.
WSP placed more of an emphasis on what L’Heureux called “hyper growth sectors” such as healthcare, hospitality, entertainment, data centers, mission critical and manufacturing.
L’Heureux also attributed WSP’s results to its investment in technology and worker retention, including bringing its North American offices onto its new enterprise resource planning system, enabling it to more efficiently leverage its global workforce. The 2023 report closes out the second year of WSP’s 2022-2024 strategic cycle.
The company completed its acquisition of Lausanne, Switzerland-based BG Consulting Engineers and Milsons Point, Australia-headquartered Enstruct at the beginning of 2023, and also added Quebec’s LGT and North Sydney-based Calibre to its fold. Calibre enabled WSP to enter a new market in Australia, and the BG Bonnard & Gardel Holding acquisition allowed it to be a top player in Switzerland, L’Heureux said.
“We have substantially completed the integration of our recent strategic acquisitions,” L’Heureux said. “We have a strong balance sheet to support our ambitions and I am confident in our ability to deliver on our 2024 financial goal.”
WSP also sold Louis Berger Services, which it acquired in 2018. L’Heureux said in an August earnings call that this had always been the plan.
WSP bullish on clean energy, transit
WSP continues to see “positive momentum” from the Infrastructure Investment and Jobs Act, and the infrastructure market is strong around the world, L’Heureux said. He also highlighted strong performance in the U.K. market.
“The biggest opportunities from this bill and other stimulus programs globally are in roads, bridges and major transportation projects,” L’Heureux said.
L’Heureux expects a boom in environmental and clean energy work in particular. He called out a range of projects WSP is working on in the sector, including:
- The $3.2 billion Propel New York clean energy project, a renewable energy transmission line in New York City.
- Volkswagen’s $14.8 billion PowerCo. EV battery factory in St. Thomas, Ontario.
The firm continues to collect environmental accolades: It ranked 12th on Corporate Knights’ 2024 list of the Global 100 Most Sustainable Corporations in the World and earned placement on the Dow Jones Sustainability North America Index for the first time.
