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John Wood (GB:WG)
LSE:WG
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John Wood
(LSE:WG)
Select Model
Select Model
Rating:45Neutral
Price Target:
23.00p
▼(-2.79% Downside)
The overall stock score reflects significant financial challenges, including declining revenues and high leverage, which are the most impactful factors. While technical indicators show some positive momentum, poor valuation metrics and a negative earnings call sentiment weigh heavily on the score.
Positive Factors
Order Book Growth
The increase in the order book indicates strong future revenue potential, suggesting robust demand for John Wood's services and enhancing long-term business stability.
Sidara Acquisition Progress
The Sidara acquisition, with its capital injection and extended debt facilities, is crucial for enhancing liquidity and financial stability, supporting long-term strategic growth.
Sustainability Focus
John Wood's emphasis on sustainability and renewable energy aligns with global trends, positioning the company favorably in expanding markets and supporting long-term growth.
Negative Factors
Revenue Decline
The decline in revenue reflects challenges in maintaining market share and operational efficiency, potentially impacting long-term financial performance and competitive positioning.
High Leverage
High leverage limits financial flexibility and increases risk, potentially constraining the company's ability to invest in growth opportunities and weather economic downturns.
Consulting Segment Losses
Significant losses in the consulting segment highlight operational inefficiencies and could undermine profitability, affecting the company's overall financial health and strategic execution.
John Wood (WG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£160.87M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)1.98
Revenue Growth-14.33%
EPS Growth-69.80%
CountryUK
Employees35,319
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding691,839,360
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
John Wood Business Overview & Revenue Model
Company DescriptionJohn Wood (WG) is a leading provider of innovative engineering and construction solutions, primarily focused on the infrastructure, energy, and industrial sectors. The company specializes in delivering high-quality project management, design, and construction services, catering to both public and private sector clients. With a strong emphasis on sustainability and technological advancement, John Wood aims to drive efficiency and value in every project it undertakes, while contributing to the development of essential infrastructure globally.
How the Company Makes MoneyJohn Wood generates revenue through a diverse range of services, including engineering and project management, construction services, and consulting in various sectors such as energy, water, and industrial markets. The company's primary revenue streams include fixed-price contracts for construction projects, time and materials contracts for engineering services, and performance-based contracts. Significant partnerships with major corporations and government agencies also enhance its earning potential by securing large-scale projects and long-term contracts. Additionally, the company's focus on renewable energy and sustainability initiatives positions it favorably in the growing market for environmentally responsible solutions, contributing to its overall financial performance.
John Wood Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 17, 2026
Earnings Call Sentiment Negative
The earnings call reflected significant challenges faced by Wood Group, with notable declines in revenue and EBIT, high net debt levels, and a statutory loss due to impairments. However, there were positive developments with an improved order book and progress on the Sidara acquisition. Despite these gains, the overall financial performance and liquidity issues present a negative outlook.Q2-2025 Updates
Positive Updates
Order Book Growth
Order book at 30th June 2025 grew to $6.5 billion, significantly improved from $5.8 billion at 31 December 2024, driven by large EPCM opportunities and renewals in operations.
Sidara Acquisition Progress
The publication of financial statements satisfies conditions related to the Sidara offer, and a shareholder vote is scheduled, which upon approval will lead to a $250 million capital injection and extension of debt facilities to 2028.
Negative Updates
Revenue Decline
2024 revenue of $5.5 billion was down 1% compared to 2023, with a significant decline in consulting and a small decline in projects.
Adjusted EBIT Decrease
Adjusted EBIT for 2024 was $81 million, 52% lower than in 2023, with underlying declines in profitability across all business units.
Consulting Segment Losses
Consulting saw a 68% reduction in adjusted EBIT to $20 million, mostly due to $22 million of losses on a contract in Digital Consulting.
Net Debt Levels
Net debt excluding leases remained broadly flat at $683 million as of 31 December 2024, with an average net debt of $8 billion throughout the year.
Statutory Loss
A statutory loss of $2.8 billion was recorded, majorly due to a $2.2 billion impairment of goodwill and intangible assets.
H1 2025 Revenue and EBIT Decline
H1 2025 revenue was down 13% compared to last year at $2.4 billion, and adjusted EBIT was 38% lower than last year.
Liquidity Challenges
Trading was impacted by liquidity challenges due to restricted access to uncommitted financing facilities, affecting new business acquisition.
Company Guidance
During the Wood Group's Half Year Results Call, the company provided several critical financial metrics and guidance for the upcoming periods. For fiscal year 2024, the company reported a revenue of $5.5 billion, marking a 1% decrease from the previous year. Adjusted EBIT for the same period was $81 million, a significant 52% decline compared to 2023. This decline included $55 million of independent review charges. In H1 2025, Wood Group faced a 13% revenue drop to $2.4 billion, with adjusted EBIT decreasing by 38% to $63 million. The company's net debt, excluding leases, remained stable at $683 million by the end of 2024, with average net debt reaching $8 billion throughout the year. Despite these challenges, the order book grew to $6.5 billion by June 2025, improving from $5.8 billion in December 2024. However, due to ongoing complexities and uncertainty, the company has not provided financial guidance and has removed its profit forecast from the Sidara scheme document. The Sidara acquisition remains a focal point, with the shareholder vote scheduled for November 17, 2025, aiming to secure a $250 million capital injection and extend debt facilities to 2028, which is crucial for improving liquidity and stability.John Wood Financial Statement Overview
Summary
Income Statement
30
Negative
Balance Sheet
40
Negative
Cash Flow
35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.35B | 4.30B | 5.90B | 5.43B | 6.40B | 7.56B |
| Gross Profit | 438.48M | 476.75M | 709.60M | 640.40M | 684.80M | 727.70M |
| EBITDA | -1.77B | -1.90B | 328.60M | -309.40M | 260.50M | 366.40M |
| Net Income | -1.45B | -2.17B | -110.70M | -705.40M | -135.50M | -228.10M |
Balance Sheet | ||||||
| Total Assets | 3.54B | 3.71B | 7.66B | 7.67B | 9.60B | 9.82B |
| Cash, Cash Equivalents and Short-Term Investments | 361.88M | 365.78M | 384.60M | 521.70M | 490.50M | 585.00M |
| Total Debt | 1.45B | 1.22B | 1.53B | 1.27B | 2.35B | 2.15B |
| Total Liabilities | 3.24B | 3.37B | 4.02B | 3.94B | 5.51B | 5.65B |
| Stockholders Equity | 297.73M | 344.30M | 3.64B | 3.73B | 4.08B | 4.17B |
Cash Flow | ||||||
| Free Cash Flow | -145.71M | 32.95M | -96.80M | -497.60M | -174.50M | 214.60M |
| Operating Cash Flow | -134.70M | 47.50M | 48.40M | -360.80M | -59.60M | 303.00M |
| Investing Cash Flow | 88.59M | 64.09M | -142.50M | 1.63B | -56.90M | 348.20M |
| Financing Cash Flow | 108.34M | -88.98M | -13.50M | -1.21B | 39.50M | -2.00B |
John Wood Technical Analysis
Negative
23.66
Price Trends
21.64
Positive
20.04
Positive
21.43
Positive
Market Momentum
0.55
Positive
53.52
Neutral
34.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WG, the sentiment is Negative. The current price of 23.66 is below the 20-day moving average (MA) of 24.22, above the 50-day MA of 21.64, and above the 200-day MA of 21.43, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 34.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WG.
John Wood Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £182.04M | 6.29 | 9.45% | ― | 7.05% | -19.81% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | £121.55M | 1.03 | 34.81% | ― | 7.74% | ― | |
58 Neutral | £188.27M | -2.20 | -26.37% | 4.46% | -18.05% | -634.88% | |
45 Neutral | £160.87M | -0.11 | -123.27% | ― | -14.33% | -69.80% |
* Energy Sector Average
GB:WG
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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.