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WSP Global (TSE:WSP)
TSX:WSP
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WSP Global
(TSX:WSP)
Select Model
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Rating:75Outperform
Price Target:
C$277.00
▲(11.13% Upside)
WSP Global's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust growth and profitability. However, the high valuation and mixed technical indicators temper the score, suggesting potential caution for investors.
Positive Factors
Strong Revenue Growth
WSP Global's consistent revenue growth highlights its expanding market presence and successful project execution, supporting long-term business sustainability.
Record EBITDA Margin
Achieving record EBITDA margins indicates efficient cost management and operational effectiveness, enhancing profitability and competitive positioning.
Impressive Free Cash Flow
Strong free cash flow generation provides WSP Global with financial flexibility to invest in growth opportunities and manage debt, ensuring long-term stability.
Negative Factors
Challenges in APAC
Client decision delays in Australia could impact project timelines and revenue recognition, posing a risk to growth in the APAC region.
Impact of US Government Shutdown
The US government shutdown introduces operational uncertainties, potentially affecting project approvals and funding, impacting future performance.
Deferred Capital Projects
Deferrals in capital projects can slow revenue growth and disrupt project pipelines, affecting WSP Global's ability to capitalize on market opportunities.
WSP Global (WSP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$32.56B
Dividend Yield0.6%
Average Volume (3M)293.45K
Price to Earnings (P/E)37.5
Beta (1Y)0.87
Revenue Growth18.85%
EPS Growth29.60%
CountryCA
Employees72,600
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.82
Shares Outstanding130,607,700
10 Day Avg. Volume260,759
30 Day Avg. Volume293,455
Financial Highlights & Ratios
PEG Ratio2.09
Price to Book (P/B)3.86
Price to Sales (P/S)1.97
P/FCF Ratio30.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$334.55Price Target Upside34.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
WSP Global Business Overview & Revenue Model
Company DescriptionWSP Global Inc. is a leading professional services firm providing engineering, design, and consulting services across various sectors including infrastructure, environment, buildings, energy, and transportation. The company operates globally, delivering innovative solutions that promote sustainable development and enhance the quality of life in communities. WSP's core services encompass project management, environmental assessments, and engineering consulting, catering to both public and private sector clients.
How the Company Makes MoneyWSP Global generates revenue primarily through the provision of consulting and engineering services, which are billed on a project basis or through hourly rates. The company has several key revenue streams, including large-scale infrastructure projects, environmental and sustainability consulting, and building design services. Additionally, WSP benefits from long-term contracts and framework agreements with government agencies and private enterprises, providing a steady flow of income. Significant partnerships with other firms and stakeholders in the construction and engineering sectors further enhance WSP's capacity to secure large projects, contributing to its overall earnings.
WSP Global Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
WSP Global's earnings call reflects a strong financial performance with record margins and significant free cash flow, despite facing challenges in the APAC region and deferred projects in Earth & Environment. The successful integration of acquisitions and positive growth in key regions further enhance their outlook, although the US government shutdown remains a concern.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Net revenues, adjusted EBITDA, and adjusted net earnings increased by approximately 16%, 20%, and 32% respectively, showcasing robust financial results.
Record EBITDA Margin
Adjusted EBITDA margin reached a record high of 20.2%, representing an improvement of 70 basis points compared to Q3 2024.
Impressive Free Cash Flow Generation
Free cash flow reached almost $900 million for the 9-month period, an increase of $645 million compared to the previous year.
Successful Acquisition Integration
The acquisition of POWER Engineers marked the first anniversary with mid-teens organic growth and contribution to margin expansion.
Positive Outlook in Key Regions
Canada delivered 6% organic growth in net revenue for the quarter, and EMEA exceeded expectations with 11% net revenue organic growth in the UK.
Negative Updates
Challenges in APAC
While New Zealand showed modest growth, Australia is experiencing some client decision delays, impacting backlog accessibility.
Impact of US Government Shutdown
The US government shutdown added uncertainty to the operating environment, posing potential future impacts.
Deferred Capital Projects in Earth & Environment
Some clients have deferred capital projects, affecting the pace of field season in Canada and the US.
Company Guidance
During the WSP Global, Inc. third-quarter 2025 earnings call, several key metrics and guidance were highlighted, reflecting strong performance despite challenging market conditions. Net revenues, adjusted EBITDA, and adjusted net earnings increased by approximately 16%, 20%, and 32%, respectively. The adjusted EBITDA margin reached a record high of 20.2%, an improvement of 70 basis points over the quarter and 50 basis points over the nine-month period. Free cash flow for the nine-month period reached nearly $900 million, a significant increase of $645 million compared to the previous year, with days sales outstanding (DSO) standing at 71 days, the lowest historically for the third quarter. The company revised its 2025 financial outlook, expecting net revenues between $13.8 billion and $14 billion and adjusted EBITDA between $2.54 billion and $2.56 billion, despite challenges like the U.S. government shutdown and the effects of past emergency response services on year-over-year comparisons. The acquisition of Ricardo and the performance of POWER Engineers were also highlighted as key contributors to the company's growth and margin expansion.WSP Global Financial Statement Overview
Summary
WSP Global exhibits a strong financial position with consistent revenue growth, healthy profit margins, and solid cash flow generation. The company's balance sheet is stable, though the rising debt levels should be monitored. Overall, WSP Global is well-positioned for continued growth and operational success in the engineering and construction industry.Income Statement
WSP Global demonstrates strong revenue growth with a 3.39% increase in TTM, supported by robust gross and net profit margins of 75.31% and 4.53%, respectively. The EBIT and EBITDA margins are healthy at 7.90% and 12.09%, indicating efficient operational performance. Consistent revenue growth over the years highlights the company's competitive positioning in the industry.85
Very Positive
Balance Sheet
The balance sheet is solid with a manageable debt-to-equity ratio of 0.61, reflecting prudent financial leverage. Return on equity is commendable at 9.93%, showcasing effective use of shareholder funds. The equity ratio stands at 44.07%, indicating a stable capital structure. However, the increase in total debt over the years warrants monitoring.78
Positive
Cash Flow
WSP Global's cash flow is strong, with a significant 31.32% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 2.53 indicates robust cash generation relative to earnings. The free cash flow to net income ratio of 0.92 suggests efficient cash conversion. Overall, the cash flow position supports future growth and debt servicing.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.10B | 16.17B | 14.44B | 11.93B | 10.28B | 8.80B |
| Gross Profit | 2.94B | 2.60B | 2.18B | 1.70B | 1.50B | 1.16B |
| EBITDA | 2.23B | 1.89B | 1.64B | 1.26B | 1.22B | 937.90M |
| Net Income | 874.90M | 681.40M | 550.00M | 431.80M | 473.60M | 276.00M |
Balance Sheet | ||||||
| Total Assets | 19.34B | 20.20B | 15.58B | 14.84B | 11.25B | 8.84B |
| Cash, Cash Equivalents and Short-Term Investments | 413.70M | 791.20M | 501.10M | 603.00M | 1.06B | 553.40M |
| Total Debt | 4.98B | 5.79B | 4.26B | 4.08B | 2.80B | 1.59B |
| Total Liabilities | 10.56B | 11.93B | 9.25B | 8.83B | 6.59B | 4.76B |
| Stockholders Equity | 8.79B | 8.27B | 6.33B | 6.01B | 4.66B | 4.08B |
Cash Flow | ||||||
| Free Cash Flow | 1.67B | 1.03B | 652.40M | 626.70M | 926.00M | 1.02B |
| Operating Cash Flow | 1.82B | 1.18B | 812.30M | 757.60M | 1.03B | 1.09B |
| Investing Cash Flow | -2.40B | -2.47B | -533.00M | -2.70B | -1.36B | -204.70M |
| Financing Cash Flow | -385.90M | 1.54B | -400.80M | 1.50B | 838.00M | -696.50M |
WSP Global Technical Analysis
Negative
249.26
Price Trends
255.76
Negative
267.92
Negative
265.50
Negative
Market Momentum
-1.65
Negative
56.86
Neutral
84.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WSP, the sentiment is Negative. The current price of 249.26 is above the 20-day moving average (MA) of 244.03, below the 50-day MA of 255.76, and below the 200-day MA of 265.50, indicating a neutral trend. The MACD of -1.65 indicates Negative momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 84.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WSP.
WSP Global Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$32.56B | 37.46 | 11.21% | 0.60% | 18.85% | 29.60% | |
71 Outperform | C$14.94B | 6.03 | 56.38% | 0.09% | 13.97% | 715.65% | |
70 Outperform | C$14.80B | 31.10 | 15.96% | 0.68% | 11.73% | 41.17% | |
69 Neutral | C$1.61B | 17.19 | 21.68% | 2.89% | 6.26% | 0.52% | |
67 Neutral | C$2.53B | 29.64 | 22.05% | 0.99% | 13.02% | 52.88% | |
65 Neutral | C$2.02B | 244.64 | 0.92% | 2.39% | 25.68% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TSE:WSP
WSP Global
251.20
-1.59
-0.63%
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WSP Global Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
WSP Global Reports Strong Q3 2025 Financial Results and Strategic Growth
Positive
Nov 5, 2025
WSP Global Inc. reported strong financial results for the third quarter of 2025, showcasing significant growth in net revenues, adjusted EBITDA, and net earnings. The company’s performance was bolstered by the successful integration of POWER Engineers, which contributed to organic growth, and the recent acquisition of Ricardo plc. These developments have strengthened WSP’s market position and operational efficiency, resulting in increased margins and robust free cash flow generation. The company’s backlog also saw an increase, indicating sustained demand for its services.
M&A TransactionsBusiness Operations and Strategy
WSP Global Completes Acquisition of Ricardo plc to Strengthen Market Position
Positive
Oct 9, 2025
WSP Global Inc. has completed the acquisition of Ricardo plc, a strategic and engineering consultancy firm, enhancing its capabilities in advisory, energy transition, water solutions, and rail. This acquisition aligns with WSP’s 2025–2027 Global Strategic Action Plan, strengthening its market presence and accelerating growth in high-demand sectors, thereby offering greater innovation and value to clients.
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.