WSP Global (WSP) AI Stock Analysis

• Market Cap: C$35.85B
• Dividend Yield: 0.6%
• Average Volume (3M): 293.45K
• Price to Earnings (P/E): 39.8
• Beta (1Y): 0.90
• Revenue Growth: 18.85%
• EPS Growth: 29.60%
• Country: CA
• Employees: 72,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.82
• Shares Outstanding: 134,806,780
• 10 Day Avg. Volume: 260,759
• 30 Day Avg. Volume: 293,455
• PEG Ratio: 2.09
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 30.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$334.82
• Price Target Upside: 25.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$277.00 ▲(4.16% 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 Business Overview & Revenue Model

Company Description

WSP Global Inc. operates as a professional services consulting firm in the United States, Canada, the United Kingdom, Sweden, Australia, and internationally. It advises, plans, designs, and manages projects for rail transit, aviation, highways, bridges, tunnels, water, maritime, and urban infrastructure for public and private clients, construction contractors, and other partners. The company also provides engineering and consultancy services, such as decarbonisation strategies, digital building design, structural and mechanical, electrical, and plumbing engineering services; and long-term operational management support services, including first feasibility studies; and advisory services, such as technical, financial, and environmental issues, as well as engineering design and energy simulations. In addition, it works with and advises businesses and governments in various areas of environmental consultancy, including environmental, social, and governance matters. Further, the company provides engineering and environmental services to companies operating in upstream exploration and production, midstream transportation and storage, and downstream refining and distribution; and a range of consulting and engineering services, such as strategic studies, concept design, and productivity analysis to the food and beverages, pharmaceutical and biotechnology, automotive, and chemicals industries. Additionally, it offers strategic advisory services comprising planning and advisory, management, and technology and sustainability services. The company was formerly known as GENIVAR Inc. and changed its name to WSP Global Inc. in January 2014. WSP Global Inc. was founded in 1885 and is headquartered in Montreal, Canada.

How the Company Makes Money

WSP 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 265.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 265.93 is above the 20-day moving average (MA) of 251.50, above the 50-day MA of 250.32, and below the 200-day MA of 266.10, indicating a bullish trend. The MACD of 3.87 indicates Negative momentum. The RSI at 71.63 is Negative, neither overbought nor oversold. The STOCH value of 92.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WSP.

WSP Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	75 Outperform	C$35.85B	39.79	11.21%	0.60%	18.85%	29.60%
ATRL	71 Outperform	$15.49B	6.35	56.38%	0.09%	13.97%	715.65%
STN	70 Outperform	C$15.66B	32.11	15.96%	0.67%	11.73%	41.17%
BDT	69 Neutral	C$1.68B	17.96	21.68%	2.88%	6.26%	0.52%
BDGI	66 Neutral	$2.58B	30.56	22.05%	0.99%	13.02%	52.88%
ARE	65 Neutral	C$2.08B	254.29	0.92%	2.38%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

WSP Global Corporate Events

WSP Raises $977.5 Million to Help Fund TRC Acquisition

WSP Global has raised approximately $977.5 million through a combination of a bought deal public offering and a concurrent private placement of common shares, including full exercise of both the over-allotment and additional subscription options. The proceeds will be used to help finance WSP’s previously announced acquisition of TRC Companies and reduce reliance on new term loan commitments, with completion of the transaction targeted for the first quarter of 2026, subject to regulatory approvals; the deal strengthens WSP’s balance sheet and underscores support from major shareholder La Caisse, which will hold about 13.9% of outstanding shares following the financing.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$277.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

WSP Global to Acquire TRC, Strengthening U.S. Market Position

WSP Global Inc. has announced its agreement to acquire TRC Companies for $3.3 billion, a move that will position WSP as the largest engineering and design firm in the U.S. by revenue. This acquisition is expected to enhance WSP’s capabilities in the Power & Energy sector and provide significant growth opportunities through expanded service offerings and cross-selling potential, aligning with its 2025-2027 Global Strategic Action Plan.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$268.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

WSP Global Reports Strong Q3 2025 Financial Results and Strategic Growth

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.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$318.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.