WSP Global (WSP) AI Stock Analysis

• Market Cap: C$31.68B
• Dividend Yield: 0.6%
• Average Volume (3M): 293.45K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.82
• Revenue Growth: 18.85%
• EPS Growth: 29.60%
• Country: CA
• Employees: 72,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.65
• Shares Outstanding: 134,816,640
• 10 Day Avg. Volume: 260,759
• 30 Day Avg. Volume: 293,455
• PEG Ratio: 0.92
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 17.38
• 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$327.70
• Price Target Upside: 43.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 11.53
• Revenue Forecast (FY): C$16.43B

• Rating: 70 Outperform
• Price Target: C$254.00 ▲(11.56% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by strong financial performance (growth, margin improvement, and stronger 2025 cash generation) and a constructive earnings outlook with solid backlog and cash-conversion targets. These positives are tempered by weak technical momentum (price below key moving averages and negative MACD) and a premium valuation (P/E 31.3 with a low dividend yield).

Positive Factors

Revenue and Margin Expansion

Sustained multi-year top-line growth and steady margin expansion indicate a scalable services platform and improving pricing/mix. This durability suggests WSP can convert scale into higher operating profitability and sustain investment in capabilities and talent over multiple years.

Strong Backlog and Pipeline

A record CAD 17B backlog and expanding pipeline provide multi-quarter revenue visibility and reduce near-term revenue volatility. High levels of MSAs and a large U.S. sub‑backlog support repeat business and baked-in demand for project execution and program delivery.

Robust Cash Generation and FCF Conversion

Consistently strong operating cash flow and high FCF conversion provide durable financial flexibility to fund organic growth, deleveraging and M&A. High cash conversion also supports capital allocation discipline and reduces sensitivity to short-term revenue swings.

Negative Factors

Elevated Pro-Forma Leverage

Higher pro‑forma leverage increases sensitivity to interest rates and financing conditions and limits near-term balance‑sheet optionality. While management targets progressive deleveraging, the current elevated ratio raises medium‑term refinancing and covenant risk if cash generation softens.

Acquisition Margin Drag & Integration Risk

An M&A push that brings lower‑margin businesses can compress overall margins and extends the timeline to realize synergies. Ongoing ERP rollout and onboarding (roughly 20% of EBITDA still to migrate) create execution risk that can weigh on margins and free cash flow in the medium term.

Slower APAC Recovery and Lumpiness

A gradual APAC recovery and project comparability issues add geographic and timing risk to revenue and margin consistency. Regional underperformance and one‑offs (project revisions, emergency services variability) make near‑term organic growth more lumpy and forecasting less reliable.

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

Strong multi-year revenue growth (2020–2025) with improving profitability (gross margin ~13.2% to ~16.6%; EBIT margin ~5.2% to ~9.7%) and materially stronger 2025 operating/free cash flow. Constraints include modest net margin (~5.3%) and elevated absolute debt (~$5.8B), though leverage improved (debt-to-equity ~0.59).

Income Statement

WSP Global shows strong and consistent top-line expansion, with revenue rising from $8.8B (2020) to $18.3B (2025). Profitability has improved alongside scale: gross margin stepped up to ~16.6% (2025) from ~13.2% (2020), and operating profitability improved with EBIT margin reaching ~9.7% (2025) versus ~5.2% (2020). Net margin is still modest for the sector (~5.3% in 2025) and remains the key constraint, but the overall trajectory is favorable with earnings growing meaningfully over time.

Balance Sheet

The balance sheet is generally sound with equity building to $9.8B (2025) and leverage at a manageable level for a scaled services business (debt-to-equity ~0.59 in 2025, improved from ~0.70 in 2024). Total debt is elevated in absolute terms (~$5.8B), which adds sensitivity to financing conditions, but returns to shareholders are steady to improving (return on equity ~9.8% in 2025 vs. ~7.2% in 2022). Overall, the company appears reasonably levered with improving capitalization, though debt remains a notable watch item.

Cash Flow

Cash generation strengthened materially in 2025, with operating cash flow increasing to ~$2.01B (from ~$1.18B in 2024) and free cash flow rising to ~$1.87B. Free cash flow is consistently high relative to earnings (roughly 0.80–0.93x net income across the period), supporting quality of profits and financial flexibility. The main weakness is variability year-to-year (including declines in free cash flow in 2021–2022 before re-accelerating), suggesting some lumpiness in cash conversion even though the long-run trend is positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.29B	16.17B	14.44B	11.93B	10.28B
Gross Profit	3.04B	2.60B	2.18B	1.70B	1.50B
EBITDA	2.52B	1.89B	1.64B	1.26B	1.22B
Net Income	964.30M	681.40M	550.00M	431.80M	473.60M
Balance Sheet
Total Assets	20.84B	20.20B	15.58B	14.84B	11.25B
Cash, Cash Equivalents and Short-Term Investments	1.72B	791.20M	501.10M	603.00M	1.06B
Total Debt	5.84B	5.79B	4.26B	4.08B	2.80B
Total Liabilities	11.00B	11.93B	9.25B	8.83B	6.59B
Stockholders Equity	9.84B	8.27B	6.33B	6.01B	4.66B
Cash Flow
Free Cash Flow	1.87B	1.03B	652.40M	626.70M	926.00M
Operating Cash Flow	2.01B	1.18B	812.30M	757.60M	1.03B
Investing Cash Flow	-753.00M	-2.47B	-533.00M	-2.70B	-1.36B
Financing Cash Flow	-349.60M	1.54B	-400.80M	1.50B	838.00M

WSP Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 227.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 227.68 is below the 20-day moving average (MA) of 237.59, below the 50-day MA of 251.82, and below the 200-day MA of 266.89, indicating a bearish trend. The MACD of -7.53 indicates Negative momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 78.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WSP.

WSP Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATRL	73 Outperform	C$15.94B	5.72	56.38%	0.09%	13.97%	715.65%
WSP	70 Outperform	C$31.68B	33.67	11.21%	0.60%	18.85%	29.60%
BDT	69 Neutral	C$1.80B	13.18	21.68%	2.88%	6.26%	0.52%
STN	66 Neutral	$14.72B	30.82	15.59%	0.67%	11.73%	41.17%
BDGI	66 Neutral	C$2.50B	12.95	22.05%	0.99%	13.02%	52.88%
ARE	65 Neutral	C$2.39B	9.42	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 Delivers Record 2025 Results and Strengthens Balance Sheet With Robust Cash Flow

WSP reported a strong fourth quarter and full year 2025, with revenues rising to $4.85 billion in Q4 and $18.29 billion for the year, while net revenues reached $3.67 billion and $13.96 billion, respectively. Adjusted EBITDA grew 9.4% in the quarter and 17.2% for the year, with margins edging higher and net earnings attributable to shareholders jumping 53.6% in Q4 and 41.6% for 2025.

The firm closed 2025 with record metrics including a $17.1 billion backlog, $1.7 billion in free cash flow—1.8 times net earnings—and a sharply improved net debt to adjusted EBITDA ratio of 0.9, reflecting strong cash generation and disciplined balance sheet management. Capital committed to acquisitions reached $5.2 billion during the year, underscoring WSP’s aggressive growth strategy and reinforcing its competitive position in global professional services while providing greater earnings visibility for investors and other stakeholders.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$335.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

WSP Closes TRC Acquisition, Becomes Top U.S. Engineering Firm by Revenue

WSP Global has completed its acquisition of TRC Companies, a major U.S. Power & Energy brand with around 8,000 professionals and more than five decades of sector experience. The deal is closely aligned with WSP’s 2025–2027 strategic plan and is designed to deepen its exposure to high-growth segments such as water, infrastructure, environment and digital solutions.

With TRC now integrated, WSP becomes the largest engineering and design firm in the U.S. by revenue and creates what it describes as the leading Power & Energy platform in the country. Management from both companies framed the transaction as a scale and capability play that enhances WSP’s role as a strategic advisor on complex, resilient energy and infrastructure projects, while promising a careful integration to preserve client relationships and employee continuity.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$335.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

WSP Global Prices US$1 Billion Private Senior Notes to Help Fund TRC Acquisition

WSP Global Inc. has priced a private placement of US$1 billion in senior unsecured notes, split evenly between US$500 million of 4.003% notes maturing in 2032 and US$500 million of 4.586% notes maturing in 2036, with closing expected around January 22, 2026. The proceeds are earmarked primarily to help finance WSP’s pending acquisition of TRC Companies and to lessen its reliance on incremental bank facilities, with a contingency plan to redeem the 2036 notes and repay existing debt if the deal fails to close. Rated BBB (high) with a stable trend by DBRS and ranking pari passu with WSP’s other senior unsecured debt, the notes are being placed privately in Canada under prospectus exemptions and will not be registered for public sale in Canada or the United States, underscoring the company’s continued use of the private debt market to support its acquisition-driven growth strategy while managing balance sheet flexibility.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$306.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

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.