The third quarter of 2024 saw WSP deliver solid growth in net revenues, improved profitability and strong cash flows.
WSP Global, one of the world’s leading and largest professional services firms, has announced its financial and operating results for the third quarter ended 28 September 2024. The company also confirmed that Mark Naysmith will take over as WSP’s global chief operating officer in January 2025.
In the third quarter of 2024, WSP delivered solid growth in net revenues, improved profitability, strong cash flows from operations and a record-high backlog. Revenues and net revenues for the quarter reached $3.98bn and $3bn, up 10.7% and 9.6% respectively compared to the third quarter of 2023. Net revenue organic growth of 7.2% in the quarter is attributable to all reportable segments, led by the US, Canada, the Middle East and the UK.
Backlog as of 28 September 2024 reached a new record level of $14.8bn, representing 11.6 months of revenues. Adjusted EBITDA in the quarter grew to $585.4m, compared to $521.5m in the third quarter of 2023, an increase of 12.3%.
Adjusted EBITDA margin for the quarter increased by 40 basis points to 19.5%, compared to 19.1% in the third quarter of 2023. The improvement is mainly attributable to increased productivity, partially offset by lower performance in the Asia Pacific reportable segment.
Earnings before net financing expense and income taxes in the quarter stood at $351.7m, up $59m or 20.2%, compared to the third quarter of 2023. Adjusted net earnings for the quarter reached $279.8m, or $2.24 per share, up 13.6% and 13.1% respectively, compared to the third quarter of 2023. The increase is mainly attributable to higher adjusted EBITDA.
Net earnings attributable to shareholders for the quarter reached $203.6m, or $1.63 per share, up 30.3% and 30.4%, respectively, compared to $156.2m, or $1.25 per share, in the third quarter of 2023. The increase is mainly due to higher adjusted EBITDA, partially offset by higher net financing expenses.
Cash inflows from operating activities were $608.6m in the nine-month period ended 28 September 2024, increased compared to $209.7m in the corresponding period in 2023. Free cash inflow was $242.0m for the nine-month period ended 28 September 2024, representing an improvement of $419.2m compared to free cash outflow of $177.2m in the corresponding period in 2023.
Mark Naysmith is due to take over as WSP’s global chief operating officer in January 2025. He is currently president of the company’s EMEIA region and has over 35 years of experience in various leadership roles with WSP. In this new role, he will oversee global operations and promote growth, financial performance and collaboration while further leveraging the global scale of the business.
WSP has also confirmed that Paul Reilly, who is currently deputy CEO – UK and Ireland, has been appointed as president and managing director, WSP UK and Ireland and will join the global leadership team, effective January 2025.
