WSP reports strong profitability in Q1 2026 results

In the first quarter of 2026, WSP delivered growth in net revenues in line with management's quarterly outlook. Adjusted EBITDA margin⁽²⁾ improved by 80 basis points ("bps") and adjusted EBITDA reached the high end of management's quarterly outlook range. Adjusted net earnings per share⁽²⁾ grew by 26%, exceeding expectations. With the successful completion of the highly-strategic acquisition of TRC Companies (“TRC”), backlog reached a record level of $19.7 billion.

<sub>(1) Total of segments measure. Quantitative reconciliations of net revenues to revenues are presented below under the caption "Non-IFRS and other financial measures".

(2) Non-IFRS financial measure or non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar measures or ratios used by other issuers. Quantitative reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and other financial measures". This press release incorporates by reference section 19, “Glossary of segment reporting, non-IFRS and other financial measures”, of WSP’s Management's Discussion and Analysis ("MD&A") for the first quarter ended March 27, 2026, filed on SEDAR+ at www.sedarplus.ca, which includes explanations of the composition and usefulness of these non-IFRS financial measures and non-IFRS ratios.

(3) Supplementary financial measure. Days sales outstanding ("DSO") represents the average number of days to convert the Corporation's trade receivables (net of sales taxes) and costs and anticipated profits in excess of billings, net of billings in excess of costs and anticipated profits, into cash.

(4) This capital management measure is the ratio of net debt to annualized adjusted EBITDA for the trailing twelve-month period, including twelve months of results for all businesses acquired during the period, which was $2.97 billion for the trailing twelve-month period ended March 27, 2026. Net debt is defined as long-term debt, including current portions but excluding lease liabilities, and net of cash, and was $6.91 billion as at March 27, 2026.</sub>

Financial highlights for the first quarter ended March 27, 2026

• Revenues and net revenues for the quarter reached $4.55 billion and $3.71 billion, up 3.7% and 10.8%, respectively, compared to the first quarter of 2025. Net revenue was in line with management's outlook for the quarter of $3,575 million to $3,775 million. Net revenue organic growth⁽¹⁾ stood at 5% when normalized for fewer billable days than in the comparable period in 2025. Net revenue acquisition growth⁽¹⁾ of 9.0% was principally driven by the acquisitions of TRC completed in February 2026 and Ricardo plc (“Ricardo”) in October 2025.
  
  
• Backlog as at March 27, 2026 reached a new record level of $19.7 billion, up 19.0% in the twelve-month period, and representing 11.5 months of revenues.⁽²⁾
  
  
• Adjusted EBITDA in the quarter grew to $622.2 million, compared to $533.9 million in the first quarter of 2025, representing an increase of 16.5%, and near the high end of management's quarterly outlook range of $590.0 million to $630.0 million.
  
  
• Adjusted EBITDA margin for the quarter increased 80 bps, reaching 16.8%, compared to 16.0% in the first quarter of 2025, mainly due to improved productivity.
  
  
• EBIT in the quarter stood at $302.7 million, up $14.6 million or 5.1%, compared to the first quarter of 2025. The increase was mainly attributable to higher adjusted EBITDA, partially offset by higher acquisition and integration costs.
  
  
• Adjusted net earnings for the quarter reached $297.7 million, or $2.21 per share, up by $68.6 million, or $0.45 per share, compared to the first quarter of 2025. The increase was mainly attributable to higher adjusted EBITDA. 
  
  
• Net earnings attributable to shareholders for the quarter reached $144.1 million, the same level as the first quarter of 2025, or $1.07 per share, down from $1.10 per share in the comparable period. Higher adjusted EBITDA was partially offset by higher acquisition and integration costs, as well as higher unrealized losses on derivative financial instruments.
  
  
• DSO as at March 27, 2026 stood at 67 days, compared to 70 days as at March 29, 2025.
  
  
• Cash inflows from operating activities were $102.0 million in the three-month period ended March 27, 2026, a decrease compared to $237.8 million in the corresponding period in 2025, the latter of which benefitted from $195.0 million inflow from the sale of some eligible trade receivables under the factoring arrangement in early 2025. 
  
  
• Free cash flow improved quarter-over-quarter by $50.1 million when adjusted to exclude the benefit of the factoring arrangement concluded in 2025. The trailing twelve months of free cash flow amounted to $1.57 billion, representing 1.6 times the net earnings attributable to shareholders⁽³⁾ (the trailing twelve months of cash inflows from operating activities was $2.11 billion). 
  
  
• The leverage ratio stood at 2.3x, above Management's target range of 1.0x to 2.0x. The increase in the ratio is mainly due to the issuance of long-term debt used to finance the acquisition of TRC. 
  
  
• Quarterly dividend declared of $0.375 per share, or $50.6 million, which was paid subsequent to the end of the first quarter on April 15, 2026.

<sub>(1) Supplementary financial measures. Net revenue organic growth, which was 3.1% in the quarter ended March 27, 2026, represents the period-over-period change in net revenues, excluding net revenues of businesses acquired or divested in the twelve months following the acquisition or prior to the divestiture, expressed as a percentage of the comparable period net revenues, adjusted to exclude net revenues of divested businesses, all calculated to exclude the impact of foreign exchange. Net revenue acquisition growth represents the current period net revenues of acquired businesses in the twelve months following the acquisition, expressed as a percentage of the comparable period net revenues, all calculated to exclude the impact of foreign exchange.

(2) Based on revenues for the trailing twelve-month period ended March 27, 2026, incorporating a full twelve months of revenues for all acquisitions.

(3)Non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar ratios used by other issuers. The ratio of free cash flow to net earnings attributable to shareholders for the trailing twelve months ended March 29, 2025 was 1.6. This press release incorporates by reference section 19, “Glossary of segment reporting, non-IFRS and other financial measures” of WSP’s MD&A for the first quarter ended March 27, 2026, filed on SEDAR+ at www.sedarplus.ca, for explanations of the composition and usefulness of this non-IFRS ratio.</sub>

2026 Financial Outlook

The 2026 financial outlook issued on February 25, 2026 is reiterated with the exception of the below changes. Expectations regarding net revenues and adjusted EBITDA for the full year 2026 and Q2 2026 are set forth below:

The above outlook for the full year and second quarter of 2026 reflects the assumptions set forth in our press release dated February 25, 2026, with the net debt to adjusted EBITDA ratio assumption replaced with the leverage ratio ranging between 1.0x and 2.0x at year-end and increased confidence to deliver on the 2026 Adjusted EBITDA outlook given the strong performance in Q1 2026. The above outlook also assumes that foreign exchange rates, inflation and interest rates as well as effective income tax rates will remain consistent throughout Q2. The Corporation did not consider the financial impact of any dispositions, mergers, business combinations, or other transactions that may be announced or completed after the publication of this press release.

Dividend

The Board of Directors of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about July 15, 2026 to shareholders of record at the close of business on June 30, 2026.

Financial Report

This press release incorporates by reference the financial reports for the first quarter ended March 27, 2026, including the Corporation's unaudited interim condensed consolidated financial statements for the first quarter ended March 27, 2026 and MD&A for the first quarter ended March 27, 2026, which are available on our website at www.wsp.com. These documents are also available on SEDAR+ at www.sedarplus.ca. 

Webcast

WSP will hold a conference call and webcast from 8:00 a.m. to 9:00 a.m. (Eastern Time) on May 7, 2026, to discuss these results. 

To participate in the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the conference call can be accessed using this link. For those unable to attend, a replay will be available within 24 hours following the call under the "Investors" section of the website. A presentation of the results for the first quarter ended March 27, 2026 will be accessible on May 6, 2026, after market close under the “Investors” section of www.wsp.com. 

Result of operations

Consolidated statements of financial position

(in millions of Canadian dollars)

References to notes refer to notes in the unaudited interim condensed consolidated financial statements of the relevant period.

Consolidated statements of cash flow

NON-IFRS AND OTHER FINANCIAL MEASURES 

The Corporation's unaudited interim condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards Accounting Standards (“IFRS”), including International Accounting Standard 34 Interim Financial Reporting. WSP uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with IFRS. Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure prescribes disclosure requirements that apply to the following types of measures used by the Corporation: (i) non-IFRS financial measures; (ii) non-IFRS ratios; (iii) total of segments measures; (iv) capital management measures; and (v) supplementary financial measures.

In this press release, the following non-IFRS and other financial measures may be used by the Corporation: net revenues; adjusted EBITDA; adjusted EBITDA margin; adjusted net earnings; adjusted net earnings per share; free cash flow; the ratio of trailing twelve months of free cash flow to trailing twelve months of net earnings attributable to shareholders; net revenue organic growth (contraction), net revenue acquisition growth; divestiture net revenue impact; organic backlog growth (contraction); days sales outstanding (“DSO”); and leverage ratio. Additional details for these non-IFRS and other financial measures can be found in section 19, “Glossary of segment reporting, non-IFRS and other financial measures” of WSP’s MD&A for the first quarter ended March 27, 2026, which is posted on WSP’s website at www.wsp.com, and filed on SEDAR+ at www.sedarplus.ca. Reconciliations of non-IFRS financial measures and total of segments measures to the most directly comparable IFRS measures are provided below.

Management believes that these non-IFRS and other financial measures provide useful information to investors regarding the Corporation’s financial condition and results of operations as they provide key metrics of its performance. These non-IFRS and other financial measures are not recognized under IFRS, do not have any standardized meanings prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

Forward-looking statements

Certain information contained in this press release is not based on historical or current facts and may constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) under Canadian securities laws. Forward-looking statements may include estimates, plans, strategic ambitions, objectives, expectations, opinions, forecasts, projections, guidance, outlook or other statements that are not statements of fact, including references to assumptions.

Forward-looking statements made by the Corporation in this press release include, without limitation, statements about the  financial outlook for the full year and second quarter of 2026, including the anticipated net revenues and adjusted EBITDA and their underlying assumptions; our strategic ambitions; our future growth and potential; our profitability; the payment of dividends; our proposed strategy and our operating performance; and our aim to capture market opportunities and delivering long-term value for our stakeholders. 

Forward-looking statements made by the Corporation are based on a number of operational and other assumptions believed by the Corporation to be reasonable as at the date such statements were made, including assumptions set out through this press release and including, without limitation, the following principal assumptions about: the realization of the expected strategic, financial and other benefits of the TRC acquisition in the timeframe anticipated; general economic and political conditions; organic growth expectations; economic and market assumptions regarding the competition; the state of the global economy and the economies of the regions in which the Corporation operates; the state of and access to global and local capital and credit markets; interest rates; working capital requirements; the collection of accounts receivable; the Corporation obtaining new contract awards; the type of contracts entered into by the Corporation; the anticipated margins under new contract awards; the utilization of the Corporation’s workforce; the ability of the Corporation to attract new clients; the ability of the Corporation to retain current clients; changes in contract performance; project delivery; the Corporation’s competitors; the ability of the Corporation to successfully integrate businesses; the acquisition and integration of businesses in the future; the Corporation’s ability to manage growth; external factors affecting the global operations of the Corporation; the state of the Corporation’s backlog and pipeline of opportunities in various reportable segments; the joint arrangements into which the Corporation has entered or will enter; the capital investments made by the public and private sectors; relationships with suppliers and subconsultants; relationships with management, key professionals and other employees of the Corporation; the maintenance of sufficient insurance; the management of environmental, social and health and safety risks; the sufficiency of the Corporation’s current and planned information systems, communications technology and other technology; compliance with laws and regulations; future legal proceedings; the sufficiency of internal and disclosure controls; the regulatory environment; impairment of goodwill; foreign currency fluctuation; the expected benefits of acquisitions and the expected synergies to be realized as a result thereof; the tax legislation and regulations to which the Corporation is subject and the state of the Corporation’s benefit plans; as well as the assumptions underlying the 2025-2027 Global Strategic Action Plan issued on February 12, 2025 and the 2026 financial outlook set out in the Corporation's press releases dated February 25, 2026. 

To the extent any forward-looking statement in this press release constitutes financial outlook or future-oriented financial information within the meaning of applicable Canadian securities laws, such information is intended to provide investors with information regarding the Corporation, including the Corporation’s assessment of future financial plans, and may not be appropriate for other purposes. Financial outlook (including assumptions about future events, including economic conditions and proposed courses of action, based on the Corporation’s assessment of the relevant information currently available), as with forward-looking statements generally, is based on current estimates, expectations and assumptions and is subject to inherent risks and uncertainties and other factors. 

Although WSP believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. In evaluating these forward-looking statements, investors should specifically consider various risk factors, which, if realized, could cause the Corporation's actual results or events to differ materially from those expressed or implied in forward-looking statements. Such risk factors include, but are not limited to, failure to implement sufficient corporate and business initiatives; increases in real estate costs; the deterioration of our financial position or net cash position; our working capital requirements; our accounts receivable; our increased indebtedness and raising capital; the impairment of long-lived assets; our foreign currency exposure; our income taxes; as well as other risks detailed from time to time in reports filed by the Corporation with securities regulators or securities commissions or other documents that the Corporation makes public, which may cause actual results or events to differ materially from the results expressed or implied in any forward-looking statement.

These and other risk factors that could cause actual results or events to differ materially from our expectations expressed in, or implied by, our forward-looking statements are discussed in greater detail in section 20, “Risk Factors” of the Corporation’s MD&A for the fourth quarter and year ended December 31, 2025 and as supplemented by section 17, “Risk Factors” of our MD&A for the first quarter ended March 27, 2026, which are available on SEDAR+ at www.sedarplus.ca and which sections are incorporated herein by reference. Actual results and events may be significantly different from what we currently expect because of the risks associated with our business, industry and global economy and of the assumptions made in relation to these risks. As such, there can be no assurance that actual results will be consistent with forward-looking statements.

The forward-looking statements contained in this press release describe the Corporation’s expectations as of the date hereof and, accordingly, are subject to change after such date. Except as may be required under Canadian securities laws, the Corporation does not assume any obligation to publicly update or to revise any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The Corporation may also make oral forward-looking statements from time to time. The Corporation advises that the above paragraphs and the risk factors set forth in section 20, “Risk factors” of the Corporation’s MD&A for the fourth quarter and year ended December 31, 2025, and as supplemented by section 17, “Risk Factors” of our MD&A for the first quarter ended March 27, 2026 should be read for a description of certain factors that could cause the actual results of the Corporation to differ materially from the results expressed or implied in any oral forward-looking statements. Readers should not place undue reliance on forward-looking statements.

About WSP

WSP is one of the world’s leading professional services firms, uniting its engineering, advisory and science-based expertise to shape communities to advance humanity. From local beginnings to a globe-spanning presence today, WSP operates in over 50 countries and employs approximately 83,000 professionals, known as Visioneers. Together they pioneer solutions and deliver innovative projects in the transportation, infrastructure, environment, building, energy, water, and mining and metals sectors. WSP is publicly listed on the Toronto Stock Exchange (TSX:WSP). 

For more information, please contact:

Alain Michaud
Chief Financial Officer
WSP Global Inc.
[email protected]
Phone: 438-843-7317