WSP Global Inc.

Second-quarter revenues increased approximately 20% year over year and net revenue increased approximately 23%. Organic net revenue growth was 5%, and backlog reached a record $20.1 billion, up 23% over the last 12 months, or 11.6 months of revenue. Adjusted EBITDA was $815 million versus $633 million last year, up 29%, and adjusted EBITDA margin expanded to 19.1% from 18.2%; adjusted net earnings were $389 million, or $2.88 per share, up $82 million and $0.53 per share year over year. For the first half, operating cash inflows were $554 million, free cash flow was $255 million, and trailing 12-month free cash flow was $1.4 billion. Full-year 2026 guidance was reiterated apart from higher ranges: net revenue of $16.2 billion to $17 billion and adjusted EBITDA of $3.1 billion to $3.18 billion. For Q3 2026, the company expects net revenue of $4.15 billion to $4.35 billion and adjusted EBITDA of $850 million to $890 million. Acquisition integration and reorg costs are now expected to be $285 million to $305 million. Management said leverage remains slightly above target after TRC but expects a return to the target range by year-end.

Alexandre L'Heureux framed the quarter as evidence that WSP's strategy is working, pointing to accelerating organic growth, record backlog, margin expansion, and TRC performing as expected. He emphasized that scale is creating operational leverage and helping the company win larger, more complex mandates in long-duration themes such as AI infrastructure, power, data centers, critical minerals, defense, and nuclear. He also said the company feels stronger than six months ago, with broad-based improvement across geographies except for some softness in New Zealand.

Alain Michaud highlighted that revenues rose approximately 20%, net revenue approximately 23%, and adjusted EBITDA to $815 million, above the $770 million-$810 million outlook range. He said the 19.1% adjusted EBITDA margin was the best Q2 margin in WSP's history, driven equally by productivity gains and lower rightsizing costs, and noted adjusted net earnings of $389 million or $2.88 per share. On cash, he said six-month operating inflows were $554 million, free cash flow was $255 million, and trailing 12-month free cash flow was $1.4 billion; he also said DSO was 71 days and leverage should return to target by year-end.

Analysts focused on what drove the stronger-than-expected Americas margin, and management said it was a mix of underlying efficiency, productivity, project performance, and TRC contribution. Questions also probed the cadence of margins, U.S. organic growth, APAC's turnaround, and AI's impact on productivity; management said Q2 comp benefits from prior-year rightsizing should fade in the second half, but they still see a path to the 19% to 20% margin target earlier than planned. On AI, management said it is a future tool, but the current productivity gains are being driven more by scale, operating leverage, selection of better projects, and a strong performance culture than by AI itself.