Q3 2024 WSP Global Inc Earnings Call Transcript
Key Points
- WSP Global Inc (WSPOF) reported a robust 10% increase in net revenues compared to the same quarter in 2023, with organic growth at 7.2%, driven by strong market momentum in Canada and double-digit growth in the Americas.
- The company achieved a record high backlog of $14.8 billion, representing 11.6 months of revenue, indicating strong future business prospects.
- Adjusted EBITDA grew by 12%, and adjusted net earnings per share increased by 13%, reflecting improved profitability.
- WSP Global Inc (WSPOF) delivered superior cash flows, with trailing 12 months of free cash flow increasing by approximately $590 million compared to the previous year.
- The integration of Power Engineers, acquired on October 1st, is progressing well, with over 70 opportunities identified in the first month, enhancing WSP's capabilities in the energy transition sector.
- The Asia-Pacific region, particularly mainland China, continues to face challenges, impacting overall growth in that segment.
- The company's organic growth in the APAC region was only 1%, creating headwinds for overall performance.
- Despite strong performance in North America, the third quarter is traditionally the strongest, suggesting potential seasonal fluctuations in future quarters.
- The integration and reorganization costs are expected to range between $121 million and $135 million, which could impact short-term profitability.
- There is uncertainty regarding the potential impact of the US election on federal agency work, although WSP Global Inc (WSPOF) has historically performed well under different administrations.
Good day. And thank you for standing by. Welcome to the WSP Global third quarter, 2024 results conference.
At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question. During the session. You will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star 11 again. Please be advised. Today's conference is being recorded.
We now like to hand the conference over to your first speaker today, Quantum Webber. Please go ahead.
Thank you, Sarah. Good morning everyone. Thank you for joining the call today. We will discuss our Q3 2024 performance followed by a Q&A session, Alexander Roy, our President and CEO and Alais show our CFO are joining us this morning. Please note that this call is also accessible via webcast on our website. During the call, we will make forward-looking statements.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
