WSP Global (TSE:WSP) reported stronger second-quarter momentum, citing accelerated organic growth, a record backlog and expanded profitability as demand remained strong across power and energy, data centers, critical minerals, defense, nuclear energy and water infrastructure.
Net revenue increased approximately 23% year over year in the second quarter, including 5% organic net revenue growth, with every reportable segment contributing, according to President and CEO Alexandre L’Heureux. Revenue rose about 20% from a year earlier.
Adjusted net earnings reached CAD 389 million, or CAD 2.88 per share, up 23% year over year. The margin improvement reflected both productivity gains and lower rightsizing costs compared with the prior-year quarter, Michaud said.
Backlog Reaches CAD 20 Billion
WSP ended the quarter with backlog of approximately CAD 20.1 billion, up 23% over the prior 12 months and representing 11.6 months of revenue. Organic backlog growth was 5.7%, its strongest pace since 2022, L’Heureux said.
The company said its top 20 opportunities represent more than CAD 4 billion of potential revenue. Management highlighted long-duration investment themes including AI-enabled digital infrastructure, power generation and transmission, data centers, critical minerals, defense and nuclear energy.
In the United States, WSP’s sub-backlog reached CAD 10 billion on a net-revenue basis, up about 9% from the first quarter. About 86% of that amount is in framework agreements, which management described as pre-approved contract vehicles that can convert task orders to revenue once clients authorize funding.
“The leading indicators are all pointing in the right direction,” Michaud said during the question-and-answer session, noting that the underlying U.S. business, including TRC’s organic contribution, delivered roughly 6% growth in the first half.
Regional and Sector Trends
Canada posted 5.1% organic growth and 14.2% organic backlog growth over the past 12 months. L’Heureux cited demand in defense, mining, energy and nuclear work. The company’s energy sub-sector in Canada delivered 70% year-over-year growth, while nuclear-related revenue tripled from the prior-year period.
In the Americas, power and energy activity continued to expand. Net revenue and hard backlog from WSP’s top 40 global power clients in the U.S. increased 15% and 20%, respectively, year over year. The company said it now serves the top 60 U.S. investor-owned utilities.
Other U.S. growth areas included:
- Data-center revenue, which rose more than 20% in the first half of 2026, while the related sales pipeline increased about 30% year over year.
- Advanced manufacturing, where backlog rose 29% year over year and revenue increased more than 20%.
- Water infrastructure, where business grew 20% year over year and the pipeline expanded 61%. WSP secured a CAD 100 million program contract with Seattle Public Utilities during the quarter.
- Nuclear work, where WSP is supporting 22 new U.S. sites across site selection, licensing, design and construction support.
In Europe, the Middle East and Africa, organic net revenue increased 8.1% and organic backlog grew 10.4%. The U.K. delivered double-digit organic growth, while management said market conditions in the Nordics, including Sweden, had improved. The Middle East remained stable, according to Michaud.
Asia-Pacific returned to organic growth for the first time in six quarters, aided by an improvement in Australia. However, management said reduced project investment under New Zealand’s national land transport plan could affect the business there. WSP maintained its expectation for roughly flat full-year revenue contribution from APAC compared with the prior year.
TRC Integration and Margin Outlook
WSP said the integration of TRC is proceeding as planned and is expected to be completed within six months. L’Heureux said the company plans to convert TRC to WSP’s systems on Jan. 1, after the fiscal year-end. Salary and benefits harmonization is “substantially complete,” he said.
Management has identified more than 100 collaboration opportunities between WSP and TRC teams. One joint pursuit led to a significant award from a large investor-owned utility supporting a CAD 78 billion five-year capital plan, with potential future work of more than CAD 10 billion, according to the company.
When asked about profitability, Michaud said WSP’s margin performance in the Americas reflected efficiency, productivity, project execution and progress at TRC. Management said it sees a path to reaching its 2027 adjusted EBITDA margin target of 19% to 20% as early as 2026.
L’Heureux said productivity gains to date have had little to do with artificial intelligence tools, which he characterized as tools that may eventually help engineers design more efficiently. He emphasized that WSP had about 7,000 open technical positions and said the company’s productivity efforts are focused on managing a “very fluid workforce,” improving operations and maintaining a performance culture.
Outlook Raised
WSP reiterated its 2026 outlook, except for higher net revenue and adjusted EBITDA guidance. The company now expects:
- Net revenue of CAD 16.2 billion to CAD 17 billion.
- Adjusted EBITDA of CAD 3.1 billion to CAD 3.18 billion.
- Third-quarter net revenue of CAD 4.15 billion to CAD 4.35 billion.
- Third-quarter adjusted EBITDA of CAD 850 million to CAD 890 million.
- Acquisition integration and reorganization costs of CAD 285 million to CAD 305 million, primarily due to non-cash accounting effects from non-core activity disposals and continuing M&A and integration work.
For the first six months of 2026, operating cash inflows were CAD 554 million, compared with CAD 822 million a year earlier. Michaud attributed the change largely to timing, including a prior-year factoring-related inflow and incentive award payments related to POWER Engineers. Free cash flow was CAD 255 million for the six-month period, while trailing 12-month free cash flow totaled CAD 1.4 billion.
WSP also addressed its previously disclosed non-binding proposals for Arcadis. L’Heureux said WSP continues to view a combination as potentially strategic, but said the company would not provide further comment. He added that WSP’s growth outlook, financial objectives, strategic priorities and capital allocation framework remain unchanged regardless of the outcome.
About WSP Global (TSE:WSP)
WSP Global Inc provides engineering and design services to clients in the Transportation & Infrastructure, Property and Buildings, Environment, Power and Energy, Resources, and Industry sectors. It also offers strategic advisory services. The firm operates through four reportable segments namely, Canada, Americas ( US and Latin America), EMEIA (Europe, Middle East, India and Africa), and APAC (Asia Pacific, comprising Australia, New Zealand and Asia).
