WSP releases strong Q4 2025 results and issues 2026 financial outlook

Core Insights - WSP Global Inc. reported strong financial results for the fourth quarter and the year ended December 31, 2025, achieving record levels in several key metrics, including backlog and free cash flow [2][9][14]. Financial Performance - For Q4 2025, revenues reached $4.85 billion, an increase of 4.1% year-over-year, while net revenues were $3.67 billion, up 8.2% compared to Q4 2024 [3][9]. - Adjusted EBITDA for Q4 2025 grew to $694.1 million, a 9.4% increase from Q4 2024, with an adjusted EBITDA margin of 18.9% [3][9]. - Net earnings attributable to shareholders for Q4 2025 were $256.3 million, or $1.96 per share, reflecting a 53.6% increase compared to the same quarter in 2024 [3][9]. - For the full year 2025, revenues totaled $18.29 billion, a 13.1% increase, while net revenues reached $13.96 billion, up 14.7% year-over-year [9][17]. - Adjusted EBITDA for the year was $2.561 billion, a 17.2% increase from 2024, exceeding management's revised outlook [9][17]. Operational Metrics - The backlog as of December 31, 2025, reached a record $17.1 billion, representing approximately 11.0 months of revenue, up 9.9% from the previous year [2][9]. - Days Sales Outstanding (DSO) improved to a record low of 63 days, down from 72 days in 2024 [9][10]. - The net debt to adjusted EBITDA ratio stood at 0.9, significantly below the target range of 1.0 to 2.0 [17]. Cash Flow and Dividends - Cash inflows from operating activities increased to $2.25 billion in 2025, compared to $1.38 billion in 2024, with free cash flow reaching a record $1.71 billion [17]. - A quarterly dividend of $0.375 per share was declared, amounting to $50.6 million, payable on April 15, 2026 [22]. Strategic Outlook - The company expressed optimism for 2026, citing sustained demand across its diversified platform and the recent acquisition of TRC Companies as key growth drivers [14][19]. - Management expects 2026 net revenues to range between $16.0 billion and $17.0 billion, with adjusted EBITDA projected between $3.0 billion and $3.18 billion [19][20].