WSP's Growth Gambit: Record Backlog and Surging Profits Follow Major Acquisition

MONTREAL, QC – May 06, 2026 – WSP Global Inc. showcased a powerful start to 2026, reporting robust first-quarter financial results that underscore the success of its aggressive growth strategy. The professional services giant announced a 10.8% year-over-year increase in net revenues to $3.71 billion and a record-high project backlog of $19.7 billion, largely propelled by the recent strategic acquisition of TRC Companies.

While the company's profitability surged, with adjusted net earnings per share climbing an impressive 26% to $2.21, the results also revealed the financial cost of its expansion. The debt taken on to finance the TRC purchase pushed WSP's leverage ratio beyond its target range, presenting a financial balancing act for the global firm as it navigates a period of unprecedented growth.

The Acquisition Engine Roars

The centerpiece of WSP's strong quarter is the successful integration of TRC Companies, an environmental and infrastructure consulting firm acquired in February 2026. This move has been widely viewed by analysts as a strategic masterstroke, significantly bolstering WSP's capabilities in high-growth sectors and cementing its market leadership.

TRC brings highly sought-after expertise in power and energy, environmental consulting, and infrastructure solutions. This aligns perfectly with global trends toward energy transition and sustainable infrastructure development. With TRC's deep experience in power delivery, intelligent grid solutions, and environmental remediation—including tackling emerging contaminants like PFAS—WSP has significantly enhanced its ability to deliver complex, future-focused projects. The acquisition effectively establishes WSP as a dominant force in the U.S. power and energy sector.

"I am pleased with the solid start to the year, with net revenue in line with expectations and strong profitability at the higher end of our adjusted EBITDA outlook range," said Alexandre L’Heureux, President and CEO of WSP, in the company's official statement. "We were also pleased to close the acquisition of TRC, a highly strategic and timely milestone in a high-growth area, with integration progressing as planned."

This strategic move expands WSP’s service offerings across the entire project lifecycle, from initial advisory and environmental permitting to engineering design and program management, creating significant opportunities for cross-selling services to a broader client base.

A Record Backlog Signals Future Strength

The most telling indicator of WSP's future prospects is its backlog, which surged by 19.0% over the past year to a record $19.7 billion. This figure, which represents approximately 11.5 months of future revenue, provides a clear and stable outlook for the company's workload and financial performance. The substantial increase reflects strong, sustained demand for its services across its global platform.

The robust pipeline is fueled by public and private investment in infrastructure renewal, climate resilience, and the global energy transition. Projects related to transportation modernization, water resource management, and the development of renewable energy sources are key components of this growth, areas where the addition of TRC's expertise is expected to create further momentum. This massive backlog not only ensures revenue visibility but also demonstrates market confidence in WSP's ability to secure and deliver large-scale, impactful projects around the world.

The Financial Balancing Act: Profitability vs. Leverage

Beneath the headline growth, WSP's financial performance demonstrates strong operational execution. Adjusted EBITDA grew 16.5% to $622.2 million, and the adjusted EBITDA margin improved by 80 basis points to 16.8%, which the company attributes to improved productivity. This ability to enhance profitability while integrating a major acquisition highlights the firm's management efficiency.

However, this ambitious growth has come at a price. To finance the TRC acquisition, WSP took on significant long-term debt, causing its leverage ratio to climb to 2.3x. This figure is notably above the company's stated target range of 1.0x to 2.0x. While leveraging for strategic acquisitions is a common practice in WSP's growth playbook, the elevated ratio is a key metric that investors and financial analysts will be closely monitoring in the coming quarters.

Management has not yet detailed a specific timeline for de-leveraging, but the company's history suggests a focus on using its strong cash flow generation to pay down debt and return to its target comfort zone. The challenge will be to maintain this financial discipline while continuing to pursue its strategic growth ambitions.

Digging Deeper into the Numbers

A closer look at the financial statements reveals important nuances. Cash inflows from operating activities were $102.0 million, a significant decrease from the $237.8 million reported in the same period last year. However, this comparison is misleading. The 2025 figure was artificially inflated by a $195.0 million inflow from a one-time sale of trade receivables. When adjusted for this factoring arrangement, the underlying free cash flow actually improved year-over-year by $50.1 million, indicating healthier operational cash generation than the headline number suggests.

Further evidence of operational efficiency can be seen in the company's Days Sales Outstanding (DSO), which improved to 67 days from 70 days a year prior. This indicates the company is converting its receivables into cash more quickly, a positive sign for working capital management.

Looking ahead, WSP has reiterated its financial outlook for 2026, signaling confidence in its ability to meet its annual targets. The company even slightly raised the lower end of its adjusted EBITDA target range, now expecting between $3.050 billion and $3.180 billion for the full year. This confidence, backed by a record project pipeline and enhanced capabilities, suggests that WSP is well-positioned to continue its growth trajectory, provided it can successfully manage the financial commitments made to fuel its expansion.