In a recent earnings call, Alexandre L’Heureux, the CEO of WSP, discussed the company's promising start in 2025 despite global uncertainties. These uncertainties stem from tariff concerns and various elections worldwide. Despite these challenges, L’Heureux expressed confidence in WSP’s ability to address major global trends such as decarbonization, electrification, urbanization, and supply chain stability. The firm has made significant strides in its previous strategic cycle with 15 acquisitions and an increase of around 20,000 employees. However, current market instability poses challenges for further mergers and acquisitions.
A Strategic Outlook on Growth and Challenges
On a Thursday earnings call, amidst a backdrop of global uncertainty, Alexandre L’Heureux, CEO of WSP, emphasized the company's robust beginning in 2025. Although global markets are experiencing turbulence due to tariffs and political elections, WSP remains poised to capitalize on key megatrends shaping the future. Headquartered in Montreal, WSP demonstrated resilience by focusing on critical areas like decarbonization and supply chain enhancement. During its last three-year strategic phase, WSP executed 15 acquisitions, expanding its workforce by approximately 20,000 members. Yet, the current environment is described as "very unstable," making mergers and acquisitions more challenging. L’Heureux noted that many players are waiting for better conditions before taking action, wary of selling at a discount or acquiring assets in uncertain times.
The integration of Power Engineers, acquired in August 2024 for $1.78 billion, is proceeding according to plan. Regarding President Trump's tariffs, L’Heureux conveyed minimal concern since WSP primarily provides services through local teams within their respective countries. He highlighted the strength of sectors like industrial, advanced manufacturing, data centers, and healthcare. Notably, demand for data center services continues to grow steadily. Additionally, investment in water infrastructure shows positive trends across most regions. Defense-related activities also remain strong, particularly through longstanding relationships with entities such as the U.S. Navy, Air Force, and Army Corps of Engineers.
Financially, WSP reported first-quarter revenues of CAD 4.39 billion (USD 3.15 billion), marking a 22.4% increase from CAD 3.59 billion in Q1 2024. Profits climbed to CAD 144.1 million in Q1 2025, up 13.6% from the same period last year. Backlog increased by 16.6% to CAD 16.6 billion. While performance in the Asia-Pacific region was subpar, the outlook for Australia and New Zealand remains optimistic over the medium and long term. Restructuring charges were incurred in the Europe, Middle East, India, and Africa segment, but L’Heureux anticipates continued growth in North America throughout 2025.
From a journalistic perspective, WSP's strategic approach underscores the importance of adaptability and forward-thinking leadership in navigating complex global environments. The company's commitment to addressing global megatrends while maintaining financial health serves as a model for other firms facing similar challenges. By prioritizing sustainable practices and leveraging technology, WSP exemplifies how businesses can thrive even in uncertain times. This focus not only ensures short-term success but also lays a foundation for long-term prosperity in an ever-changing world.