Amidst the uncertainties brought by recent policy changes, WSP, a leading global engineering firm, is navigating through challenging times while preparing for future growth. According to CEO Alexandre L’Heureux, the current administration’s policies have created an unstable environment that has temporarily dampened merger and acquisition (M&A) activities. Despite this, L’Heureux remains optimistic about the long-term prospects, particularly in infrastructure development. The company also announced a significant partnership with Microsoft aimed at driving digital innovation. Financially, WSP reported robust growth in revenues and profits for the fourth quarter and full year of 2024, signaling strong market performance despite external challenges.
The impact of policy shifts on market dynamics has been a topic of concern for many companies. In a recent earnings call, L’Heureux highlighted the dual forces affecting M&A activity: on one hand, hopes for deregulation could foster a more conducive environment for acquisitions; on the other, uncertainty is causing stakeholders to hesitate. This hesitation is expected to keep M&A activities subdued for the first half of the year. However, L’Heureux emphasized that WSP is well-prepared for future opportunities, having made substantial acquisitions during its previous strategic cycle. Most recently, the firm acquired Power Engineers, further expanding its capabilities.
L’Heureux expressed confidence in the infrastructure sector, noting bipartisan support for infrastructure projects in both the U.S. and Canada. He believes that this commitment will drive significant activity in the coming years. To stay ahead, WSP has embarked on a new strategic cycle focused on technology and innovation. A key component of this strategy is a multi-year partnership with Microsoft, aimed at accelerating the digital transformation of the architecture, engineering, and construction industries. This collaboration involves a financial commitment exceeding $1 billion and includes designating Microsoft as a preferred partner for AI and digital services.
The partnership with Microsoft underscores WSP’s commitment to leveraging cutting-edge technology. By integrating Microsoft’s advanced digital and AI technologies with WSP’s deep expertise in engineering and science, the company aims to deliver exceptional results and drive meaningful innovation. This move is part of WSP’s broader 2025-2027 action plan, which focuses on enhancing digital capabilities and fostering greater innovation across all sectors.
In terms of financial performance, WSP reported impressive gains in the fourth quarter and full year of 2024. Revenues increased by 25% in Q4 compared to the same period last year, reaching CA$4.66 billion. For the entire year, revenues grew by 12%, totaling CA$16.17 billion. Profits also saw a significant boost, with a nearly 28% increase in Q4 and a 24% rise for the full year. The company’s backlog stood at CA$15.6 billion, reflecting a nearly 11% increase from the previous year. L’Heureux attributed these positive outcomes to strategic acquisitions, diversification efforts, and comprehensive planning. As the world undergoes rapid changes driven by megatrends like energy transition and urbanization, WSP is positioned to capitalize on emerging opportunities and maintain its competitive edge.