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WSP Reports Q1 2024 Results and a Strong Start to the Year

Press Release

MONTREAL, May 08, 2024– WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”) today announced financial and operating results for the first quarter ended on March 30, 2024.

Strong first quarter results were in line with management’s expectations as the Corporation achieved healthy organic growth in net revenues, combined with an increase in adjusted EBITDA margin of 50 basis points (“bps”) over the comparable quarter in 2023.

FIRST QUARTER OF 2024 FINANCIAL HIGHLIGHTS

  • Revenues and net revenues for the quarter reached $3.59 billion and $2.79 billion, up 2.7% and 4.7%, respectively, compared to the first quarter of 2023. Net revenue organic growth of 4.6% in the quarter is attributable to all reportable segments. Net revenue organic growth would be approximately 6.5% if normalized for the same number of billable days compared to Q1 2023.
  • Backlog as at March 30, 2024 stood at $14.2 billion, representing 11.8 months of revenues(1), with the Americas reportable segment achieving organic backlog growth of 10.3% over the last twelve months.
  • Adjusted EBITDA margin for the quarter increased by 50 bps to 16.0%, compared to 15.5% in the first quarter of 2023. The increase is mainly attributable to increased productivity.
  • Adjusted EBITDA in the quarter grew to $446.1 million, compared to $413.3 million in the first quarter of 2023, an increase of 7.9%.
  • Earnings before net financing expense and income taxes in the quarter stood at $244.3 million, up $44.4 million or 22.2%, compared to the first quarter of 2023, mainly due to increased adjusted EBITDA.
  • Adjusted net earnings for the quarter reached $193.8 million, or $1.55 per share, up 13.3% and 13.1%, respectively, compared to the first quarter of 2023. The increase is mainly attributable to higher adjusted EBITDA.
  • Net earnings attributable to shareholders for the quarter reached $126.8 million, or $1.02 per share, compared to $112.5 million, or $0.90 per share, in the first quarter of 2023.
  • DSO as at March 30, 2024 stood at 76 days, compared to 74 days as at April 1, 2023, and unchanged from 76 days as at December 31, 2023.
  • Cash outflows from operating activities of $10.4 million are comparable to outflows of $24.6 million in the first quarter of 2023. Free cash outflow for the three-month period ended March 30, 2024 was $125.2 million, compared to $141.1 million in the first quarter of 2023.
  • Net debt to adjusted EBITDA ratio stood at 1.6x, within Management’s target range of 1.0x to 2.0x.
  • Quarterly dividend declared of $0.375 per share, or $46.8 million.
  • The 2024 financial outlook issued on February 28, 2024, in the Q4 2023 press release is reiterated as well as key related assumptions.

(1)Based on revenues for the trailing twelve-month period, incorporating a full twelve months of revenues for all acquisitions.

“With the final year of our strategic cycle underway, our first quarter performance has set a solid foundation for the remainder of 2024. We continue to build upon the significant momentum we generated in 2023, supported by our exceptional teams,” said Alexandre L’Heureux, President and CEO of WSP. “We are moving forward with confidence as our focus remains on delivering our ambitions, bolstered by healthy market conditions and growth opportunities. Our shared vision and collective efforts are the cornerstones of our success, and I am confident they will continue to guide us on our journey to be recognized as the undisputed leader in our industry.”

DIVIDEND
The Board of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about July 15, 2024, to shareholders of record at the close of business on June 30, 2024.

FINANCIAL REPORT
This release includes, by reference, the financial reports for the first quarter of 2024, including the unaudited interim condensed consolidated financial statements and the Management’s Discussion and Analysis (“MD&A”) of the Corporation for the first quarter ended on March 30, 2024, which are available on our website at www.wsp.com. These documents are also available on SEDAR+ at www.sedarplus.ca.

CONFERENCE CALL & WEBCAST
WSP will hold a conference call and webcast from 8:00 a.m. to 9:00 a.m. (Eastern Time) on May 9, 2024, to discuss these results. To participate in the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the conference call can be accessed using this link.

For those unable to attend, a replay will be available within 24 hours following the call under the “Investors” section of the website.

A presentation of the first quarter of 2024 highlights and results will be accessible on May 8, 2024, after market close under the “Investors” section of the WSP website at www.wsp.com.

FINANCIAL HIGHLIGHTS

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