(Montreal) Engineering consulting firm WSP Global is raising its 2022 year-end revenue and profit targets on the heels of a third quarter of “solid and continued growth” in key operating results.
Posted at 5:47 p.m.
Updated at 6:15 p.m.
Thus, three months from the end of the 2022 financial year, WSP management is firming up its net revenue target of around “8.8 to 8.9 billion dollars”. The previously announced target spread was in the order of “8.25 and 8.75 billion”.
At the same time, WSP is raising its annual operating profit (adjusted EBITDA) target to around 1.52 billion, some 60 million more than the previous target of around 1.46 billion.
Meanwhile, in its third-quarter results announced late Wednesday, WSP showed total revenue of $2.89 billion, up 9% from the comparable quarter a year earlier. Adjusted operating profit (adjusted EBITDA) was recorded at 407 million, up 7% year-on-year.
On the other hand, third quarter net income is down 8% annualized to 127.5 million (or $1.05 per share) after the recognition of a temporary increase in financing costs and acquisition costs .
It was during the third quarter that WSP attempted a purchase offer for the British firm RPS Group, before abandoning it in early October in the face of an improved offer from competitor Tetra Tech.
As for WSP’s order book, it reached 13.2 billion at the end of the third quarter, up 3.2 billion or 32% compared to the amount recorded at the same date last year.
“The strong organic (internal) growth in our net revenue and backlog is the result of strong demand for our services. We are entering the home stretch of the year with confidence,” commented Alexandre L’Heureux, President and CEO of WSP, in the quarterly results release.
The conference call with analysts to discuss the results and business outlook for the next few months is scheduled for early Thursday morning, before the stock markets open.