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MONTREAL \u2014 WSP Global CEO Alexandre L\u2019Heureux is \u201cfeeling extremely good\u201d about the engineering giant\u2019s prospects in the United States despite the Donald Trump administration\u2019s professed aversion to spending on big projects hatched in recent years.<\/p>\n
Speaking to analysts on a conference call, L\u2019Heureux said infrastructure remains a bipartisan concern in a polarized America.<\/p>\n
\u201cI feel that there is bilateral support on both sides of the aisle by the Democrats and Republicans around infrastructure. So if there is one positive aspect of what\u2019s happening right now, I feel that there\u2019s some commitment to infrastructure,\u201d L\u2019Heureux said.<\/p>\n
\u201cThat, I believe, will continue to be strong in 2025,\u201d he added, even though \u201cit\u2019s changing week by week.\u201d<\/p>\n
U.S. President Trump last month ordered a freeze on infrastructure spending approved under the Biden administration, which had allocated billions of dollars to states and cities for everything from highway expansions to water system upgrades. As of September, about 60 per cent of the money remained unspent.<\/p>\n
Transportation and infrastructure projects account for 37 per cent of revenues for WSP, making up its largest segment. Contracts across all divisions in North America generated 60 per cent of its revenues, with the U.S. far and away its biggest market globally.<\/p>\n
Last quarter, contracts in the U.S. and Canada achieved organic net revenue growth of 10 per cent year-over-year, the highest level for any region. Whether that pace can persist amid an upended political landscape remains a key question.<\/p>\n
L\u2019Heureux, who has led a buying spree over the past few years, qualified that uncertainty can breed hesitation around deals in general.<\/p>\n
\u201cWith this new administration, I think the investment community was hopeful for more deregulation and therefore fostering more of an environment for mergers and acquisitions,\u201d he said.<\/p>\n
\u201cThe flip side of this is that when you are creating an unstable environment, people tend to take a pause\u2026The first half (of 2025) will probably be a bit more quiet. And I\u2019m not talking about WSP; I\u2019m talking about the world, the world of M&A.\u201d<\/p>\n
Transactions will likely pick up again \u201cin the coming years \u2014 and we intend WSP to actively participate in that,\u201d he added.<\/p>\n
\u201cAs a company, we feel extremely strong and feeling extremely good around the markets in which we operate at the moment, both in the U.S. and in Canada.\u201d<\/p>\n
There are signs of swift adaptation at the Montreal-based consultancy.<\/p>\n
Earlier this month, the firm announced a seven-year partnership with Microsoft that makes WSP a preferred partner for \u201cdigital and AI transformation services,\u201d particularly in the engineering and construction industry. The deal represents a \u201ccombined financial commitment and investment\u201d of up to $1 billion, WSP said.<\/p>\n
Trump has expressed enthusiasm for the potential of artificial intelligence, backing a private effort to invest billions of dollars in AI infrastructure and stating he aims to \u201chelp a lot through emergency declarations.\u201d<\/p>\n
As for more traditional infrastructure, L\u2019Heureux noted last year that Congress had until the end of 2026 to award the majority of the US$1.2 trillion in transportation and infrastructure spending \u2014 a boon for legions of engineers \u2014 under a bipartisan bill signed in 2021.\u00a0<\/p>\n
But Trump\u2019s executive order pausing the outlays threw an unexpected wrench in their gears.<\/p>\n
Federal courts have blocked the president\u2019s executive orders from putting a halt on spending, over which Congress has authority. But some federal agencies have continued to withhold the money, making the medium-term impact of the freeze unclear.<\/p>\n
L\u2019Heureux reiterated WSP\u2019s plan for still more expansion over the next three years as it comes off a spate of acquisitions.<\/p>\n
Released earlier this month, the 2025-2027 strategic plan forecasts higher financial targets than previously expected, with revenues set to rise by 40 per cent in that period. For 2025, it is targeting net revenues of between $13.5 billion and $14 billion versus $12.17 billion in 2024.<\/p>\n
WSP has notched remarkable growth over the past few years, emerging as one of the largest pure-play engineering outfits in the world.<\/p>\n
Between 2022 and 2024, WSP snapped up 16 companies and grew its head count to nearly 73,000 from 55,300. Annual revenues jumped to about $16 billion last year from roughly $10 billion in 2021, with net earnings per share rising more than 60 per cent in that period.<\/p>\n
WSP has been eyeing larger acquisitions since last summer, after working to integrate its sprawling operations across North America, Europe and Asia.<\/p>\n
In October, it completed its acquisition of Power Engineers Inc., an Idaho-based consulting company with a focus on energy and 4,000 employees across the continent.<\/p>\n
For the quarter ended Dec. 31, WSP said it boosted net earnings 28 per cent year-over-year to $166.9 million. It increased fourth-quarter revenue 25 per cent to $4.66 billion.<\/p>\n
The company also beat analysts\u2019 expectations for the 10th quarter in a row, clinching adjusted net earnings of $2.34 per share versus projections of $2.27 per share, according to financial markets firm LSEG Data & Analytics.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n