Engineering giant WSP reports revenue growth, defying investor angst around AI
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- WSP Global reported Q2 net revenue of $4.3-billion, up 23% year-over-year with 5% organic growth, beating analyst expectations and prompting the company to raise its full-year financial guidance slightly.
- WSP's stock climbed 5% to $189.99 on the Toronto Stock Exchange after the results, as Raymond James analyst Frederic Bastien wrote that "the numbers do the talking" in response to AI-disruption fears that have dragged down engineering stocks like Stantec.
- WSP's backlog hit a record $20.1-billion in the quarter, anchored by major projects including the Purple Line subway extension in Los Angeles — one of the largest transit infrastructure programs in the U.S.
- National Bank analyst Maxim Sytchev reported that WSP views AI "first and foremost as a revenue opportunity, rather than a cost-cutting lever," using digital tools to "do more work with the same experts" in a labour-constrained industry.
- WSP confirmed a second non-binding offer of €51.50 per share in cash and stock for Amsterdam-based Arcadis, valuing the Dutch consultancy at roughly €4.7-billion (US$5.4-billion); Arcadis rejected the bid as undervaluing the company.
- Arcadis's largest shareholder, employee-managed foundation Lovinklaan, is pivotal to any deal; WSP CEO Alexandre L'Heureux called the talks a "potential friendly transaction between two great companies."
Why it matters: WSP's results counter the thesis that AI threatens engineering consultancies, showing scaled players can convert digital tools into revenue rather than just cost cuts — Bastien argues AI will widen the gap between firms like WSP and smaller rivals. The 5% stock pop and raised guidance show investors are buying that counter-narrative, at least for now, even as the Arcadis bid remains unresolved.
