Valued at a market cap of $36.5 billion, WSP Global (TSX: WSP) stock has returned close to 600% to shareholders in the past decade, crushing the broader market by a wide margin.
WSP Global is a professional services consulting firm operating internationally across the United States, Canada, the United Kingdom, Sweden, Australia, and other markets. The company provides engineering and consultancy services for infrastructure projects, including rail, transit, aviation, highways, bridges, tunnels, water, maritime, and urban development for public and private clients.
WSP offers specialized services in decarbonization strategies, digital building design, environmental sustainability, earth sciences, energy solutions, and strategic advisory services. It conducts due diligence, regulatory compliance, environmental impact assessments, and project management from feasibility through decommissioning.
Let’s see if this blue-chip TSX stock is still a good buy right now.
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How did WSP Global stock perform in Q2 of 2025?
WSP Global reported solid second-quarter results with revenue and net revenue increasing 15% and 16% year over year, respectively, driven by strong organic growth and strategic acquisitions.
The engineering consulting firm achieved adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $633 million, up 22% from the prior year, while margins expanded 80 basis points to 18.2%.
CEO Alexandre L’Heureux highlighted exceptional cash flow performance, with free cash flow increasing nearly $400 million compared to the year-ago period and over $600 million for the first six months.
Day sales outstanding reached a historically low 69 days for a second quarter, positioning the company’s leverage ratio at the middle of its target range and enabling further capital deployment opportunities.
WSP demonstrated balanced growth across key regions. Canada, the U.S., and the U.K. each delivered high single-digit organic growth, while the Power Engineers acquisition contributed solid 16% organic growth and meaningful revenue synergies.
WSP’s backlog reached $16.3 billion, up 10.9% over 12 months, representing 11 months of revenue with a book-to-bill ratio above one.
Power Engineers’s integration is proceeding ahead of schedule, with the business showing double-digit growth and over 250 active pursuits in the pipeline. The acquisition has strengthened WSP’s position in the critical data centre market, where the company secured approximately 300 new mandates during the quarter across artificial intelligence (AI) infrastructure and digital facilities.
WSP announced strategic acquisitions, including Lexica, a U.K. healthcare consulting firm, and Ricardo, pending regulatory approval expected in the fourth quarter.
The company’s digital strategy gained momentum through partnerships with Microsoft and Urban Logic, targeting organic digital revenue growth at twice the rate of the core business. WSP successfully deployed AI tools globally with initial productivity improvements, particularly in bidding processes where human intervention could be reduced by up to 80%.
Is the TSX stock undervalued right now?
Based on a strong first-half performance, WSP updated its 2025 financial outlook with adjusted EBITDA now expected to reach the higher end of the guidance range. The consulting giant maintained its net revenue outlook between $13.5-14 billion with organic growth of 5-8% on a constant currency basis, reflecting confidence in its diversified platform and long-term industry trends.
Analysts tracking WSP stock expect revenue to rise from $12.17 billion in 2024 to $16.2 billion in 2027. Comparatively, adjusted earnings are forecast to expand from $8.05 per share in 2024 to $12.61 per share in 2027.
Today, WSP stock trades at a forward price-to-earnings multiple of 28.2 times, above its 10-year historical average multiple of 23.5 times. If the TSX stock reverts to its historical average, it should trade around $300 in early 2027, indicating upside potential of less than 10% from current levels.
