Buy Canadian With This Stock Set to Outperform Global Markets

WSP Global stock is down 26% from its 52-week high. Here’s why this Canadian engineering giant looks like a compelling buy right now.

| More on:
Key Points
  • WSP Global stock is down 26% from its 52-week high, creating a rare entry point into one of Canada's most consistently excellent companies.
  • The company grew net revenues by 15%, adjusted EBITDA by 17%, and adjusted net earnings per share by 19% in 2025, capping off a record-breaking year.
  • With a record backlog of $17 billion and a newly raised EBITDA outlook for 2026, the growth story remains intact.

WSP Global (TSX: WSP) is one of Canada’s largest companies, valued at a market cap of $28.5 billion. The Montreal-headquartered engineering and consulting giant has compounded shareholder wealth for years, and right now, it is sitting 26% below its 52-week high.

This is not a distressed company but a world-class operator trading at a discount. If you have been waiting for a reason to buy the blue-chip TSX stock, the pullback just handed you one.

Engineers walk through a facility.

Source: Getty Images

WSP Global delivered one of its best years on record

Let’s look at how WSP performed in 2025, because the numbers tell you everything you need to know about the quality of this business.

  • It reported revenue of $18 billion, up 13% year over year.
  • Net sales rose 15% to $14 billion, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased 17% to $2.6 billion.
  • Its adjusted earnings per share grew 19% while free cash flow soared to a record of $1.7 billion.

The company also closed out 2025 with a record backlog of $17 billion, which is roughly 11 months of net revenue. WSP’s orders are locked in, and near-term revenue is predictable.

Chief Financial Officer Alain Michaud said at the May 2026 annual shareholder meeting that WSP is reconfirming its 2026 financial outlook and raising its adjusted EBITDA range to between $3.05 billion and $3.18 billion.

The strategic bets WSP is winning right now

Over the past 18 months, management has made a series of acquisitions aimed at expanding the company’s footprint.

The acquisition of POWER Engineers in 2024 has already exceeded expectations, generating sustained organic growth. In February 2026, WSP completed the acquisition of TRC, a U.S. energy sector leader with 8,000 professionals and a full-lifecycle infrastructure platform.

Energy transition is one of the most significant investment themes of this decade. Governments and corporations around the world are spending enormous sums on grid modernization, clean energy infrastructure, and water security. WSP is now one of the dominant players in that space.

The Canadian behemoth also acquired Ricardo, a global engineering consulting firm with deep expertise in rail, air quality, and energy policy. Ricardo operates in more than 20 countries, strengthening WSP’s presence in the United Kingdom, Australia, and the Netherlands.

President and CEO Alexandre L’Heureux, speaking at the annual meeting, was deliberate about how WSP approaches artificial intelligence. WSP serves clients on infrastructure decisions that carry long-term consequences, where accountability, judgment, and engineering precision cannot be replaced by a chatbot.

Why the pullback is an opportunity

A 26% decline from a 52-week high tends to make investors nervous.

WSP’s organic growth outlook for the next 12 months is between 4% and 7%. That is on top of the revenue being added through acquisitions. The structural tailwinds driving its business, aging infrastructure, urbanization, the energy transition, water security, and digital transformation are not going away.

WSP now employs nearly 83,000 professionals worldwide and holds the number-one position in its core sectors. It has grown from a Quebec-focused engineering firm with under 1,200 employees at its 2006 TSX debut into one of the most respected professional services firms globally.

Analysts tracking the TSX dividend stock forecast revenue to increase from $14 billion in 2025 to $19 billion in 2028. In this period, adjusted earnings per share are projected to expand from $9.58 to $15.43.

If the TSX stock is priced at 20 times forward earnings, which is below its 10-year average of 24 times, it could return around 45% within the next two years.

For Canadian investors looking for a high-quality, globally diversified business with real momentum, WSP Global deserves a spot at the top of your watchlist right now.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy.

More on Dividend Stocks

House models and one with REIT real estate investment trust.
Dividend Stocks

Your GIC Is Maturing: Here’s Where I’d Put $10,000 for More Income

When GIC rates fall, a grocery-anchored REIT like Crombie can offer higher monthly income with some growth potential.

Read more »

top TSX stocks to buy
Dividend Stocks

1 Canadian Dividend-Growth Stock Built to Deliver in Any Market Condition

Alimentation Couche-Tard (TSX:ATD) stock looks like a dividend-growth play that can do well in most climates.

Read more »

investor looks at volatility chart
Dividend Stocks

A Top TSX Dividend Stock to Buy on Pullbacks

This high-yield stock offers good prospects for dividend growth.

Read more »

A solar cell panel generates power in a country mountain landscape.
Dividend Stocks

1 Canadian Dividend Stock Down 19% to Buy and Hold Forever

This Canadian dividend stock is down about 19% from its 52-week high, but its record FFO, a 5.1% dividend yield,…

Read more »

A woman stands on an apartment balcony in a city
Dividend Stocks

Why I’m Bullish on This TFSA Dividend Stock Yielding 2.7% Monthly

Boardwalk REIT’s monthly distributions, resilient operating growth, and discounted valuation could make it an attractive TFSA stock to buy now.

Read more »

you're never too young or old to start investing in stocks
Dividend Stocks

3 Best Dividend Stocks in Canada for Beginner Investors

A look at three of the best dividend stocks in Canada for beginner investors, including their yields and why they…

Read more »

Concept of rent, search, purchase real estate, REIT
Dividend Stocks

Why I’m Watching This 4.6% Dividend Stock That Pays Monthly Cash

Sienna Senior Living offers investors a 4.6% dividend yield with monthly payouts, while its recent share price pullback makes the…

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Dividend Stocks

Enbridge vs. Telus: Which Is the Better Dividend Stock to Own Through 2026?

Enbridge and Telus both offer attractive yields, but their financials and underlying fundamentals reveal a big difference in dividend stability…

Read more »