Valued at a market cap of $24.3 billion, WSP Global (TSX: WSP) has outpaced the broader markets over the past decade.
Since November 2016, WSP stock has returned 350% to shareholders after adjusting for dividends. Comparatively, the TSX index is up around 233% in this period.
Despite its outsized returns, the Canadian stock is down 38% from all-time highs, allowing you to buy the dip. Let’s see why I remain bullish on this blue-chip stock right now.
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What does WSP Global do, and why does it suit buy-and-hold investors?
WSP Global designs bridges, rail lines, water systems, and power grids for governments and utilities. Founded in 1993, the company employs more than 85,000 people.
Notably, less than 8% of its costs are fixed, which allows the company to benefit from operating leverage. In the last five years, WSP grew sales at a compound annual growth rate of 15.3%, while earnings growth was much higher at 25.5%.
In Q3 2026, WSP reported net revenue of $4.2 billion, an increase of 22% year over year. Organic growth stood at 5.1%, and the rest was derived from acquisitions such as TRC and Ricardo.
WSP ended Q3 with a backlog of $20.3 billion, up 23.5% year over year, which covers almost a year of sales. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at $864.6 million, as margins rose to 20.5% from 20.2%.
Adjusted earnings reached $3.20 per share, up from $2.82 a year ago. Free cash flow rose to $333 million, up from $315 million.
Why is WSP Global stock down in 2026?
The U.S. is WSP’s biggest market. Federal funding reviews have stretched the wait between winning a project, getting the money approved, and starting work. L’Heureux explained:
Our view of the U.S. opportunity has not changed. Our view of the timing has.
U.S. backlog sits at $11 billion, up 5% organically. But management guides Americas growth to low single digits in the fourth quarter and expects a recovery that is “gradual rather than linear.”
WSP was just picked by American Electric Power as a delivery partner for its western regulated transmission portfolio, which is a multi-year job.
L’Heureux said this work runs through framework agreements, so very little of it shows up in backlog yet. In other words, the reservation book may understate what is coming.
The power units from POWER Engineers and TRC are growing at a double-digit pace this year. Many U.S. transmission lines are 30 to 40 years old and need replacing, with or without data centres.
Canada grew 10.2% organically, and the U.K. posted a fifth straight quarter of double-digit growth. However, leverage stands at 2.2 times, above the 1.0 to 2.0 target range, though management expects to be back in range by year-end.
Is WSP Global stock a buy right now?
Analysts tracking the blue-chip Canadian stock forecast adjusted EPS to increase from $9.58 in 2025 to $14.30 in 2028. If WSP stock is priced at 16 times forward earnings, below its 10-year average of 24 times, it could surge 27% within the next 15 months.
