WSP CEO Highlights AI Gains, Strong Growth Across Sectors Amid Dynamic Market

WSP CEO Highlights Dynamic Market and AI-Driven Growth

WSP, the Montreal-based architecture, engineering, and construction giant, is navigating a dynamic market with a clear focus on artificial intelligence (AI) to boost efficiency and growth. CEO Alexandre L’Heureux shared insights during the company’s second-quarter earnings call on August 7, emphasizing their recent $1 billion partnership with Microsoft aimed at digitizing the industry through AI.

L’Heureux noted that AI is already reducing human input in bidding processes by nearly 80%, a significant improvement that spans all WSP segments and countries. This reduction in manual effort enhances productivity without sacrificing quality.

Beyond AI, WSP has steadily increased revenue per employee over the past decade while controlling labor costs. “Our revenue is growing much faster than our headcount,” L’Heureux said, suggesting that headcount figures are becoming less relevant as efficiency improves.

Steady Market Amid Election Cycles

Despite elections across major markets like New Zealand, the U.K., Australia, Canada, and the U.S., WSP has seen minimal disruption. Infrastructure spending remains a priority regardless of political changes, including under the Trump administration, which has shifted focus towards fossil fuels but continues to promote investment in infrastructure.

Strong Project Pipeline Across Sectors

Data centers remain a key area of activity globally, with projects covering site acquisition, due diligence, master planning for AI factories, and both new and upgraded data center designs. These projects drive demand for power and water infrastructure upgrades as well.

Power generation is another growth area, especially thermal and nuclear energy. WSP’s acquisition of Power Engineers in 2024 has contributed to a 16% organic growth rate this quarter, highlighting the strategic value of this move.

Water infrastructure continues to benefit from sustained investment, including an Ontario wastewater treatment plant expansion and a major PFAS project for the U.S. Air Force. WSP’s environmental backlog is growing, driven by biodiversity and marine projects in Canada despite some regulatory rollbacks in the U.S.

Transportation infrastructure is also performing well. WSP secured roles in the $3.9 billion Hampton Roads Bridge-Tunnel project in Virginia and the new terminal at Perth International Airport in Australia.

Financial Performance and Backlog Growth

WSP reported Q2 revenues of CA$4.5 billion ($3.3 billion), up 14.6% from Q2 2024. Profits increased nearly 52% to CA$279 million. Backlog rose 10.9% to CA$16.3 billion, driven by strong results in Canada, the Americas, and the EMEIA regions. The firm has scaled back its Asia-Pacific presence due to slower performance in that market.

Active M&A Strategy

Despite some election-related uncertainty in the M&A market, WSP continues to pursue strategic acquisitions. Recent deals include the purchase of Lexica, a U.K.-based healthcare and life sciences consulting firm, which added 90 experts and established a new advisory team. WSP also announced an agreement to acquire Ricardo, a U.K. consultancy focused on transport, energy, and environmental engineering.

These acquisitions align with WSP’s strategy to strengthen its advisory capabilities and expand its footprint in high-growth sectors.

Looking Ahead

WSP’s focus on AI-driven process improvements, strategic acquisitions, and diversified sector involvement positions it well for continued growth. Executives aiming to understand impactful technology integration and adaptive strategies in engineering and construction will find WSP’s approach insightful.

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