WSP Global CEO says buying spree no barrier to more, as earnings climb

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MONTREAL — The head of WSP Global Inc. says its spate of acquisitions — four so far this year, plus its biggest ever last fall — is no barrier to future deals by the engineering company, even as interest rates remain high.

“Is that a roadblock to future acquisitions? The answer is absolutely not," CEO Alexandre L'Heureux told analysts on a conference call Thursday, referring to the US$1.81-billion acquisition of U.K.-based John Wood Group’s environment and infrastructure business in September 2022.

On Thursday, WSP reported its profit and revenue in its latest quarter rose by nearly a quarter compared with a year ago, buoyed by organic growth as well as the acquisitions. Organic revenue growth in North America notched below other areas, but L'Heureux said WSP continues to seize on the spending unleashed by the U.S. government's US$1-trillion infrastructure bill passed in November 2021.

Sabahat Khan, an analyst at RBC Capital Research, pointed to the ballooning backlog as one sign that demand remains sturdy.

 

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