WSP launches Global Strategic Plan 2019-2021
Corporation is set to grow net revenues from $6B to $8- or $9B and expand its employee size from 48,000 to 65,000 through strategic acquisitions and organic growth.
On January 30th, 2019, Montreal-based WSP Global released the highlights of its new three-year strategic plan (the “2019-2021 Global Strategic Plan”) setting the stage for growth which would see the corporation grow from revenues of $6B to $8 or $9B and expand its employee size from 48,000 to 65,000 through strategic acquisition and organic growth, along with intentions to expand into new geographies and broaden its service offering.
“Our 2015-2018 performance has allowed us to build strong foundations for the future. Our financial strength, agility and diversification have put us in an enviable position to seize opportunities as they emerge … By achieving the ambitions set out in this plan, we will generate net revenues of $8 to $9 billion, increase our headcount by 35% and adjusted EBITDA by 50% by the end of 2021,” said Alexandre L’Heureux, president and CEO of WSP in a company release.
By 2021, WSP aims to generate 11.5% to 12.5% adjusted EBITDA margins. Moreover, WSP is committed to continually integrate a high standard of ethical behaviour, as well as health and safety practices within all the work it does, while reducing the environmental impact of its operations.
Currently listed among the Top 5 International Global Firms in its field and generating approximately 90% of its net revenues from OECD countries, WSP says it will drive growth by adapting and broadening its offering and its distribution capabilities to reach more global clients and international markets, achieved through both organic growth and an acquisition strategy.
The firm will continue to push in existing strongholds, including Canada, the UK, the Nordics, and New Zealand, and it will actively drive its presence in geographies such as the United States, Continental Europe, Australia, and South East Asia, where it views significant opportunities for growth.
While also aiming to strengthen its existing positions in transportation & infrastructure, and property & buildings, the firm is seeking to grow in sectors such as environment, water, power, industry and resources (including mining), where its sees an opportunity for strategic growth and elevating brand awareness.
And, while building on its exiting engineering & design services, the company will be investing in its strategic advisory services, such as planning and advisory services, management services, technology, and sustainability services.
WSP will measure its performance by targeting the following metrics:
|2018 AMBITIONS||2021 AMBITIONS|
|Net revenues||$CAD 6 billion||$CAD 8 to 9 billion|
|Annual growth (organic and acquisitions)||Above 10%||Above 10%|
|Adjusted EBITDA margins||11%||11.5% to 12.5%|
|Days Sales Outstanding||Below 85 days||Below 80 days|
|Net debt/adjusted EBITDA ratio||1.5x to 2.0x||1.5x to 2.5x|