WSP says power now accounts for up to 40% of US revenue, up from near zero five years ago

WSP Global disclosed on its 6 August 2026 second-quarter earnings call that power and energy now accounts for approximately 35% to 40% of the company's US revenue^[1] - a figure CEO Alexandre L'Heureux contrasted sharply with the recent past. Five years ago, transportation and infrastructure generated about 80% of WSP's US revenue; power barely registered^[1].

A portfolio reweighted by grid demand

The shift reflects both organic growth and deliberate acquisition. WSP completed its US$3.3 billion acquisition of TRC Companies on 24 February 2026, adding roughly 8,000 professionals and creating what the company describes as the largest engineering and design firm in the United States by revenue. With TRC, WSP claims the number-one Power & Energy platform in the US. TRC's hard backlog grew 30% and its sub-backlog 35% in the quarter, with management identifying more than 100 joint pursuit opportunities between the two legacy organisations.

WSP now serves the top 60 US investor-owned utilities. Net revenue from the company's 40 largest global power clients rose 30% year over year, while hard backlog from those clients in the US increased 20%^[1].

Data centers and nuclear add to the load

Beyond the utility grid, two adjacent markets are pulling in the same direction. Data center revenues grew more than 20% year over year in the first half of 2026, with the sales pipeline now roughly 30% higher than a year ago. WSP is supporting 22 prospective US nuclear sites, covering site selection, licensing, design, and construction support^[1].

L'Heureux framed the demand as structural rather than cyclical: "The strongest areas of demand we see today are directly linked to long-term-duration investment themes^[1]."

Backlog and financials

The broader Q2 numbers underpin the power narrative:

• Total backlog reached CAD 20.1 billion, up 23% over the prior 12 months, representing 11.6 months of revenue
• Net revenue rose approximately 23% year over year, including 5% organic growth
• Adjusted EBITDA increased 29% to CAD 815 million, with margin expanding 90 basis points to 19.1% - WSP's highest second-quarter margin on record
• US sub-backlog reached CAD 10 billion, up about 9% from Q1 2026, with 86% in framework agreements

Net income fell 12% to CAD 246.1 million from CAD 279.4 million a year earlier, as higher acquisition and integration expenses, larger unrealized derivative losses, and increased amortization more than offset improved operating performance.

WSP raised its full-year 2026 outlook to CAD 16.2 billion-CAD 17.0 billion in net revenue and CAD 3.1 billion-CAD 3.18 billion in adjusted EBITDA.

What to watch

The TRC integration is the near-term execution test: whether the 30%-plus backlog growth in that unit converts to revenue at the pace management is signalling. The nuclear pipeline - 22 prospective sites - is a longer-dated indicator of how far WSP's power mix can travel beyond conventional grid work. CFO Alain Michaud said the company sees "accelerating momentum in the US^[1]" - the backlog data supports that, but the net income dip is a reminder that absorbing a US$3.3 billion acquisition at speed carries its own costs.