MONTREAL - WSP Global Inc. (TSX: WSP) ('WSP' or the 'Corporation') announced financial and operating results for the first quarter ended on April 1, 2023.

WSP reports a strong start to 2023, with higher-than-expected organic growth in net revenues and adjusted EBITDA in the first quarter. Overall net revenues, adjusted EBITDA and adjusted net earnings each increased by more than 25% relative to the first quarter of 2022.

FIRST QUARTER OF 2023 FINANCIAL HIGHLIGHTS

Revenues and net revenues reached $3.49 billion and $2.67 billion, up 28.7% and 27.0%, respectively, compared to the first quarter of 2022. The increase in net revenue was principally due to acquisition growth of 15.8% and organic growth of 8.6%. Organic growth was achieved across all reportable segments.

Backlog as at April 1, 2023 stood at $13.8 billion, representing 12.1 months of revenues.

Adjusted EBITDA of $413.3 million, up 27.3%, compared to $324.6 million in the first quarter of 2022.

Adjusted EBITDA margin of 15.5%, the same level as the comparable period in 2022.

Earnings before net financing expense and income taxes of $199.9 million, up 27.2% compared to the first quarter of 2022, mainly due to higher adjusted EBITDA, partially offset by higher amortization of intangible assets, due to recent acquisitions, as well as ERP implementation costs.

Adjusted net earnings of $171.1 million, or $1.37 per share, up $34.7 million or $0.21 per share, compared to the first quarter of 2022. The respective increases of 25.4% and 18.1% in these metrics are mainly attributable to higher adjusted EBITDA.

Net earnings attributable to shareholders of $112.5 million, or $0.90 per share, up $17.5 million, or $0.09 per share, compared to the first quarter of 2022. The increase was mainly due to higher adjusted EBITDA, partially offset by higher net financing expenses, amortization of intangible assets, due to recent acquisitions and ERP implementation costs.

DSO as at April 1, 2023 stood at 74 days, compared to 70 days as at April 2, 2022, in line with Management's outlook target range for the year ending December 31, 2023.

Free cash outflow of $141.1 million for the three-month period ended April 1, 2023. Trailing twelve-months of free cash inflow amounted to $353.2 million, representing 0.8 times the net earnings attributable to shareholders. Improvement in free cash flow compared to the first quarter of 2022 was mainly attributable to the increase in adjusted EBITDA.

Cash outflows from operating activities of $24.6 million, compared to $83.0 million in the first quarter of 2022. The improvement is mainly attributable to the increase in adjusted EBITDA.

Net debt to adjusted EBITDA ratio stood at 1.8x, compared to 1.6x as at December 31, 2022. The increase is in part due to higher net debt balance to finance recent acquisitions. Incorporating a full twelve months of adjusted EBITDA of all acquired businesses, the net debt to adjusted EBITDA ratio would be 1.7x.

Quarterly dividend declared of $0.375 per share, or $46.7 million, with a 21.6% Dividend Reinvestment Plan ('DRIP') participation. DRIP termination approved by the Board of Directors, effective May 10, 2023.

The 2023 financial outlook issued on March 8, 2023, in the Q4 2022 press release is reiterated as well as key related assumptions.

'WSP continued to leverage its momentum and achieved higher than expected organic growth across all our geographies in the first quarter of 2023,' said Alexandre L'Heureux, President and CEO of WSP. 'These first quarter results highlight the diligent execution of our robust 2022-2024 Global Strategic Action Plan, driven by the positive industry dynamics, our enhanced presence in key regions, and the high demand for our services.'

DIVIDEND

The Board of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about July 15, 2023, to shareholders of record at the close of business on June 30, 2023.

DRIP TERMINATION

The Corporation also announces that its Board of Directors has approved the termination of its Dividend Reinvestment Plan ('DRIP') in accordance with its terms, effective May 10, 2023 (the 'Effective Date'). Upon the termination of the DRIP, all cash dividends or distributions on the Corporation's common shares with a record date for payment of such dividend or distribution after the Effective Date, including the dividend declared today and payable on or about July 15, 2023, to shareholders of record as at the close of business on June 30, 2023, will be paid in cash rather than in shares of the Corporation. TSX Trust Company, as administrator of the DRIP, will forward a notice and related documentation to all current DRIP participants in the coming days.

FINANCIAL REPORT

This release includes, by reference, the financial reports for the first quarter of 2023, including the unaudited interim condensed consolidated financial statements and the Management's Discussion and Analysis ('MD&A') of the Corporation for the first quarter ended on April 1, 2023, which are available on our website at www.wsp.com. These documents are also available on SEDAR at www.sedar.com

CONFERENCE CALL & WEBCAST

WSP will hold a conference call and webcast from 8:00 a.m. to 9:00 a.m. (Eastern Time) on May 11, 2023, to discuss these results. To participate in the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the conference call can be accessed using this link.

A presentation of the first quarter of 2023 highlights and results will be accessible on May 10, 2023 after market close under the 'Investors' section of the WSP website. For those unable to attend, a replay will be available within 24 hours following the call.

NON-IFRS AND OTHER FINANCIAL MEASURES

The Corporation reports its financial results in accordance with International Financial Reporting Standards ('IFRS'). WSP uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with IFRS. Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure ('Regulation 52-112') prescribes disclosure requirements that apply to the following types of measures used by the Corporation: (i) non-IFRS financial measures; (ii) non-IFRS ratios; (iii) total of segments measures; (iv) capital management measures; and (v) supplemental financial measures.

In this press release, the following non-IFRS and other financial measures are used by the Corporation: net revenues; adjusted EBITDA; adjusted EBITDA margin; adjusted net earnings; adjusted net earnings per share; backlog; free cash flow; days sales outstanding ('DSO'); and net debt to adjusted EBITDA ratio. Additional details for these non-IFRS and other financial measures can be found in section 19, 'Glossary of segment reporting, non-IFRS and other financial measures' of WSP's MD&A for the quarter ended April 1, 2023, which is posted on WSP's website at www.wsp.com, and filed on SEDAR at www.sedar.com. Reconciliations of non-IFRS financial measures and total of segments measures to the most directly comparable IFRS measures are provided below.

Management believes that these non-IFRS and other financial measures provide useful information to investors regarding the Corporation's financial condition and results of operations as they provide key metrics of its performance. These non-IFRS and other financial measures are not recognized under IFRS, do not have any standardized meanings prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

FORWARD-LOOKING STATEMENTS

Certain information regarding WSP contained herein are not based on historical facts and may constitute forward-looking statements or forward-looking information under Canadian securities laws (collectively, 'forward-looking statements'). Forward-looking statements may include estimates, plans, strategic ambitions, objectives, expectations, opinions, forecasts, projections, guidance, outlook or other statements that are not statements of fact. Forward-looking statements made by the Corporation in this press release include statements about the payment of dividends, our proposed strategy, and our operating performance, financial outlook, prospects and expectations of this press release, and statements about the 2022-2024 Global Strategic Action Plan. These forward-looking statements are based on a number of assumptions believed by the Corporation to be reasonable as at May 10, 2023, including assumptions set out through this press release and under section 19 'Forward-Looking Statements' of WSP's MD&A for the quarter ended April 1, 2023 which is available on SEDAR at www.sedar.com.

Although WSP believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. WSP's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The complete version of the cautionary note regarding risk factors, which, if realized, could cause the Corporation's actual results to differ materially from those expressed or implied in forward-looking statements, are discussed in greater detail in section 20, 'Risk factors' of WSP's MD&A for the year ended December 31, 2022 which is available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and, accordingly, are subject to change after such date. Except to the extent required by applicable law, WSP does not assume any obligation to publicly update or revise any forward-looking statements made in this press release or otherwise, whether as a result of new information, future events or otherwise.

ABOUT WSP

As one of the largest professional services firms in the world, WSP exists to future-proof our cities and our environment. It provides strategic advisory, engineering and design services to clients seeking sustainable solutions in the transportation, infrastructure, environment, building, energy, water, and mining sectors. Its 67,000 trusted professionals are united by the common purpose of creating positive, long-lasting impacts on the communities it serves through a culture of innovation, integrity, and inclusion. In 2022, WSP reported $11.9 B (CAD) in revenue. The Corporation's shares are listed on the Toronto Stock Exchange (TSX: WSP).

Contact:

Alain Michaud

Chief Financial Officer

WSP Global Inc.

E: alain.michaud@wsp.com

T: 438-843-7317

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