WSP Global Aktie

Hello, everyone. And welcome to the 2026 Annual Shareholder Meeting of WSP. Again, this year, we are happy to hold today's meeting in a hybrid format, giving you the option to participate either in-person or virtually via live webcast.

I will introduce our speakers: Alexandre L'Heureux, President and Chief Executive Officer of WSP; Alain Michaud, Chief Financial Officer of WSP; and Joelle El-Feghali, Corporate Secretary and Deputy General Counsel of WSP. Also joining us today are the following Board members of WSP: Martine Ferland, Pascale Sourisse, Linda Smith-Galipeau, Macky Tall, Eric Lamarre and Claude Tessier.

I would like to provide you with some general remarks on the conduct of this meeting. As always, the meeting will be conducted in both English and French. You may choose to follow the meeting in the bilingual format presented in English only or in French only. And as we offer simultaneous translation for in-person and remote participants, also questions may be submitted in either language.

The meeting agenda contains 5 matters to be voted on during the business part of the meeting as set out in the corporation's Management Information Circular dated March 20, 2026.

At the meeting, shareholders will: one, receive the audited consolidated financial statements of WSP for the year ending December 31, 2025, and the independent auditor's report thereof; two, elect each of the directors nominees who will serve until the end of the next annual meeting of shareholders or until their successors are appointed; and three, appoint the independent auditor of WSP for the forthcoming year and authorize the directors to fix their remuneration; four, consider a nonbinding advisory resolution on the corporation's approach to executive compensation; five, consider such other business, if any, that may have properly come before the meeting.

Please note that we have until 12:00 p.m. Eastern Time to conclude all matters on today's agenda. We will begin with the formal part of the meeting, followed by brief presentations by our CEO and our CFO and conclude with a question period. Please note that you will be able to vote on each matter throughout the formal part of the meeting by using the voting device if you are present in the room or on the left side of your screen if you are participating through the webcast.

After we complete the formal business, the polls will close. If you have voted your shares prior to the start of the meeting, your vote has been received by the corporation's scrutineers, and there is no need to vote these shares during the meeting unless you wish to revoke or change your vote.

Duly identified registered shareholders and proxy holders can submit their questions at any time during the meeting by entering them in the appropriate tab on the webcast platform or through the voting device.

Please note, however, that questions pertaining to any item of business conducted at the meeting will be read aloud at the time such item is presented. All other general questions, including any questions relating to the annual financial statements of the company, will be addressed during the question period at the end of the meeting.

If we receive similar questions through the web portal, we will combine them into one question. If you are attending our meeting in person and would like to ask a question verbally, kindly proceed to the microphone in the center of the room when we open the floor for questions.

Please ensure that you identify yourself as a registered shareholder or a proxy holder before proceeding with your question. If you're not identified as a registered shareholder or proxy holder and would like to ask a question, please access the registration table at the entrance to the room.

Any questions that we do not answer during the time available will be addressed at our company website at wsp.com in the 2026 Annual Meeting of Shareholders page that can be found in the Investors section. To hold the formal part of the meeting in French, I've asked Alexandre to chair that part of the Annual Shareholder Meeting. Before I ask Alex to come forward, I would like to share a few reflections as your Chairman.

It's a pleasure to address you today as we look back on 2025 and the path ahead. As the first year of a new strategic cycle 2025, we set a strong tone. The results delivered by our teams show a business operating with technical and commercial expertise, discipline, confidence and real momentum.

This was achieved against a complex global backdrop, one that continues to influence our world today. Yet no matter the challenges, the work our people, our visioneers do remains essential to the well-being of communities everywhere.

The needs to future-proof the world's assets persists for our clients and our society at large across safe transport networks, reliable energy and water systems, health, education and resilient digital infrastructures. This is our mandate.

This enduring demand is driven by long-term global trends that fuel our purpose and keep our expertise relevant. It also helps guide where we invest to further strengthen our capabilities. With experienced leadership and local teams rooted in their markets, our financial and operational performance in 2025 reflects our ability to adapt and grow without losing focus.

Above all, it is the effectiveness of management and the skill and commitment of our people that turn strategy into action day in and day out. From the Board's perspective, we stayed closely engaged on strategy, performance, capital allocation and risk, knowing when to lean in and when to hold a steady course always from a perspective of support and challenge.

In doing so, the Board and management have remained attentive to the broader geopolitical context, including ongoing developments in the Middle East, where we have a clear focus on our people and the community and continuity of our operations.

The Board is also mindful of the fast-changing world of technology and its impact, and we continue to invest and support the growing scale and complexity of our work undertaken across the business to meet the clients' needs throughout the world.

We also made acquisitions. We made acquisitions such as Ricardo, recently TRC, that added strength in areas of critical importance to our clients, including advisory, the energy transition sector, water solutions and infrastructure.

The Board itself has continued to evolve alongside WSP's ambitions. We were pleased to welcome Pascale Sourisse, who is standing for election today, and has joined the Governance, Ethics and Compensation Committee, and Eric Lamarre, who was elected by shareholders last year, and serves on our Audit Committee now chaired by Claude Tessier.

Their experience brings added depth in areas central to our strategy, including digital and AI, advanced manufacturing, defense, mission-critical facilities, advisory and international operations worldwide generally.

I would like to thank all my colleagues on the Board for their insight, sound judgment, strong engagement as we continue to elevate what matters most for WSP's future. Our collective commitment to ethical leadership, sustainability and responsible corporate citizenship is unwavering. It shapes how we steward the company for the long term on behalf of our people, our clients and our shareholders.

Looking ahead, we are now firmly into the second year of our strategic cycle and building on solid momentum. The Board has strong confidence in WSP's executive team and the strategic direction, and we will maintain a steady focus on enabling disciplined growth, thoughtful capital decisions and long-term value creation for our shareholders.

We remain vigilant and forward-looking, assured that WSP's breadth of expertise, financial strength and global scale position the company to navigate uncertainty, capture opportunity and continue partnering with clients to help deliver better outcomes for the communities in which we serve.

So before I conclude, I would like to recognize 2 important milestones. Last month, WSP will mark 20 years as a publicly traded company, 2 decades on from our initial public offering. And this October will be 10 years since Alexandre became our President and Chief Executive Officer.

I have had the pleasure of working closely with Alex throughout that decade of his leadership. And I've seen firsthand the clarity of his thinking, his ambition, his vision and the strength of his leadership. During his tenure, WSP has expanded significantly in scale, capability and worldwide recognition, becoming one of the world's leading professional services companies with a presence and expertise that position us exceptionally well for long-term success.

I know I speak for the entire Board and I suspect for many of you here as well in congratulating Alex in his upcoming anniversary and thanking him for his remarkable contribution to WSP's growth and transformation. We look forward to continued success, whatever the challenges and opportunities.

In closing, I want to express our sincere gratitude to the entire WSP community, all our employees, our clients, our shareholders and all other partners. Your trust and support underpin our ongoing success. We look ahead with confidence and we do so together. Thank you. [Foreign Language].

Chris, thank you for your kind words and steadfast partnership throughout the years. It is a privilege to serve as President and CEO, and I'm inspired to continue building WSP's success alongside you, our Board and our exceptional team. Now on to the formal part of the meeting.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Interpreted] registered shareholders and proxy holders that the voting period is still open via the voting device or on the online platform.

Since the motion has been duly made and based on preliminary votes, I declare the motion carried and that the accounting firm PricewaterhouseCoopers is duly appointed as WSP's independent auditor until the next annual meeting and that WSP's Board of Directors is authorized to determine its remuneration.

We'll now move on to the motion regarding the nonbinding advisory vote on executive compensation, which is detailed in the proxy circular. This proxy circular was made available to shareholders in advance of the meeting.

[ Konsta Weber ], a shareholder of the company, is prepared to make the necessary motion regarding the adoption of the nonbinding resolution on executive compensation.

[Interpreted] My name is Konsta Weber. I am a shareholder of the company. I hereby move that the following advisory resolution be adopted. Be it resolved for advisory purposes only and not to diminish the role and the responsibilities of the Board of Directors of WSP Global Group Inc., that the shareholders of the company approve the executive compensation plan outlined in the company's proxy statement dated March 20, 2026 distributed and in anticipation of the company's 2026 Annual Meeting of Shareholders.

[Interpreted] Thank you, Konsta. I remind registered shareholders and proxy holders that the period for voting is still ongoing via the voting device or online platform. Since the motion has been duly put forth and based on preliminary votes, I declare the motion carried.

There are no further items on the agenda for this meeting.

[ Brittnie Brooks ], a shareholder of the company is prepared to move to adjourn the formal portion of the meeting.

[Interpreted] My name is Brittnie Brooks, I'm a shareholder of the company. I hereby move to adjourn the formal portion of the meeting.

[Interpreted] Thank you, Brittnie. Since the motion to adjourn the formal portion of the meeting has been duly put forth, I declare the motion carried and the formal portion of the 2026 Meeting of Shareholders of WSP Global Group Inc. is now adjourned.

I would like to thank our shareholders for electing us as directors for another year. We will strive to meet your expectations and to honor your trust.

Before we cover WSP's recent progress, I want to recognize an important milestone for our company. As shown in today's opening video, this month marks 20 years since WSP became a publicly traded company. WSP has fundamentally transformed in scale, capability and global impact since our initial public offering on the TSX on May 25, 2006. At that time, we were an engineering company with less than 1,200 employees.

Guided by a vision rooted in our local community, we mostly operated in Quebec. While we have grown into one of the world's leading professional services firm with a team of nearly 83,000 professionals, we remain proudly headquartered in Montreal. Throughout the years, we have maintained our agile and entrepreneurial spirit, combining global reach with global expertise to advance our ambitions.

Today, we hold the #1 position across our core sectors where a collective of engineers, scientists and advisers, world shapers and visioneers dedicated to sustainable and meaningful solutions. And our brand embodies technical excellence, client focus and a relentless drive to innovate.

Building on this momentum, we are well positioned to pursue new opportunities and accelerate our impact within the professional services universe. To propel our ambitions further, we launched our 2025-2027 Global Strategic Action Plan, pioneer change for empowered growth. It reflects our unwavering commitment to challenge conventional limits, redefine possibilities and serve as catalyst of transformation, driving the modernization of our industry and shaping a more innovative, sustainable future.

In its first year, we have made strong progress. In 2025, we achieved solid net revenue growth, robust profitability and record levels of free cash flow and backlog, a testament to our diversified platform, and in year 1 of our strategic action plan, we have grown our net revenues by 14.7%, adjusted EBITDA by 17.2% and adjusted net earnings per share by 19%.

We strengthened our balance sheet and preserve our flexibility. We continue to invest in expertise that differentiates our business and systems that support high performance and in capabilities to drive future growth. Client demand is responding to structural forces reshaping economies and communities, including aging infrastructure, the energy transition, water security, urbanization and digital transformation.

Across sectors, clients are investing to increase resilience and prepare for what's next. We are well positioned to support these priorities, and clients increasingly look to WSP for the depth of understanding and leadership they require. To further broaden and strengthen our balanced portfolio, we pursue strategic acquisitions in high-growth markets.

In June 2025, we acquired Lexica, a consulting firm specializing in health care and life sciences in the United Kingdom. This transaction added 90 experts to support our growth ambitions in consulting services.

And then in October, we completed the acquisition of Ricardo, a global strategy and engineering consulting firm at the intersection of transportation, energy and the environment. Headquartered in the U.K., the company operates in more than 20 countries, including key markets for WSP such as the United Kingdom, Australia, and the Netherlands.

Ricardo's specialized teams bring distinctive experience, including in rail transportation, air quality, water management, energy resilience and policy development strategies. Together, we enhance the value that we deliver to clients operating in complex, regulated and constantly evolving environments.

In December, we welcomed Harmonic Analytics, a New Zealand firm specializing in data science, whose advanced expertise in analytics completes and enriches our digital and consulting services offerings.

At the same time, consolidating our leadership position in energy remained a strategic priority. The acquisition of POWER Engineers completed in 2024 continues to exceed our expectations with sustained organic growth last year and a pool of opportunities that generates new options for our teams and clients.

We propelled this momentum in February with a landmark transaction, the acquisition of TRC, a leading brand in the U.S. energy sector offering solutions covering the entire infrastructure life cycle. By welcoming 8,000 professionals from TRC, we are also strengthening our capacities in other high-growth areas, including water, infrastructure, the environment and digital solutions.

We have more than 26,500 professionals in the U.S. now. Thanks to POWER Engineers and TRC, WSP is ready to meet growing demand for reliable energy systems.

Digital is one of our dynamic growth drivers. By combining engineering and consulting services with advanced digital and AR capacity -- AI, sorry, capacities, we are winning new contracts and generating recurring revenues. Clients are looking to integrate technologies into their infrastructure, and they turn to us because WSP offers the expertise they trust, and because we support them securely, responsibly and at scale.

We're also developing strategic alliances with leading innovators such as Microsoft. And in the first year of this partnership alone, we co-created 2 solutions already in use by our clients and Copilot was widely deployed within WSP.

We continue to strengthen how we operate. We progress our Horizon ERP deployments, unify our service model to better support the frontline and expanded our Global Capability Centre for greater agility. Together, this sharpens execution, reinforces operational discipline and enables more seamless experiences for clients and employees.

WSP's impact starts with our people. It's their technical know-how, dedication to clients and commitment to sustainable progress that allow us to shape more resilient communities.

Empowering our workforce is integral to our success. One way we do this is through our employee share purchase plan, Own It, a plan that enables our colleagues to become WSP shareholders. This way, our nearly 20,000 employee shareholders directly benefit from the value they help create and are truly connected to the company's success.

We are very proud to offer an ownership plan with global reach, now available in 31 countries. And the number of employee shareholders continue to grow, reaching nearly 20,000 at the end of April.

Equally vital to our success is the environment we cultivate for our people, ensuring that their contributions and growth are continually supported. As we strive for operational excellence and sustainable progress, fostering a workplace where our team feels empowered and valued is at the heart of everything we do.

We remain focused on developing talent from within and becoming the preferred home for engineers, scientists and advisers. In 2025, we launched our Internal First framework, established clear pathways for advancement and invested in development programs centered on leadership, client engagement and executive readiness. This continues to strengthen a culture that values excellence, agility and innovation at every level.

As we look to the future and continue to build on our achievements, we will be sharing more on our people initiatives, environmental performance and governance progress in our sustainability report to be published on May 13. It highlights how sustainability is embedded in both our strategy and our client work, and it provides a comprehensive view of how WSP continues to advance responsibly.

Before I close, I want to directly address the rise of artificial intelligence and how we think about its role at WSP. We view AI as an enabler, not a substitute for expertise. Our work is rooted in the physical world where infrastructure decisions carry long-term implications, and in the space defined by high stakes complexity and uniqueness, we have the scale required to leverage AI fully and safely.

Clients rely on us for judgment, accountability and outcomes they can stand behind. These responsibilities cannot be outsourced to algorithms. Every projects we deliver are shaped by distinct conditions, regulatory requirements and stakeholder expectations. While AI is probabilistic by nature, our clients expect certainty, assurance and informed decision making. This is where our engineering, science and advisory expertise continues to differentiate WSP.

Applied deliberately and responsibly, AI helps us move faster, drive innovation and sharpen our solutions to complex challenges. At the same time, it is reshaping client expectations, reinforcing the value of partners who can combine advanced technologies with deep domain expertise and disciplined execution. The fundamentals and market trends underpinning our industry remain very strong, and AI is opening up new opportunities.

At WSP, AI does not displace our work, it augments it. It strengthens the value we deliver to clients and our people's expertise and creativity remain at the center. On that note, I want to thank our teams and clients for their commitment and trust, our shareholders for their confidence and our Board for its steady guidance and oversight.

We will continue to scale with discipline, execute consistently and accelerate where opportunities is strongest. And with the depth and diversity of our platform, I want to underscore my high confidence in our team's capacity to deliver on our strategic action plan objectives and to keep creating long-term value for our shareholders.

I'd now like to invite our Chief Financial Officer, Alain Michaud, to come and comment on our financial performance to date. Thank you.

[Interpreted] Thank you, Alexandre, and good morning to all. 2025 was a strong year for WSP, marked by the launch of our 3-year strategic plan. We delivered a strong full year performance, reaching the high end of our financial outlook.

Revenues and net revenues reached approximately $18 billion and $14 billion, up 13% and 15%, respectively, compared to 2024. We also reported a record high backlog of $17 billion in '25, equivalent to approximately 11 months of revenue.

Adjusted EBITDA grew to $2.6 billion, up 17% compared to '24. Adjusted EBITDA margin increased to 18.3%, up approximately 40 basis points from 2024 in line with our strategic ambition. Adjusted net earnings were up 23%, stemming from accretive acquisition and continued significant productivity gain.

As for our cash position, I'm very pleased with our performance in '25. Our full year free cash flow totaled $1.7 billion, representing 1.8x net earnings attributable to shareholders. The strong outcome reflects our ongoing focus on working capital management.

Yesterday, we published the first quarter results, marking a strong start to 2026. Net revenues were in line with our financial outlook. With regards to profitability, so EBITDA margin, it improved by 80 basis points and adjusted EBITDA reached the upper end of our forecast range.

In addition, adjusted net income increased by 26%, exceeding our expectations. We reconfirm our financial outlook for 2026, with the exception of an increase in our adjusted EBITDA range which now stands between $3.05 billion and $3.18 billion.

To finish and in conclusion, financial performance is on track driven by sustained growth and a robust order backlog. This strong start reflects a favorable outlook for our industry as well as a positive momentum to our operations. Thank you. Mr. Chairman, back to you.

Now we would like to open things up for the shareholder questions. We will start by answering the questions our shareholders and duly appointed proxy holders sent through the web portal in the order that they were received.

If you are a duly identified registered shareholder or a proxy holder and wish to ask your question verbally, you can do so by using the microphone located at the center of the room. Please note that we will answer as many questions as possible within the allocated time.

Any questions we do not get through during the time available will be addressed on our company website, wsp.com under the 2026 Annual Meeting of Shareholders page in the Investors section. If we receive similar questions, we will combine them together. Your questions should be addressed to the CEO, who will answer the questions or redirect them as needed.

So it appears that we have not received any questions through the web portal at this time. So we will take questions from shareholders and duly appointed proxy holders present in the room. So if you have a question, please come to the microphone. Before asking your question, please state your full name and confirm whether you are a shareholder or duly appointed proxy holder.

I'm [ Daniel Gauche ], a shareholder. Thank you for your presentation, and congratulations on your 20th anniversary this year of your IPO in 2006.

My question is regarding your acquisition strategy. Can you please tell us how you think about growing WSP? And do you have a dedicated team for potential -- sourcing potential acquisitions?

Thank you. Look, our acquisition strategy has always been closely linked to our organic growth strategy. I always like to say that acquisition is not a strategy. It's a mean to execute on your strategy. So we've always had a very clear vision of what we wanted to become.

We want to become the leading professional services firm in our space and in our market and what we do. And M&A has always been a mean amongst others to execute on this strategy and to access that plan. So in terms of the process that we follow in terms of M&A, I mean, frankly, it's quite simple.

I always look at 4 criteria when we look at M&A and they are as follows: First, is there strategic imperative to do this transaction? So as I said before, M&A is not a strategy, but it's a mean. So when we unveiled our plan in 2024, we said, for instance, that POWER would be at the center of our next 3-year strategy. So when POWER Engineers and TRC came into play, we believe that there was a strategic imperative to pursue those acquisitions, number one.

Number two is, is there a cultural fit between what we aspire to be and what we aspire to become, and this firm, we need to remember that, as I said before, we are led by people, and we exist because of our people. And therefore, the cultural fit is extremely important when you look into an acquisition.

The third one is, can we immediately create shareholder value and can we then, in the future, continue to create shareholder value. Again, I'm here because I've a fiduciary duty to create shareholder value for those who are entrusting us and that's something that we are going to look into very, very carefully.

And the last one, which is oftentimes overlooked by companies that are completing acquisitions and why some companies are going sideways when they do complete acquisitions is they don't ask the question, can I integrate it because it can make sense strategically. The culture and the fit on paper may be there. It can make sense on paper, and we think we are going to create shareholder values.

But at the end of the day, can you integrate the transaction? And that's always a question that we are going to review very carefully upstream before we consummate the transaction so that we don't find ourselves in a deadlock position where we have answered the first 3 criteria but have not been in a position to answer the fourth one.

And that's something that I do not alone. I'm supported by an incredible team. We have our General Counsel here that is leading the acquisition effort or the team effort, combined with our finance team and our global CFO.

And last but not least, whether I look at a transaction of $5 million or we look at one of north of $3 billion like we did last year, I always consult with our Board. They've been an incredible sounding Board to the leadership team and the management team. And because I feel our Board understand our strategy, I can consult with them and obviously, and look at what is best for the company.

Thank you, and keep up the great work.

Thank you so much. Yes.

[indiscernible], I'm a proxy. One for CFO, one for CEO. For the CFO, speaking of the AI, any change to your billing dynamic, how you charge your clients? Just give us a cut, there's nothing perfect. And for the CEO, any exposure to Germany? And how much you're exposed to Germany given the expanding fiscal policy?

Alain, you want to start?

No impact at this point. No, there's no conversation with client.

So Germany is an interesting topic. Right now, I would say that our Central European presence is subscale by our standard. We have like close to 4,000 people. We operate actually in France, we operate in the Netherlands, we operate in Spain, Italy, we operate in Belgium and a few other countries and also in Germany.

Germany is a highly, highly fragmented market. And obviously, the professional services universe in Germany is such that if you want to service a client in any given province or canton in Germany, you need to have a footprint. So for us, Germany is early days, I would say. So we have close to -- we have a few hundred people at this point in time. We do service global clients from Germany.

And obviously, Germany is such an important country in Europe that this is going to be an ongoing review of our strategy for Germany and time will tell in the years to come, whether we can look into having a better and bigger position in the country.

How much...

I would say it's like -- like I said, we have a few hundred people. So something -- anything between $20 million to $30 million. Right now, it's fairly small.

Any other questions? Okay. questions -- Alex, are there any more questions from shareholders present in the room? Sorry.

That's the question.

I'm so well prepared today. Any more question, Alex? No more question. Okay, you take one more.

Last call, you reduced organic growth...

Yes, sorry.

In the last quarter, organic growth was a little trimmed. Can you talk about your organic growth outlook for the next 12 months?

The outlook?

Yes.

Between 4% and 7%.

Versus the last year, which was?

We were more like lower than that last year.

Any other questions? Alex, others? I think that's it. So if no questions in the room, it appears that there are no questions submitted through the online platform either and none in the room anymore. So I will now turn it over to our Chairman to conclude this meeting. And I once again thank you all for your continued support. Thank you.

Well, we thank you very much for attending the 2026 Annual Shareholder Meeting of WSP. I believe we have everything it takes to build on this tremendous legacy and further deliver value for our clients, employees, communities and our shareholders. I, therefore, thank you, and I thank you very much for attending this meeting this morning. I wish you a good day. [Foreign Language].

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Good day, and thank you for standing by. Welcome to the WSP Global First Quarter 2026 Results.

[Operator Instructions]

Please be advised today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Quentin Weber. Please go ahead.

Good day. Thank you for joining our call today. Today, we will discuss our Q1 2026 results and performance, followed by a Q&A session. Alexandre L'Heureux, our President and CEO; and Alain Michaud, our CFO, are joining us this morning. Please note that this call is also accessible via webcast on our website. During the call, we may make forward-looking statements. Actual results could differ from those expressed or implied by them.

We undertake no obligation to update or revise any of these statements. Relevant factors that could cause actual results to differ materially from those in the forward-looking statements are listed in our MD&A for the quarter ended March 27, 2026, and for the financial year ended December 31, 2025, which can be found on SEDAR+ and on our website.

In addition, during the call, we may refer to specific non-IFRS financial measures. These measures are defined in our MD&A for the quarter ended March 27, 2026. Our MD&A includes reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures. 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 additional key metrics of its performance.

These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under IFRS and may differ from similarly named measures reported by other issuers and accordingly, may not be comparable. These measures should not be considered as a substitute for the related financial information prepared by IFRS. With that, I will now turn the call over to Alexandre.

Thank you, Quentin, and thank you all for joining us today. Let me start by saying that I'm very pleased with our first quarter. Overall, we delivered a solid performance, meeting net revenue expectations, delivering at the higher end of our profitability range while maintaining strong cash flow conversion.

In summary, it's a good start to 2026. And coupled with the recent closing of TRC, a highly strategic acquisition, we are confident about the road ahead. Let me highlight a few key points regarding the quarter.

First, net revenue grew by 11% or 5% organically on a like-to-like basis. Our backlog reached a new record of nearly $20 billion during the quarter following the successful close of the TRC acquisition and the pipeline of opportunities remain strong across our key market sectors. Our growth agenda is underpinned by continued investment in talent and technology, and we scale our delivery capacity to support demand. Turning to profitability, adjusted EBITDA grew by 16.5% during the quarter and adjusted EBITDA margin stood at 16.8%, up 80 basis points year-over-year.

And finally, adjusted net earnings grew by 26% versus last year. On cash, we continue to deliver strong performance with the trailing 12 months of free cash flow, representing 160% cash conversion, significantly ahead of our target. On the M&A front, TRC delivered double-digit organic growth in the quarter, and the integration is progressing as planned.

We are already benefiting from the collaboration between our businesses and seizing opportunities across various markets. Multiple collaboration opportunities have been identified in the first 2 months of integration, where our teams are leveraging each other's expertise, resources and client relationship.

TRC's Power division is also seeing accelerated growth with nearly 20% growth in backlog, including data centers mandates with electrical engineering and commissioning work for IOUs.

With TRC and POWER Engineers, over the last 18 months, we have united 2 leading Power & Energy franchises in the United States, setting us apart as a leader in our field and uniquely positioning us to capture growth opportunities in the booming Power & Energy sector.

On the digital and technology front, we are experiencing real momentum in AI-driven projects and products. One concrete example is Nature Vista, our AI-empowered environmental management platform, co-developed with clients and enhanced through our Microsoft partnership. It can give asset owners a single live view of their biodiversity, environmental obligation across the project life cycle from impact assessment through ongoing monitoring, reporting and disclosure.

We have just wrapped up our Global Technical Excellence Conference, known as GTEC, attended by more than 300 WSP professionals globally and many clients from all over the world. The innovative ways our teams are leveraging AI to create value, were a central team throughout the event. In fact, our teams showcased hundreds of examples of how AI, automation and digital twins are embedded directly into our delivery.

The predominant use cases were improving quality and insight, reducing risk and enabling better decisions, all of which are critical to growth and productivity. With WSP Global scales, we have access to a vast repository of engineering and advisory know-how. This uniquely positions us to integrate advanced technology into complex real-world projects.

In summary, by staying client-focused, investing in our people and partnering smartly, we are harnessing AI to drive growth, augment our technical excellence and deliver value for our client. And last, but not least, WSP benefits directly from the artificial intelligence tailwind. In fact, our services in Power & Energy, data centers, mining and digital, which together represent approximately 1/3 of our net revenues are all experiencing elevated growth.

Let me now provide you with a few comments on our regions. Starting with Canada, we see strong momentum. The region is delivering robust growth and the backlog grew by almost 9% in the last 12 months. The pipeline of opportunities remains healthy with several large projects secured after the quarter, therefore, not included in the Q1 2026 backlog. These wins include the Quebec City Tramway project to deliver a new tramway across the Quebec City regions, including a 2-kilometer-long tunnel.

The project is being delivered under a progressive design build approach, and WSP will lead the design in the co-development phase, including the tramway, guideway, stations, roads, structures and urban design. Lastly, we are uniquely positioned to capture significant opportunities in the defense sector in Canada and more to come in the second quarter.

In the Americas, the U.S. market remains robust. Our hard backlog stands at approximately 13 months of revenues, reflecting sustained demand across key end markets. Our soft backlog continues to grow, reaching approximately $12 billion with the vast majority supported by MSAs and framework contracts providing strong visibility.

Our pipeline of opportunities trends positively growing by approximately 20% year-over-year with a continued strategic emphasis on large and complex pursuits, notably driven through our global client program.

These growth rates are supported by strong and consistent win rates across our businesses underscoring the strength, relevance and competitiveness of our service offering. As a typical -- as is typical for framework based awards and large programs, the timing of conversion from pipeline and awarded frameworks into hard backlog remains dependent on client award schedules and funding decisions to overall fundamentals remain very strong.

Demand for Power & Energy is strong, now accounting for approximately 1/3 of our U.S. revenues following the recent acquisition of TRC.

In addition, multiple business lines continue to drive growth in the data center markets supporting the entire value chain from site selections and due diligence to data center design then to power commissioning and construction management services. Win rates in this area are 75%, which is excellent news, especially given the fast-track nature of these projects and the constant inflow of extensions and new opportunities. Activity level across transmission and distribution, power generation, large load infrastructure and project management remain elevated, supported by utilities, hyperscale customer and energy security priorities.

New power generation technologies such as small modular reactors are driving accelerated growth during the strategic cycle, with an over 60% CAGR from 2023 through 2025 in our SMR practice, which focuses on upfront environmental, geotechnical and safety studies associated with siting and early phasing planning. We are currently working on 15 SMR sites at various stages of the siting, due diligence and licensing process and the SMR pipeline is very strong with over $100 million of opportunities for WSP.

Other markets such as transportation, ports and water are robust. WSP also has been awarded the design service multi-award task order by Sound Transit in Seattle to assist in the delivery of a new line serving the northeastern portion of the Greater Seattle area, which will feature buses every 10 to 15 minutes.

WSP will be providing multidisciplinary design, engineering services and civil geotechnical, urban planning and bridges. The mining and natural resources sector remain a core contributor, especially in Latin America. We continue to secure large-scale mandates covering environmental permitting, water and waste management and mine closure services for leading global miners, including Glencore, BHP, Codelco, Anglo American, Freeport-McMoRan and Rio Tinto.

Recent wins include new project mandates for Glencore in Argentina and infrastructure-related work in North America, including our appointment by Donlin Gold to support a key project in Alaska. Of note, over 60% of our soft backlog in mining in the U.S. has been converted to hard backlog from Q4 2025 to Q1 2026.

Moving to EMEIA. We have been carefully monitoring our operation in the Middle East. Our people remain safe, and we have not experienced significant project cancellations or delays to date. We are monitoring the solution closely, including any impact on our broader operations. In the U.K., representing approximately 50% of EMEIA, the region has delivered yet another double-digit organic growth quarter. Backlog grew by approximately double-digit year-over-year and our pipeline of opportunities remain healthy.

In the Nordics, the trend remains positive, especially in Sweden with mid-single-digit organic growth and a healthy backlog. In Central Europe, we observed healthy market conditions, especially in the Netherlands, Spain, Italy, France and Denmark. In France, we were awarded one of the largest rail projects in Europe, specifically for the Lyon-Turin rail link to design exploratory tunnels deep under the Alps and determine the best approach to constructing these main rail tunnels. This is expected to change mobility across the continent.

Turning to APAC, Australia recorded a 40% increase in backlog in the last 12 months. Property and building, transport and infrastructure growing with a strong backlog driven by the transportation, defense and aviation sectors. This bodes well for a return to organic growth early in the second half of the year, supported by strong wins.

For example, we were recently awarded the Suburban Rail Loop Stage 1 linewide package. This project is a 26-kilometer long new metro line that will provide a rail loop circling Melbourne, connecting various trains and tramlines and is being delivered as an alliance.

WSP will be providing design management, rail infrastructure, road and civil, security, building structure, utilities, geotechnical, contaminated land, noise and vibration and drainage services. Another standout achievement this quarter was our flagship win in Australia with the Sydney Metro West Underground Station project. The project was awarded the Project of the Year at the Infrastructure Partnerships Australia National Infrastructure Awards. WSP has been appointed to design 5 underground stations, a role that gives us the opportunity to help shape the future of Western Sydney communities.

Our team will take the lead on a range of engineering services, covering everything from station structures and building services to durability, fire and life safety, sustainability and traffic and pedestrian modeling. The Sydney Metro West itself is a 20-kilometer underground railway designed to boost connectivity and deliver fast, reliable and sustainable public transport for the region.

In New Zealand, our team delivered a third consecutive quarter of growth. We continue to support the growth market for WSP, with several wins in the quarter, most notably the Waitohi Ferry redevelopment project, where WSP is providing wharfside infrastructure support for the introduction of new ferries.

To conclude our tour of operation, I would like to reiterate that we are operating in a structurally capacity constrained environment, where demand for engineering and advisory expertise is robust as evidenced by a strong pipeline of opportunities. In this context, additionally, we are increasing engagement with our global capability center including the newly established location in South America as well as accessing our broader global talent pool.

From a leadership standpoint, we have welcomed new talent, including Katus Watson, an industry veteran as COO of our U.S. operation. Continued investment in talent and digital is important for expanded delivery capacity and supporting growth.

With that, I will now turn it over to Alain, who will walk you through our financial results.

Thank you, Alex, and hello, everyone. I'm pleased to report on our financial results for the quarter. Let me start with growth. For the first quarter, revenue and net revenue increased by approximately 4% and 11%, respectively. Net revenue organic growth stood at approximately 5% when normalized for fewer billable days than in the comparable period of 2025. From a modeling perspective, keep in mind that this -- that offsets will take place mostly in Q4 2026.

Backlog as of March 27, 2026, reached a new record of approximately $20 billion, up 18% over the 12-month period and representing 11.5 months of revenue.

Of interest when adjusted for billable days, Canada delivered 7.3% of organic growth, the Americas 5.3%, the U.K. delivered another quarter of double-digit organic growth, leading the way for EMEIA reporting 8.4% of organic growth. New Zealand reported a third quarter of growth in a row, and Australia is well underway to return to growth.

Moving on to profitability. Adjusted EBITDA for the quarter grew to approximately $622 million, up 16.5% from Q1 2025 and near the high end of our quarterly outlook range.

Adjusted EBITDA margin for the quarter increased by a strong 80 basis points, reaching 16.8%, driven by continued productivity gains and 40 bps of foreign exchange gain. Adjusted net earnings for the quarter reached $297.7 million or $2.21 per share. This represents a very strong 26% year-over-year increase.

Free cash flow improved quarter-over-quarter by $50.1 million when adjusted to exclude the benefit of the factoring arrangement concluded in the first quarter of 2025, representing a continued demonstration of our strong focus on cash management, while we deliver a 160% conversion of free cash flow to net earnings. DSO as of March 27, '26, stood at 67 days compared to 70 days as of the end of March 2025. Our leverage ratio stood at 2.3x above management's target range of 1 to 2x. The increase in the ratio is mainly due to the issuance of long-term debt used to finance the acquisition of TRC.

As previously mentioned, we expect to be back in our target range by year-end. Note that our calculation of the leverage ratio now include the annualization of the results of recent acquisition for the trailing 12-month period.

Regarding our ERP deployment, we've made significant progress this quarter. First, POWER Engineers in Lexica were both onboarded at the start of January. Australia and New Zealand went live successfully in March 2026, and Sweden just went live this week, adding another 4,000 employees to the platform.

The ERP now captures nearly 90% of our adjusted EBITDA, making it the backbone of WSP Global operation acquisitions have been integrated to date and Ricardo is scheduled to a July go-live. With a significant portion of our deployment complete, we are gradually increasing our focus on optimization, automation and business insight to enhance scalability and financial performance.

Turning to our 2026 outlook. The financial outlook issued on February 25, 2026 is reiterated, except for the adjusted EBITDA range, which is now expected to be between $3.05 billion and $3.18 billion. As a reminder, in our global strategic action plan released last year, we set an ambition to reach an adjusted EBITDA margin of 19% to 20% by 2027.

Based on our current progress, we see a path to reach this objective in 2026. For Q2 2026, we expect net revenue to range from $4.1 billion to $4.3 billion and adjusted EBITDA to range from $770 million to $810 million.

I'd like to remind you that this outlook is intended to help analysts and shareholders refine their perspective on our performance, and using this information for other purposes may not be appropriate.

Our outlook has been prepared in light of current FX rate, volatility in our full year assessment including our hedging posture. Also, our selected financial outlook does not include any acquisition transaction or disposals that may occur after today.

On that, back to you, Alex.

Thank you, Alain. To close, our first quarter delivered a solid start of 2026. Our record backlog and strong pipeline of opportunities continue to underscore the resilience of our globally diversified platform and we are investing in talent and technology to deliver in a high-demand environment.

We are very proud to have completed the strategic and timely acquisition of TRC, and our Power & Energy service offering is now second to none. Finally, we are tightening our financial outlook moving into the year with confidence and focus on long-term value creation for our shareholders.

With that, I will now open the line for questions.

[Operator Instructions]

We will start with our first question. This is from Chris Murray from ATB Cormark Capital Markets.

Maybe the first question I had for you is around some of your commentary around AI. One of the things that we've been debating with a lot of folks, and I'd love your perspective on this, is the fact that as the cost of delivering some of these services come down.

There's a bit of a debate if that impacts your revenue or what you're actually seeing is clients are beginning to think about taking on more services and actually you're starting to grow the pie more as opposed to seeing it shrink? So any thoughts around how you're seeing these new tools being able to layer on to what you would call the conventional business and grow the revenue base would be helpful.

Yes. Well, let me -- good morning first and foremost. It's -- this is obviously a very current topic. My personal view on this, and it's shared by my colleague, you mentioned that the cost will go down. Well, first and foremost, I'm not sure that, that's going to be the case. What we are seeing right now is that -- and we're living in a world where I think it's suffice to say that we -- engineering and the way we design assets in today's world has not been optimized yet.

And what AI is going to help us here is to augment the quality of the design that we will be providing to our clients. We'll be able to mitigate risk by doing more scenario analysis as we are developing those tools.

And we'll be in a position to offer a more novel way of designing assets in today's world. So actually, I don't see our revenue stream shrinking. To the contrary, I see us being in a position to offer better quality assets to the world and the local communities where we live.

So I think, as I said in the last -- during the last quarter, I see AI as a tool for us to be in a position to provide more quality work as we progress in today's world. I don't see this being a disruptor in the sense that this will reduce hours or reduce the work that we need to do. There's so much to do to optimize the design that we do today that any tools will be welcome, number one.

Number two, we all know that over the next 10 years, not just in the engineering industry. But in all industries will have many baby boomers retiring.

So we will -- we are already capacity-constrained. Globally, today, this year, the company will be growing between 4% to 7% organically. But globally, in our industry in the world today only -- we are only able to grow the pool of engineers globally in the world by 1%. So we are capacity constrained.

So what if AI would not be a great tool for us to increase our capacity and be in a position to produce more. We see again that there are -- there is a major infrastructure deficit globally and having a tool that will be in a position to accelerate the design of our assets, I think it's a great thing.

So I don't see this, again, as I said in the last quarter, as a disruptor. I see this as a tool that we'll be able to augment the work that we're providing for our clients today.

That's helpful. Along those lines -- and I'm not sure who wants to take this one, but thinking about your infrastructure and your spend, I think you're getting to the end of your ERP spend or closer to the end anyway. But I think some of the discussion we've had has been around your asset pool, call it, the legacy of doing thousands of projects a year. How do you think about what you need in terms of infrastructure to be able to utilize that? And does that require perhaps additional capital or a different way of accounting for that intellectual property?

I'm not sure I follow exactly the question, Chris. But as far as just breaking it in pieces, yes, the ERP conversion is -- '26 is actually the last year, with '27 TRC in a few smaller regions. So we're nearing the end of the deployment. It's a fully integrated system, as you know, which allows us to track all of our 270,000 projects. We do globally, our sales funnel, our 85,000 employees and everything we need to do around our people. So this gives us full access to managing the entire company essentially.

So I don't foresee at this point from a backbone perspective, other large investment of the like, if that was your question, Chris, but you may want to precise if you had other...

I think what I'm trying to get at is, as we look at some of this AI development, there's -- if you think about the long legacy of what you guys have done, there's probably a lot of paper still around. So I'm just wondering about how you think about your digital infrastructure to capture literally your own history, how to secure that? And does that require additional investments in either information technology or systems over the next little while?

Well, I think if you attended our -- the unveiling of our strategic plan in February of 2024, we did specify that over the course of this cycle, we will be investing between $100 million to $200 million in R&D, in research and development, certainly to further agenda on digital. So clearly, we are well on underway on this. So in that regard, if your question is, do we have on our top of our agenda to really invest in research and development over the course of this cycle, the answer is absolutely yes.

Now I'll take the next question. This is from Frederic Bastien from Raymond James.

A key component of your AI strategy is to collaborate on new products and services with partners of all size, I think you want to obviously grow the ecosystem. You just touched on Mine Vision in your earlier remarks, which you're working on with Microsoft. But I was wondering if you could highlight some of the solutions you are developing with smaller startups, please.

Well, it's something that we're not ready yet, Frederic, to announce publicly. But I can tell you, and I mentioned that actually when we unveiled our strat plan in 2024 that you should expect WSP to announce a number of different ecosystem partnerships.

So I think it's fair to say that right now, we are working with a number of start-ups and smaller-sized firms with very exciting technology. We are also working internally with our people because you would be -- and perhaps you had the pleasure of seeing what we've done in the GTEC conference and what we presented to investors at that time.

But we are working on so many exciting value proposition for clients from an AR point of view internally at WSP. So back to my earlier point with Chris, in this plan, we have set aside $100 million to $200 million that we intend to invest organically in those ventures and those exciting developments that are taking place internally.

That's helpful. The other question revolves around APAC. I think if I look at all the -- your main regions, organic growth is trending well. Property is great. I was a little surprised -- I mean, I know we were coming out of a negative contraction, a number of quarters of contraction in APAC and you're pointing to a positive recovery starting in the second half.

Now as you think about that recovery, is the trajectory primarily dependent on stabilization in Australia? Or are there other broader regional factors that you see as equally important?

Yes. So the region, if you look at the main component, New Zealand is back on the growth trajectory. It's third quarter on growth. It's probably the last time we mentioned that. So this is New Zealand. On Australia, the contraction that we reported in Q1 was as expected. We're comparing to a business in Q1 '25, that was not completely rightsized at the time.

Things are doing good -- well in Australia. We've seen our backlog growing significantly for a few quarters. So we're feeling good about being back in growth trajectory towards the end of Q2.

So the APAC segment, given the size of Australia within the APAC segment should be back in growth territory in Q3. So it's -- the business is progressing as planned, and we're very excited about the opportunities we're seeing hitting backlog in Australia.

And is that aligned with your comments? I think in the last conference call, Alex, you mentioned being more comfortable about or confident about the year ahead than you were 12 months prior. Has that changed with all the conflict we're seeing in the Middle East?

No. My statement stands, Frederic. We look at the pipeline. We look at -- I only talk very briefly about Canada, but there's a lot of exciting stuff that is taking place in Canada. And as I said, we have one very exciting assignment in the second quarter, which I will talk about on the next analyst call. So -- and around when I look at our company and I look at where we are at today, I look at the shape of our Asia Pacific business, I look at the strong performance in the U.K., I look at our book of business in the U.S. and Canada, I feel better today than I felt a year ago despite what we're seeing in the world right now.

Next question is from Sabahat Khan from RBC Capital Markets.

Great. So on kind of the outlook here more from the balance sheet perspective, it looks like leverage is just above the top end of the range. Can you maybe just walk us through capital allocation at this point.

Obviously, you undertook a large transaction. Maybe just talk about how actively you are engaging with your pipeline of opportunities, I know share buybacks haven't historically been a focus, but maybe just walk through your capital allocation focus areas and sort of how front and center sort of the M&A opportunities are for you at this point?

Look, I know that M&A is part of our fabric and it's part of our DNA. But I'd like to -- and I'd like to remind our audience today that we have deployed close to CAD 6 billion, CAD 7 billion in the last 2 years, so I should say, 18 months. We have now the #1 franchise in Power & Energy. We closed TRC, our largest acquisition in our history in dollar terms in February. So I think it's absolutely normal that we are at the top end of our range right now from a leverage point of view.

Having said all that, I always and continue to have informal and formal discussion with our pipeline of opportunities. That remains very much at the center of our strategy, and we intend to benefit from the current environment.

And the POWER Engineers and TRC integration is progressing extremely well. And we are starting to see the benefit of the POWER Engineers acquisition with this quarter, our margin, excluding FX, see our margin in the U.S. business growing by more than 100 basis points in this quarter alone. So we're quite excited about that.

And we are going to continue to be on the watch for potential M&A opportunities. As it relates to share buyback and dividends we've always been quite vocal that we are seeing right now, great opportunities out there. And M&A remains right now the #1 priority in terms of capital allocation.

Great. And then just on the power business, maybe hoping for a bit more color on some of the areas of the -- where the demand is coming from. We hear a lot of the thematics around data center electrification and everything. Maybe if you can just talk about where you're seeing the fastest growth in that electricity demand market across power and TRC. And then maybe if you can just update us on -- I think there was a bit of an opportunity there with the revenue synergies as well. Maybe if you can talk about whether it's a cross-sell or taking those offerings outside of the U.S.

Yes. On TRC, obviously, it's early days, but already -- I mean, first and foremost, where do we see the growth? We now work, Saba, with most, if not all of the IOUS one way or the other in the U.S. And you saw -- you know that the procurement in the U.S. is obviously more fragmented than it is in Canada, for instance.

So that's clearly where we see most of the growth on new grids, existing grid, the need for electrification. So I find that, that's certainly where in the coming years, given that we have the #1 position now in transmission and in distribution in the United States that we are going to see most of the growth.

Certainly, on the environmental side, we have seen a major shift, for instance, from sustainability studies to now really focusing most of our environmental team on the Power & Energy sector. That's obviously driven by electrification, rising load growth and data centers as we've discussed. But let's not forget the basic stuff, which is aging infrastructure.

We see that as a real opportunity in the coming years, knowing that the lines -- many of those lines are too old and then they need replacement. So that's where -- in the coming years, we are going to see most of the growth for WSP in Power & Energy.

Next question is from Krista Friesen from CIBC.

I was just wondering if you can maybe share a little bit more color on the margins. That's great that you think you'll be able to possibly hit the bottom end of your guide a year earlier, just what's coming in differently or better than what you had anticipated when you initially issued that guidance?

Yes. I'll turn it to Alain in a second, but, we are starting to benefit from the investment that we've made in technology in recent years. Alain mentioned that we have now 90% of our EBITDA converted on the new platform.

And now it's the time to benefit from the investment that we've made, obviously, number one. Number two, the integration of POWER Engineers is progressing extremely well. We have increased, for instance, utilization of that business by 400, 500 basis points since the acquisitions.

So obviously, we have seen a major uptick on profitability of this acquisition, notwithstanding the cost synergies that we will derive from those acquisitions in the coming quarters. And that's why we have seen a significant increase in profitability as we witnessed in the first quarter.

And you look at this and you look at the world and you look at the work that we do and the elevated brand that we have and the services that we are able to provide and that too plays into the increased margins that we are in a position to charge to our clients.

So certainly, I think the fact and the matter that we may meet and we have confidence that we may meet our margin goals probably 12 months ahead of what we had planned when we announced our strat plan is a testament of the work that is going on into the platform right now.

Yes. Not much to add, Krista, I think Alex covered everything. And if I reflect back on our 2, 3 last strategic cycle, it's good to remind ourselves that in the 2019 to 2021 cycle, we were hoping to get to 15% to 16% EBITDA margin.

And now we're talking about getting in that 19% to 20% zone a year in advance. So we're proud of that, but it's not one thing. It's not a drastic change that's happening in 1 quarter. So it's important to look at the trend. We've been consistently delivering that margin improvement every year for many, many years.

So we're continuing to be focused on that. Proud of to see the progress in Canada, in the U.S., over 100 basis points this quarter in the U.S., which is really good. EMEIA is on a good trajectory for the rest of the year.

So when you look at our platform right now, there's probably 60%, 70% of it that is driving 20% plus margin already. So we're feeling good about our targets, and we're going to continue to push. And it's multiple levers. It's not just one thing, but it's multiple levers that we're pushing day in, day out to improve our efficiency.

That's great color. And then maybe just on Canada, it sounds like you're continuing to see some pretty solid demand there. Is any of that being driven by the defense spending here in Canada? Or is it coming from elsewhere? I'll jump back in the queue.

Yes. The answer is we are in the early days of this, but to be more specific, the answer is yes. And as I said, hopefully, during the next analyst call, I'll be able to discuss more about 1 or 2 of those announcements.

Next question is from Maxim Sytchev from NBCM.

I was wondering if it's possible to get a bit of an update on the state of U.S. federal spending kind of like IIJA and how should we be thinking about sort of the pacing of that program and anything that you are tracking sort of on the back of that, maybe the Transportation Act, et cetera. So, yes, I guess sort of the pulse on the U.S. outlook.

Yes. I mean we're tracking progress, obviously, but what we're seeing is definitely a continued investment in basic infrastructure and road bridges highways. So that continues to be the narrative that we're hearing about the desire of the current administration to keep on pushing on the basic infrastructure, linear infrastructure work, which is the core of what we do in our transportation business in the U.S. IIJA is expiring in October '26. So there's the Surface Transportation Reauthorization, that's underway. So we're tracking progress. But at this point, we don't see any signs at our client level of significant slowdown on anything.

So I think it's a bit of business as usual and people are waiting to get updates on that. But our view is that, obviously, and it's well documented that the infrastructure -- the transportation infrastructure in the U.S. is in deep need for a bit of TLC. So aging infrastructure continue to drive, I think, government investment and the core transportation system. So we have no reason to see the future differently based on what we're hearing now.

That's great to hear. And maybe one last question. In terms of environmental and water space, and I guess, again, like focusing somewhat more in the U.S. If I look at the commentary from others, it seems to be a bit more subdued based on certainly kind of your growth rates in the U.S., you are doing better there.

Is it driven really by the attach rates of your environmental and water services to other verticals? Or what is kind of driving that positive delta, if you can provide a bit more color?

Yes. If I look at where the growth is obviously more subdued, there are some U.S. federal agencies like EPA, for instance, that is obviously -- is really down, Max. U.S.A obviously as well, although WSP was not doing any work with U.S.A. Same with commercial clients. Some of them are demonstrating cautious -- caution, sorry. But on the flip side, I talked about energy and resources, oil and gas, LNG pipelines, power transmission, mining and minerals, this is all up, and this is all very positive.

I talked about critical mission solutions, AI, data centers, warehousing, SMR, where WSP is probably the largest -- it's not probably, it is the largest environmental service provider in the SMR space in the U.S. We work on 15 of them currently. Then you talk about water, you talk about decommissioning, remediation, cleanup. These are all very active sectors for us on the environmental side. So in the round, I think we're a very active player and feel that we're in a very good place right now.

Next question is from Jonathan Goldman from Scotiabank.

Alex, maybe we could just circle back to the mining. I think it's a couple of calls in a row now where you've talked about mining and a positive outlook there. Maybe just to level set us, could you remind us how WSP participates in the mining sector? And then maybe talk about the different opportunities you're seeing on a regional basis or commodity-wise, that's getting you particularly excited?

Look, on the mining side, I think it's been a great story since the acquisition of Golder. Just as a friendly reminder, today, our mining business is around and close to be 5,000, 6,000 people globally. So we are the largest mining consultant in the world. There's not one large mining pit in the world that WSP is not involved in. And as a differentiator, WSP is not a large EPCM provider on large mining project. We are, as I said, a mining consultant.

So in terms of cyclicality, when you have to mobilize, demobilize on large CapEx project, that's not where WSP plays. We're more on the OpEx side, on the consulting side. So you do see a lot less cyclicality in our book of business than you -- than what you would come to expect in a large EPCM provider. So it's a key differentiator for WSP, and it's one of our business with the highest margin profile and the highest growth profile double digits. So we really, really like this sector, and we really like our business in mining.

That's great color. And then maybe one for you, Alain. I think we're getting a little spoiled now seeing DSOs come down year-on-year every quarter. Obviously, you've maintained the range for the year. But maybe you can just help us understand what's driving the strong performance in Q1? And how should we think about kind of the trajectory for the rest of the year?

Yes. I'll turn to Alain in a second, but just as an opening remark, not so long ago, when we were implementing Oracle, I mean we have seen a small increase in DSOs, and we had said to you that obviously we were going through the implementation. But now we are really benefiting from our significant investment in technology. So perhaps, Alain, you want to add some color to this?

Yes. I mean the -- we're happy with the current level. We're within our range. But cash and DSO has always been core and central to the way we manage this company, right? We've been proud of our performance there, and it's one of the key metrics that we push internally because cash is king. So we're going to keep improving. I think the system will provide more visibility, more capacity to keep on driving better performance at that level. So to in my perspective, it's back on track at the right place, and we could expect continued improvement on that front in the future years.

Nice to see it is showing up in the results.

Next question is from Judah Aronovitz from UBS.

You cited in the release that you have more confidence now in the EBITDA guidance. And I think you also took up the guide by a bit more than you beat in Q1. I was curious what's driving that additional confidence? Is it additional work that's been booked or maybe projects ramping up faster? We're hearing about private sector projects, including data centers moving faster. Is it POWER Engineers? I know you mentioned some margin outperformance. So I'm just curious to hear your thoughts.

What I'm going to say we'll sound funny given the discussions that we've been having together over the last 2 quarters on AI. But at the moment, our growth is limited by the amount of people that we can hire. So we have a very strong backlog. And if we could hire faster we would be in a position to probably generate more growth. So we are -- as I said before, the world is uncertain and the world is currently unstable. So obviously, we're all going into this year with our eyes wide open. Having said all that, I look at our book of business, I look at our performance, our cash conversion, the proposal activity level, our win rate. And what I said is that I'm feeling better today than I felt 12 months ago.

It's good to hear. And then I wanted to follow up on the power discussion. Clearly, P&E has been driving growth for you in the Americas. In the power space in the Americas, how much of your work is for utilities? And specifically, how much is transmission lines given how much work we're seeing in the pipeline there? And if you could frame how meaningful a single large transmission project would be for you? And how early you start working on those ahead of construction, that would be helpful.

That's a lot of questions this morning. But look, it's power delivery represents -- power delivery being transmission distribution, and I include in there substation design, grid design and transmission line. I would say the combined business now would represent probably 60%, 80% -- 60%, 70% of our business, the other 30% being distribution or maybe 60%-40%, something like that. So that's how I would be thinking about this.

Yes, most of our work in the U.S. are done with IOUs at this point. But it's not so much the nature of the work that is exciting is the fact in the matter that we have relationship with all of the IOUs in the U.S. Now that we have acquired TRC, when you combine the client relationship that TRC had or has, and you combine it with the POWER Engineers client relationship, one way or the other, we are touching all of the IOUs in the U.S. So we're quite excited about the potential to expand the scope of services that we can offer in that regard.

This is from Devin Dodge, BMO Capital Markets.

All right. First question is on AI and more specifically on your usage. So Alex, you mentioned many of the projects that GTEC leveraged AI tools. I think that definitely came through in the sessions we attended, but are there any metrics that you can share for how much employee usage of AI has increased over the last, say, 12 to 24 months? And are there any medium-term targets for how much WSP can leverage those tools?

The answer is we could not -- we do not currently track it. I can tell you that this year, we have rolled out AI tools to more than 30,000 of our 80,000 employees. But I would tell you, and I would venture that the use of AI tools within our business is way more than 30,000 employees. Probably, I don't have a number to give you, but I can tell you that now AI -- and has been part of our working environment for quite some time now. So I would venture that the vast majority of our engineers and frontline employees are using AI in some capacity.

Question 2, I was going to ask about PFAS. So some of the environmental services companies that we speak to are excited about some recent announcements coming out of the EPA and the U.S. Department of Defense, and they've seen a pickup in interest for remediating some sites. Look, I think that optimism is mostly tied to contaminated soil and AFFF cleanup efforts. But just wondering if you're seeing momentum building for PFAS related services in your business that would be in the U.S., but also just more broadly across your regions.

Absolutely. The answer -- the straight up answer is yes, PFAS is high on our agenda, and we are certainly a major player in that regard.

Next question is from Ian Gillies from Stifel.

Just one question for me. There's obviously a lot of concern around shifting spending priorities in the U.S. from the government. Can you talk a little bit about how you're positioning yourself for defense spending in the U.S., if at all? Because it obviously comes in a variety of different forms.

Yes. The answer is absolutely. I just talked about PFAS. That's an example of us being involved in military bases and the Department of Defense. Navy cleanup would be another example of that. So yes, we are definitely involved in that regard. And if there's an increased spend in defense, we obviously WSP see this favorably from a book of business point of view in the U.S., but frankly, in Canada, in the U.K. and in Australia at this point, we see a lot of momentum building in all of those countries as we speak.

And the last question today is from Michael Tupholme from TD Cowen.

Just wanted to follow back up on the Americas region. There's a bit of noise there, obviously, with the billable days impact and then the tough comp and emergency response side. You mentioned that Power & Energy is the growth driver this quarter in terms of organic growth. Wondering if you can quantify on a normalized basis, what the Power & Energy organic growth was in Americas. And what you saw in some of the other market sectors from an organic growth perspective?

Yes. I mentioned that right now Power -- TRC is not accounted as organic growth at this point, Michael. So for the remainder of this year, TRC will be accounted as acquisition growth. So obviously, the POWER Engineers business as a total revenue of WSP as much smaller than if you normalize the acquisition of TRC. But yes, I mean, POWER Engineers is now currently generating north of 10% organic growth as we speak.

Okay. That's helpful. And then just lastly, I realize we're getting on in the call here, but Alex, you did mention briefly defense and said you maybe have more to say about that, wondering if you can just a little bit elaborate on the positioning there and just how we should think about that prior to getting some more commentary.

Well, WSP, we are one of the only firm having a presence in the north -- Northern Canada, so Yellowknife and Yukon, we have a number of offices. A good total number of employees in the region. So obviously, we are involved in some capacity with the government. And we will be there when work will be tendered in the north. We are already doing some work in the defense sector. And that's something that may not be known by our investor base, but WSP is one of the largest defense sector, service provider in Canada already.

But if you allow me, Michael, I'd love to talk about it during the analyst call next quarter. I'll have more to talk about during that call.

There are no further questions. I will now hand back to the speakers for closing comments.

So thank you all for attending our Q1 2026 earnings call. You are also invited to take part in our AGM later this morning, which will be held in person and virtually at 11 a.m. Eastern Time today. So on that note, I would like to thank you and looking forward to talking to you next quarter. Thank you very much.

Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.

Good day, and thank you for standing by. Welcome to the WSP Global Fourth Quarter and Fiscal 2025 Results. [Operator Instructions] Please be advised today's conference is being recorded.

I'd now like to hand the conference over to your first speaker today, Quentin Weber, Investor Relations. Please go ahead.

Thank you, Sarah, and good day. Thank you for joining our call. Today, we will discuss our Q4 2025 results and performance, followed by a Q&A session. Alexandre L'Heureux, our President and CEO; Alain Michaud, our CFO; and Chadi Habib, our CTO, are joining us this morning. Please note that this call is also accessible via webcast on the website.

During the call, we will make forward-looking statements. Actual results could differ from those expressed or implied. We undertake no obligation to update or revise any of these statements. Relevant factors that could cause actual results to differ materially from those forward-looking statements are listed in our MD&A for the quarter ended December 31, 2025, which can be found on SEDAR+ and on our website.

In addition, during the call, we may refer to specific non-IFRS measures. These measures are also defined in our MD&A for the year ending December 31, 2025. Our MD&A includes reconciliations of non-IFRS measures to the most directly comparable IFRS measures. Management believes that these non-IFRS measures provide useful information to investors regarding the corporation's financial condition and results of operation as they provide additional critical metrics of its performance. These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under IFRS and may differ from similarly measures reported by other issuers and accordingly, may not be comparable. These measures should not be considered as a substitute for the related financial information prepared by IFRS.

With that, I will now turn the call over to Alexandre.

Thank you, Quentin, and thank you all for joining us today. This quarter marks the end of a year of strong execution for the company. In early 2025, we unveiled a 3-year strategic plan called Pioneering Change for Empowered Growth. We completed strategic acquisitions, including Ricardo and TRC and delivered margin improvements with organic growth and strong cash flow generation.

Let me highlight key points relating to our performance for the fourth quarter and the year 2025. First, as outlined on Page 5 of the investor presentation, Net revenue organic growth for the quarter stood at 5.9%, when excluding the impact of much lower volume of emergency response services in the U.S. versus the prior year and revision to significant projects in Canada in 2024. For the year, net revenues reached the high end of our outlook. And referring to Page 5 again, we delivered strong performance with combined mid- to high single-digit organic net revenue growth in Canada, the Americas, EMEIA, while the APAC regions continued to improve throughout 2025. Celebrating the first year of POWER Engineers under WSP, we are also very pleased with the company's performance with organic growth in the mid-teens in 2025.

Second, on profitability, adjusted EBITDA for the year exceeded the high end of our revised outlook range for the year. We continue to execute on our margin expansion journey, delivering approximately 40 basis point improvement for the year. Third, I'm especially pleased with our cash performance. We delivered a record high free cash flow of $1.7 billion in 2025, representing 1.8x net earnings attributable to shareholders and significantly exceeding our 100% conversion target. Additionally, DSO at year-end stood at a record low level of 63 days, well below the lower end of our outlook.

Before I turn to 2026, let me state how excited I am about welcoming TRC, a premier U.S. power and energy brand founded in 1969, long recognized for technical excellence and one of the most significant players in the U.S. with approximately 8,000 professionals. This combination will supercharge our Power & Energy sector by expanding our offerings across the entire value chain, adding amongst others, significant advisory, digital and program management capabilities and providing unmatched leadership in the U.S.

Now turning to 2026. Let me start by saying that we entered the year with more optimism and confidence than when we entered 2025. This statement is supported by a few key factors and our strong outlook for 2026. First, with the closing of TRC and the recent acquisition of POWER Engineers, we have deployed approximately CAD 7 billion over the last 15 months in the high-growth, high profitability Power & Energy sector, making us the leading pure-play firm in that space in the U.S. and globally.

Second, the market trends continue to provide a strong tailwind and demand for our services. Governments around the world continue to spend extensively on infrastructure, mass transit, airports, ports, water and environmental services, data centers, health care, power generation, transmission, distribution, and we expect the demand for our services to be robust in 2026.

Third, and to complement my comments on market trends, we have finished the year 2025 in better shape than we started. The proposal activity level is strong across the business and our backlog, master service agreement and sub backlog are growing steadily.

Let me now give you a few comments on our regions, further supporting our sentiment about 2026. Starting with Canada, we expect the region to remain an important growth driver in 2026, supported by strong market fundamentals and federal strategic investment that will all contribute to an already healthy backlog, which grew by 13.5% in 2025, an equally strong pipeline of opportunity in the year ahead. We are well positioned to execute on the broad mix of mandates with major clients such Hydro-Quebec, Toronto Hydro-Electric, Rio Tinto, Ontario Power, Agnico Eagle Mines while continuing to capitalize on significant transportation assignments, including our role on the Bradford Bypass expressway project and the recent announcement of the federal government and defense. With that foundation, Canada is positioned to deliver solid performance with mid- to high single-digit organic growth expected in 2026.

In the Americas, we expect strong growth in 2026, supported by robust activity across the U.S. We are very pleased with the closing of the TRC acquisition on Tuesday this week, which combined with our existing Power & Energy business offers continued high growth, high profitability potential in the sector, which now represent approximately 1/3 of our U.S. presence. Overall, our sentiment towards our U.S. is positive. Our hard backlog stand at approximately 10 months of revenues, and our sub backlog amounts to approximately $8 billion, of which 85% comes from MSAs and framework contracts. Our pipeline of opportunities is also trending positively, up approximately 15%, 1-5, I said, versus last year.

We continue to strongly focus on our global client program, which is developing a healthy pipeline of opportunities, up more than 50% versus last year. Of interest, our win rates increased by approximately 10% year-over-year, especially on top opportunities with the highest impact, reflecting a clear focus on securing high-quality needle mover mandates.

We also see AI and cloud infrastructure as a durable multiyear tailwind. Here, our global footprint and breadth of services are positioning WSP as a preferred partner, notably for campus master planning, permitting, design and data center delivery. According to the most Engineering News-Record Global, Sourcebook, WSP holds the #1 position globally in data center design.

Separately, in Latin America, the mining industry is providing healthy growth opportunities as well. Overall, the Americas is positioned to be a key contributor with mid- to high single-digit organic growth expected in 2026.

Moving to EMEIA. We expect the region to continue contributing solid growth in '26. supported by healthy backlog and ongoing demand across priority markets, specifically in the U.K. Our pipeline of opportunities is also growing significantly, representing an increase of more than 25% since the beginning of 2025. Book-to-burn in the U.K. ended above 1, even as the regions delivered robust growth. Our win rate increased by about 25% versus '24 with new work secured in energy, water and defense, in line with our strategic ambitions. Our global client program also demonstrated success in the regions, especially in energy and more specifically, in the transmission space in electric and gas.

Our backlog is supported by a steady flow of mandates, including major programs with National Grid in the U.K., recent win with EirGrid and EFG Energy in Europe and a growing backlog in the Nordics. With healthy momentum across the regions, EMEIA is well positioned to deliver continued success in the year with mid-single-digit organic growth expected in '26.

Turning to APAC. We continue to see improving market condition in '25 and healthy backlog growth, especially in Australia and New Zealand, and our focus is on a return to growth as we progress through the year. We are entering '26 with tangible catalysts, including the Sydney Metro West Linewide contract, the Anderson precinct infrastructure mandate in Western Australia and momentum in New Zealand under the Roads of National Significance program. Taken together, the pipelines in Australia and New Zealand support a gradual return to organic growth in '26, and we expect APAC to provide an improving contribution to overall performance as the year progresses.

In summary, we are confident about '26. And just after the first year of our 2025, 2027 strategic cycle, we are already on track to meet or exceed several of our '27 targets. This early progress reinforces our confidence in the strategy, the strength of our platform and our ability to deliver leading financial performance across the cycle.

With that, I will now turn it over to Alain, who will talk you through our financial results and our 2026 outlook in more detail.

Thank you, Alex, and hello, everyone. I'm pleased to report on our strong financial results marked by several achievements. Let me start with the top line. For the fourth quarter, net revenue displayed a solid performance and healthy underlying fundamentals. As Alex mentioned earlier, the organic growth for the underlying business in 2025 brought us to the high end of our financial outlook range provided in early '25. For the full year, revenue and net revenue increased by 13% and 15%, respectively, compared to 2024, growing to $18 billion and $14 billion, respectively. Canada, the Americas and EMEIA delivered a solid performance, and APAC is showing positive sequential increase in results. Backlog reached a record high of $17 billion, up 10% in the last 12-month period. Our pipeline of opportunities is strong as evidenced by Alex earlier.

Moving on to profitability. Adjusted EBITDA for the quarter was $694 million, up approximately 9% compared to Q4 2024. Adjusted EBITDA margin stood at 18.9% from 18.7% in Q4 2024, driven by continued productivity gain. For the full year, adjusted EBITDA grew to $2.5 billion, up 17% compared to $2.2 billion in 2024. Adjusted EBITDA margin increased to 18.3%, up approximately 40 bps from 2024, in line with our strategic ambition. Of interest, we absorbed in our margin rightsizing and restructuring costs incurred to further strengthen our business, which reduced our margin by approximately 40 basis points. Accordingly, our margin growth in 2025 is actually 80 basis points.

Adjusted net earnings in the quarter reached approximately $346 million or $2.65 per share, up 14% compared to the fourth quarter of '24. The increase was mainly attributable to higher adjusted EBITDA. And for the full year, adjusted net earnings reached $1.25 billion or $9.58 per share, up 23% and 19% from '24, respectively.

As for our cash position, I'm very, very pleased with our cash flow generation in '25. Cash inflow from operating activities increased to $2.25 billion in '25, an improvement of $865 million versus '24. Full year free cash flow totaled $1.7 billion, representing 180% of our net earnings attributable to shareholders. This strong outcome reflects our ongoing focus on working capital management and optimization under our new ERP platform.

DSO stood at 63 days as of December 31, 9 days lower than at the same time last year, marking a record low level. Net debt to adjusted EBITDA ratio was at 0.9x, slightly below our target range of 1x to 2x. The decline in our net debt to adjusted EBITDA reflects the higher cash balance from common share issuance, which has been used to fund a portion of the TRC acquisition. And following the closing this week, our pro forma net debt to adjusted EBITDA ratio stands at approximately 2.3x.

As part of our ongoing review of our operation, we have disposed of a few non-core businesses in the last 12 months, including an underground storage business in the U.S. and our rail business in Germany. We have also, in the same context, discontinued operation in various areas in Asia and EMEIA notably. These activities represent approximately 1% of our 2025 net revenue.

Regarding our ERP deployment, platform adoption continued its upward momentum in 2025 and early '26 with POWER Engineers now onboarded on the platform as of Jan 1, '26. We now have accordingly 80% of our EBITDA on a new platform with key regions to be onboarded in '26, including Australia and New Zealand next week, Sweden, Central Europe and the Ricardo. With a significant portion of our deployment completed, we are gradually increasing our focus on optimization, automation and deep business insights to enhance scalability and financial performance.

Turning to our '26 outlook. We expect net revenue to range between $16 billion and $17 billion, which represents a total growth in net revenue of over 18% at midpoint of the guidance, adding $3 billion of net revenue in one single year. Also, as you assess our guidance, please keep in mind the recent disposal we just completed in the U.S. and the annualization impact of our various disposal and discontinued operation of '25, which had an impact of approximately $150 million on net revenue.

We also expect EBITDA to range between $3 billion and $3.18 billion, which represented a growth of 21% versus '24 and both calculated at midpoint. Organic net revenue growth is expected to range between 4% and 7%. At midpoint, our EBITDA target range, we expect to deliver 40 basis points of margin improvement in '26. We expect Canada and the Americas to deliver mid- to high single digit, EMEIA to deliver mid-single digit, and APAC to deliver stable net revenue versus '25.

For Q1 '26, we expect net revenue to range between $3.575 billion and $3.775 billion and adjusted EBITDA to range from $590 million to $630 million. From a modeling perspective, Q1 '26 is expected to have fewer billable days, which is expected to have an impact of approximately 1.5% on organic growth with offsets taking place in Q2 and Q4 '26. Emergency response services in the Americas reportable segment are expected to be consistent with the historical average level of inspection. And I would like to remind you that this outlook is intended to help analysts and shareholders refine their perspective on our performance, and it's been prepared in light of current foreign exchange rate volatility and our full year assessment, including our hedging posture. And also, our selected financial outlook does not include any acquisition transaction or disposal that may occur after today. The financial outlook includes a contribution from recent acquisitions, notably TRC and Ricardo.

And on that, back to you, Alex.

Thank you, Alain. To sum it up, we are confident in our 2026 outlook and the opportunities ahead. We entered the year from a position of strength. We run a resilient and diversified platform. We have a healthy backlog and pipeline of opportunities, and we remain focused on quality growth, operational efficiency and disciplined capital allocation. Today, I also wish to take a few moments with you to provide context on the topic that's top of mind for many of our investors and analysts.

The rise of AI address the many speculative research reports being published almost daily and specifically its implication for WSP. While we acknowledge market sentiment, we feel clarification and perspectives are needed. In recent months, many actors have painted all professional services firm with the same AI brush, worrying that we are entering an era where advanced AI will replace firms like WSP. WSP recent share price performance was not immune to that sentiment. Artificial intelligence is changing the way we all work, and WSP is proactively embracing it as a productivity enhancer, but more importantly, as a value driver for clients.

First, let's contrast WSP's business model with other consultancies and industries. Lumping all industries together is, in our opinion, an inaccurate way of considering the impact of AI. Our 83,000 experts design and manage complex physical projects, including bridges, transit systems, water treatment plants, energy facilities, environmental remediation and so much more. This work inherently involves the real world, physical material, on-site construction supervision, safety critical decisions, regulatory compliance and public stakeholder engagements. It represents service work that blends advanced domain expertise, inherent know-how, technical analysis, field execution, and professional judgment along with massive amounts of proprietary data, knowledge and experience that is not publicly available.

In contrast, other industries to which WSP may be compared to largely operate in the virtual sphere. For instance, software-focused companies, organizations specializing in business process management and system integration. Their core activities typically center on programming, configuring systems, handling data and streamlining workflows. Much of their code, operational processes and consulting frameworks are accessible to advanced AI models. These distinctions are crucial when discussing AI impact and exposure. Large language models today are far better at automating digital, virtual and repetitive tasks such as coding, data entry and document generation that are performing deterministic tasks and providing guaranteed correctness in the physical world. In the engineering world, that simply cannot occur.

Now let's discuss why scale and domain expertise matter. Our competitive moat is built on profound expertise in the physical sciences and engineering, coupled with decades of proprietary intellectual property and design standards and best practices that are not publicly accessible. Additionally, our professional accreditation, legal standards and obligation foster a high level of trust and establish significant barriers to entry. Projects often require collaboration with public agencies, communities and countless stakeholders while WSP reputation and relationship are crucial.

In fact, technology often complement our services. Let me now delve into 3 aspects of our services where our scale and deep domain expertise set us apart and provide significant advantages. First, on the human expertise and the physical world front. Every project WSP tackles is unique.

Today, WSP is the largest platform globally in its industry with the highest level of diversification and expertise. WSP works on 250,000 live projects, each different. Whether it's a transit line or coastal erosion protection program, our work is fundamentally rooted in understanding countless local and physical variables, geotechnical constraint, site conditions, materials, vibration, seismic factors, climate, community priorities, safety regulation, even politics and historical context. We must earn social license by engaging with communities and stakeholders, holding town halls, consulting indigenous partners and addressing public concerns. No algorithm can navigate city politics and replace these human dynamics. And AI can negotiate with the city council and a construction permit, and it certainly can take accountability in front of a professional board if something goes wrong. These are unique WSP roles that define our leadership.

Second, every site and project is unique. By nature, infrastructure environmental projects don't lend themselves to one-size-fits-all solutions. We can't simply feed a prompt into a computer and get a turnkey design for a new highway interchange or climate adaptation plan, because the answers depends on the specific terrain, traffic patterns, stakeholder inputs, regulatory reviews, river flows and hundreds of other factors that most of the time, AI models do not have access to.

In practice, our engineers must continuously adapt, be agile and use judgment. Unlike AI, they do not simply predict the most likely output based on data patterns. If a geotechnical survey reveals unexpected soil condition, something that AI models do not have access to, we redesign the foundation. If stakeholders raise concerns about a heritage site, we adjust the project plan, and if needed, collaborate on a redesign to protect what matters to the communities. Again, this type of information is not accessible in the database.

AI can assist and support with scenario analysis, stress testing. For example, scanning through geotechnical data or suggesting design optimization, assuming the quality of the data is reliable, which is often, not the case. What it does not have is the situational awareness or mandate to make judgment calls. WSP does. Our expert combine technical data, sometimes with AI assistance with on-the-ground observation and stakeholder dialogue to get it right. This is why we say AI augments our capabilities, but is not a decision-maker in our field. It's an enabler to our expert, not a replacement.

And third, safety and accountability are simply not negotiable in our industry. Our projects often involve public safety in a very direct sense. We must comply with building codes and environmental laws that differ from jurisdiction to jurisdiction. License engineers are those who can certify that a design meets all those specific codes and can be built safely. This is not just a policy, it's the law and the core value of our profession. AI-generated outputs are always subject to rigorous human oversight, thorough quality control and professional accountability.

Our clients require us to stand behind our advice and design with substantial professional liability insurance and the financial strength of a strong balance sheet. Our machine in the middle approach means that while AI can support design or reports, our engineers review, validate and take responsibility for every outcome. This approach ensures we harness AI efficiency and applied strict quality management and risk oversight.

To make this even more tangible, let's consider a few actual WSP projects and how they illustrate the indispensable human element in our work with AI as an enabler, not a replacement.

The Eglinton Crosstown light rail transit in Toronto, Canada is a 19-kilometer light rail line we've been helping deliver through the heart of Canada's largest city. Think of the complexities, coordinating with city officials on permits, relocating utilities, managing traffic disruption, engaging local communities and businesses, ensure safety and dense urban construction and meeting rigorous city building codes. We do use digital twins and simulation models, some with AI components to optimize the design and construction schedule, but all those models are overseen by experienced professionals who know how to interpret the results and make judgment calls. The project has strong curve balls. For instance, unexpected soil condition only discovered on site had to be considered and our team had to quickly redesign support structure.

Also, the Interstate Bridge Replacement in Oregon, Washington, U.S.A. is another project worth highlighting. WSP is a program manager for replacing a complex agent highway bridge between 2 states. Here, the challenges include navigating 2 states, regulatory regimes and federal approvals, designing for seismic resilience in a high earthquake zone and conducting extensive stakeholder engagement across multiple cities and transit agencies. We have, again, a digital model of the bridge that uses machine learning to stimulate -- to simulate traffic and structural performance under various scenarios. That's AI at work. But again, the use of that tool is led by our bridge engineers who ensure the design meets all safety margins and serve community needs.

Importantly, our roles involve bringing together dozens of stakeholders, including state DOTs, transit authorities, federal regulators, port authorities and local communities to forge consensus on the solution. No AI negotiator is going to do that for WSP. It takes experienced professionals with years of cultivating relationship and fostering trust to work through concerns and requirements. I could go on. The story is similar in projects after projects.

Engineers and scientific consulting in the physical world is fundamentally a domain expertise, a human creative and interactive endeavor. Consider the market drivers around us. The world is investing trillions in infrastructure renewal, energy transition and climate resilience. Those drivers are increasing demand for our deep domain expertise and scale. In fact, they often create complex problem that feed into the need for services. Governments are funding massive infrastructure and clean energy programs here in Canada, in the U.S., in Europe and in Australia, and those projects require exactly the kind of high-end consulting WSP provides. We don't see that demand diminishing due to AI. If anything, clients want to know how to incorporate AI and smart technology into their infrastructure, and they turn to us the domain expert for support and assistance.

By leveraging digital and AI solution to augment our engineering and science expertise, we help clients achieve significant value through the asset life cycle, beyond the front-end advisory, planning and design phase, which is usually accounts for 5% of our project total cost. Again, it is important to note that for most of our clients, the decision made in the first 5% design phase have a massive impact on the remaining 95% of the cost of their assets, making it an area where investment and innovation continue to grow and be very strategic.

The takeaway is clear. We're not complacent about technology impact. Instead, we are embedding digital and technology tools throughout our operation and client solutions. We fully expect that some task in design and consulting will be automated, and that is a very good thing.

To the question, can AI design an asset on its own? The answer is no. AI can help with preliminary sizing and drafting, parametric optimization, code lookups, scenario generations, but it cannot guarantee compliance, verify safety, carry legal liability, produce deterministic proofs, ensure physical correctness, explain every step with guaranteed traceability, sign, seal the drawings, engage with the physical world and all stakeholders. As we are suddenly going from AI euphoria to AI hysteria in our space, let me leave you with a few key messages.

First, I want to reassure everyone that the fundamentals and the market trends fueling our industry are intact and AI is a fantastic opportunity. We expect more work and we can now, for example, further leverage data through AI and digital enablers and generate more value for clients throughout the full life cycle of an asset. And with more value to our clients, we expect more value to our shareholders. Keep in mind that 1/3 of our platform benefits from the AI tailwind, including in the Power & Energy business, data centers, mining and advisory -- digital advisory that -- and these businesses are growing at double-digit rates right now.

Second, our work is inseparable from the physical world. We all remember that. Third, our work relies on domain expertise and knowledge that is not readily available in the public domain, creating a significant barrier to entry. And fourth, scale matters to fully and safely leverage AI in a world of high stakes, complexity and uniqueness. Lastly, AI does not displace our work, it augments it. AI is probabilistic while our clients are expecting engineers and scientific -- scientists to be deterministic. It's a matter of safety and the stake are too high. We are super excited for WSP, its engineers and scientists. We see it as an opportunity because at WSP, we are not writing a single solution and selling it 1 million times. We are solving 1 million unique problems with bespoke solutions for each client, each site across 250,000 live projects.

I would now like to open the line for questions.

[Operator Instructions] We'll now take our first question, and this is from Yuri Lynk from Canaccord Genuity.

Just a follow-up, Alex, on AI. Can you talk a little bit about the AI, the partnership you launched with Microsoft almost, I guess, exactly a year ago. How that's evolved over the last 12 months?

Yes. I think I've been talking a fair bit, Yuri. So I'll take a breather, and I'll turn it to Chadi, but in a nutshell, we're extremely pleased with the headway that we've made. And Chadi, perhaps you can talk about this partnership and the other ecosystem partnership that we have signed in the last 12 months.

Happy to do that. Thanks, Alex. Good morning, everyone. Let me start off on the Microsoft [ our second ] year into it. We had 3 big objectives: enable one of the largest agentic and AI deployment for our frontline to make sure that they are front and center on how they use this stuff responsibly to deliver to clients, that is exceeding expectations today; number two objective of the partnership, is continue to work with Microsoft as a client in their data center objectives and that is also beyond our target for 2025. We closed out the year really well and are very positive in the pipeline going forward; and last but not least, if you remember, we had an ambition to co-create products, not just with Microsoft, but with what we call client zeros, where we co-create the future with digital and AI with clients to solve tangible problems. Two of our solutions have gone into production now with 4 clients, and we're looking for a general availability release in March. So very, very positive for Microsoft.

But let me add, and this is part of our strategy. We talked to you about this about a year ago. Our approach is ecosystem. So beyond Microsoft, we've talked to you about start-ups that are innovating. So I'll give you some names about UrbanLogiq, Fathom. We're also working with other companies at scale. You would have -- you may have heard recently, we announced a very targeted partnership with Google in the transportation space. We're looking at offerings with Schneider in the Property & Building space, and we'll continue to expand. There's about 4 or 5 other discussions that are in progress essentially.

Okay. That's helpful. And maybe just expand a little bit on the data center work with Microsoft. I think they're looking at spending tens of billions of dollars on data centers. That's work that -- I guess you're a preferred supplier, you still have to bid on that work, but maybe just expand on how significant or not that is at this point?

Just to clarify there. Microsoft is not the only hyperscaler that is our clients, right? So the tailwind for us is across all of the major hyperscalers, we're not exclusive with them. Having said that, across the board, every single one of the hyperscalers, as Alex mentioned, we're looking at double-digit growth in the mission-critical space because the demand, frankly, is beyond the capacity of the talent in the market and what's exciting. You'll hear this a lot from me in the coming months. What's exciting by the AI, it allows us to do things we could not do before and have more opportunity to serve the clients. So the -- to answer your question on Microsoft, we have a specific objective in the alliance, and we're tracking to the objective as the contract progresses as one of their preferred supply.

And to be more specific, Yuri, there are many instances because of this partnership with Microsoft, where we are sole source and we don't have to bid for the work, obviously, because of our strategic -- being the engineer of choice with them.

Next question today is from Devin Dodge from BMO Capital Markets.

Yes. Alex, just thanks for the perspectives on AI. It's really helpful. Not surprisingly kind of sticking with the AI theme here. And maybe picking up on the last -- one of the last questions. But look, there's multiple AI start-ups looking to make inroads into the engineering consulting sector. I suspect you actually have dialogue with many of them. But WSP elected to go down the path of developing these tools internally and via those partnerships that Chadi just talked about. Just wondering if you could talk about the decision to build versus buy and why building was the right path for WSP.

Before I turn to Chadi, I think it's a very good question. And to us, the AI strategy is part of a broader digital strategy. So for us, AI is only a subset of our overall strategy, and I'm pretty sure over the course of this call, we'll have an opportunity to briefly talk about our digital posture. But I think over time, the answer is it's going to come broadly, again, from organic growth, obviously, and we have been doing that from strategic partnership that we are going to continue to sign. If you recall in February of last year, when I unveiled the plan, I said expect WSP to announce and sign more ecosystem partnership. We think it's a great way to go.

But as part of our broader digital strategy, I also said last year that, yes, you should, at some point in time, expect some acquisitions because it's a muscle that we're learning to flex right now and have been over the last 2, 3 years.

So perhaps, Chadi, you want to complement what I said.

Yes, I'd just like to also take a moment to just remind the 3 aspects of the digital posture, what Alex just mentioned. So number one is start with the clients, focus on the value that it creates for clients and proof point it with revenue. So that's our first aspect. The second lever of our digital strategy, and I'm going to answer your question in a second, is put it in the hands of our front line because why is this an exciting time for all of our engineers and scientists. Just like they've seen some massive evolution in the way they work with clients, this is another massive evolution that allows them to drive a lot more value to our clients. This is why we have one of the largest deployments across our industry in terms of putting it in the hands of the front line and investing in our proprietary models.

The third aspect is ecosystem partnerships. And yes, they are both with large and smaller firms. I do want to highlight to you that for the small firms, one of the most valuable aspects, Alex touched on this, is domain expertise at scale. I think you all know this. These models compound with knowledge, knowledge across projects, geographies and volume. The start-ups do not have that. We actually get more calls from start-ups because of our access to that domain expertise than we approach them. So we are working with several. We have a non-negotiable, which is protecting our IP. And what you've seen from our announcements like UrbanLogiq and Fathom is we'll work with the ones that are willing to work with us on protecting our domain expertise while driving value to our clients. And in another cases, we're building internally our own proprietary models that are -- that will remain within our parameters so we can retain that IP and the value we bring to our clients.

Okay. That's excellent color there. Second question, just wondering if the push to develop more AI tools and capabilities. Does that have much or any impact on your strategy for complementary resource centers? I'm just trying to get a sense of leveraging AI puts a bit less stress on the talent pools in your regions such that more work can be done locally.

Well, my straight answer straight up answer to this is for as long as we remember. And you will recall all of you on the line today, numerous occasions where we had discussed the fact that there was a war on talent. Sometimes life is done in a certain way and it's natural evolution. I mean, there are many instances and many places in our business where we don't -- we are not in a position to recruit as fast as we would like to do it. Thus enhance the GCC strategic initiatives that we've put in place 10 years ago.

But you look at Power & Energy sector right now, we are not in a position to recruit at the pace that we would like to recruit. So in that regard, the assistance of our GCC is paramount and also the assistance of technology is paramount for us to do more with less. So that's why we believe that technology augments our work. It's not displacing it and why we are feeling good about the future prospect of WSP in that regard.

Next question today is from Ian Gillies from Stifel.

Alex, I was wondering if you could talk about the interplay between revenue per employee, AI and I guess, the revenue model that you currently employ and how you see that evolving over the next 24 to 36 months or maybe not evolving at all because you're clearly comfortable with the way it is.

Yes. Let me try to [ rebuke ] a bit of a couple of themes and points that you just mentioned. First and foremost, if you look back -- and I mentioned that in past analyst calls, if you look back the last decade, you look at the fee per employee that we have been generating in the last decade and you go back, whatever, 2015 or '16 and you fast forward today, and this is all publicly available information, you'll find that we have been increasing our fee per employee steadily over the last 10 to 15 years. I don't have the data with me, but it's certainly probably 80%, 70% higher today than it was 10, 15 years ago.

So we have changed our model over time, and we have embraced technology. And we are running a tighter boats, and we are taking advantage of technology. So I do see the future to not be significantly different. We are going to continue to change. We are going to continue to embrace what's coming to us as an opportunity, not as a roadblock. And I'm highly confident that we are going to be -- we're going to continue between, as I just mentioned, our main platform, the GCC, the technology and AI to do more with less.

Second point, and that may not be known by all of our investors and analysts, more than 60% of our work is fixed price. And for as long as you've known me, I've said we prefer fixed price. I preferred fixed price 10 years ago. I prefer fixed price 5 years ago. and I still prefer fixed price because it's an opportunity for us to provide more value for clients. Although there is place for time and material and there's a need for cost plus and time material in our space, this is not where you can create and innovate. And we see that as a true opportunity.

So -- and we have seen fixed price going up over the last 10 years, not going down. Clients more and more are not looking for price. And remember that oftentimes, 80% of our qualification criteria are qualification-based or not price-based. So more and more, our clients are looking for a solution, are looking for an end product rather than a price. So we believe that this is going in the right direction. And if you ask me, I believe that it's just going to continue to evolve in that direction. So in that regard, I think this is not a revolution. This is evolution. And I think we're tracking extremely well. And our clients are looking for solution -- innovative solutions. So I expect to see fixed price going up as we progress in time.

Anything else, Chadi, you want to add?

Yes. Just to reinforce the impact of digital and AI with our clients, what we're actually seeing, think about a scenario where we're doing master planning or scenario planning for the client before we would do 5, 10 scenarios and optimize across that. Now with the technology we're leveraging, we're doing -- clients are asking us to do more scenarios, 1,000 scenarios. You have better impact on the run cost of the assets. You have better impact on optimizing the rest of the life cycle. So the reason we see in our digital posture, double-digit growth is because of these new tools and progressive clients, they're asking for more work to navigate the challenges that they have. So we're seeing a trend where it's driving more effort from our teams.

I think the very important point that we all need to -- when we leave the call that we need to remember is this perception that people are not -- because we have not access to more technology that our clients are not asking more. What's happening right now, as Chadi just mentioned, is 10 years ago, with no technology, engineers were in a position for a certain price to do 4 or 5 scenario analysis. Today, for the same price, we can do more work and provide more efficient design and a better service. So they're not asking us to do less work at a lower price. What's happening right now is they want more. They want more data. They want more output. They want more stress test analysis. They want more scenario analysis. So I think what's happening is with the arrival of technology, and that has been happening for the last 20 years, we are in a position to provide better design but our clients are looking for more output, not less in that regard.

That's very helpful. And maybe another question along different lines. The engineers you're hiring today maybe managers in 5 years' time or managing projects, larger projects 10 years down the road. And how do you manage the risk of making sure you're hiring enough people, embracing AI and balancing those things out? Because it feels like that's probably one of the more serious challenges in implementing all these items because people are a key part of your business.

Thank you, Chadi (sic) [ Ian ]. Yes. So in the second posture of our digital posture is to make sure, internally, we equip our frontline. This is why I mentioned we have one of the largest deployments in our industry to get into the hands, both of our front line, and you hit a really good point, by the way. Leadership is as important as the front line, equipping them with what these tools can do. And by the way, it's changing extremely fast and keeping them up so that it puts them in the driver's seat on how they impact the future. We can't predict all the unknowns of all the industry evolution around this. But what our posture in terms of frontline professionals and leaders is put it in their hands, get them to innovate, and we're seeing some really exciting stuff with clients. And to continue to invest, so we stay in the driver's seat rather than having to react to these evolutions. So that's our current posture in terms of making sure our folks are there.

The second thing I would tell you is we also have a lot of people moving into their well-earned retirement. Alex talked about this last year. We're building our own proprietary models that -- and this is another advantage of this technology. It allows us to take the brilliance of somebody who did a design in Toronto and spread it across the company within hours rather than historically, we would have had to have forums and meetings where they interact together. So I'll give you those two areas where we're leveraging AI to multiply our impact.

And I must say this has been a nice break from asking about M&A every other question.

Next question today is from Benoit Poirier from Desjardins.

Thanks, Alex and Chadi for the very thoughtful discussion on AI. Maybe the question for Alain. When we look at the free cash flow performance in Q4, very solid, driven by record low DSO pushing down leverage to 1.4x. So just looking at 2026, assuming DSO returns to the midpoint of your guidance, would it be fair to assume that free cash flow conversion would still be above 100%? And it looks like that you could be in a position to finish 2026 with a leverage more at the midpoint of the guidance of 1.2x, which could still open the door for M&A if conditions, permits. So just want to understand a little bit more about the potential leverage and free cash flow for 2026.

That's a neat way to get to M&A, Benoit. Just to clarify, the -- our leverage pro forma now 2.3x, absolutely right with our deleveraging profile. We don't anticipate to decline. We're still targeting far beyond the 100% conversion target. We should be in the range of 1.6x, 1.7x by year-end next year. So the ambitions remain as solid as what we've done this year. ERP is helping us. I remind you, there's a couple of conversions this year, but things are pointing -- all pointing out in the right direction to deliver strong free cash flow still in '26.

Perfect. That's my only one and congrats.

Next question today is from Maxim Sytchev, NBCM.

Alex, just continuing on sort of the AI topic. I mean some of your service providers obviously work in a fully digital environment. And I'm wondering how you think about some of the potential cost-saving opportunity from your side when you're interfacing with service providers who deal on kind of like on a per seat basis. I'm wondering if you have any thoughts there.

Just to clarify, Max, I mean, provider providing services to us?

Yes, software providers because, I mean, I assume, obviously, you pay quite a bit in terms of the outlays for their services. And again, like if AI sort of gets better from your own sort of modeling perspective, I mean, how much need is required for some of the kind of the legacy software providers if there's an opportunity to extract certain concessions over time, which would be beneficial from a margin perspective.

Chadi, you're leading the way on that front. So maybe you have a view on this.

Yes. Let me kick it off in a couple of areas. First of all, there are sort of providers that are key to delivering the end services. So think about our modeling partners, think about our partners that help us deliver those work products. And we constantly co-innovate with them to figure out how to solve for some of those solutions. There are then more back-office partners, and maybe that's what you're alluding to, where we are seeing massive simplification. We're investing to automate, putting our platform that Alain mentioned in place, harmonizing the way we grab our domain data and protect it allows us to shed some of the costs that previously would have been necessary.

Today, we can optimize and automate some of those things internally. And that will happen as we continue to optimize our functions, and there are several programs that are in play today to do that. And as we do that, if there are some software providers or providers that are giving us some services today that are not necessary, we work with them to optimize that cost structure. And that's an ongoing process, by the way, well before AI and post AI.

And if you recall, Max, when we unveiled our strategy, we talked about the different levers that we have to improve our efficiency and levers we have now in front of us with the ERP with AI coming in more tools, definitely to keep optimizing the back office to deliver better efficiency and simplify the life of our frontline people as well.

Okay. Makes sense. And then one sort of fundamental question. I think IIJA money has to be allocated by September, October time frame. Just wondering if you think actually most of that capital is going to be -- actually going out of the door and any impediments to that potentially not happening and how that could impact kind of 2027, 2028 run rates in the U.S. Any color would be helpful.

Yes. What we hear, there's more to come on that, Max, but you're right, IIJA expires third quarter of '26. But the Congress and the administration is working hard now on what's called the next surface transportation reauthorization. And what we're hearing through the grapevines there is -- there's lots of focus on the back-to-basic infrastructure program, transportation, public safety, public transit safety and the like. So it doesn't feel like less investment, but certainly more focused investment in more of the basic transportation space, which, frankly, is right in the middle of the alley for us. So more to come, but it feels like there's going to be continuation of investment as we read it right now.

Next question is from Michael Tupholme from TD Cowen.

I didn't want to just sort of pivot back to M&A, but in a different fashion than perhaps we're used to talking about it. The question ties into the AI discussion that you provided Alex and Chadi. So I'm just wondering if you can talk about how, if at all, accelerating adoption and use of AI in the engineering services industry may affect WP's M&A strategy and the types of targets you're interested in.

Look, it's a very good question. 10 years ago, I was not talking about our digital posture. I was not talking about our digital sector as a P&L. We've done that 2 years ago. And as Chadi expressed and can talk about, we are right now growing at double digit in our digital P&L, our digital sector. I think the way I would characterize what the question that you asked, Michael, and the way I would answer it is as part of my review of potential targets now and as we're entering due diligence, and TRC is a perfect example of that, we are paying way more greater attention to the complementary fit of the target digital offering.

I'll give you an example, TRC, which we announced 2 days ago. During due diligence, we spent an enormous amount of time talking about their digital posture, their digital strategy, their digital offering. Today, if I look at the TRC business, they probably have USD 150 million of digital offering in the power space, so intelligence grid solution that Chadi can talk about as an example of that. Well, it's $150 million out of $1.2 billion. So you may say, well, it's only 10% or a bit more than 10%, but we spent an enormous amount of time with the leaders there to see how we can double-digit grow that business. And with our network and the fact that we have a network around the world, how can we leverage this in Australia, in New Zealand and elsewhere. And I can tell you that we're super excited about that.

Do you want just to briefly talk about it?

Yes, I'll just add a couple of things. Again, if you consider Power & Energy, mission-critical, the growth, our digital offerings and the criteria we look at from an M&A point of view, I just want to make sure I come back to this notion, domain expertise at scale is the differentiator.

I'm going to say something controversial. The AI models are getting actually commoditized. If you listen to any of their webcast in the recent months, they're all talking about how we integrate domain expertise. We actually get more calls because of our domain expertise in order to create value. These models need that domain expertise. So if we look at the criteria of M&A going forward and what's exciting about what comes with TRC or what came in power is these folks don't master technology, just technology. They master technology in the context of transmission, distribution, generation, renewable energy, and that's where we think we drive massive value to clients.

And again, to reinforce the point, Michael, technology player coming in the power sector with no domain expertise or the Big 4 coming in or the major IT consulting firm coming in the power sector with not having the domain expertise, they're missing 75% of the solution. So again, to reinforce Chadi's point, we are getting more calls from technology players than we are making calls. to support them because they don't have what we have and the proprietary knowledge that we have in the power sector, for example.

So we honestly see this as a tremendous opportunity in the years to come for WSP. Revenue streams that 5 years ago did not exist for us. So it's a very, very exciting time, and that's why I talked about euphoria and hysteria. We need to be balanced here and compose and let us prove the point to you.

We'll now take the next question. This is from Jonathan Goldman from Scotiabank.

And Alex, thanks for setting the record straight. But maybe if we can do a diversion to maybe some less topical items. Maybe, Alex, if you could just elaborate on what gives you confidence in the U.S. business that we can see a reacceleration of growth this year. And I was also interested in the -- I think it was 10% increase in win rate. I was wondering if you can talk about what's driving that performance?

I think what gives me high confidence in the U.S. business and frankly, our business globally at the moment is really the proposal activity level that we see. And to my earlier point, though, the win rate, I think we have a very clear strategy right now on client. That has been the focus of our 3-year plan. We spent most of 2025 setting up the business for future success. We have developed a very, very strong global client program and diamond client program where we see the growth on those high-impact clients growing at a faster rate than the rest of our business, and we see this paying off.

So -- and also, we're -- we rarely talk about the brand, but the brand that WSP has developed in the U.S. and elsewhere today compared to where it was 5 years ago. I mean, clients are looking to work with WSP. They're looking for domain expertise. And they're looking for professionals to provide the service, number one.

What was the second part of your question, I'm sorry?

I think you addressed both of them, but I do have a second question. Maybe if we switch to capital allocation, Alex, you alluded to kind of the share price at the beginning of the call in your prepared remarks. How does that change your view on capital allocation and whether or not you lean into the buyback more here?

It's not changing my view because you cannot lead 83,000 people firm with a short-term view. We've always had a clear vision of who we want to be and what we don't want to be as a company. I've always had a clear strategy of where I want to take this business forward. And you cannot do this if you have -- you navigate and drive the company with a short-term view. I've always had a long-term view. We've seen the downside, the downturn in oil and gas in 2014, having a huge impact on our stock price at the time.

At the beginning of COVID, if my memory is not failing me, our stock price was at $94, it went down to $50 and went back up. We have faith that our investor base understand our business model. I have faith that our Board, our management team and our investors understand where we want to take this business forward. And in the last 2 years, we've deployed $7 billion in the high-growth, high profitability Power & Energy sector. I'd like to think we've been more opportunistic and more strategic than anyone else in our space. And I'm saying that very respectfully and very humbly. I'm just proud of what we've done.

And I remember the second part of your question, why I'm so confident about our U.S. business. Well, we've transformed our U.S. business in the last 60 months. 2 years ago, we had 350 people in the Power & Energy sector. Today, 30% of our top line in the U.S. alone and more than 20% of our business globally. I think we have deployed capital in high-growth, high profitability sector, and I don't expect that to change.

This week, I spent the week with our leader in mining. We are the largest mining consulting firm in the world. And we really think about the need when we talk about the rise of AI, the need for precious metal for copper and how uniquely positioned WSP is to cope and to service clients to deal with the world needs. So overall, I'm very, very pleased. And I think it would be a mistake to react to short-term views. We know where we're going. We're busy dealing and servicing our clients to deliver a backlog. And I feel that if we do a good job with our clients and we create an exciting time for employees, the stock price will take care of itself. So I don't have right now a desire to change our strategy and our view at this time.

Next question is from Sabahat Khan from RBC Capital Markets.

Maybe just bringing some of the color sort of together on this sort of topic around customers and how you're engaging with them. Maybe just at a high level, are you able to share some thoughts on when you sort of go into the customers, kind of their -- how is the conversation starting around AI? Is it more you bringing to the table what you can do for them? Is it them asking help with implementation or leveraging AI for projects? Just maybe you can walk through how the conversations at the customer level are going today and sort of the ask that the customers are making.

Our clients, and I think we touched base on that in numerous occasions, Saba, this morning. Our clients are looking for domain expertise and to help them support embedding technology in the assets that we design. They are not the expert. Otherwise, they wouldn't be calling us. They're calling us and say, look, we see all that technology coming to market. How should we be thinking about technology? And how do you believe we should be integrating that technology in the assets that we wish to invest in?

And perhaps, Chadi, I can turn to you.

Yes. I'll take the opportunity to make it very tangible. So if you think about the physical world coming with the virtual world, nobody knows more about the physical world than we do. And I'm giving you two examples. We are working with a country as we speak today because I think everybody knows this. AI cannot do what it needs to do if the data is not structured, if it's not understood, if the domain expertise and the context of that data is not put in place. So I'll just give you a tangible project. We just worked on client reached out to us, not any other third parties to structure data that touches 150,000 kilometers of road, 35,000 kilometers of track, trails and 5,000 kilometers of rail.

Why would they come to us, is because nobody understands that data and the architecture of that data for this entire country from a transportation point of view because before they can leverage AI to predict CapEx investments to optimize their run costs and so on, they need somebody to take that operational data and who masters that data and that context on those physical assets, and how it intertwines with the physical world around it, whether it's satellite information or geotechnical information better than WSP. And that's an active project.

I'm giving you that project as an example, before extracting value from these solutions. Clients are coming to us and saying, okay, how do we extract value? We need somebody who knows the physical environment and the designs that have been done. So that's one example. Another example I'll give you tangibly is one of the premier cities in the world, we're working with them to build a truly live digital twin that allows them to make the right investments in the right places to impact the well-being of millions of people.

So whereas historically, we do an environmental twin of physical layouts or 2, 3, 5, 100 variables. Today, we're talking about thousands of variables in 14 AI models that will cover things like air quality, that will cover things like water, biodiversity, marine, climate, putting it all together so that -- this specific city not only can manage in the short term, the outcomes, in this case, citizen well-being or optimizing capital investment, but do it over decades. And they're partnering with us because, once again, beyond the tech that underlines it, the understanding of that physical world and domain expertise is critical to them. So I want to just give you 2 examples to make it very tangible, Saba.

Great. And then maybe just sort of revisiting the commentary earlier around the U.S. and the IIJA and potential renewal. I guess just from your vantage point, are you finding particularly in the U.S., a bit more stability relative to last year and sort of these perspectives around either a renewal or some sort of an extension of the infrastructure investment program. Is that sort of based on what you're hearing from the clients either at state level or some of the federal agencies you work with?

Saba, the answer is yes. Absolutely. We feel we're operating in a more stable, more -- may sound strange what I'm going to say, but more predictable environment than perhaps a year ago.

We'll now take the next question. This is from Chris Murray from ATB Capital Markets.

And Alex, thanks again for the commentary around AI and the next generation of tools. I guess I want to maybe stay away from AI, and I've got some other questions. More about the guidance, I think, and EBITDA margin. I know it's something we've talked about. But right now, at the midpoint, we're looking at about a 40 basis point improvement. I guess a couple of pieces to this question. I mean if we look at last year, I think, Alain, you noted you really were on track for about 80 basis points year-over-year. 40 basis points seems a little thin. But can you just maybe walk us through any puts and takes that we may see about the high end versus the low end? It feels like between the IT platform, some of the AI tools, what you're seeing in backlog and the mix you would think that, that would be trending higher, but just any thoughts around how to think about the evolution of margin over the next year?

Yes. Thank you, Chris. Extremely committed to our 30 to 50 bps a year. So some of the moving parts just to keep in mind, for example, recently completed the acquisition of Ricardo. That's -- they have a much lower margin, and that's a good thing. That's an opportunity for us to bring them to our level. But for '26, it is a 15 to 20 bps drag on our margin guidance. So that's to be taken into consideration.

And for TRC, they run at a slightly lower margin than us, and we just closed the transaction. So we will now get into work and look at what we could do together better. So there's potential upside opportunity there. But for now, the 40 bps is what we feel is a realistic guide. But keep in mind the Ricardo drag. And keep in mind also, we've been -- if there's one thing that we're very proud of is you look at our margin track record for the last 3 years, it's beyond 500 basis points. So we will continue to push. You could sleep peacefully on that front. We will continue to push on making margin grow and build more efficiency in the business.

Okay. That's great. And then just one other question. And again, it's something that we haven't heard a lot of, but it seemed to come out a lot in different regions is resources. Can you just remind us or kind of maybe give us some more color on what you're seeing in the resource industry and the types of work you're doing right now? Is this sort of pre-feasibility study? Is this development work? So any additional color on how the resources business is evolving and what you expect over the next couple of years would be great.

Yes. I just talked briefly about our mining consulting offering. I think we're feeling extremely good about it given the demand that are projected in the years to come. We are seeing and have seen in the U.S., gas, for instance, also increasing. So when we think about mining and resources, we are quite bullish about the future for our sector and for our business internally, but for the industry as a whole.

Thank you. And there are no further questions at this time. So I will now hand the conference back to the speakers for closing comments. Thank you.

So again, thank you so much for attending the call. I understand that there were a lot of you attending the call. And so we look forward to updating you on the performance of the company over the course of the next 4 quarters. And again, thank you, and I wish you a great day. Bye-bye.

Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.

Good afternoon and thank you for joining our webcast. Today, we are delighted to announce that we have reached an agreement to acquire TRC, which is expected to close in Q1 2026.

There will be no question-and-answer session today due to the concurrent equity offering, which we have also announced in connection with the acquisition.

Alexandre L'Heureux, our President and CEO; and Alain Michaud, our CFO, are joining us this afternoon.

During the webcast, we will make forward-looking statements. Actual results could differ from those expressed or implied. We undertake no obligation to update or revise any of these statements. Relevant factors that could cause actual results to differ materially from those forward-looking statements are listed in our MD&A for the quarter that ended September 27, 2025, and in the press release issued today in connection with our proposed acquisition of TRC and related financing, each of which can be found on SEDAR+ and on our website. In addition, during the webcast, we may refer to specific non-IFRS measures.

These measures are also defined in our MD&A for the quarter that ended September 27, 2025, and in our investors presentation. Our MD&A and investor presentations include reconciliations of non-IFRS measures to the most directly comparable IFRS measures. Management believes that these non-IFRS measures provide useful information to investors regarding the corporation's financial conditions and results of operations as they provide additional critical metrics of its performance. These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under IFRS and may differ from similarly named measures reported by other issuers and accordingly, may not be comparable. These measures should not be considered as a substitute for the related financial information prepared by IFRS.

With that, I will now turn the webcast over to Alexandre.

Thank you, Quentin, and good afternoon, everyone. Today marks an exciting milestone in the execution of our 2025 2027 global strategic action plan.

With the planned acquisition of TRC, a premier brand in the U.S. power and energy market, we are cementing WSP's industry leadership in the Power & Energy sector and are becoming the largest and most diversified engineering and design firm in the United States.

This strategic move consolidates our position, broadens our reach, deepens our expertise and unlocks new growth opportunities, setting the stage for WSP to continue to thrive.

Before we discuss the TRC acquisition in greater detail, let me highlight a few reference points on WSP's historical performance.

First, we are proud to have delivered total revenue growth CAGR of approximately 13% in the last 10 years, 16% in the last 5 years and 19% in 2025, increasing our pace over time and delivering more growth than any firm in our public peer group.

Since our IPO in 2006, we have achieved positive organic growth every year, except in 2020 due to the pandemic.

Today, the fundamentals that drive our success continue to build on an even stronger platform, supporting robust organic growth.

We are also proud of our strong profitability mindset, reflected in our leading margins and our constant desire to push boundaries and set industry benchmarks.

Over the last 3 strategic cycles, we have consistently improved our efficiency and delivered a 450 basis point margin improvement, averaging 50 basis points per year. This performance demonstrates our ability to execute, lead across multiple sectors and compound shareholder value.

With leading positions in all our key sectors, we are committed to continuing to thrive on our journey to become a leading brand in the professional services universe.

Even as an industry leader, our estimated market share reflects a very fragmented market, highlighting substantial room for expansion. We deployed over $5 billion in acquisition from 2022 to 2024, a record high for any strategic cycle. With the contemplated acquisition of TRC, combined with Lexica and Ricardo, we are committing over $5 billion in 2025 alone, the first year of our new strategic cycle. This strategically driven approach to M&A, along with our ability to unlock transactions is a clear differentiator.

Since 2021, we have closed 20 acquisitions, all accretive from day 1, a testament to our pursuit of building a strong, resilient industry champion capable of delivering compounding financial performance and superior shareholder value.

Let's now turn to the transaction overview. Welcoming TRC on the WSP family will propel our platform to new heights. This combination will supercharge our power and energy sector by expanding our offerings across the entire value chain, adding, amongst others, significant advisory and program management capabilities and providing unmatched leadership in the U.S.

Together, we will be poised to accelerate organic growth and capture the full spectrum of opportunities in a high-growth sector. And to top it off, WSP will become the largest engineering and design firm in the U.S.

Over the past decade, WSP has established a leading presence in each of our carefully selected sectors. In just over a year, subject to the closing of the TRC acquisition, we will have welcomed 2 U.S. powerhouses to our Power & Energy franchise, creating an unmatched offering.

Clients in the sector face increasing complexity and urgency driven by talent shortages, evolving delivery models and new partnership dynamics. They require partners with scale and comprehensive capabilities.

With today's announcement, we will, upon closing, be an even stronger partner of choice for our clients as we will become the largest engineering and design firm in the U.S.

TRC is a premier U.S. Power & Energy brand founded in 1969, long recognized for technical excellence and one of the most significant players in the U.S. with approximately 8,000 professionals.

At the crossroads of aging infrastructure and grid modernization, TRC's client base includes many blue-chip clients, and with half of its revenue derived from master services agreements, TRC's business is highly recurring and built on long-term relationships. This foundation is not just advantageous. It is essential as the industry faces growing infrastructure power needs.

Through its advanced grid solution, TRC plays a critical role in ensuring grid security, resilience and reliability, enabling clients to meet the demands of a rapidly evolving energy landscape.

TRC also leads in digital and intelligence grid solutions, advancing innovation and efficiency in the design, delivery, operation and maintenance of electrical infrastructure.

TRC will also be introducing new energy efficiency services to WSP, creating opportunities to help clients reduce electricity consumption and costs across manufacturing, health care and education.

Furthermore, TRC has delivered robust organic growth, including a 10-year revenue CAGR of 10% and a 4-year CAGR of 12% in the Power & Energy segment.

Their ability to grow backlog and leverage master services agreements, combined with the culture of cross-selling and strong client relationships has driven sustainable organic growth, delivering quality value to its client base, including many blue-chip companies.

With almost 60,000 projects delivered in 2025, TRC proudly serves a diverse range of public and private clients, seamlessly guiding complex projects from concept to completion. These projects span critical areas such as electric and power solutions, infrastructure resilience and clean transportation, demonstrating TRC's ability to deliver innovative solutions that shape the future of our communities.

The strategic rationale for this transaction is clear, and it is one centered on growth.

Together, WSP and TRC will create an integrated platform with industry-leading capabilities in advisory, engineering and program management.

Our combined highly complementary service offering will span the entire value chain, enabling us to serve all top 20 U.S. investor-owned utilities, or IOUs, covering every aspect of power generation, transmission, substation design and distribution.

While we share clients among major utilities and power developers, our services are highly complementary, which paves the way for deeper relationship across the power delivery sector.

In fact, WSP will become the largest transmission and distribution engineering company in the U.S., expanding our scale and geographic reach and significantly enhancing our testing and commissioning capabilities for utilities nationwide.

And similar to our experience with POWER Engineers, we expect significant revenue synergies. In a context where niche power expertise is in high demand across industries and sectors, the cross-selling opportunities are significant, specifically given our vast multidisciplinary offerings.

To sum it up, with this transaction, WSP will become the undisputed leader in the U.S. power and energy market. On a pro forma basis, approximately 1/3 of our net revenues in the U.S. will come from the U.S. power and energy sector with combined net revenues of $2.5 billion and a workforce of approximately 9,000 professionals. Globally, our Power & Energy workforce will total approximately 12,000 people.

Beyond Power & Energy, welcoming TRC will enhance our capabilities in water, infrastructure and environmental services. TRC will add valuable depth in water resources, storm water compliance, watershed planning and advanced water treatment, including PFAS, positioning us to capture a significant share of this growing market.

The water infrastructure capabilities, including flood control, drought preparedness and coastal restoration enhance WSP's resilience advisory portfolio.

We are also expanding our expertise in pipeline integrity, environmental, health and safety and remediation while doubling our solid waste business.

Our geographic footprint and client relationships will be broader than ever, opening up new cross-selling opportunities.

By combining WSP and TRC's environmental permitting, compliance, remediation and water capabilities, we will provide clients with end-to-end solutions, reinforcing our market leadership in the $27 billion environmental consulting space in the U.S.

TRC environmental practice is immediately synergistic with WSP. For example, we are positioned to create a leading force in environmental permitting and planning for Power & Energy projects, a critical early stage in the project life cycle with national power capital project activity expected to grow.

TRC's environmental, health and safety practice brings substantial additional capabilities to one of our smaller practice areas. As one of TRC's fastest-growing segments, it adds valuable new organic growth potential for our E&E sector. In addition, WSPs and TRCs are 2 of the nation's leading site investigation and remediation firms with unparalleled technical depth and breadth.

Finally, TRC's transportation business line is a natural addition to our leading T&I business and highly complementary in terms of geographic footprint and clients.

Now turning to the transformation orchestrated in our U.S. business in the last 5 years. Our journey to sector leadership has fundamentally reshaped our U.S. platform.

Since 2020, we have grown from 10,000 professionals and $2.4 billion in net revenue to now 27,000 professionals and $7.2 billion in 2025 on a pro forma basis.

Today, our portfolio is balanced and reflects our multidisciplinary expertise. We will soon be fulfilling our ambition to lead in each of our core sectors.

With TRC, we will have tripled our business size and diversified our offering to capitalize on high-growth sectors.

With this transaction, WSP will become the largest and most diversified engineering and design firm in the U.S. Our combined entities will now surpass all major competitors and our scales position us to capture even greater opportunities ahead.

Our growth profile will also be accelerating. An even more significant portion of our growth and profitability will now come from Canada and the U.S., capitalizing further on these regions strength within our global footprint.

Globally, Power & Energy will now represent 1/5 of our platform, a sector with a double-digit organic growth track record. We are also expanding our capabilities in water, infrastructure and environment fueled by strong fundamentals.

With that, I'll turn the presentation over to Alain, who will cover the key financial terms of this transaction.

Thank you, Alexandre, and good afternoon, everyone. Let me go through the key financial aspect of this exciting transaction.

The proposed acquisition of TRC is based on a cash offer of USD 3.3 billion, representing approximately 14.5x TRC's calendar year 2026 estimated EBITDA on a pre-IFRS 16 basis or 12.5x after including run rate synergies.

From a modeling perspective, it is worth noting that the IFRS 16 adjustment for TRC represents approximately 1.25% of net revenues.

I am thrilled to report that this acquisition will be immediately accretive to WSP's adjusted net earnings per share in the low to mid-single-digit range.

We expect cost synergies exceeding 3% of net revenues to be realized in the 24-month period following the closing of the transaction. And with fully realized cost synergies, we expect high single-digit accretion to adjusted net earnings per share.

In addition, TRC brings additional opportunities with significant margin upside potential and revenue synergies that are not considered in our stated accretion rates.

To fund the acquisition, we will be raising $850 million through the issuance of common shares composed of a new public offering on a bought deal basis and a private placement with La Caisse, our long-term cornerstone investor.

We've also secured an aggregate of USD 3.3 billion in committed term loans with a portion equivalent to the proceeds from the common share issuance to be canceled upon closing of the equity issuance.

Pro forma net debt to last 12-month adjusted EBITDA calculated as of March 31, 2026, is approximately 2.4 turns, which allows us to maintain our strong investment-grade profile, and we expect quick deleveraging based on our free cash flow generation profile and be under 2 turns within 12 months of closing.

The TRC transaction is expected to close in Q1 2026, subject to customary closing conditions, and it is not subject to a shareholders' vote.

On that note, back to you, Alexandre.

Thank you, Alain. As we conclude, let me highlight the key messages from today's announcement.

The TRC acquisition is fully aligned with our 2025, 2027 global strategic action plan released earlier this year. With this transaction, we are capitalizing on our ambitions in a priority region, the U.S. and significantly strengthening our position in the power and energy sector.

At the same time, we are amplifying the pace of our select strategic high-growth area such as the energy transition, project and program management, digital and water. In just the first year of executing our new strategic cycle, we are already on track to meet or exceed several of our 2027 targets. This progress significantly expedites the execution of our 2025-2027 Strategic Action Plan.

Following the closing of the TRC's acquisition, this transaction accelerates our organic growth rate profile, bringing together unmatched expertise and a broader service offering across the entire value chain.

We secured a #1 position in the power and energy sector and in the U.S., reinforcing our leadership in a critical and fast-growing market.

The combination is highly accretive with significant margin expansion and substantial opportunities for both cost and revenue synergies.

Thank you for your attention and continued support. We are truly excited about the prospect of combining forces with TRC as we embark on this next chapter together. Thank you.

Good day, and thank you for standing by. Welcome to the WSP Global, Inc. Third Quarter 2025 Results Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded.

I would now like to turn the conference over to your first speaker, Quentin Weber from Investor Relations. Please go ahead.

Thank you, and thank you for joining our call today. We will discuss our Q3 2025 performance followed by a Q&A session. Alexandre L'Heureux, our President and CEO; and Alain Michaud, our CFO are joining us this morning. Please note that this call is also accessible via webcast on our website.

During the call, we will make forward-looking statements. Actual results could differ from those expressed or implied. We undertake no obligation to update or revise any of these statements. Relevant factors that could cause actual results to differ materially from those forward-looking statements are listed in the MD&A for the quarter ended September 27, 2025, which can be found on SEDAR+ and on our website. In addition, during the call, we may refer to specific non-IFRS measures. These measures are also defined in the MD&A for the year ending December 31, 2024.

Our MD&A includes reconciliations of non-IFRS measures to the most directly comparable IFRS measures. Management believes that these non-IFRS measures provide useful information to investors regarding the corporation's financial condition and results of operations as they provide additional critical metrics of its performance. These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under IFRS and may differ from similarly named measures reported by other issuers and accordingly, may not be comparable. These measures should not be considered as a substitute for the related financial information prepared by IFRS.

With that, I will now turn the call over to Alexandre.

Thank you, Quentin, and thank you all for joining us today. Let me start by saying that WSP underlying performance was strong in the quarter. Net revenues, adjusted EBITDA and adjusted net earnings increased by approximately 16%, 20% and 32%, respectively, despite continued fluid market dynamics. Among other things, our results highlight very robust margin improvement, strong free cash flow generation and exceptional performance from POWER Engineers as we celebrate the first year of the closing of the acquisition.

Let me now expand on 3 key highlights. First, a few comments on our top line performance. If you turn to Page 5 in today's investor presentation, we highlight a healthy underlying business performance with mid-single-digit organic growth for the quarter. In fact, across our 3 largest segments, Canada, the Americas and EMEA, we delivered mid- to high single-digit organic growth when isolating the impact of a significant project upside in Canada in Q3 2024 and the historical high level of storm-related assignment in the U.S. in Q3 2024 versus the historical low level of such assignments in Q3 2025. In Asia Pacific, we are observing early signals of improvement, including healthy growth in backlog and in New Zealand delivering modest organic growth in net revenue, a first in the last 5 quarters.

Second, on profitability. Adjusted EBITDA increased by almost 20% in dollar terms during the quarter. We reached a record high margin at 20.2% representing an improvement of 70 basis points for the quarter and 50 basis points over the 9-month period, supported by continued focus on productivity. In addition, our solid results reflect the absorption of optimization and rightsizing costs, which impacted margin by 30 basis points in the third quarter and 40 basis points year-to-date.

Third, I am very pleased with our cash performance, a continuation of our first 2 quarters. Free cash flow reached almost $900 million for the 9-month period, an increase of $645 million compared to last year. DSO stood at 71 days within our targeted range at historical low level for third quarter. We are well on track to exceed our 100% conversion target of annual free cash flow to net earnings.

Let's now review our regional operation. Starting with Canada. Net revenue organic growth reached 6% for the quarter when adjusted to exclude the impact of a favorable project in Q3 2024. Looking at the next -- at the year-to-date performance, the region delivered a healthy net revenue organic growth of 7%. Canada delivered an impressive margin of 27.8%, representing a 100 basis point increase compared to Q3 2024 and leading margins across our global platform. Lastly, Canada's backlog grew 15% organically since the beginning of the year.

In the Americas, net revenue organic growth stood at 6.6% when adjusting for the lower level of emergency response services in the United States, a standout contributor to our performance in the U.S. and not included in the 6.6% just stated has been POWER Engineers, which posted net revenue organic growth in the mid-teens in both the third quarter and the first 9 months of 2025.

Moving to EMEA. Performance exceeded expectations in the U.K. with 11% net revenue organic growth driven by strong positioning as a Tier 1 player in the country. The Nordics showed encouraging signs of improvement, supported by growing backlog, specifically in Sweden. Overall, EMEA delivered 6.4% net revenue organic growth for the quarter and 4.8% year-to-date.

Turning to APAC. New Zealand posted modest growth in the quarter, and the backlog has increased significantly year-to-date. In Australia, we are seeing the backlog trending upward, although some clients' decision are affecting its accessibility. Now let's move to M&A. On October 9, we closed the acquisition of Ricardo, a milestone that marks an important step that moves us closer to our strategic ambitions.

Ricardo brings world-class expertise in advisory, energy addition and transition, air quality, water solutions and rail strengthening our position in the U.K., Australia and the Netherlands. Our teams are actively engaged in integration activities, including setting up different work streams of importance, our clients' teams are coming together to assess net revenue opportunities.

Moving on to POWER Engineers, Q3 marked the first anniversary of our firms coming together, a milestone defined by exceptional results, strong execution and accelerating demand for power and energy services. Over the past year, POWER Engineers has delivered organic growth in net revenue in the mid-teens and is now contributing to WSP margin expansion. From the outset, we recognized a significant potential for revenue synergies. Since the acquisition, that potential has translated in action. Together, we have built a robust pursuit pipeline exceeding $1.4 billion, actively tracking synergies across more than 300 opportunities. One year later, we are proud of the remarkable progress we have made together.

Now let's briefly discuss our end markets. Our overall Power and Energy business is performing very well, and our backlog has grown steadily over the past 2 years, reflecting strong market demand for power and energy-related services. This momentum extends to our property and buildings business, which delivered strong results in the AI and the cloud infrastructure sectors. In Q3 2025, we secured data center project wins across the U.S.A., Canada, Chile, Sweden, Norway, Thailand, Australia and Singapore, underscoring our leadership in the global data center market.

At the same time, in the commercial real estate market, we are gaining traction in refurbishment and retrofit projects, driven by rising office occupancy and the urgent need to upgrade assets at risk of becoming stranded, further reinforcing our premier position in this space.

Meanwhile, our Earth & Environment business continues to see strong demand globally for permitting new energy assets, including power lines, nuclear facilities and hydrogen pipelines. In contrast, some clients have chosen to defer capital projects, which influence the pace of our field season, specifically in Canada and in the U.S.

On the Transportation & Infrastructure front, Aviation continues to experience a strong post-pandemic recovery with airports worldwide investing heavily in expansion program, and we recently secured a single mandate to expand Heathrow Airport, which is operating at capacity and undertaking an extensive improvement to meet the mid-21st century air transport demand.

Another key win during the quarter was WSP confirmed participation in the Toronto Pearson Airports accelerator program, which delivers vital upgrades and airport assets. Rail and transit remain in demand, and we celebrate 2 major wins this quarter. The Eglinton Crosstown West Extension Station Rail and system contract in Canada and the Uppsala light rail project in Sweden, a 17-kilometer new line valued at $1 billion that support the city climate neutral initiative. In the United States, investment in asset renewal continues highlighted by our recent mandate to modernize the Briarcliff-Peekskill Parkway in Westchester County, New York. This environmental assessment aims to enhance safety and resilience for this 13-kilometer corridor amid evolving climate requirements.

Overall, we see continued momentum and positive momentum, but let me state the obvious. We are currently evolving in fluid market dynamics, including, amongst other things, shifting client priorities and evolving geopolitical context. Despite this reality, our key markets are performing well, industry trends remain current and our performance underscores the resilience of our diversified platform and the strength of our execution.

Now over to you, Alain.

Thanks, Alex, and hello, everyone. I'm very pleased with our results this quarter. For the third quarter, revenue and net revenues increased by approximately 14% and 16%, respectively, displaying solid performance and healthy underlying fundamentals. The increase was attributable to acquisition growth of 10.1% and organic revenue growth of 3.7%.

POWER Engineers continue to demonstrate strong growth with a mid-teens organic growth rate compared to Q3 2024. And as a reminder, starting in Q4, POWER Engineers will contribute to our organic growth. Backlog reached $16.4 billion, up 10.6% in the 12-month period, representing approximately 11 months of revenue and a book-to-burn ratio above 1.

Moving on to profitability. Adjusted EBITDA in the quarter amounted to $700 million, compared to $585 million in the third quarter of 2024, an increase of approximately 20%. Of interest, we are very proud of the significant milestone reached this quarter with adjusted EBITDA margin reaching a record high of 20.2%, compared to 19.5% in Q3 2024, an increase of 70 basis points, mainly due to our continued focus on productivity. And excluding optimization and restructuring costs, our margin increased 100 basis points in the quarter.

Adjusted net earnings for the quarter reached approximately $370 million or $2.82 per share, up 32% and 26% respectively compared to the third quarter of 2024. The increase was mainly attributable to higher adjusted EBITDA and upside in tax expenses and financing costs. As for our cash position, I'm particularly pleased with our continued performance and cash flow generation.

Free cash flow was approximately $890 million for the 9-month period ended September 27, 2025, representing an improvement of $645 million compared to the corresponding period in '24. The trailing 12 months of free cash flow totaled $1.5 billion, representing 1.7x net earnings attributable to shareholders. This strong outcome reflects our ongoing focus on working capital management and optimization under our new ERP platform. DSO stood at 71 days on September 27, 2025 compared to 80 days last year, a record for a third quarter.

Net debt to adjusted EBITDA ratio stood at 1.4x, which is within our target range of 1 to 2x and allow us to appropriate -- with the appropriate flexibility to deploy capital. On our ERP program, the 2025 deployment proceeded as planned, and we're now preparing for 2026, which will result in 95% of our platform under the new ERP with key regions and entities, including POWER Engineers, Ricardo, Australia, New Zealand and Sweden set to come on board. This milestone represents a critical step in the evolution of our support function. And once fully implemented, these changes will enable us to unlock further efficiencies across the organization, and serve as an additional lever for margin expansion over time.

Regarding our financial expectations for the year, we have revised and increased our 2025 financial outlook with net revenue now expected to range between $13.8 billion and $14 billion and adjusted EBITDA between $2.54 billion to $2.56 billion. We are, therefore, well aligned to reach or exceed the higher end of our initial financial outlook issued in February 2025.

As a reminder, our '25 financial outlook reflects the expected contribution for Ricardo plc in the fourth quarter. The acquisition closed 2 weeks after the start of Q4, which means we will not capture a full quarter of net revenue. Finally, with the Atlantic hurricane season now essentially behind us, we expect the condition observed this quarter in the U.S. to extend into Q4 2025. For context, these services contributed to approximately $70 million in net revenue in Q4 2024, one of the highest volume recorded in the past 3 decades. As a result, our year-over-year comparison for the Americas segment in Q4 2025 will be influenced by this exceptionally strong prior year baseline. We're also closely monitoring the current U.S. government shutdown, which adds another layer of uncertainty to the operating environment.

On that, back to you, Alex.

Thank you, Alain. As we close the third quarter, I want to emphasize that what truly stands out the resilience of our diversified platform. Despite evolving market dynamics, WSP adapted and delivered a strong performance, underpinned by disciplined execution, operational excellence and a clear focus on long-term value creation. The recent acquisition of Ricardo further strengthens our capabilities in advisory and energy transition, air quality, and rail, positioning us to capture opportunities in high-growth sectors globally.

We have the financial strength and flexibility to deploy capital for strategic acquisitions in a fragmented market, supported by a robust balance sheet and disciplined approach to M&A. Our pipelines remain healthy with opportunities aligned to our core markets and grow priorities. As 2025 draws to a close, we look ahead to 2026 with measured optimism and confident and our ability to adapt to evolving market conditions and continue delivering value to our clients and our shareholders. Our diversified platform, our strategic focus and our operational discipline position us well to navigate what lies ahead.

Thank you for your continued trust and support. With that, we can open the lines to questions -- for questions.

[Operator Instructions] And the questions come from the line of Steven Fisher from UBS.

So on POWER Engineers, congrats on the 1-year anniversary. And so now that you're into the second year of your ownership, just curious what you see as being different during the second year of ownership versus the first year? Is it kind of the main focus of capturing that $1.4 billion pipeline that you said? Is that your main priority? Or is it anything else? And do you think you can maintain this mid-teens growth rate from here?

Very, very good question. I mean in times where there's a lot of noise and things are fluid, actually consistency is oftentimes, something very, very positive and welcome. And frankly, what I expect in 2026 is hopefully something very similar to 2025 for POWER Engineer. We have a great backlog. We worked for a great blue-chip list of our clients. And with what we know today, I don't see why the growth profile of POWER Engineer would change in 2026 versus 2025.

And if you look at the overall activity in '25 with POWER, we've done a large part of the integration process. The last milestone is the ERP on Jan 1, '26 -- for most of 2026, will be a year where we're fully combined and harmonized together in our ways of working. So it makes us feel positive about 2026 for POWER Engineers.

And then I guess a bigger picture here. When you adjust the growth in the quarter for the 2024 project and the emergency work, you're still seeing maybe a little slowdown in organic growth this quarter overall. So as you look forward to next year, just curious in your confidence in any reacceleration. And if you think you can reaccelerate your organic growth, which markets do you think could become more positive versus those that might see a little bit of deceleration and thinking about mostly regionally, but curious if there's any end market color that would make it different?

Well, I would respectfully disagree with you, I think when you adjust for emergency responses. And again, let me remind everyone, I mean, last year, we've been tracking the fee revenue that we've been delivering with -- during emergency responses in the fall for the last 3 years, all the way back to the Parsons Brinckerhoff acquisition. And last year was the fourth highest in 30 years level of response and services that we delivered in Q3 and Q4 in our history.

And this year will be the fourth lowest in 30 years. So we felt that we needed to highlight that to you because once you adjust for this, I mean, I'm quite pleased given all of the noise that we hear in the marketplace right now. People don't talk much about the government shutdown, but we're past a month now, impossible to issue permitting, impossible to get anything done. And despite all of that, I mean we continue to perform in mid-single digits, high-single digits. So I'm quite pleased with that.

Going into 2026, the pipeline of opportunities is still very strong. You look at the -- our win rate, which actually in 2025 has increased as opposed to decrease. I mean if we can get the noise aside for a second and gain more stability in the marketplace, I think we'll have clients a lot more in a better position to deploy capital. So going into 2026, I actually believe that it should be a good year for WSP.

We are now going to proceed with our next question, and the questions come from the line of Chris Murray from ATB Capital Markets.

Looking at the margin profile, first of all, congratulations on getting over 20%, it's a bit of a target for a while. But one of the things that sort of stuck out to me is when I looked at the kind of the difference between organic growth and change in headcount, in almost all the regions, organic growth has outstripped the change in headcount. And I'm just starting to wonder if there's something that's a structural change in the business? I know you referenced some productivity. But just how do we think about the relationship between your ability to generate organic growth and your headcount as we go into the next couple of years?

That's a great question. I'm pleased that you're highlighting that. I think this is more of a long-term trend than a yearly trend or a change over the course of this year. If you go back the last 10 years, you'll see that the fee per employee that we have been generating over the course of the last decade has consistently increased. So in other words, we're doing more with less. And DAP is the result of many levers that we are pulling as an organization, one being more productive. WSP -- we -- you look at the margin profile and what we have been able to achieve in the last 5 years, the resulting effect of all this is obviously us being more productive, running a tighter ship.

I think we cannot exclude also technology. We are using technology. And also, we have entered sectors and markets where we are able to charge a higher rate for the work that we do. In recent years, we've entered in a big way in mining consulting. We are the largest mining consultant in the world. There's not one large mine in the world that WSP is not involved in. And we are able to have a higher charge-out rate for this. Same thing in the POWER sector more recently. So I could go on like this and on for a long time. But over the year, we've changed our project mix. But more importantly, with the use of technology, and that will continue to accelerate. And also how productive we have been, we have been able to do a lot more with less.

And then to that point, I think I hear Alain talk about like the ERP system is almost ready to go. We're seeing sort of these trends in productivity. Is it fair to think that the year-over-year growth just -- should drive margins? Like usually, there's a fairly standard kind of spread on margins, call it, 50, 60, 70 basis points, that comes as a natural absorption. Is there an ability to change that to accelerate that margin improvement?

I'm not sure I understand your question, but I think over the last few years, if I look back at our track record, I mean, over the years, we have been able to increase our margin profile, good year, bad year, around 50 basis points, Alain, something like that, which has been consistent. To move a global organization of our size by 0.5 point -- by 50 basis points every year to me is a great improvement. And I think would be -- would be leading our peer group, I would argue, in the average peer group. So I'm quite pleased with that.

Do I see ways to continue to accelerate that? I can tell you that's what we do every day. We're trying to work very hard to continue to make those improvements. And as a friendly reminder, this year, we've absorbed a lot of redundancy in structural cost, that would have increased by 40 basis points, our already increased margin profile. So if you strip that out, I think the margin improvement this year has been just extraordinary.

And then just one last one for me. The Canadian budget came down, lots of talk about infrastructure and infrastructure spend. But a lot of those announcements have already been tied to projects that have been made. How are you seeing the change in the Canadian environment with respect to federal stimulus for infrastructure and spending?

Well, I think the focus on infrastructure spending in Canada has always been there. I think where I felt past governments and current governments is, it's one thing to be focused on infrastructure, it's another to deploy the capital and accelerate the spend on infrastructure. Hopefully, this government is very focused on deploying rapidly the funding. So I think the focus on infrastructure is not the issue is to make sure that we deploy the capital rapidly. But certainly, I saw this budget very positively when it was announced.

We are now going to proceed with our next question, and the questions come from the line of Michael Tupholme from TD Cowen.

Just wanted to ask you about the APAC region, see if you can talk a little bit more about the improvements that you're seeing in that segment and how we should think about organic growth in APAC over coming quarters?

First and foremost, we see a strong growth in the backlog at this point in time. Increased growth in the backlog at this point in both New Zealand and Australia, which is an early, but positive signal. We also see our win rate increasing. And we also see the proposal activity level to slowly increasing as well. So these are our early signs. As I mentioned earlier on this morning, New Zealand recorded positive organic growth for the first time in 5 quarters. So hopefully, this will bodes well for the future. I think Australia is a few quarters behind New Zealand. How many? We'll assess that as we are entering 2026.

To me, Australia, and I've mentioned it during the last quarter, we are totally committed to the region. But if you look back at the type of organic growth that we generated in the last 5, 6 years in Australia, I think it's absolutely normal that a country goes through a period of pause after such a big spend in infrastructure. But longer term, I'm quite positive about the country. So long story short, Michael, if I'm being asked to look into my crystal ball, I think it's going to take a few quarters in Australia to see better results.

That's definitely helpful. And then just somewhat related on the...

Sorry, Michael. And by the way, I wanted to be crystal clear on this. This is not self-inflicted to WSP. This is more structural for the country. So what's true for us is true for everyone else. I can tell you that.

No, that makes sense. And then just secondly, just as it relates to the rightsizing costs in the quarter and the corresponding margin impact. Was that entirely in the APAC segments or did some other segments also experience some rightsizing costs and margin impact? And I guess, are we -- are you through those rightsizing costs? Or do you expect there to be more overcoming quarters in any regions?

There's obviously Australia and New Zealand, there have been some, but there's been some others elsewhere. I mean, in the Nordics as well in recent years, we've -- with the cooling off of the infrastructure spend, especially in the private sector with the war, Russia, which is next door neighbor to the Nordics, I think there's been a slowdown. The good news again is we're seeing a strong backlog growth now. And I talked about a large project that was awarded to us in Sweden. So I'm feeling good again around the country and the regions. And for the first time in many quarters now, I feel things are picking up. So that's positive.

But to be specific about your question, I mean, we've been rightsizing pretty much everywhere. I mentioned also the field season this summer, which was probably not as good as expected in Canada and in the U.S. because of the fluid market conditions, I think people are more in a wait-and-see approach. So we had to rightsize our field employees over the course of the summer. But again, we absorb all of that, and we're able to deliver actually, I think you would agree, fantastic EBITDA margin in Canada, for instance.

We are now going to proceed with our next question, and the questions come from the line of Frederic Bastien from Raymond James.

Super pleased with the margins. That's hats off, that's excellent. Looking back 10 years ago, I would have never imagined you could get there, but it's amazing and the fact that you're still going for more is even more encouraging. Just a question on the M&A side. Are you seeing the competitive backdrop for M&A showing signs of improvement in your -- in today's fluid environment? I would suspect so, but I don't want to make a conclusion on my own. So I would love to get your opinion.

Yes. Frederic, very good question. Look, we -- less than 12 months ago, we completed POWER Engineer. This was our largest acquisition in our history. So as you can imagine, I wanted us to do a good job at delivering the value of this acquisition. Earlier this year, we completed and announced the acquisition of Ricardo, which will contribute to the bottom line starting next quarter. And as I said, the pipeline is healthy. If my memory is not failing me, we finished the quarter with a leverage of 1.4x EBITDA. So as you can imagine, we are in a very solid position. And I would like, obviously, to continue to use our balance sheet and use the position of strength that we're in, given our diversified platform to be opportunistic and continue to grow platform.

It seems like there's not a week that goes by that there's rumors about WSP buying a company X, company Y, company Z. Would you care to comment on that?

I don't think anyone should be surprised because I'm probably the biggest supporter and avid supporter of consolidation in our industry. So I'm not surprised that our name is being thrown around with possible rumors. Obviously, I'm not going to comment on those rumors. But I was a big proponent of our model 10 years ago, and I continue to be. And as I said, if we have an opportunity to use our balance sheet, we will.

So normal course of business for you guys, basically?

Yes.

[Operator Instructions] We are now going to proceed with our next question, and the questions come from the line of Anshul Agarwal from CIBC.

So I just have one question on your APAC region. So this quarter, WSP reported a strong EBITDA margin improvement in APAC. So could you just please provide some color on what is driving these margins specifically in APAC?

Look, we have been busy since the beginning of the year to set up the business for future success. That's the way I would describe it. We want our Australian business and our New Zealand business to be as fit as possible to be in a position to take advantage when the market picks up again. And as I said, we see early signs of that with the backlog growing in the mid- to high single digit this year that the business is fit to take advantage of that.

[Operator Instructions] We have no further questions at this time. So I'll hand back to you for closing remarks.

Well, I think there's one additional question.

Yes, we just have a question that just arrived.

Okay. We'll take it.

The questions come from the line of Jonathan Goldman from Scotiabank.

Just wanted to echo the comments about the phenomenal margin performance and that was despite the restructuring. But when do you anticipate completing all the restructuring activities?

Well, we always, always streamline our business. But this year, the reason why we mentioned it, Jonathan, is because, obviously, it's been more predominant than perhaps other years. We had to do it, as I said, in the Asia Pacific region. We've done it in our Asia region. We've done it in our Nordics region. We've done it in the field for field workers in Canada and the U.S. this summer. So because of the size of it, we highlight it -- we did highlight it. Do I think it's going to slow down? I think we've done a lot of that work already. It's been done already, but we should expect to continue to have some.

And then Alex, you kind of alluded to this a bit, I think in an earlier question. But have the government shutdowns in the U.S. impacted the business significantly or at all, I guess, in Q4? And if we're not looking at organic growth, are there other metrics we can track or maybe ask for color about win rate, close activity that might be a better marker of underlying demand in the U.S.?

I would say that so far, the shutdown has had a minimal impact. But I would then finish my sentence by saying but. So the point I'm making here is that they cannot go on forever. At some point in time, I'll give you an example, the Environmental Protection Agency that are issuing permits, 90% of the staff has been referred, so nothing is being done right now. So for us, right now, no or minimal impact. But if it was to go on for another month or 2, I mean, clearly, the entire industry will suffer from this. So for now good, but more color to be provided in Q4 at the end when and if we are not seeing any further improvement in that regard.

And maybe one more for me on M&A. You talked about this earlier. And clearly, you guys are always open for business. But is there any area, region, vertical that you're looking at specifically or anyone now that you find more attractive versus other sort of sectors, whether it's power, nuclear or anything that you're looking at specifically?

Yes, we are focused on at this moment on North America. So certainly, despite all the noise that we hear and the tension between our 2 countries, Canada, U.S. WSP, we believe that, one, if not the best place to do work and business in our space is North America. So we continue to be focused on North America. And obviously, if I had an opportunity to continue to grow our platform and the sectors that we're trying to build at the moment, power, water, project management services, transportation even. I mean that obviously is something that I would like to be in a position to do.

You certainly have the platform to do it.

We are now going to proceed with our next question, and the questions come from the line of Maxim Sytchev from National Bank of Canada Capital Markets.

Just a quick one for me as most questions have been already asked. In terms of U.K. growth acceleration, do you mind maybe providing a bit more color in terms of what's happening there because the headlines overall seem to be less than bullion, but clearly, you are finding ways to grow there. So would love to hear some comments.

Well, I think you're absolutely right. We are the leading firm in the U.K., and I'm saying that very humbly and respectfully to our peer group. And you are right in saying that we're finding ways to grow at a very high rate this year. We have an incredible leadership team in the U.K. and our win rate is outstanding. And we're going into 2026 with the same ambitions. So we'll see and more to come when we discuss our outlook for 2026, but I feel we're in a good position in the U.K.

We have no further questions. I will now hand back to you for closing remarks. Thank you.

Well, thank you again for attending this call, and we look forward to updating you on our outlook in 2026 during the next conference call. In the meantime, I'd like to wish you a great day. Thank you very much.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a good rest of your day.

Good day, and thank you for standing by. Welcome to the WSP Global, Inc. Second Quarter 2025 Results Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Mr. Weber, Global Head of Investor Relations. Please go ahead.

Thank you. Good day, everyone. Thank you for joining our call. Today, we will be discussing our Q2 2025 performance, followed by a Q&A session.

Alexandre L'Heureux, our President and CEO; and Alain Michaud, our CFO, are joining us this morning.

Please note that this call is also accessible via webcast on our website. During the call, we will make forward-looking statements. Actual results could differ from those expressed or implied. We undertake no obligation to update or revise any of these statements. Relevant factors that could cause actual results to differ materially from those forward-looking statements are listed in the MD&A for the quarter ended June 28, 2025, which can be found on SEDAR+ and on our website.

In addition, during the call, we may refer to specific non-IFRS measures. These measures are also defined in the MD&A for the year ending December 31, 2024. Our MD&A includes reconciliations of non-IFRS measures to the most directly comparable IFRS measures. Management believes that these non-IFRS measures provide useful information to investors regarding the corporation's financial condition and results of operation as they provide additional critical metrics of its performance. These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under IFRS and may differ from similarly named measures reported by other issuers and accordingly, may not be comparable. These measures should not be considered as a substitute for the related financial information prepared by IFRS.

With that, I will now turn the call over to Alexandre.

Thank you, Quentin, and thank you all for joining us today. Let me start by saying that I am very pleased with our performance in Q2 2025. We had robust profitability, increased cash flow generation and a historically low DSO for second quarter. We are also enhancing our 2025 financial outlook.

Let's dive into a few highlights. First, on net revenues. In Canada and the U.K., we delivered high single-digit organic growth and considering our backlog, the pipeline of opportunities and the recent economic stimulus announcement, we feel positive on the outlook. In the U.S., POWER Engineers delivered a solid 16% organic growth and significant revenue synergies opportunity, and the integration is progressing as planned. When considering the organic growth of POWER, we delivered high single-digit organic growth in the U.S. this quarter and our backlog is solid.

In the Nordics, we have seen an uptick in the activity level and our backlog is growing. And in Australia and New Zealand, our rightsizing activities are largely completed. Our backlog and pipeline of opportunities are expanding, and we expect a progressive return to growth in the second half of the year. All in all, we delivered solid growth while keeping our business fit for purpose, which continues or a testament of the strength of our diversified platform.

Second, on profitability, adjusted EBITDA grew by 22% in the quarter. Our adjusted EBITDA margin increased by 80 basis points as we continue to own in our productivity and project performance. I'm particularly pleased with the fact that we delivered margin expansion across each of our reportable segments despite absorbing optimization and rightsizing costs, which impacted our overall margin by approximately 50 basis points in the quarter. Excluding these costs, our focus on operational excellence delivered 130 basis point improvement in the quarter.

Third, following a strong cash generation performance in Q1, Q2 performance was even stronger. In fact, free cash flow increased by almost $400 million versus Q2 2024 and over $600 million versus last year for the first 6 months period. Our DSO stands at 69 days, making a historically low level for a second quarter. Our leverage ratio now stands in the middle of our target range and further deleveraging is expected in the second half of the year, which puts us in a favorable position to seize opportunities.

On the M&A front, we continue to pursue opportunities and strategically deploy capital. In Q2, we announced the acquisition of Lexica, U.K.-based consulting firm specializing in healthcare and life sciences. This acquisition adds expert to our planning, property and advisory business in the region, forming a new healthcare and life sciences advisory team.

WSP also announced the acquisition of Ricardo. Headquartered in the U.K., this consultancy firm delivers strategic advisory and engineering solution that intersect the global transport, energy and environment agenda.

Ricardo operates across Europe, Australia, North America, Asia and the Middle East. On July 15, the shareholders of Ricardo approved the scheme at the shareholders' meeting held in connection with WSP's acquisition. The acquisition received overwhelming support with over 90% of shares voted in favor of the scheme. This step marks an important milestone towards welcoming the team to WSP.

Closing the acquisition remains subject to obtaining the required regulatory approval and the sanction of the scheme by the U.K. Court, all of which is expected to occur in Q4 2025.

Now allow me to elaborate on the dynamics across our four core market sectors. The Transportation & Infrastructure sector continued to perform well in Q2. In particular, our leading tunnel teams continue to win new business, including the Virginia Department of Transportation mandate to provide project management services for two tunnels as part of the Hampton Roads Bridge-Tunnel Expansion project. Water continues to benefit from investment across most of our geographies. Of note, WSP secured a role in the substantial expansion of Ontario's Courtright water -- wastewater treatment plant.

Rail and transit also maintained robust momentum. For example, in Finland, we secured new business for several strategic projects in Nordic countries, including a segment of Rail Baltica in Estonia and the renewable of the Copenhagen Metro signaling system.

In APAC, WSP picked up strategic wins as the market continued to show signs of recovery. The new terminal of Perth International Airport is one of the many new projects we signed recently.

Let's now shift to our Property & Building sector. We posted strong performance in Canada, the U.S. and the U.K., which account for approximately 2/3 of our business and our backlog and pipeline remain healthy, which provide a positive outlook for the rest of the year. Four standout area are data centers, industry and advanced manufacturing, healthcare and defense, all generating significant opportunities that point to future growth.

For example, we continue to see strong data center investment in AI and digital infrastructure with approximately 300 new mandates in the quarter and robust activity across all of our geographies.

These mandates encompass site acquisition due diligence, campus master planning for new AI Giga factory, greenfield data center design projects, brownfield data center upgrades and the growing power and water infrastructure demand.

Let's move on to Power & Energy. The sector continued to demonstrate strong momentum throughout the quarter. Our thermal generation business is driving considerable growth. The transmission distribution market in the U.S. has remained active and most of our clients are maintaining or increasing their spend projections for 2026 and beyond.

Now a brief update on the ongoing integration of POWER Engineers. We successfully achieved several milestones and preparation to move POWER on our ERP system are in full swing. The success of this integration is evidenced by strong financial performance. The business is growing at a double-digit pace. We have a growing backlog and with over 250 active pursuit in the pipeline today, we are accelerating our joint market presence with a new and existing -- with new and existing clients.

On Earth & Environment sector thrive in a fluid environment. This last quarter, we secured a number of very important new wins in high demand area like power, energy, defense, technology, water and mining to name just a few. WSP was awarded a major PFAS project for the U.S. Air Force in the American Midwest. This win shows our strong position in the combined defense and water markets. Moreover, our leading biodiversity and marine expertise remains a key differentiator for WSP and in Canada, WSP secured a new mandate for Hydro-Quebec's major Gull Island hydro projects, which includes environmental studies, biodiversity assessments and geotechnical scopes.

Finally, a few updates on digital. As a reminder, at our Investor Day earlier this year, we shared three priorities for our digital strategy. One, growing organic digital revenues at least twice as fast as our core business; two, pioneer solutions that grew recurring digital revenue and three, be a catalyst for change in our industry, working with our clients and the world innovative technology companies.

We saw strong momentum around all these three focus areas for the first half of the year. We have met our internal organic growth ambitions globally and are confident for the rest of the year. Our pipeline is strong and growing across all our target offerings. For example, we have received multiple awards from clients who have requested our engineers -- engineering and science expertise to organize their critical asset data, artificial intelligence application.

Another example, we were awarded a multiyear contract in New Zealand to continuously monitor areas of landslide risk using specialized sensors and real-time alerting systems. Real-time monitoring of geo-hazard and extreme weather risk is one of several areas where we see strong growth signals for recurring digital revenues, which is in line with our second objective.

We have a lot of momentum with our digital ecosystem partners as well. In addition to the Microsoft alliance announced in February, WSP announced a strategic partnership with Urban Logic in late May and recently won projects where domain expertise and artificial intelligence solutions will predict wild fire risk in Alberta. We are in active discussion with several other potential technology partners.

We are very pleased with our progress with the Microsoft strategic alliance. Externally, this has resulted in several strategic wins and has led to numerous client conversations regarding how WSP and Microsoft can collaboratively address their most significant challenges. Internally, WSP has pragmatically deployed AI tools globally with strong initial impact and feedback. Several internal AI work stream are in progress with some already contributing to internal productivity improvements.

In summary, we are starting strong in our digital ambitions for the strategic cycles.

And now before I turn it over to Alain, I am pleased to reaffirm our #1 position in Engineering's News record 2025 list of the top 225 international design firms, a standing WSP has proudly held since 2021, with leading position in transportation, building, power, water, hazardous waste and sewer waste. Now over to you, Alain.

Thanks, Alex, and hello, everyone. I'm pleased to report on our solid quarterly results. For the second quarter, revenue and net revenue increased by 15% and 16%, respectively, displaying robust year-over-year growth. The increase was mainly attributable to acquisition growth of 10.4% and organic net revenue growth of 3.5%.

POWER Engineers continue to demonstrate strong growth with an organic growth rate of 16% compared to Q2 2024. Canada, the U.S., including POWER and the U.K. each delivered high single-digit organic growth in the quarter.

Backlog reached $16.3 billion, up 10.9% in the 12-month period, representing 11 months of revenue. Our book-to-burn ratio is above 1, similar to what we have delivered every quarter for the last 4 years. Overall, each of our key markets remained strong and of interest, we are seeing positive development and backlog increases in the Nordics, Australia and New Zealand.

Moving on to profitability. Adjusted EBITDA in the quarter grew to $633 million compared to $520 million in the second quarter of 2024, an increase of 22%. Adjusted EBITDA margin for the quarter stood at 18.2% compared to 17.4% in Q2 2024, an increase of 80 basis points, mainly due to the continued focus on productivity. Excluding optimization and restructuring costs, our margin increased 130 basis points in the quarter and each of our reportable segment delivered solid margin performance in the quarter.

Adjusted net earnings for the quarter reached $307 million or $2.35 per share, up 30% and 24%, respectively, compared to the second quarter of 2024. The increase is mainly attributable to higher adjusted EBITDA. As for our cash position, I'm particularly pleased with our very strong cash flow generation this quarter. Net debt to adjusted EBITDA ratio stood at 1.5x, which is within management's target range of 1 to 2x, which provides flexibility to deploy capital.

As we now conclude the first half of the year in a good position, we decided to update our 2025 financial outlook with adjusted EBITDA now expected to reach the higher end of the range. This is due to continued strong performance in Canada, the Americas and EMEA, thanks to the fact that our business in APAC is now largely rightsized and fit for purpose. Our net revenue outlook remains unchanged between $13.5 billion and $14 billion, with organic growth on a constant currency basis between 5% and 8%.

From a segment standpoint, net revenue in the APAC reportable segments are expected to conclude the year with low to mid-single-digit organic contraction. The remaining 2025 targets are -- and other assumptions are reiterated.

As a reminder, the '25 financial outlook excludes the expected contribution of acquisition not completed as of August 6, such as Ricardo Plc.

Lastly, I'm pleased to share that in addition to delivering strong financial performance in the quarter, we continued the deployment of our new ERP. We are now live in 15 countries with the Middle East, India and Africa added in June 2025. These recent implementations went well, and we have seen strong billing stats volume in the first month of operation. We now have approximately 50,000 active users under the new system.

On that, back to you, Alex.

Thank you, Alain. Let me just reaffirm how proud I am of our results this quarter and in the first half of the year. Our North American and U.K. businesses are benefiting from strong growth momentum and delivering leading margins. Our rightsizing initiatives in APAC are largely completed, and the business is now fit for purpose with a growing backlog. Our ERP rollout continues to progress as planned with productivity gains starting to materialize. We announced key acquisitions to further strengthen our platform, and we have a strong balance sheet and the M&A pipeline is healthy.

Overall, we are well positioned for the future and are feeling good about the second half of the year. We believe our diversified business and the long-term trends driving our industry will continue to support compounded sustainable performance.

With that, we can open the lines to questions.

[Operator Instructions] And the question come from the line of Steven Fisher from UBS.

Congrats on the progress here. Really a standout performance in cash flow. It seems like you're moving on from the ERP costs and you have the benefit of Section 174 R&D expensing. I suppose that leaves M&A and cash drag and really just execution. So maybe you can just give us a sense of how to think about any cash drag from M&A ahead? And to what extent your execution focus can kind of keep cash flow at this healthy level?

Well, you look at our leverage and our ratio to EBITDA at the moment, we're already back to the middle of the range that we've provided in our outlook. So I think we are deleveraging very, very fast. So obviously, I just mentioned, Steven, that the pipeline of opportunities is healthy. And I continue to believe that this is part of our DNA to continue to have a strategy that combines strong organic growth, strong margin improvement, but also inorganic growth. So without providing any future guidance as to what may or may not happen in the second half of next year, we do -- we are extremely pleased now with our cash flow generation.

And I think you are right in saying that now 80% -- more than 80% of our EBITDA has been converted on the ERP, so we have significantly derisked this program. And now I think the benefits are materializing.

Yes. And if I could just add a few points. Strong performance this quarter and Q1 too was strong on free cash flow. If you look at the last 12 months, it's roughly $1.5 billion of free cash flow we generated. Our conversion rate is now standing at about 1.9x net earnings. So this is significantly above the typical conversion rate of 100%.

So we continue to push hard on working capital management. So I don't foresee any change in the cadence for the rest of year Q3, but most importantly, Q4 usually strong free cash flow quarter. In terms of drag, the only one to keep in mind is the Ricardo acquisition that will generate some payment most likely in Q4, but that's a positive. That's the way I would put it.

That's very helpful. And then just in terms of organic growth, I mean, it seems like you might be more on track for the lower end of organic growth range for the year. But I guess to what extent is there still a path to the upper end of the range? And related to that, are there any extra workdays in the second half to be aware of since that was a headwind in Q1?

Yes. So feeling good overall. I think that that's the statement about the second half of the year. We have our largest region, Canada, U.S., U.K., you heard in our opening commentary, delivering high single-digit growth, which on balance, you could probably say that this is a bit higher than what we guided. So there's some positive on that level. The regions that were creating a bit of a drag on our numbers, I think they're in a much better position now with a progressive return to growth. So obviously, that's where we stand.

The various things to keep in mind is, yes, the billable days, we had called out in Q1, especially in the U.S. We will see the reversal of that in Q4, at least for the most part. And then we need to keep in mind we have significant disaster recovery response revenue in Q4 last year in the U.S. So hurricane season, storm season is starting. So we shall see. But for the time being, we remain confident for the rest of the year. We'll see how Q3 unfolds, and we'll reassess our guidance as we report on Q3 results.

We are now going to proceed with our next question and the questions come from the line of Sabahat Khan from RBC.

Just wanted to dig into some of the comments you made in the prepared remarks around some of the regions. I think the two most dynamic have been the U.K. and the U.S. with some of the elections, new policies, et cetera.

Maybe if you can just dig in and just walk us through some of the dynamics you're seeing on the ground? It does sound like your results were positively driven by those markets. But just curious on the puts and takes in those two markets and just the outlook ahead for those regions.

I mean it's more than just the U.K. and the U.S. I mean if you look in the last 12 to 18 months, we had election in New Zealand. We had election in the U.K. We had election in Australia. We had election in Canada last quarter. We had election in the U.S. So we had a Liberation Day and despite all this turmoil, because I mean, when there's an election, there's a change of priorities, WSP continued to perform very well in those markets. Obviously, there's been a slowdown in Australia and New Zealand. In my personal opinion, I would call this near-term slowdown. I think New Zealand and Australia, we're seeing now the proposal activity level coming back.

And as Alain said, we are going to see progressive return to growth in those -- in that region. So we're overall feeling very good. As it relates to U.K. and the U.S., there has been obviously a shift in some of the priorities from past governments. But the good news is that even with the Big Beautiful Bill and U.K. statement from government, infrastructure spending remains a top priority for those countries.

Great. And then one of the thematics that's obviously been picking up in the recent quarters and year is and we're really noticing that this quarter is matter on data centers. It sounds like that was one of the drivers around just your POWER acquisition, your involvement in that space. Maybe you could just dig into the demand environment today, how that compares to when you got into sort of the POWER acquisition? And maybe just dig into the opportunity ahead today relative to what you have thought when you actually made that acquisition?

Yes. Well, on the back of last year, obviously, we saw a very, very strong demand on that segment. I would say in the first half, there was a bit of a cooling off, but I can tell you that over the last months and what we are foreseeing our pipeline in the next 6 months and the remainder of the year, we are starting to see, again, very, very strong demand for that segment. So I think it bodes well in the short term, the medium term, but also in the long term. So I think the POWER acquisition was, I've said it before, I'll say it again, was not a good to have or good to do, for us, it was a must-do deal. And I'm extremely pleased that we completed this acquisition. It's very, very strategic for our platform.

We are now going to proceed with our next question and the questions come from the line of Krista Friesen from CIBC.

I was wondering if we could just dig in a little bit on the 50 bps hit from restructuring. Was that largely APAC? Or was that a little bit more broad?

Largely APAC.

And it's in line, Krista, with what we discussed in Q1, right. We had said that we had done a fair share of bringing our business more to a fit-for-purpose level in Q1, and we had announced that we would still do a bit of work in Q2, which is what happened. So it's in line. And it's -- as Alex said, it's -- the biggest chunk is in APAC.

And then again, for the sake of repeating ourselves, we absorbed those costs. And despite that, we've increased -- we have now visibility on the higher end of our range from a bottom line point of view.

Right. And then maybe if you can just comment on, are you seeing any changes in the conversations with your customers south of the border just as a result of all the various legislative changes we've seen over the last couple of months here?

I think that the market is very -- is still very, very dynamic. Of course, there's some question asked. I think the intent of the new administration is to expedite and facilitate investment. There's been some shift in priorities for instance, away from renewable, maybe more in fossil fuel and a few other matters. But I think the real intent is really to facilitate and expedite investments. So in some ways, we have not seen much disruption at this point. We're quite pleased with the way the market and our clients have behaved and operated in the current environment.

We are now going to proceed with our next question. And the questions come from the line of Benoit Poirier from Desjardins.

Congrats for the solid quarter. Just on the acquisition of Ricardo, could you provide more details about the opportunities to bring margins to double ESP levels down the road, but also what we could -- we should expect from a net revenue, EBITDA as you're looking to divest some businesses once that deal is closed?

Yes. We haven't closed the transaction, Benoit. So we're not going to comment just yet on the impact that this will have on the numbers going forward. But I can tell you that we're highly confident that we are going to bring up the Ricardo margins to our level. We've done it on numerous occasions in the past. If you look at the POWER Engineers, obviously, we're not disclosing margins level by acquisition, but I can tell you that right at this point, 6 months into the year and 6 months after closing or I should say, 8 to 9 months, after closing, we have seen a huge shift up in the margin level of POWER Engineers. So I'm highly confident that we are going to achieve that, and I think we are going to achieve that very quickly.

And Benoit, more to come on all of this. But in terms of status, we have the AGM, where the transaction was voted in favor 99-plus percent. So that's good news. And from a regulatory review standpoint, things are progressing well. So we expect a closing in Q4. And we don't control and know exactly how it's going to turn out. But if I would have to bet based on past experience, this should be closed in the earlier part of Q4 rather than the later part of the quarter.

That's great. And for POWER Engineers, obviously, we see a lot of -- you see a lot of revenue synergies with this acquisition. You announced Stuart McLaren, Head of Nuclear. So I'm just wondering about the potential synergies we might see and what kind of area of expertise it could add to POWER Engineers right now?

Well, POWER Engineers is one, if not the leading firm in transmission, which is a very high value proposition for our clients. We continue to develop our expertise and continue to grow our expertise and distribution on the electric side. Power gen is something that POWER Engineers has been very busy growing this year. We see tremendous growth on power generation. And in terms of source of energy, I think we are doing great work right now, like I said, on the electric side. But we are also doing -- and it's not something we talk a lot about typically, but we do a lot of work on the nuclear side here in Canada, more in the U.K. and obviously, in the U.S. with all of the SMR that are currently being designed. So all in all, I'm feeling very bullish around this acquisition and very bullish around this sector.

[Operator Instructions] We are now going to proceed with our next question and the question comes from the line of Frederic Bastien from Raymond James Limited.

I wanted to go back to these comments you made around the data center and the 300-plus new assignments that you were able to secure from -- that were related to that. Presumably, you had a lot of that growth coming from POWER Engineers. And I think that business has been growing 15-plus percent organically year-to-date. Could you sort of piece out or parse out the growth that you experienced between sort of end markets is data center, the bulk of the growth -- the bulk of what led the growth? Or were there other end markets that you would point out?

You mean with POWER Engineers, Frederic? Or you mean...

Yes. Yes, specifically for POWER Engineers.

It's clearly more than that. I mean we work with most, if not all, of the major utilities in the U.S. So at the moment, I mean, I would say we work with the existing blue-chip client list that the POWER Engineers had. But what's great now is that we are able to bring POWER Engineers on our public sector clients, we are able to bring them on our property & building sector clients. So I think that's what -- why we're seeing this acquisition to be so dynamic for us at this point.

Okay. And then I keep remaining quite impressed with the performance in Canada. The region continues to lead the way with organic growth, 9%, and you had the highest margins at almost 24%. So clearly, this company is standing out -- sorry, the region is standing out. And I remember, Alex, you made some comments about the potential for all the other regions to effectively catch up to where Canada is right now. How strongly do you feel about this? And any idea of sort of what type of time frame you'd be looking at to bring the other regions up to Canada standard?

Well, for the others to catch up Canada, they will have to slow down a little bit. They're too good. But you are right in commending our home country. I'm extremely pleased with our performance. Standing out performance for many quarters now. And I expect continued performance for Canada. And the goal as we discussed and unveiled our plan in February, our 3-year plan, Frederic, we are -- now have our eyes set on more than 20% on aggregate for the company.

And so I can tell you that the U.S. business is providing stellar numbers as well, and they're continuing to improve the margin profile. You will recall where we were in the U.K. back in, for instance, '15, '16 and where we are today. Stellar performance of our U.K. business.

I could pinpoint to Australia. I understand that we are not disclosing margin profile by country, but I can tell you that we have increased our margin profile in Australia by a couple of hundred basis points. Same thing with New Zealand, that is well above 20%. So to your point around bringing up everybody, I think what's great is when you experience success in many parts of the world, you want to leverage best practices across the group, and that's what we've been doing, and it's been really paying off for us.

Extremely pleased with this 80 basis point increase in the quarter. And again, we're not afraid and you know us, we're not afraid to rightsize businesses when we see fit. So without that, it would have been 130 basis points in the quarter. So it's quite extraordinary. So I feel that all the countries right now are headed in the same direction, which is up.

We are now going to proceed with our next question and the questions come from the line of Chris Murray from ATB Capital Markets.

Just following up maybe on that question about margins a little bit. The 80 basis points that you saw today, I mean, it sounds like there's a lot of things that are going right. But I was wondering in the commentary, you said that it was mainly driven by productivity. But is there anything else to be thinking about in terms of any other benefits you're seeing? Or is it just basically having better absorption and utilization supporting that margin growth at this point?

No, it's not just a utilization game. I think we are seeing actually our operating margins going up, gross margin, and we are seeing our -- and this is a function not of just utilization but also pricing. So we're feeling quite good about that. And also, Alain and the team are working very hard to continue to optimize our platform and leverage best practices. So we have seen -- I would tell you, we have seen improvement in our margin profile pretty much across the value chain, and I expect that to continue.

And as we build our brand, I've talked about that many times over, now clients are recognizing the expertise that we bring to the table, the technical excellence that we are bringing to the table. It allows us to be more selective in the projects that we undertake, but it also allowed us to charge for the great work that our engineers are doing. So overall, I feel that we are seeing improvement across the patch at the moment.

Okay. That's helpful. Maybe turning back to APAC and maybe trying to frame this appropriately. So hearing -- like with what I'm hearing, it feels like -- I think you said that you're starting to see the region kind of fit for purpose, but you also mentioned you're starting to see signs of recovery. And I think you called out particularly Australia and New Zealand. But I'm just wondering, is this -- is APAC going to be pretty much just Australia and New Zealand on a go-forward basis? And how do we think about -- given you had the weak front end and the updated guidance, It almost implies that you're kind of at a more stable position today on a go-forward basis. So just any thoughts around -- because APAC has got a lot of moving parts to it. Just any thoughts about how you see the APAC business evolving from this point forward.

Well, we're big fans of our Asia Pacific business. Through peaks and valleys, we've always been committed to Australia and New Zealand and will continue to be highly committed to New Zealand and Australia. At the moment, Canada is more than twice the size of our Australian business. So if we see opportunities to continue to grow our Aussie business, we will. But at the end of the day, when you look at the government data that the government data that was published, for instance, in New Zealand, we saw in 2024, a reduction by the new government of 20% in investment in 2024 alone and another further 4%, 5% in 2025.

Not because New Zealand doesn't have a good balance sheet. Actually, they have one of the best balance sheets. But because the new government wanted to reprioritize the infrastructure spending in other areas of the country. So as I said before and I said earlier on in my address, for us, this is just a near-term bump, and we expect those countries to go back to growth in the near term, progressive growth in the near term. And when you talk about Asia and Asia Pacific as a whole, you are right in saying that right now, our focus area has been New Zealand and Australia because Asia right now represents such a small part of our business going forward.

And I would argue that there too, most of the work has been done. So we're feeling good going forward essentially.

[Operator Instructions] We are going to proceed with the next question and the questions come from the line of Jonathan Goldman from Scotiabank.

Most of them have been asked already. But Alex, maybe can you share your thoughts on the bill P5 in Canada, how that may impact your business? And is the timing of that, I guess, more medium to longer term? Or just how do you think about any opportunities from that flowing through?

I think overall, I mean, there's very few -- a number of important bills that will come into effect. And we're feeling actually very good around the state of the country and the direction that the new government is going to take. So overall, I'm feeling very good about it.

And then I guess maybe one on the DSO. I mean, pretty impressive performance an all-time low. Can we think about that level as being sustainable? Obviously, there is the historical seasonality in the business. But can you maybe talk about some of the drivers that lead you to put in that performance?

I'll let Alain answer that question.

Yes. Yes, so we're standing at a very good level for Q2 at 69 days. Our guidance for the full year is between 67 and 73. So we have to remember what have driven our DSO to be a bit higher in the past few years. There was two elements that impacted us was, one is the initial rollout of our system, which in my opinion, this is now behind us, things are working much better. And the second headwind we had was at Section 174 overall on free cash flow, which has now been reversed through the One Big Beautiful Bill Act in the U.S. So we expect tailwind on free cash flow for Section 174 this year.

And as it relates to DSO, I would say we're back to be leading again on that front, in which we've been leading for many, many, many years. So part of the DNA, right, focused on productivity, but cash as well is a big area of focus for us. And I expect to continue to see good performance in the coming quarters, especially that we're entering Q3, but most importantly, Q4 and big collection quarter. So I am cautiously optimistic, I would put it that way, for continued good trajectory on the DSO level for the rest of the year.

We are now going to take our last question and the last questions come from the line of Ian Gillies from Stifel.

As you think about the aspirational EBITDA margin target of 22% and when you're putting that together, I guess, how much impact did you anticipate in that from the AI tools and productivity gains that are going into place? And I know this is a bit of a challenging question. At what point do you think you'll be able to start more closely identifying the impact it's having on margins and productivity?

You are right in saying it's a tricky one. Look, I can tell you that we are very, very active in that space. and we are working very closely with Microsoft and the strategic alliance that we formed together is extremely helpful in that regard. I can tell you, for instance -- I'll give you an example. In our bidding group, and I'm careful about saying that, but we believe that very soon, we will be able to reduce some of our human output by close to 80%. So that's not de minimis because we have bidding groups across each and every segment and across each and every country. So that's an example of where we feel we can make a tremendous improvement and reduce human intervention.

But it's not just about AI. It's about what we have been able to achieve over the last decade. If you take our revenue per employee over the course of the last decade, you will see constant growth over the years of super employees. And that's a testament of what we have been able to achieve. In other words, doing more with less. And you will see that our revenue at the moment is growing much faster than our headcount, if you track that very carefully. And that's why today, unlike perhaps 5, 6, 7 years ago, I am not talking as much about head count than we used to because to me, it's becoming more irrelevant than it was 5, 6 years ago.

So I hope I'm answering that question. But certainly, I mean, in terms of human intervention and all of our corporate function, but also in operation, we are seeing tremendous opportunities at the moment.

No. That's very helpful. And maybe on a separate note, backlog growth year-to-date, obviously, is expected to pick up. Can you maybe talk a bit about the impacts, environmental has on that backlog growth? Because if I recall correctly, the churn is usually a little quicker. And I believe backlog typically grows in that business in 4Q.

Yes. Well, the backlog has continued to grow, that's good. It is a very dynamic sector for us in Canada. It also has been very dynamic in the U.S. In the short term, I think this year, there are reasons I can explain with definitive statements, the field work has been a little bit more quiet than perhaps what we have seen in the last 2, 3 years, especially in the U.S. But I don't believe it's related to anything that has been discussed in the press or the changes that the administration are looking to make.

But in terms of activity level, in terms of market dynamics, we're feeling very good about it. Remember also that there was a strike in the province of Quebec by engineers. So that too impacted a little bit of our Canadian business this summer. But I think these are moment in time as opposed to structural issues in the marketplace.

We have no further questions at the moment. So I hand back to you for closing remarks. Thank you.

Well, thank you very much. Again, we're extremely pleased with the quarter, the strong performance of our large hubs, our margin improvement and especially our cash flow generation. M&A pipeline is great, and we look forward to updating you over the course of the next few quarters. Thank you very much, and have a great day.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a good day.