U.S. government shutdown could hit WSP Global if it drags on: CEO

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This article was published 06/11/2025 (299 days ago), so information in it may no longer be current.

MONTREAL – The head of WSP Global Inc. says the government shutdown in the United States could hurt the engineering giant’s bottom line if it drags on much longer.

So far, the halting of government services and permitting has had a “minimal impact” on the Montreal-based company, which has a big presence south of the border, Alexandre L’Heureux told analysts on a conference call Thursday.

“But if it was to go on for another month or two, clearly the entire industry will suffer from this,” he said.

L’Heureux cited the example of the U.S. Environmental Protection Agency, which issues permits and guidance for projects linked to water quality and sewer systems — both within WSP’s wheelhouse — among other areas.

“Nothing is being done right now,” he said.

“It cannot go on forever.”

This week, the ongoing shutdown reached a critical milestone — the longest in history — as the impasse between Republicans and Democrats pushed into its 36th day as of Wednesday.

It is unclear how long the shutdown will last as federal offices remain shuttered and workers miss another paycheque heading into the holiday season.

Contracts in North America generate well over half of WSP’s revenues, with the U.S. far and away its biggest market globally.

For now, WSP is flying high after a quarter that saw profits rise 40 per cent to $284.5 million year-over-year.

It was selected as the lead designer for Toronto’s Eglinton Crosstown light-rail transit extension. And it continued its long-running acquisition spree, completing last month the purchase of U.K-based engineering firm Ricardo, which employs some 2,700 workers across 20-plus countries.

WSP’s backlog in Canada has grown 15 per cent since the start of the year, L’Heureux said. To keep the good times rolling, he called for a rapid rollout of federal spending on infrastructure projects laid out in the Liberal budget this week.

“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,” the CEO said. 

He added that he viewed the federal budget “positively.”

On Wednesday evening, WSP reported that revenues increased 14 per cent to $4.53 billion year-over-year in the quarter ended Sept. 27 due to acquisitions as well as organic growth.

Its backlog rose 10.6 per cent from a year earlier to reach $16.4 billion.

On an adjusted basis, WSP’s net earnings rose to $2.82 per share from $2.24 during last year’s third quarter, beating expectations of $2.66 per share, according to financial markets firm LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 6, 2025.

Companies in this story: (TSX:WSP)