Power generation and energy work now accounts for roughly 35% to 40% of WSP Global's U.S. revenue, a dramatic shift for the Canadian engineering firm that earned about 80% of its American income from transportation and infrastructure just five years ago, CEO Alexandre L'Heureux said during a second-quarter earnings call Aug. 6. The surge reflects what L'Heureux described as "long-term-duration investment themes" driving demand across power and energy, data centers, advanced manufacturing, nuclear, water, defense and critical minerals. The company reported revenue of CA$5.4 billion ($3.9 billion) for the quarter ended June 26, up 20% from CA$4.5 billion a year earlier, according to WSP's management discussion and analysis.
Net revenue from WSP's 40 largest global power clients jumped 30% year over year, while its hard backlog from those U.S. utility customers climbed 20%. Data center revenue grew more than 20% year over year during the first half of 2026, with the sales pipeline expanding roughly 30% over the same period. Water revenue increased 20%, while the water opportunity pipeline surged 61% as municipalities invested in aging infrastructure, PFAS cleanup, water quality mandates and climate resilience. The company's overall backlog reached a record CA$20.1 billion, up 23% from CA$16.3 billion a year earlier, representing 11.6 months of revenue. Despite the revenue growth, net income fell 12% to CA$246.1 million from CA$279.4 million during the same quarter last year.
"The strongest areas of demand we see today are directly linked to long-term-duration investment themes," L'Heureux said during the call. CFO Alain Michaud noted that the company continues to see "accelerating momentum in the U.S." When an analyst asked whether any U.S. sectors were dragging on growth, L'Heureux pointed to the timing of awards but rejected the idea of broader weakness, saying "our other sectors are performing as planned at this point, so we don't have any disappointments." The CEO also said he was "very impressed with the scale of the bids that we're pursuing right now."
WSP's expansion into U.S. power markets came largely through its acquisitions of POWER Engineers and TRC Companies, which broadened its presence among American utilities. The company is now supporting 22 prospective U.S. nuclear sites, handling responsibilities that include site selection, licensing, design and construction support. The firm's performance reflects broader infrastructure investment trends as utilities modernize power grids, communities address water system failures, and tech companies build out data center capacity to support artificial intelligence and cloud computing demand.
WSP attributed the 12% drop in net income to higher acquisition and integration expenses, larger unrealized derivative losses, and increased amortization and depreciation costs that more than offset improved operating performance. But with backlog at a record high and the sales pipeline expanding across multiple sectors, the company's leadership expressed confidence that the shift toward power and energy work positions WSP for sustained growth in markets tied to America's long-term infrastructure needs.