WSP is happy with its infrastructure business and backlog in the U.S., CEO Alexandre L’Heureux told analysts on the firm’s third quarter earnings call on Thursday.
It’s the pace of projects that’s the issue.
“Since our second quarter results, we have longer timeframes between project award, funding authorization and the start of work” in the public sector, L’Heureux said.
L’Heureux attributed the delays to federal funding reviews by the Government Accountability Office and permitting reform.
“Look, since the administration was elected in late '24, as you've seen and witnessed, there's been a lot of changes in priorities by this administration, certainly in the infrastructure spend,” L’Heureux said.
He added that WSP would continue to monitor client and funding authorizations, along with developments from the recent midterm elections that saw Democrats take over both chambers of Congress. The elections have created uncertainty for builders, who now await the fates of data center construction trends and infrastructure funding nationally.
However, L’Heureux’s outlook on the fundamentals of the infrastructure market itself remains the same.
“I think it's a buoyant market. The demand is there. More importantly, the needs are there, and we have seen backlog growth in the U.S. market,” L’Heureux said.
L’Heureux’s comments about the delays piqued the interest of several analysts on the call, who asked the CEO about the specifics of these delays and other legislative queries.
“Look, I don't have a crystal ball, and I'm not a political expert. I can only tell you what I think is going to happen,” L’Heureux said in response to one analyst's question about extended Infrastructure Investment and Jobs Act funding up to Dec. 11. “I think December 11 will get extended for the new Congress to review what they intend to do and the negotiation they intend to have with the president.”
The power of power
Alongside infrastructure, WSP remains bullish on its ability to perform in the power sector, a continuation of the stance it took on the sector in its Q2 earnings call.
“At the same time, the structural drivers in power and energy continue to strengthen, fueled by electrification, energy capacity and the need to modernize aging grids,” L’Heureux said.
For example, L’Heureux pointed to American Electric Power, which picked WSP as a delivery partner last week for projects in Texas, Oklahoma, Arkansas and Louisiana. In addition, TRC Companies, which WSP made a deal to buy in 2025 for $3.3 billion in cash, was another bright spot for the firm. TRC’s power and energy market hit double-digit net revenue growth in the first nine months of 2026 compared to before the acquisition, per the firm.
“This is an important strategic win for our U.S. business and demonstrates the type of long-duration client relationship we believe our expanded power and energy platform can increasingly capture,” L’Heureux said.
As public opposition continues to mount against data center construction, L’Heureux noted in response to an analyst question that data centers are not often the company’s focus.
“Our thesis around our power and energy sector is not related to data centers,” L’Heureux said, and added that only a small part of its work in substation design and transmission modernization is related to those structures. He also mentioned that many of the transmission lines in the U.S. have reached their useful lifespan.
“All of that will have to be replaced irrespective of data centers,” L’Heureux said. L’Heureux’s comments echoed a similar sentiment from heavy civil contractor Tutor Perini on its own call this week, as the builder also sought to distance itself from data center construction.
The numbers
WSP’s backlog reached a record CA$20.3 billion ($14.5 billion), an approximately 24% increase year over year. The firm also reported CA$5.3 billion in revenue, an approximately 16.6% increase from Q3 2025.
The company reported CA$333.7 million in net earnings, an approximately 17% increase from CA$284.5 million in Q3 2025.
“The world's infrastructure needs are becoming larger, more complex, and more interconnected, precisely the environment in which WSP’s scale, technical depth and global platform create the greatest value,” L’Heureux said.
