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WSP’s business model is not in danger of becoming obsolete as the construction industry transitions from “AI euphoria to AI hysteria,” CEO Alexandre L’Heureux told investors during the firm’s fourth-quarter and full-year earnings call on Thursday.
The reassurance came in response to concerns over professional services firms being toppled by artificial intelligence, worries that L’Heureux said were “top of mind” for many investors and analysts.
“In recent months, many actors have painted all professional services firms with the same AI brush, worrying that we are entering an era where advanced AI will replace firms like WSP,” L’Heureux told investors. “WSP’s recent share price performance was not immune to that sentiment.”
The company’s stock recently hit a 52-week low. It rebounded modestly on Thursday after the company’s earnings call.
L’Heureux took steps to distance WSP from other firms in the space, both in what it’s capable of delivering and the way that it integrates AI into its workflows. He pointed to the company’s 83,000 experts who design and manage projects across the construction and engineering spectrum — these include bridges, transit systems, water treatment plants, energy facilities and environmental remediation jobs.
Where WSP shines, L’Heureux said, is the company’s work in the physical world versus the virtual domains that other firms might find themselves operating in.
“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,” L’Heureux said. “In contrast, other industries to which WSP may be compared to, largely operate in the virtual sphere.”
Indeed, WSP updated its artificial intelligence statement on Feb. 17, outlining the company’s guiding principles for the technology and its commitment to human oversight.
Making it work
L’Heureux also emphasized the company’s “machine-in-the-middle” approach to AI, which ensures that humans have the first and final say.
“AI-generated outputs are always subject to rigorous human oversights, thorough quality control and professional accountability,” L’Heureux said. “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.”
Analysts on the call peppered L’Heureux and Chadi Habib, WSP’s chief technology officer, with questions about AI, including the company’s stance on developing solutions in-house versus hiring outside firms.
The question has become increasingly common at construction firms. Turner Construction, for example, unveiled a “wall-to-wall” partnership with OpenAI last fall that would help the company accelerate its own AI use and has changed the build versus buy calculus at the firm.
Meanwhile, Balfour Beatty’s U.S. arm hosted an AI hackathon in September geared toward helping employees develop their own solutions to common construction problems.
Habib told investors that WSP’s domain knowledge was valuable to smaller firms, who didn’t have access to those types of resources at scale. In fact, Habib said that WSP received more calls from startups than the company initiated because of that domain knowledge.
“We’ll work with the ones that are willing to work with us on protecting our domain expertise while driving value to our clients,” Habib said. “In other cases, we’re building internally our own proprietary models that will remain within our parameters, so we can retain that IP and the value we bring to our clients.”
The numbers
WSP reported revenues of $4.85 billion Canadian dollars ($3.54 billion) for the fourth quarter ended Dec. 31, 2025, according to a news release announcing financial details. That figure is an approximately 4% increase year-over-year from CA$4.66 billion.
The company also reported CA$256 million in profit on the quarter, an approximately 54% increase from the CA$167 million year-over-year.
For full year 2025, WSP reported CA$18.3 billion in revenue, a 13% increase from 2024’s CA$16.2 billion. It also reported CA$964 million in profit, a 42% increase from the prior year’s CA$681 million.
Backlog reached a record level of CA$17.1 billion, a 10% increase year-over-year from the prior CA$15.6 billion.
“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,” L’Heureux said.
