Wood Group on target for $6bn revenue

Wood CEO Ken Gilmartin

John Wood Group, the Aberdeen-based engineering and consulting giant, said its third-quarter revenue rose 8% to $1.477 billion.

Group revenue for the first nine months of the year (YTD) was $4.463 billion, representing growth of 13% and in line with the firm’s expectations of around $6 billion for the full year.

“Group adjusted EBITDA for Q3 and YTD was in line with our expectations, with growth across all of our business units in the third quarter,” said Wood.

Consulting Q3 revenue was up 22% to $190 million with YTD revenue up 17% to $546 million. Growth was led by a strong performance across digital consulting in the quarter, supported by continued growth in technical consulting across energy.

Consulting YTD EBITDA was broadly flat compared to last year, reflecting strong underlying trading and the timing of sales in our energy asset development business, with a strong performance expected in Q4.

Projects Q3 revenue was up 6% to $604 million, with YTD revenue up 19% to $1,849 million, with very strong growth continuing across energy, and some benefit from higher pass-through revenue.

“As expected, growth was lower in Q3 than the first half of the year, reflecting both a stronger 2022 comparator and lower volumes in our minerals and chemicals businesses.

Projects YTD EBITDA was higher than last year, reflecting the revenue growth and an improved contract performance overall.

Operations Q3 revenue was up 4% to $613 million, with growth of 9% excluding the sale of Gulf of Mexico. YTD revenue was up 5% to $1,857 million (9% excl. Gulf of Mexico).

“The revenue growth reflects higher activity levels, particularly in Europe and the Middle East, and higher pass-through revenue compared to last year.

Operations YTD EBITDA was higher than last year, helped by good operational performance.

Investment Services Q3 revenue was up 31% to $71 million, with YTD revenue up 45% to $212 million. This growth reflects higher activity in our heavy civils business, and the facilities business transferred from Projects at the start of the year.”

Wood CEO Ken Gilmartin said: “We have delivered another quarter of strong growth in revenue and EBITDA as we continue to execute against the growth strategy we set out a year ago.

“I am particularly pleased to see continued progress across sustainable solutions, now making up 35% of our pipeline, and some excellent contract wins in the period.

“Reflecting the momentum that we are building in the business, we remain confident that our actions, business model and strategy are delivering.”