Wood Revenue and adjusted EBITDA exceeds projected expectations
Revenue of $3.0 billion was up 16% (+20% at constant currency) with growth in all business units
Adjusted EBITDA of $202 million was up 9% on last year (+12% at constant currency)
Adjusted EBITDA margin of 6.8%, down 0.4ppts on last year, reflecting increased low margin pass- through revenue and our previously guided opex investments across the Group to deliver future growth
AdjustedEBITup 9% to $89 million following the EBITDA growth
Adjusted diluted EPS of 1.1c was down 81% on last year, mainly reflecting the absence of Built Environment Consulting (sold in 2022) which contributed $57 million of adjusted profit after tax in HY22
Adjusted operating cash flow of $39 million was significantly improved on last year, with improved working capital and lower utilisation of provisions more than offsetting the sale of Built Environment Consulting
Free cash flow of $(219) million reflects phasing of exceptional cash outflows ($99 million vs. c.$140 million expected for FY23) as well as the typical working capital seasonality of our business
Net debt (excl. leases) at 30 June 2023 was $654 million, significantly down on last year following the reset of our business, but higher than December 2022 ($393 million) given the free cash outflow and the payment of $62 million of tax on the sale of Built Environment Consulting
| HEADLINE RESULTS | Notes 1,2,3 | HY23 $m | HY22 restated $m | Movement % | At constant currency % | |
|---|---|---|---|---|---|---|
| Revenue (pre-exceptional) | Continuing | 4 | 2,986 | 2,571 | 16.2% | 19.7% |
| Adjusted EBITDA | Continuing | 5 | 202 | 186 | 8.5% | 12.3% |
| Adjusted EBITDA margin | Continuing | 6 | 6.8% | 7.2% | (0.4)ppts | (0.4)ppts |
| Adjusted EBIT | Continuing | 7 | 89 | 82 | 9.2% | |
| Adjusted EBIT margin | Continuing | 8 | 3.0% | 3.2% | (0.2)ppts | |
| Adjusted diluted EPS | Total group | 9 | 1.1c | 5.7c | (80.7)% | |
| Adjusted operating cash flow | Total group | 10 | 39 | (82) | n/a | |
| Free cash flow | Total group | 11 | (219) | (352) | (37.8)% | |
| Net debt including leases | Total group | 980 | 2,156 | 54.5% | ||
| Net debt excluding leases | Total group | 654 | 1,756 | 62.8% | ||
| Net debt / adjusted EBITDA | Continuing | 12 | 2.0x | 4.0x | n/a | |
| Order book | Continuing | 13 | 5,991 | 6,424 | (6.7)% | (4.3)% |
| Headcount | Continuing | 14 | 35,636 | 34,079 | 4.7% | |
| STATUTORYRESULTS | ||||||
| Revenue | Continuing | 4 | 2,986 | 2,563 | 16.5% | |
| Operating profit | Continuing | 23 | 31 | (25.7)% | ||
| (Loss) / profit for the period | Total group | (27) | 89 | n/a | ||
| Basic EPS | Total group | (4.3)c | 13.0c | n/a | ||
| Cash flow from operating activities | Total group | (7) | (117) | 93.9% | ||
Built Environment Consulting (sold in September 2022) is treated as a discontinued operation and its results are included within the “Total group” measures. Continuing results exclude its results. HY22 results have been restated to include Built Environment Saudi Arabia. See notes.
Ken Gilmartin,CEO,said:
“When we announced our growth strategy in November last year, we set out a plan for Wood to deliver on its significant potential, and I am delighted that our results show the clear progress we are making. We have made a good start to the year, delivering growth in revenue, EBITDA, headcount and our pipeline, all while furthering our inspiring culture, as evidenced by our highest-ever employee net promoter score.
“As we look ahead, we are confident that our actions, the business model we have implemented and the market growth opportunities to which we have aligned, support the momentum we are building in our business. As such, we are increasing our full year guidance for the year for revenue and EBITDA.”
Delivering on our profitable growth strategy
- Well-positioned for growth across energy and materials
- Market growth opportunity of c.5% CAGR with addressable market of c.$235bn in 2025
- Double-digit revenue and pipeline growth in HY23 across majority of our key markets
- Excellent growth across Carbon Capture and Hydrogen
- Order book of $6 billion, up 5% compared to December 2022 (at constant currency and excluding the divested Gulf of Mexico labour operations business)
- Significant contract wins across energy and materials
- Growing and improving our pipeline
- Right business model in place, predominantly services-based cost reimbursable business
- Double-digit growth in the 24-month factored pipeline versus December 2022, following strategic clean up last year that removed lump sum turnkey (LSTK) and largescale lump sum EPC work
- This pipeline growth reflects the strength of our markets and our client offering
- Positive trends in pipeline gross margin reflecting selectivity of our bidding, and market conditions
- Engaged and energised people
- Headcount up 5% to around 36,000 people
- Highest recorded employee net promoter score scores to date
- Growing our sustainable business (see note 15)
- Over $600 million of sustainable solutions revenue in HY23, up 20% on last year
- Represented 20% of Group revenue
- 33% of sales pipeline from sustainable solutions, up from 31% at year end
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