The John Wood Group Plc., an esteemed engineering and consulting firm, has reported a rise in its adjusted EBITDA for the first quarter of the year. This is despite experiencing a drop in revenues. The company also confirmed its EBITDA projection for 2024 and outlook for 2025.
During its first-quarter trading update, the company shared that its adjusted EBITDA rose by 4%, thanks to margin expansion across all business units - a move that compensated for the decreased revenue. The revenue for the first quarter was $1.36 billion, a 6% decrease from the $1.46 billion recorded the previous year. This was the result of growth in Operations being counterbalanced by a decrease in Project revenue.
The revenue from Operations increased by 5% to $624 million. However, Project revenue experienced a 15% decrease, falling to $518 million, and Investment Services revenue dropped by a significant 32%.
By the end of March 2024, the company's order book was valued at $6.2 billion, showing a 9% increase as compared to the same period the previous year.
For the fiscal year 2024, the company anticipates high single-digit growth in adjusted EBITDA, excluding the effect of divestments. Performance is expected to be more pronounced in the latter half of the year, likely due to the usual business seasonality.
Regarding the fiscal year 2025, John Wood continues to forecast that EBITDA growth will surpass its mid-term goals. These figures include the approximate $60 million annual benefits resulting from the Simplification program, added to the growth.
