John Wood Group PLC has announced positive results for the first half of 2024, demonstrating progress in its growth strategy and operational efficiency.
The company reported adjusted EBITDA of approximately $210 million, representing a 4 per cent increase compared to the same period last year.
This growth was primarily driven by margin expansion, which offset an expected decrease in revenue.
Wood’s adjusted EBITDA margin improved to 7.4 per cent, up from 6.8 per cent in the previous year.
The company attributes this improvement to better pricing, reduced pass-through activity, and a particularly strong performance in its Operations segment.
Despite a 6 per cent decline in revenue to $2.8 billion, Wood’s order book grew by 2 per cent to $6.1 billion compared to June 2023.
Notably, sustainable solutions now account for over 40 per cent of the company’s project pipeline.
CEO Ken Gilmartin expressed satisfaction with the results, stating: “Our growth strategy continues to deliver, with further growth in EBITDA and order book.
“Crucially, we are now seeing the improving quality of our business coming through with margin expansion as we focus on engineering services and consulting and move away from EPC work.”
Wood‘s ongoing simplification programme is progressing well, with approximately $25 million in annualised savings already secured.
The company aims to achieve total annualised savings of around $60 million by 2025.
Looking ahead, Wood has reaffirmed its full-year 2024 outlook, expecting high single-digit growth in adjusted EBITDA before the impact of disposals.
The company anticipates a stronger second-half performance due to typical business seasonality and the phased benefits of its simplification programme.
For 2025, Wood reiterated its expectation of EBITDA growth exceeding its medium-term target, bolstered by the annualised benefits of the simplification programme.
The company is scheduled to publish its full half-year results on August 20, 2024.
In a separate development, Wood noted that Dar Al-Handasah Consultants Shair and Partners Holdings Ltd (Sidara) is required to announce its intention regarding a potential offer for Wood by July 31, 2024.
As Wood continues to focus on its core engineering and consulting services, these results indicate a positive trajectory for the company’s strategic shift and operational improvements.
