Good afternoon, and thank you for joining our webcast. Today, we're delighted to announce that we have reached an agreement to acquire TRC, which is expected to close in Q1 2026. There will be no question-and-answer session today due to the concurrent equity offering, which we have also announced in connection with the acquisition. Alexandre L'Heureux, our President and CEO, and Alain Michaud, our CFO, are joining us this afternoon. During the webcast, we will make forward-looking statements. Actual results could differ from those expressed or implied. We undertake no obligation to update or revise any of these statements.
Relevant factors that could cause actual results to differ materially from those forward-looking statements are listed in our MD&A for the quarter that ended September 27, 2025, and in the press release issued today in connection with our proposed acquisition of TRC and related financing, each of which can be found on SEDAR+ and on our website. In addition, during the webcast, we may refer to specific non-IFRS measures. These measures are also defined in our MD&A for the quarter that ended September 27, 2025, and in our investors' presentation. Our MD&A and investor presentations include reconciliations of non-IFRS measures to the most directly comparable IFRS measures. Management believes that these non-IFRS measures provide useful information to investors regarding the corporation's financial conditions and results of operations as they provide additional critical metrics of its performance.
These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under IFRS, and may differ from similarly named measures reported by other issuers, and accordingly, may not be comparable. These measures should not be considered as a substitute for the related financial information prepared by IFRS. With that, I will now turn the webcast over to Alexandre.
Thank you, Quentin, and good afternoon, everyone. Today marks an exciting milestone in the execution of our 2025-2027 Global Strategic Action Plan. With the planned acquisition of TRC, a premier brand in the U.S. Power & Energy market, we are cementing WSP's industry leadership in the Power & Energy sector and are becoming the largest and most diversified engineering and design firm in the United States. This strategic move consolidates our position, broadens our reach, deepens our expertise, and unlocks new growth opportunities, setting the stage for WSP to continue to thrive. Before we discuss the TRC acquisition in greater detail, let me highlight a few reference points on WSP's historical performance.
First, we are proud to have delivered total revenue growth CAGR of approximately 13% in the last 10 years, 16% in the last 5 years, and 19% in 2025, increasing our pace over time and delivering more growth than any firm in our public peer group. Since our IPO in 2006, we have achieved positive organic growth every year except in 2020 due to the pandemic. Today, the fundamentals that drive our success continue to build on an even stronger platform supporting robust organic growth. We are also proud of our strong profitability mindset reflected in our leading margins and our constant desire to push boundaries and set industry benchmarks. Over the last three strategic cycles, we have consistently improved our efficiency and delivered a 450 basis point margin improvement, averaging 50 basis points per year.
This performance demonstrates our ability to execute, lead across multiple sectors, and compound shareholder value. With leading positions in all our key sectors, we are committed to continuing to thrive on our journey to become a leading brand in the professional services universe. Even as an industry leader, our estimated market share reflects a very fragmented market, highlighting substantial room for expansion. We deployed over $5 billion in acquisitions from 2022 to 2024, a record high for any strategic cycle. With the contemplated acquisition of TRC, combined with Lexica and Ricardo, we are committing over $5 billion in 2025 alone, the first year of our new strategic cycle. This strategically driven approach to M&A, along with our ability to unlock transactions, is a clear differentiator.
Since 2021, we have closed 20 acquisitions, all accretive from day one, a testament to our pursuit of building a strong, resilient industry champion capable of delivering compounding financial performance and superior shareholder value. Let's now turn to the transaction overview. Welcoming TRC into the WSP family will propel our platform to new heights. This combination will supercharge our Power & Energy sector by expanding our offerings across the entire value chain, adding, amongst others, significant advisory and program management capabilities, and providing unmatched leadership in the U.S. Together, we will be poised to accelerate organic growth and capture the full spectrum of opportunities in a high-growth sector. And to top it off, WSP will become the largest engineering and design firm in the U.S. Over the past decade, WSP has established a leading presence in each of our carefully selected sectors.
In just over a year, subject to the closing of the TRC acquisition, we will have welcomed two U.S. powerhouses to our Power & Energy franchise, creating an unmatched offering. Clients in the sector face increasing complexity and urgency driven by talent shortages, evolving delivery models, and new partnership dynamics. They require partners with scale and comprehensive capabilities. With today's announcement, we will, upon closing, be an even stronger partner of choice for clients as we will become the largest engineering and design firm in the U.S. TRC is a premier U.S. Power & Energy brand founded in 1969, long recognized for technical excellence, and one of the most significant players in the U.S. with approximately 8,000 professionals.
At the crossroads of aging infrastructure and grid modernization, TRC's client base includes many blue-chip clients, and with half of its revenue derived from master services agreements, TRC's business is highly recurring and built on long-term relationships. This foundation is not just advantageous. It is essential as the industry faces growing infrastructure power needs. Through its advanced grid solution, TRC plays a critical role in ensuring grid security, resilience, and reliability, enabling clients to meet the demands of a rapidly evolving energy landscape. TRC also leads in digital and intelligence grid solutions, advancing innovation and efficiency in the design, delivery, operation, and maintenance of electrical infrastructure. TRC will also be introducing new energy efficiency services to WSP, creating opportunities to help clients reduce electricity consumption and cost across manufacturing, healthcare, and education.
Furthermore, TRC has delivered robust organic growth, including a 10-year revenue CAGR of 10% and a 4-year CAGR of 12% in the Power & Energy segment. Their ability to grow backlog and leverage master services agreements, combined with a culture of cross-selling and strong client relationships, has driven sustainable organic growth, delivering quality value to its client base, including many blue-chip companies. With almost 60,000 projects delivered in 2025, TRC proudly serves a diverse range of public and private clients, seamlessly guiding complex projects from concept to completion. These projects span critical areas such as electric and power solutions, infrastructure resilience, and clean transportation, demonstrating TRC's ability to deliver innovative solutions that shape the future of our communities. The strategic rationale for this transaction is clear, and it is one centered on growth.
Together, WSP and TRC will create an integrated platform with industry-leading capabilities in advisory, engineering, and program management. Our combined highly complementary service offering will span the entire value chain, enabling us to serve all top 20 U.S. investor-owned utilities, or IOUs, covering every aspect of power generation, transmission, substation design, and distribution. While we share clients among major utilities and power developers, our services are highly complementary, which paves the way for deeper relationships across the power delivery sector. In fact, WSP will become the largest transmission and distribution engineering company in the U.S., expanding our scale and geographic reach and significantly enhancing our testing and commissioning capabilities for utilities nationwide, and similar to our experience with POWER Engineers, we expect significant revenue synergies.
In a context where niche power expertise is in high demand across industries and sectors, the cross-selling opportunities are significant, specifically given our vast multidisciplinary offerings. To sum it up, with this transaction, WSP will become the undisputed leader in the U.S. Power & Energy market. On a pro forma basis, approximately a third of our net revenues in the U.S. will come from the U.S. Power & Energy sector, with combined net revenues of $2.5 billion and a workforce of approximately 9,000 professionals. Globally, our Power & Energy workforce will total approximately 12,000 people. Beyond Power & Energy, welcoming TRC will enhance our capabilities in water, infrastructure, and environmental services. TRC will add valuable debt in water resources, stormwater compliance, watershed planning, and advanced water treatment, including PFAS, positioning us to capture a significant share of this growing market.
The water infrastructure capabilities, including flood control, drought preparedness, and coastal restoration, enhance WSP's resilience advisory portfolio. We are also expanding our expertise in pipeline integrity, environmental health and safety, and remediation while doubling our solid waste business. Our geographic footprint and client relationships will be broader than ever, opening up new cross-selling opportunities. By combining WSP and TRC's environmental permitting, compliance, remediation, and water capabilities, we will provide clients with end-to-end solutions, reinforcing our market leadership in the $27 billion environmental consulting space in the U.S. TRC environmental practice is immediately synergistic with WSP. For example, we are positioned to create a leading force in environmental permitting and planning for Power & Energy projects, a critical early stage in the project life cycle, with national power capital project activity expected to grow. TRC's environmental health and safety practice brings substantial additional capabilities to one of our smaller practice areas.
As one of TRC's fastest-growing segments, it adds valuable new organic growth potential for our E&E sector. In addition, WSP's and TRC's are two of the nation's leading site investigation and remediation firms with unparalleled technical depth and breadth. Finally, TRC's transportation business line is a natural addition to our leading T&I business and highly complementary in terms of geographic footprint and clients. Now turning to the transformation orchestrated in our U.S. business in the last five years, our journey to sector leadership has fundamentally reshaped our U.S. platform. Since 2020, we have grown from 10,000 professionals and $2.4 billion in net revenue to now 27,000 professionals and $7.2 billion in 2025 on a pro forma basis. Today, our portfolio is balanced and reflects our multidisciplinary expertise. We will soon be fulfilling our ambition to lead in each of our core sectors.
With TRC, we will have tripled our business size and diversified our offering to capitalize on high-growth sectors. With this transaction, WSP will become the largest and most diversified engineering and design firm in the U.S. Our combined entities will now surpass all major competitors, and our scale has positioned us to capture even greater opportunities ahead. Our growth profile will also be accelerating. An even more significant portion of our growth and profitability will now come from Canada and the U.S., capitalizing further on these regions' strength within our global footprint. Globally, Power & Energy will now represent one-fifth of our platform, a sector with a double-digit organic growth track record. We are also expanding our capabilities in water, infrastructure, and environment, fueled by strong fundamentals. With that, I'll turn the presentation over to Alain, who will cover the key financial terms of this transaction.
Thank you, Alexandre, and good afternoon, everyone. Let me go through the key financial aspect of this exciting transaction. The proposed acquisition of TRC is based on a cash offer of $3.3 billion U.S., representing approximately 14.5x TRC's calendar year 2026 estimated EBITDA on a pre-IFRS 16 basis, or 12.5x after including run rate synergies. From a modeling perspective, it is worth noting that the IFRS 16 adjustment for TRC represents approximately 1.25% of net revenues. I am thrilled to report that this acquisition will be immediately accretive to WSP's adjusted net earnings per share in the low to mid-single-digit range. We expect cost synergies exceeding 3% of net revenues to be realized in the 24-month period following the closing of the transaction, and with fully realized cost synergies, we expect high single-digit accretion to adjusted net earnings per share.
In addition, TRC brings additional opportunities with significant margin upside potential and revenue synergies that are not considered in our stated accretion rates. To fund the acquisition, we will be raising $850 million through the issuance of common shares composed of a new public offering on a bought deal basis and a private placement with La Caisse, our long-term cornerstone investor. We've also secured an aggregate of $3.3 billion in committed term loans, with a portion equivalent to the proceeds from the common share issuance to be canceled upon closing of the equity issuance. Pro forma net debt to last 12-month adjusted EBITDA, calculated as of March 31, 2026, is approximately 2.4x , which allows us to maintain our strong investment-grade profile, and we expect quick deleveraging based on our free cash flow generation profile and to be under two times within 12 months of closing.
The TRC transaction is expected to close in Q1 2026, subject to customary closing condition, and it is not subject to a shareholder's vote. On that note, back to you, Alexandre.
Thank you, Alain. As we conclude, let me highlight the key messages from today's announcement. The TRC acquisition is fully aligned with our 2025-2027 Global Strategic Action Plan released earlier this year. With this transaction, we are capitalizing on our ambitions in a priority region, the U.S., and significantly strengthening our position in the Power & Energy sector. At the same time, we are amplifying the pace of our select strategic high-growth area, such as the energy transition, project and program management, digital, and water. In just the first year of executing our new strategic cycle, we are already on track to meet or exceed several of our 2027 targets.
This progress significantly expedites the execution of our 2025-2027 Strategic Action Plan. Following the closing of the TRC acquisitions, this transaction accelerates our organic growth rate profile, bringing together a matched expertise and a broader service offering across the entire value chain. We secured a number one position in the Power & Energy sector, and in the U.S., reinforcing our leadership in a critical and fast-growing market. The combination is highly accretive, with significant margin expansion and substantial opportunities for both cost and revenue synergies. Thank you for your attention and continued support. We are truly excited about the prospect of combining forces with TRC as we embark on this next chapter together. Thank you.