Q: In the last while, 5I answers in this forum have indicated that WSP is at risk from the potential of tariffs; the background for this appears to be that the company is considered an industrial, a sector that is exposed. But doesn't WSP provide services, which seemingly would not be the subject of tariffs? And isn't a large of their work in USA or abroad? Can you please detail your analysis of this? Many thanks for your excellent service.
5i Research Answer:
Keep in mind the tariff issue is a very fluid situation. WSP has not specifically mentioned tariffs in its communications to investors since 2020. Few companies have quantified their impact. While it is not directly impacted with cross-border shipments of products, we do believe the 'buy American' theme could possibly hurt its ability to win contracts in the US for a period of time ,especially on any government work. Just under half of its business is currently in the US.