AECOM (ACM) has been selected by Amtrak to support the development of $1.5 billion Susquehanna River Rail Bridge (SRB) Project.The project aims to enhance rail connectivity and safety along the U.S. Northeast Corridor. It involves replacing the current 117-year-old two-track bridge in Maryland with two new bridges, aiming to boost capacity and reliability for both freight and passenger trains.SRB Project's complexity demands a team that combines global expertise with local insight, bringing together the nec ...

AECOM (ACM) , a global infrastructure consulting firm, in partnership with Dewberry, has been awarded a contract by the U.S. Department of Homeland Security’s Federal Emergency Management Agency (“FEMA”) to provide public and technical assistance services. Operating under the Public Assistance Technical Assistance V contract, the joint venture, known as NISTAC PLUS JV, will support FEMA's Public Assistance grant program. AECOM will serve as the managing partner of the joint venture.The contract will focus e ...

AECOM (ACM) has been selected as part of the Pape North Connect Team to deliver the Pape Tunnel and Underground Stations (PTUS) contract for Toronto's Ontario Line. This significant 15.6-kilometer rapid transit project aims to enhance accessibility and cut travel time for commuters.Under the PTUS contract, this renowned infrastructure consulting firm’s responsibilities encompass designing three kilometers of twin tunnels beneath Pape Avenue, two underground stations, emergency exit and service buildings, an ...

KENSICO EASTVIEW CONNECTION United States Delivering a new 2-mile-deep water conveyance tunnel that will improve the resiliency and reliability of New York City's water supply. This extends AECOM's decades-long relationship with the New York City Department of Environmental Protection, serving as their trusted partner on their most ambitious infrastructure projects. Disclosures Forward-Looking Statements All statements in this communication other than statements of historical fact are "forward-looking state ...

Financial Data and Key Metrics Changes - The company reported a 9% increase in organic Net Service Revenue (NSR) in the Americas design business and an overall increase of 8% [10][24] - Adjusted EBITDA and adjusted EPS increased by 14% and 25% respectively, indicating strong financial performance [10][24] - Free cash flow was reported at $87 million, with nearly $100 million returned to shareholders through repurchases and dividends [10][27] Business Line Data and Key Metrics Changes - The design business saw a segment adjusted operating margin increase of 100 basis points to 15%, a new first-quarter high [10] - The backlog in the design business reached a record level, with a 23% growth in contracted backlog [24] - The Construction Management (CM) backlog declined due to the removal of two projects that did not meet the company's risk framework [26] Market Data and Key Metrics Changes - Strong growth was noted in the global water and transportation markets, contributing to the overall performance [10][12] - The funding outlook in core markets, particularly in the Americas, is described as the strongest ever, with significant investments in sustainability and energy transition [12][14] - The company is experiencing robust growth in Canada and Australia, particularly in water projects [13] Company Strategy and Development Direction - The company is focused on a "Think and Act Globally" strategy, which is yielding strong results across its business [12] - The Day 1, Day 2, Day 3 strategy aims to expand the addressable market and increase program management and advisory services to represent 50% of revenue [11] - The company is committed to a returns-focused capital allocation policy, with an increased share repurchase authorization of $1 billion [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong funding environment and the growth of the early-stage pipeline, indicating long-term visibility for growth [36] - The company reaffirmed its fiscal 2024 guidance, expecting 20% adjusted EPS growth driven by high-margin organic growth [16][28] - Management acknowledged some market slowdowns in specific areas, such as tall buildings in North America and large transportation projects in the U.K., but remains optimistic about overall growth [38][57] Other Important Information - The company was recognized as one of Fortune's World's Most Admired Companies for the 10th consecutive year, reflecting strong employee satisfaction and retention [9] - The company is actively investing in digital consulting to enhance its service offerings and client engagement [15][20] Q&A Session Summary Question: Concerns about overall backlog being down - Management clarified that while total backlog decreased by 3%, the design backlog increased by 9%, highlighting the profitability in the design business [32] Question: Early-stage pipeline growth and sustainability - Management noted that the early-stage pipeline continues to grow, providing long-term visibility for growth despite some market uncertainties [36] Question: Margin expectations across segments - Management indicated that margins in the Americas are expanding due to focused investments and operational efficiencies, while international margins are also improving [40][42] Question: Transition plan for ACAP business - Management confirmed that the ACAP business is being transitioned out, with minimal value left on the balance sheet [44][45] Question: Share buyback strategy - Management reiterated a consistent approach to share repurchases, emphasizing a returns-focused capital allocation strategy [46][47] Question: Growth rates in public vs. private sectors - Management stated that the portfolio remains balanced between public (60%) and private (40%) sectors, with strong opportunities in both [68] Question: Regional growth rates and expectations - Management observed more momentum in the Americas compared to international markets, driven by increased project availability [62] Question: Strength in early project stages - Management confirmed strength across all end markets, with particular contributions from energy transition and infrastructure projects [72]

AECOM (ACM) reported results for first-quarter fiscal 2024, where earnings surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines increased, backed by solid organic net service revenues (“NSR”) growth in its design business.Shares of the technical and management support services provider jumped 1.6% in the after-hours trading session on Feb 5, post-earnings release.Delving DeeperThe company reported adjusted earnings per share (EPS) of $1.05, which topped the consensus m ...

Revenue and Profitability - Revenue for Q4 2023 increased to $3,899.92 million, up 15.3% from $3,382.36 million in Q4 2022[6] - Net income attributable to AECOM for Q4 2023 was $94.44 million, compared to $87.95 million in Q4 2022[6] - Diluted earnings per share for Q4 2023 were $0.69, compared to $0.63 in Q4 2022[6] - Comprehensive income attributable to AECOM for Q4 2023 was $131.23 million, down from $149.26 million in Q4 2022[8] - Net income for the three months ended December 31, 2023, was $108.6 million, compared to $96.8 million in the same period in 2022[11] - Revenue increased from $41.7 billion to $54.6 billion, a 30.9% increase[23] - Total revenue increased from $3,382.4 billion to $3,899.9 billion, a 15.3% increase, with Americas contributing $3,038.9 billion[32] - Revenue recognized from contract liabilities increased from $423.0 billion to $527.0 billion, a 24.6% increase[34] - Consolidated joint ventures total revenue for Q4 2023 was $505.1 million, compared to $484.8 million in Q4 2022[45] - The company's total revenue for the three months ended December 31, 2023, was $3,899.9 million, with a gross profit of $244.0 million[117] - Revenue for the three months ended December 31, 2023 increased by $517.5 million (15.3%) to $3,899.9 million compared to $3,382.4 million in the same period last year[130][132] - Gross profit for the three months ended December 31, 2023 increased by $29.0 million (13.5%) to $244.0 million, but gross profit margin decreased to 6.3% from 6.4%[130][134] - Americas segment revenue for the three months ended December 31, 2023 increased by $459.4 million (17.8%) to $3,038.7 million, driven by growth in Water, Transportation, and Program Management businesses[146][149] - Pass-through revenue for the three months ended December 31, 2023 was $2.2 billion (56% of total revenue), compared to $1.8 billion (53%) in the same period last year[133] - Gross profit for the Americas segment increased by $8.1 million (5.0%) to $171.0 million in Q4 2023, compared to $162.9 million in the same period last year, driven by revenue growth and strength in Water, Transportation, and Program Management markets[150] - International segment revenue grew by $58.2 million (7.2%) to $861.0 million in Q4 2023, primarily due to growth in the UK, Middle East, and Australia, led by Transportation, Facilities, and Water markets[153] - International segment gross profit increased by $21.0 million (40.5%) to $72.8 million in Q4 2023, with gross profit margin rising to 8.5% from 6.5% due to revenue growth and cost reductions[154] - The company's revenue for the three months ended December 31, 2023, was $1,941.9 million, with a gross profit of $116.1 million[195] - The company's net income attributable to AECOM was $13.1 million for the three months ended December 31, 2023[195] Cash Flow and Liquidity - Total cash and cash equivalents decreased to $1,192.26 million as of December 31, 2023, from $1,260.21 million as of September 30, 2023[5] - Net cash provided by operating activities in Q4 2023 was $143.1 million, compared to $120.0 million in Q4 2022[11] - Payments for business acquisitions in Q4 2023 were $18.7 million, with no such payments in Q4 2022[11] - Cash and cash equivalents decreased from $1.9 billion to $1.0 billion, a 47.4% decline[22] - Cash and cash equivalents decreased by $68.9 million (5.5%) to $1,193.3 million at December 31, 2023, mainly due to $92.1 million used for stock repurchases[161] - Net cash provided by operating activities increased by $23.1 million to $143.1 million in Q4 2023, driven by higher net income and non-cash adjustments[161] - Net cash used in investing activities rose by $41.6 million to $86.8 million in Q4 2023, primarily due to increased capital expenditures and a business acquisition[164] - Net cash used in financing activities increased by $34.9 million to $126.3 million in Q4 2023, mainly due to higher stock repurchases and dividend payments[165] - Working capital decreased by $39.7 million (12.4%) to $279.5 million at December 31, 2023, while Days Sales Outstanding (DSO) increased to 67 days from 65 days[166] - The company had $1,145.6 million available under its revolving credit facility as of December 31, 2023[181] - The company's total assets were $5,833.2 million as of December 31, 2023, compared to $5,848.4 million as of September 30, 2023[193] - The company's total liabilities were $5,032.4 million as of December 31, 2023, compared to $5,016.0 million as of September 30, 2023[193] - Outstanding borrowings under term credit agreements and revolving credit facility were $1,112.4 million as of December 31, 2023, and $1,119.8 million as of September 30, 2023[201] - Weighted average floating rate borrowings for the three months ended December 31, 2023, were $1,540.8 million, or $840.8 million excluding borrowings with effective fixed interest rates[201] - A 1.00% increase in short-term floating interest rates would have increased interest expense by $2.1 million for the three months ended December 31, 2023[201] - The applicable margin added to the borrowing's base rate ranges from 0.25% to 1.00%, and for eurocurrency rate borrowings, it ranges from 1.25% to 2.00%[201] Assets and Liabilities - Accounts receivable—net stood at $2,524.50 million as of December 31, 2023, slightly down from $2,544.45 million as of September 30, 2023[5] - Contract assets increased to $1,744.52 million as of December 31, 2023, up from $1,525.05 million as of September 30, 2023[5] - Total liabilities increased to $8,961.70 million as of December 31, 2023, from $8,849.69 million as of September 30, 2023[5] - Total assets increased to $11,389.92 million as of December 31, 2023, from $11,233.40 million as of September 30, 2023[5] - Total stockholders' equity as of December 31, 2023, was $2.43 billion, up from $2.38 billion as of September 30, 2023[10] - Accumulated other comprehensive loss improved to $889.8 million as of December 31, 2023, from $926.6 million as of September 30, 2023[10] - Receivables and contract assets decreased from $93.3 billion to $84.9 billion, a 9.0% decline[22] - Goodwill increased from $3,418.9 billion to $3,458.7 billion, a 1.2% increase, driven by acquisitions and foreign exchange impacts[25] - Net accounts receivable decreased from $2,544.5 billion to $2,524.5 billion, a 0.8% decline[36] - Total assets of consolidated joint ventures decreased to $869.3 million in December 2023 from $882.2 million in September 2023[45] - Unconsolidated joint ventures total assets increased to $2,234.0 million in December 2023 from $2,173.7 million in September 2023[47] - AECOM's investment in unconsolidated joint ventures decreased to $132.5 million in December 2023 from $139.2 million in September 2023[47] - Total debt as of December 31, 2023 was $2,215.0 million, with $1,012.3 million maturing in 2027[54] - The company's consolidated leverage ratio was 2.00 to 1.00 at December 31, 2023, well below the 4.00 to 1.00 covenant limit[63] - The company has $1,150,000,000 revolving credit facility and $246,968,737.50 term loan A facility, both maturing on February 8, 2026[55] - Letters of credit totaled $4.4 million as of December 31, 2023 and September 30, 2023 under the Company's Revolving Credit Facility[67] - The Company had $1,145.6 million available under its revolving credit facility as of December 31, 2023 and September 30, 2023[67] - The estimated fair value of the 2027 Senior Notes was approximately $979.8 million as of December 31, 2023[68] - Outstanding standby letters of credit totaled $887.6 million and $878.9 million as of December 31, 2023 and September 30, 2023, respectively[70] - The Company's average effective interest rate on its total debt was 5.4% and 5.1% during the three months ended December 31, 2023 and 2022, respectively[70] - The company's consolidated leverage ratio was 2.00 to 1.00 at December 31, 2023, and it was in compliance with the covenants of the Credit Agreement[180] - The estimated fair value of the 2027 Senior Notes was approximately $979.8 million as of December 31, 2023[182] - The company's average effective interest rate on total debt was 5.4% for the three months ended December 31, 2023, compared to 5.1% for the same period in 2022[185] - The company's outstanding standby letters of credit totaled $887.6 million as of December 31, 2023[184] - The company's total liabilities were $5,032.4 million as of December 31, 2023, compared to $5,016.0 million as of September 30, 2023[193] - Outstanding borrowings under term credit agreements and revolving credit facility were $1,112.4 million as of December 31, 2023, and $1,119.8 million as of September 30, 2023[201] - Weighted average floating rate borrowings for the three months ended December 31, 2023, were $1,540.8 million, or $840.8 million excluding borrowings with effective fixed interest rates[201] - A 1.00% increase in short-term floating interest rates would have increased interest expense by $2.1 million for the three months ended December 31, 2023[201] - The applicable margin added to the borrowing's base rate ranges from 0.25% to 1.00%, and for eurocurrency rate borrowings, it ranges from 1.25% to 2.00%[201] Joint Ventures and Investments - Equity in losses of joint ventures for Q4 2023 was $28.94 million, compared to earnings of $9.83 million in Q4 2022[6] - Consolidated joint ventures total revenue for Q4 2023 was $505.1 million, compared to $484.8 million in Q4 2022[45] - Total assets of consolidated joint ventures decreased to $869.3 million in December 2023 from $882.2 million in September 2023[45] - Unconsolidated joint ventures total assets increased to $2,234.0 million in December 2023 from $2,173.7 million in September 2023[47] - AECOM's investment in unconsolidated joint ventures decreased to $132.5 million in December 2023 from $139.2 million in September 2023[47] - Equity in losses of joint ventures for the three months ended December 31, 2023 was $29.0 million, compared to earnings of $9.8 million in the same period last year[130][134] - Equity in earnings of joint ventures decreased by $42.5 million (758.9%) to $(36.9) million in Q4 2023, primarily due to impairment losses recognized in fiscal 2024[157] Restructuring and Expenses - The company recorded a $38.9 million loss in Q2 2023 related to a revised estimate of contingent consideration receivable from the sale of its civil infrastructure construction business[21] - The company completed the sale of its power and oil and gas construction businesses in fiscal 2021 and 2022, respectively[21] - Dividends declared in Q4 2023 amounted to $30.1 million, an increase from $25.4 million in Q4 2022[10] - Stock repurchases in Q4 2023 totaled $92.1 million, up from $70.0 million in Q4 2022[10] - The company is evaluating the impact of new FASB guidance on segment reporting and income tax disclosures, effective for annual periods beginning October 1, 2025[16][17] - Total compensation expense related to share-based payments was $15.1 million and $11.9 million during the three months ended December 31, 2023 and 2022, respectively[81] - The Company's effective tax rate was 19.5% and 21.0% for the three months ended December 31, 2023 and 2022, respectively[82] - The Company settled its tax audit in Hong Kong for fiscal year 2011 through fiscal year 2021 and recorded a tax benefit of $6.9 million[83] - The Company's non-pension financial assets and liabilities recorded at fair value were $13.9 million, $23.5 million, and $2.4 million as of December 31, 2023[78] - The Company entered into new interest rate swap agreements with a notional value of $400.0 million to manage the interest rate exposure of its variable rate loans[75] - Total lease cost for the three months ended December 31, 2023 was $53.9 million, compared to $55.1 million in the same period in 2022[94] - Operating lease assets as of December 31, 2023 were $437.8 million, a decrease from $447.0 million as of September 30, 2023[95] - Total current lease liabilities as of December 31, 2023 were $171.9 million, compared to $164.8 million as of September 30, 2023[95] - Weighted average remaining lease term for operating leases as of December 31, 2023 was 6.2 years, down from 6.4 years as of September 30, 2023[95] - Cash paid for operating cash flows from operating leases for the three months ended December 31, 2023 was $46.2 million, compared to $49.0 million in the same period in 2022[96] - Total remaining lease payments under operating leases as of December 31, 2023 were $785.6 million, with $134.3 million due in 2024[96] - Accrued salaries and benefits as of December 31, 2023 were $564.5 million, down from $599.8 million as of September 30, 2023[99] - The company incurred restructuring expenses of $16.2 million in the first three months of fiscal 2024, including $8.7 million in personnel costs and $7.5 million in real estate costs[99] - Restructuring costs for the three months ended December 31, 2023 were $16.2 million, primarily related to real estate portfolio alignment and Southeast Asia exits[130][137] - The company expects to incur restructuring costs of $50 million to $70 million in fiscal 2024, primarily related to office real estate optimization and Southeast Asia exits[128] - The company's Board approved an increase in stock repurchase authorization to $1.0 billion in November 2023, with $950.0 million remaining at December 31, 2023[126] - The company exited substantially all of its self-perform at-risk construction businesses as part of its plan to improve profitability and reduce risk[126] - The company's revenue is dependent on its ability to attract and retain qualified employees, secure new contracts, and manage currency rate fluctuations[125] Pension and Employee Benefits - Employer contributions to pension plans for Q4 2023 totaled $8.5 million ($2.3 million for U.S. plans and $6.2 million for non-U.S. plans)[52] - Expected remaining employer contributions for fiscal year 2024 are $26.6 million ($10.6 million for U.S. plans and $16.0 million for non-U.S. plans)[52] - The company's defined benefit pension plans had an aggregate deficit of approximately $157.9 million at December 31, 2023[189] ESG and Credit Agreements - The Credit Agreement includes ESG metrics that adjust interest rates based on CO2 emissions and percentage of female employees[61] - The company has $1,150,000,000 revolving credit facility and $246,968,737.50 term loan A facility, both maturing on February 8, 2026[55] - Letters of credit totaled $4.4 million as of December 31, 2023 and September 30, 2023 under the Company's Revolving Credit Facility[67] - The Company had $1,145.6 million available under its revolving credit facility as of

Company Recognition - AECOM has been recognized for the tenth consecutive year on Fortune magazine's list of the World's Most Admired Companies [1] - The recognition reflects the dedication and innovative spirit of AECOM's more than 50,000 global employees [2] Strategic Achievements - AECOM consistently delivered industry-leading safety performance and invested in employee well-being [1] - The company further invested in technical excellence and professional development through award-winning learning programs and enhanced Career Paths resources [1] - AECOM met or exceeded target metrics across strategic and financial objectives, with design backlog at record levels and win rates on projects exceeding $25 million at over 70% [1] - The company achieved a near-term 20% gender diversity target for its leadership team and progressed against regional diversity targets [1] - AECOM advanced digital delivery through automated and computational design, deploying new products like Program Advance [1] - The company solidified its position as a leader in helping clients invest in energy transition and decarbonization, with its advisory practice growing at a double-digit pace [1] Industry Leadership - AECOM is the world's trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle [4] - The company's Professional Services business generated revenue of $14.4 billion in fiscal year 2023 [4] - AECOM is driven by a commitment to environmental, social, and governance priorities, with a culture of equity, diversity, and inclusion [4] Methodology and Survey - Fortune collaborated with Korn Ferry to determine the best-regarded companies based on nine criteria, including investment value, quality of management, and social responsibility [2] - The complete World's Most Admired Companies list and methodology details are available on the Fortune website [3]

AECOM’s (ACM) joint venture (“JV”) has been selected by the New York City Department of Environmental Protection (“NYCDEP”) to offer inspection services for the Kensico – Eastview Connection project.Per the deal, the JV will supervise three concurrent teams to connect the Kensico Reservoir to the Catskill-Delaware Ultra Violet Disinfection Facility in Eastview, NY, for water supply.The first team will oversee the delivery of the 2-mile-deep tunnel. The second team will focus on the build-out of new faciliti ...

2023 was dominated by the Magnificent Seven stocks, which has left investors wondering how much higher mega-cap stocks can go. Investors worry that growth is nearing a peak or perhaps reversing. That is just one of the reasons that small cap stocks look particularly strong at the moment.Beyond that, small cap stocks are known to do particularly well as the markets reach Peak rates. it appears that we have already passed that rubicon which continues to be a positive sign. Further, experts including Fundstrat ...