Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Aecom Technology (ACM) or Altair Engineering (ALTR) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors ...

Revenue and Financial Performance - Revenue for fiscal year 2023 increased to $14.378 billion, up from $13.148 billion in fiscal year 2022[177] - Revenue for the year ended September 30, 2023 increased by $1,230.3 million (9.4%) to $14,378.5 million compared to $13,148.2 million in the previous year[215] - Revenue for September 2023 increased to $14,378 million, up 9.4% from $13,148 million in September 2022[309] - Total revenue for the fiscal year ended September 30, 2023 was $14,378.5 million, compared to $13,148.2 million in 2022 and $13,340.9 million in 2021[357] - Revenue from Americas region was $10,976.4 million in 2023, up from $9,941.6 million in 2022[357] - Europe, Middle East, India, Africa region revenue increased to $1,937.3 million in 2023 from $1,759.8 million in 2022[357] - Asia-Australia-Pacific region revenue was $1,464.8 million in 2023, slightly up from $1,446.8 million in 2022[357] - Revenue recognized from contract liabilities was $1,043.7 million in 2023, up from $565.2 million in 2022[358] - The company's revenue is primarily generated from planning, consulting, architectural and engineering design, construction, and program management services[178] - Contract revenues for the year ended September 30, 2023, were $14.4 billion, including $3.4 billion from fixed price contracts and $4.9 billion from guaranteed maximum price contracts[297] - Pass-through revenues accounted for 53% of total revenue in 2023, up from 52% in 2022, with absolute values increasing from $6.8 billion to $7.7 billion[215] - The company's pass-through revenues for the years ended September 30, 2023, 2022, and 2021 were $7.7 billion, $6.8 billion, and $7.2 billion, respectively[351] - Revenue for the International segment increased by $195.4 million (6.1%) to $3,402.1 million in FY 2023, driven by growth in the UK, Middle East, and Australia[233] - Americas segment revenue grew by $1,036.4 million (10.4%) to $10,975.7 million, driven by increased project activity in Water, Transportation, and Environment markets[229] - Revenue for the company and its subsidiary guarantors was $7,077.5 million for the twelve months ended September 30, 2023, with net income of $3.2 million[266] Gross Profit and Margins - Gross profit for fiscal year 2023 was $945 million, compared to $848 million in fiscal year 2022[177] - Gross profit increased by $97.5 million (11.5%) to $945.5 million, with gross profit margin improving to 6.6% from 6.4%[216] - Gross profit for September 2023 rose to $945 million, an 11.5% increase from $848 million in September 2022[309] - Gross profit for the International segment rose by $39.2 million (19.0%) to $245.1 million, with gross profit margin increasing to 7.2% from 6.4% in FY 2022[234] Restructuring and Impairment Costs - The company incurred a restructuring cost of $188 million in fiscal year 2023, up from $108 million in fiscal year 2022[177] - Restructuring costs increased by $80.9 million (75.3%) to $188.4 million, mainly related to real estate portfolio alignment and Southeast Asia exits[219] - The company expects restructuring costs of approximately $50 million to $70 million in fiscal 2024, primarily related to office real estate optimization and exiting certain Southeast Asian countries[175] - The company expects to spend approximately $110 million in restructuring costs in FY 2024 to improve margins and efficiencies[238] - AECOM Capital recorded an impairment charge of $307.0 million in the third quarter of fiscal 2023 due to strategic changes and accelerated investment exits[174] - Equity in losses of joint ventures was $279.4 million, a significant decline from earnings of $53.6 million in the previous year, primarily due to impairment losses in the AECOM Capital segment[217] - Equity in earnings of joint ventures decreased by $328.3 million (1345.5%) to a loss of $303.9 million due to impairment losses in Q3 FY 2023[237] - The company recorded a $86.199 million impairment of long-lived assets in 2023, compared to no impairment in 2022 and $105.194 million in 2021[316] Net Income and Comprehensive Income - Net income attributable to AECOM declined by $255.3 million (82.2%) to $55.3 million[211] - Net income attributable to AECOM for September 2023 decreased to $55 million, down 82.2% from $311 million in September 2022[309] - Comprehensive income attributable to AECOM for September 2023 was $108 million, a 53.1% decline from $231 million in September 2022[311] - Net income from continuing operations for September 2023 was $157 million, a 62.0% decrease from $415 million in September 2022[309] - Net income for fiscal year 2023 was $100.141 million, a significant decrease from $334.702 million in 2022 and $202.980 million in 2021[316] - Net loss from discontinued operations for September 2023 was $58 million, an improvement from $79 million in September 2022[309] Cash Flow and Liquidity - Cash and cash equivalents increased by $85.4 million (7.3%) to $1,262.2 million at September 30, 2023, primarily due to reduced stock repurchases[240] - Net cash provided by operating activities was $696.0 million in FY 2023, a decrease of $17.6 million compared to FY 2022[241] - Net cash used in investing activities decreased to $138.2 million in FY 2023 from $175.0 million in FY 2022, mainly due to the absence of cash outflows for discontinued operations[242] - Net cash provided by operating activities in 2023 was $695.980 million, slightly lower than $713.636 million in 2022 and $704.670 million in 2021[316] - Net cash used in investing activities was $138.177 million in 2023, an improvement from $175.034 million in 2022 and $421.087 million in 2021[316] - Total cash and cash equivalents as of September 30, 2023, were $1.26 billion, up from $1.17 billion in the previous year[306] - The company repurchased $379.284 million worth of common stock in 2023, less than $472.970 million in 2022 and $867.091 million in 2021[316] - The company has approximately $220 million remaining from its $1.0 billion stock repurchase authorization as of September 30, 2023[172] Debt and Interest - Total debt stood at $2,217.3 million at September 30, 2023, with long-term debt at $2,113.4 million[246] - The company's average effective interest rate on total debt was 5.3% for the year ended September 30, 2023, up from 3.8% in 2022 and 4.4% in 2021[260] - The company paid $153.975 million in interest in 2023, higher than $104.644 million in 2022 but lower than $255.679 million in 2021[316] - Interest income surged to $40.3 million from $8.2 million, driven by higher interest rates on interest-bearing assets[220] - Interest expense rose by $49.1 million (44.6%) to $159.3 million due to increased interest rates on variable debt[221] - A 1.00% increase in short-term floating interest rates would have increased the Company's interest expense by $8.6 million for the year ended September 30, 2023[284] - The estimated fair value of the company's 2027 Senior Notes was approximately $939.9 million as of September 30, 2023, with an interest rate of 5.125% per annum[257] - The company had $1,119.8 million in outstanding borrowings under term credit agreements and revolving credit facility as of September 30, 2023[284] Accounts Receivable and Contract Assets - Accounts receivable are recorded net of an allowance for doubtful accounts, estimated based on client financial condition and contract performance[191] - Total accounts receivable-net was $2,544.5 million as of September 30, 2023, compared to $2,317.8 million in 2022[361] - Accounts receivable—net increased to $2.54 billion as of September 30, 2023, compared to $2.32 billion in the previous year[306] - Contract assets rose to $1.53 billion as of September 30, 2023, from $1.41 billion in the previous year[306] - Significant claims recorded in contract assets and other non-current assets as of September 30, 2023, were approximately $160.0 million[297] - Significant claims recorded in contract assets were approximately $160 million as of September 30, 2023, up from $110 million in 2022[361] - The company sold $291.0 million of trade receivables to financial institutions as of September 30, 2023, compared to $240.3 million in 2022[362] Pension and Employee Benefits - Pension liabilities and net periodic costs are sensitive to changes in assumptions such as discount rates, with a 25 basis point reduction increasing plan liabilities by $26.6 million[204] - The aggregate worldwide pension deficit decreased from $204.4 million to $165.3 million between September 30, 2022, and September 30, 2023, due to increased discount rates[207] - The company's defined benefit pension plans had an aggregate deficit of approximately $165.3 million at September 30, 2023[262] - The company's defined benefit pension plans calculate the market-related value of assets, with cumulative net unrecognized gains or losses exceeding 10% of the greater of the projected benefit obligation or the fair market-related value of plan assets subject to amortization[333] Goodwill and Intangible Assets - Goodwill is tested for impairment annually, with impairment losses recognized if the fair value of a reporting unit is less than its carrying value[201][202] - Goodwill impairment testing is conducted annually in the fourth quarter, with additional tests if significant changes in legal factors, business climate, or industry trends occur[331] - The company uses qualitative and quantitative assessments to evaluate goodwill impairment, with impairment losses recognized if the fair value of reporting units is less than their carrying amounts[332] Tax and Deferred Tax Assets - Income tax expense decreased by $80.0 million (58.8%) to $56.1 million, primarily due to a $65.0 million tax benefit related to AECOM Capital impairment charges[223] - Deferred tax assets are reduced by a valuation allowance if it is more likely than not that a portion will not be realized, with adjustments for changes in tax laws and rates[195][196] - Undistributed non-U.S. earnings of approximately $1.3 billion are not subject to deferred taxes as the company intends to permanently reinvest these earnings overseas[198] - The Company adopted new FASB accounting guidance on income taxes starting October 1, 2021, which did not significantly impact consolidated financial statements[278] Government Contracts and Regulations - Government contracts are subject to Federal Acquisition Regulations (FAR), limiting recovery of certain indirect costs and subject to audits by agencies like DCAA[189] - DCAA audits may result in material cost disallowances if costs are not accounted for in accordance with Cost Accounting Standards (CAS)[190] - The company's federal government contracts are subject to Federal Acquisition Regulations (FAR) and ongoing audits by agencies like the Defense Contract Audit Agency (DCAA)[321] Joint Ventures and Noncontrolling Interests - Noncontrolling interests in joint ventures are accounted for under the equity method, with fees and costs recorded as revenues and costs in the period services are rendered[192] - Equity in losses of joint ventures was $279.4 million, a significant decline from earnings of $53.6 million in the previous year, primarily due to impairment losses in the AECOM Capital segment[217] - Equity in earnings of joint ventures decreased by $328.3 million (1345.5%) to a loss of $303.9 million due to impairment losses in Q3 FY 2023[237] Stockholders' Equity and Share Repurchases - Total stockholders' equity decreased to $2.38 billion as of September 30, 2023, from $2.61 billion in the previous year[306] - Total stockholders' equity as of September 30, 2023, stood at $2,384 million, down 8.5% from $2,605 million in September 2022[314] - The company has approximately $220 million remaining from its $1.0 billion stock repurchase authorization as of September 30, 2023[172] - The company repurchased $379.284 million worth of common stock in 2023, less than $472.970 million in 2022 and $867.091 million in 2021[316] - Weighted average shares outstanding (diluted) for September 2023 decreased to 140 million, down 1.8% from 143 million in September 2022[309] Legal and Contingent Liabilities - The company was contingently liable for approximately $883.3 million in issued standby letters of credit and $4.6 billion in issued surety bonds as of September 30, 2023[270] - Outstanding standby letters of credit totaled $878.9 million at September 30, 2023, up from $640.3 million at September 30, 2022[259] - The Company's Former Affiliate performed additional work worth over $90 million and is entitled to payment of approximately $144 million from the refinery owner[275] - The refinery owner claimed $93.0 million in damages and offsets against the Company's Former Affiliate[275] - The Company completed the sale of its Management Services business, including the Former Affiliate, on January 31, 2020, but retained the Refinery Turnaround Project and related claims[276] - Total contractual obligations and commitments as of September 30, 2023, amounted to $3,529.9 million, with $436.2 million due within one year and $1,912.3 million due in three to five years[277] Depreciation and Amortization - Depreciation and amortization expenses increased to $175.725 million in 2023 from $170.886 million in 2022 and $176.400 million in 2021[316] - Depreciation expense for fiscal year 2023 was $152.3 million, up from $147.0 million in 2022 and $143.6 million in 2021[364] Revenue Recognition and Contract Liabilities - Claims recognition involves estimating potential additional contract revenue, with amounts disclosed in financial statements if material[188] - The company's revenue recognition is dependent on estimates such as engineering progress, material quantities, and labor productivity, with variable consideration included in the transaction price only if a significant reversal is not probable[352] - The company's major contract types include cost reimbursable contracts, where revenue is recognized based on actual direct costs incurred and applicable fixed rates or fees[353] - The company had $21.9 billion of transaction price allocated to unsatisfied performance obligations as of September 30, 2023, with 55% expected to be satisfied within the next 12 months[357] - Revenue recognized from contract liabilities was $1,043.7 million in 2023, up from $565.2 million in 2022[358] Foreign Currency and Risk Management - The company uses foreign currency forward contracts to mitigate foreign currency risk, with most contracts requiring client payments in currencies corresponding to the currency in which costs are incurred[336] Business Divestitures and Acquisitions - The company exited substantially all of its self-perform at-risk construction businesses and divested its remaining non-core oil and gas businesses in January 2022[173] - The company completed the sale of its civil infrastructure construction business in Q2 2021, recording an additional $40.0 million loss in Q1 2022 and a $38.9 million loss in Q2 2023 related to revised estimates of contingent consideration receivable[342] - The company completed the sale of its oil and gas construction business in January 2022 for a purchase price of $14 million, recording a pre-tax gain of approximately $3.0 million and collecting $9.2 million in contingent consideration in Q3 2023[343] Internal Controls and Audits - The company's consolidated financial statements for the years ended September 30, 2023, 2022, and 2021 were audited and found to be in conformity with U.S. GAAP[290] - The company's internal control over financial reporting as of September 30, 2023, received an unqualified opinion from the auditors[291] - The company maintained effective internal control over financial reporting as of September 30, 2023, based on COSO criteria[300] Other Comprehensive Income and Expenses - Other comprehensive income for September 2023 was $53 million, compared to a loss of $80 million in September 2022[311] - Stock-based compensation for September 2023 increased to $46 million, up 19.3% from $38 million in September 2022[314] Working Capital and Leverage - Working capital decreased by $99.4 million (23.7%) to $319.2 million at September 30, 2023, while net accounts receivable and contract assets increased to $2,880.8 million[243] - The company's consolidated leverage ratio was 2.00 to 1.00 at September 30, 2023, well below the required maximum of 4.00 to 1.00 under the Credit Agreement[255] - As of September 30, 2023, the company had $1,145.6

AECOM (NYSE:ACM) Q4 2023 Earnings Conference Call November 14, 2023 8:00 AM ET Company Participants William Gabrielski - SVP, Finance, Treasury and IR Troy Rudd - CEO Lara Poloni - President Gaurav Kapoor - CFO Conference Call Participants Michael Feniger - Bank of America Andy Kaplowitz - Citigroup Steven Fisher - UBS Michael Dudas - Vertical Research Partners Operator Good morning, and welcome to the AECOM Fourth Quarter 2023 Conference Call. I would like to inform all participants that this call is being ...

BRENT SPENCE BRIDGE CORRIDOR PROJECT United States Serving as Lead Designer for the landmark project that calls for renovation and rehabilitation of the Brent Spence Bridge, which serves as a major gateway for travelers along Interstates 71 and 75 between Ohio and Kentucky, as well as construction of a new companion bridge to reduce congestion. Disclosures Forward-Looking Statements All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-52423 AECOM (Exact name of registrant as specified in its charter) Delaware 61-1088522 State or Other Jurisdiction Of I.R.S. Empl ...

AECOM (NYSE:ACM) Q3 2023 Earnings Conference Call August 8, 2023 8:00 AM ET Company Participants William Gabrielski - SVP, Finance, Treasury and IR Troy Rudd - CEO Lara Poloni - President Gaurav Kapoor - CFO Conference Call Participants Sean Eastman - KeyBanc Capital Markets Andrew Wittmann - Robert W. Baird Steven Fisher - UBS Andy Kaplowitz - Citigroup Sabahat Khan - RBC Capital Markets Michael Dudas - Vertical Research Adam Thalhimer - Thompson, Davis & Co. Operator Good morning, and welcome to the AECOM ...

RECONSTRUCTION OF UKRAINE Ukraine Following Russia’s unlawful invasion of Ukraine, AECOM is serving as the reconstruction delivery partner to best position the country to achieve its long- term recovery ambitions. The reconstruction will transformthe lives of all Ukrainians and serve as a model forinnovation in infrastructure. Disclosures Forward-Looking Statements All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state ...

Financial Data and Key Metrics Changes - AECOM reported an 8% organic net service revenue (NSR) growth in the second quarter, with adjusted EBITDA reaching a new quarterly high and strong EPS growth [8][24] - The adjusted operating margin increased by 60 basis points, exceeding expectations for the full year [24] - Adjusted EBITDA increased by 14% on a constant currency basis [24] Business Line Data and Key Metrics Changes - The design business achieved a record quarter of wins with a 1.5 book-to-burn ratio, reflecting strength across both the Americas and International segments [9][25] - NSR growth in the Americas was driven by a 5% increase in the design business, with the adjusted operating margin expanding to 18.7% [25] - NSR growth in the International segment was 12%, with a book-to-burn ratio of 1.4 [26] Market Data and Key Metrics Changes - In the U.S., funding from the Infrastructure Investment and Jobs Act (IIJA) is beginning to flow, contributing to a major bridge replacement project [19] - In Canada, NSR and backlog growth are strong, supported by federal infrastructure investments focused on transit and green energy [20] - Internationally, the EU's Green Deal industrial plan and ongoing investments in Saudi Arabia and Australia are driving growth [21] Company Strategy and Development Direction - AECOM's strategy focuses on collaboration, expanding the addressable market, investing in teams, disciplined capital allocation, and superior value creation [10][12] - The company is positioned to benefit from mega trends in global infrastructure investment, sustainability, and energy transitions [13] - AECOM is exploring strategic options for its AECOM Capital business, which will be reported as noncore [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining organic growth and margin improvements, citing a disciplined approach to investments and a high-quality backlog [31][32] - The company anticipates peak infrastructure funding in the U.S. around 2027, with strong long-term funding opportunities globally [44] - Management highlighted the importance of diversifying away from commercial real estate to more stable funding markets [47] Other Important Information - AECOM has returned over $1.6 billion to shareholders since September 2020 through share repurchases and dividends [12] - The company has no bond maturities until 2027, with a strong balance sheet and free cash flow of $63 million in the first half of the year [27] Q&A Session Summary Question: Sustainability of AECOM's performance metrics - Management highlighted the ability to improve organic growth and margins simultaneously, with a focus on high-quality backlog and disciplined investments [31][32] Question: Confidence in fiscal '24 targets - Management expressed confidence in achieving targets due to a competitive edge platform built on organic growth, margin improvements, and disciplined capital allocation [35][36] Question: Infrastructure funding expectations - Management expects infrastructure funding to increase in '24 and '25, supported by various legislative initiatives [42][44] Question: Exposure to private markets - Management has diversified away from commercial real estate, focusing on more stable markets such as logistics and utilities [47] Question: AECOM Capital's strategic options - Management acknowledged the noncore status of AECOM Capital and emphasized the strength of the Professional Services business [49][50] Question: International market momentum - Management noted strong policy commitments to infrastructure in international markets, contributing to growth [58] Question: Organic growth potential - Management indicated that while organic growth has been steady, they are focused on balancing growth with margin improvements [64][66] Question: Trends in private markets - Management discussed the diversification of projects within private markets, focusing on transportation, water, and other sectors [68] Question: Investment areas for future growth - Management emphasized ongoing investments in people, digital tools, and artificial intelligence to drive future growth [72][74] Question: PFAS project opportunities - Management identified a $10 billion opportunity in PFAS projects, driven by regulatory changes and funding availability [76][77] Question: Infrastructure funding security - Management expressed optimism about the stability of IIJA funding, citing procedural difficulties in clawing back funds [79][80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-52423 AECOM (Exact name of registrant as specified in its charter) Delaware 61-1088522 State or Other Jurisdiction Of I.R.S. Emp ...

AECOM (NYSE:ACM) Q1 2023 Earnings Conference Call February 7, 2023 12:00 PM ET Company Participants Will Gabrielski - SVP, Finance, Treasury & IR Troy Rudd - CEO Lara Poloni - President Gaurav Kapoor - CFO Conference Call Participants Michael Feniger - Bank of America Andy Wittmann - Baird Sabahat Khan - RBC Capital Markets Andy Kaplowitz - Citigroup Jamie Cook - Credit Suisse Michael Dudas - Vertical Research Adam Thalhimer - Thompson Davis Avi Jaroslawicz - UBS Alex Dwyer - KeyBanc Capital Markets Operato ...