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 ...

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 ...