Core Insights - Aecom reported stronger-than-expected fourth-quarter adjusted earnings, with adjusted earnings per share at $1.36, slightly above the consensus estimate of $1.34 [1] - Quarterly revenue was $4.18 billion, which fell short of analyst expectations of $4.32 billion, leading to a more than 2% decline in shares intra-day [1] - The company achieved a record segment adjusted operating margin of 17.1%, reflecting a 40-basis-point improvement from the previous year [2] Financial Performance - Net service revenue increased by 8%, driven by a 9% growth in the Americas design division [1] - Adjusted EBITDA rose by 13% to $329 million [2] Future Guidance - For fiscal 2026, Aecom provided guidance for adjusted earnings per share in the range of $5.65 to $5.85, indicating approximately 9% growth at the midpoint [2] - The company raised its quarterly dividend by 19% to $0.31 per share [2]

AECOM 2025 Investor Day Summary Company Overview - **Company**: AECOM (NYSE: ACM) - **Event**: 2025 Investor Day - **Date**: November 18, 2025 Key Industry Insights - AECOM aims to position itself as a leader in the infrastructure sector through continuous improvement and innovation in design and consulting services [2][4] - The company is focusing on enhancing its advisory business, which is expected to be a key contributor to its competitive advantage [76][78] Core Business Strategies - AECOM has chosen a different growth path compared to competitors, avoiding mergers and acquisitions in favor of organic growth and innovation [3][5] - The company is undertaking a strategic evaluation of its construction management business to allocate resources to higher-return opportunities in design and consulting [4][5] - AECOM has built a strong backlog and raised guidance for fiscal 2026, expecting EBITDA and EPS growth of 9% to 79% [7][4] Financial Performance - AECOM delivered over $5 billion in capital to shareholders through dividends and stock repurchases [4] - The company has raised its long-term margin guidance to over 20%, indicating a shift in operating leverage paradigms within the industry [7][28] AI and Technology Integration - AECOM has invested significantly in artificial intelligence (AI) capabilities over the past two years, aiming to transform its business model and improve operational efficiency [10][29] - The use of AI is expected to reduce design time from months to weeks, enhance decision-making speed, and lower material costs by 10% to 20% [44][47] - AECOM has built a unique team of AI professionals to integrate AI into engineering processes, creating a competitive advantage [41][36] Advisory Business Development - AECOM's advisory business has grown from a few hundred million dollars to over $1.3 billion in four years, with healthy margins [22][76] - The company aims to increase its addressable market spend with existing clients from 15% to 35% by expanding its advisory and program management services [25][26] - AECOM is positioned to disrupt the advisory industry by leveraging its technical expertise, differentiating itself from traditional management consultants [78][79] Market Opportunities - AECOM is targeting long-term trends in infrastructure investment, including sustainability and resilience, which are expected to drive growth for decades [27][28] - The company sees significant opportunities in private capital and infrastructure financing, capitalizing on the growing interest from sovereign wealth funds and pension funds [86][89] - AECOM is well-positioned to assist clients in navigating the complexities of project prioritization and funding in the evolving infrastructure landscape [88][89] Conclusion - AECOM is confident in its ability to achieve organic growth at a rate faster than GDP, driven by its innovative approach, strong technical capabilities, and strategic focus on advisory services [28][74] - The company anticipates an EPS CAGR of over 15% and aims to maintain a cash flow profile that supports ongoing capital allocation and growth initiatives [74][75]

Financial Performance and Targets - AECOM exceeded previously increased earnings guidance mid-points[13] - AECOM delivered on long-term 17%+ margin guidance five-quarters early (Q3'25)[13] - AECOM has a record design backlog of $23 billion[14] - AECOM's FY'20-FY'25 adjusted EPS CAGR is 20%[13] - AECOM is targeting FY'26 – FY'29 Organic NSR Growth CAGR of +5 – 8%[38] - AECOM is targeting FY'26 – FY'29 Segment Adjusted Operating/Adjusted EBITDA Margin of 20%+ (Exit rate by FY'28)[38] - AECOM is targeting FY'26 – FY'29 Adjusted EPS and Free Cash Flow per Share Growth CAGR of 15%+[38] - AECOM's FY25 Net Service Revenue was $7572.8 million[79, 99] - AECOM's FY25 Adjusted EPS was $5.26[79] - AECOM's FY25 Total Backlog was $24.8 billion[79] Strategic Initiatives - AECOM expects to double its Advisory business within three years[13] - AECOM's win rate on largest pursuits in FY'25 was 80%+[14] - AECOM has built a team of 200+ AI PhDs and advanced degrees in machine learning, math, physics, computer and data sciences[13, 34]

Revenue and Income - Fourth quarter revenue increased by 2% to $4.175 billion, while full year revenue remained effectively unchanged at $16.140 billion[10] - Net service revenue (NSR) grew by 8% in the fourth quarter, driven by a 9% increase in the Americas design business, with full year NSR up 6% to $7.573 billion[10] - Operating income for the fourth quarter was $237 million, unchanged year-over-year, while full year operating income increased by 24% to $1.027 billion[10] - AECOM reported revenue of $4.175 billion for the three months ended September 30, 2025, representing a 1.6% increase compared to $4.110 billion for the same period in 2024[31] - Total revenue for the three months ended September 30, 2025, was $4,175.4 million, an increase from $4,110.5 million in the same period of 2024, representing a growth of 1.6%[37] - Net service revenue for the three months ended September 30, 2025, was $1,966.8 million, up from $1,812.1 million in the same period of 2024, indicating a growth of 8.5%[40] - AECOM's adjusted net income attributable to AECOM from continuing operations for the twelve months ended September 30, 2025, was $701.7 million, compared to $616.9 million in the previous year, indicating a 13.7% increase[46] Margins and Backlog - The company achieved a record full year segment adjusted operating margin of 16.5%, exceeding prior long-term guidance five quarters ahead of expectations[10] - Total backlog increased by 4% to $24.830 billion, marking the fifth consecutive quarter of sequential backlog growth[4] - The contracted backlog as of September 30, 2025, was $13,518.6 million, showing a slight increase from $13,335.7 million in 2024[37] Shareholder Returns and Guidance - The company returned nearly $500 million to shareholders through repurchases and dividends, with a 19% increase in the quarterly dividend to $0.31 per share[4] - AECOM initiated fiscal 2026 guidance with expectations for organic NSR growth of 6% to 8%, projecting adjusted EPS between $5.15 and $5.35[16] - For fiscal year 2026, AECOM's GAAP EPS guidance is projected to be between $4.01 and $4.84, while adjusted EPS guidance is expected to be between $5.65 and $5.85[52] Financial Position - As of September 30, 2025, AECOM had $1.6 billion in cash and cash equivalents, $2.7 billion in total debt, and a net leverage ratio of 0.8x[18] - AECOM's total cash and cash equivalents stood at $1.586 billion as of September 30, 2025, slightly up from $1.581 billion a year earlier[34] - The total debt of AECOM, excluding unamortized debt issuance costs, increased to $2.744 billion as of September 30, 2025, compared to $2.540 billion in the previous year[34] - Net debt as of September 30, 2025, was $1,158.0 million, compared to $959.0 million in 2024, reflecting an increase of 20.8%[41] Operational Performance - AECOM's adjusted EBITDA margin was not explicitly stated but is a key metric used to evaluate operational performance[28] - The company's working capital improved to $801.411 million as of September 30, 2025, up from $681.678 million a year prior[34] - AECOM's adjusted EBITDA for the twelve months ended September 30, 2025, was $1,245.9 million, compared to $1,130.7 million for the previous year, reflecting a 10.2% increase[50] Costs and Expenses - The company experienced a 225.3% increase in restructuring and acquisition costs for the three months ended September 30, 2025, totaling $59.355 million compared to $18.248 million in the same period last year[31] - General and administrative expenses for the three months ended September 30, 2025, totaled $39.2 million, a decrease from $43.5 million in the same period of 2024[37] - The company incurred restructuring and acquisition costs of $59.4 million for the three months ended September 30, 2025, compared to $18.3 million in the same period of 2024[44] Tax and Interest - The effective tax rate was 28.1% in the fourth quarter and 22.3% for the full year, with an adjusted effective tax rate of 29.0% and 24.3%, respectively[19] - The adjusted income tax expense for continuing operations for the twelve months ended September 30, 2025, was $225.0 million, compared to $203.0 million in the previous year[44] - AECOM anticipates a GAAP interest expense of $175 million for fiscal year 2026, with adjusted net interest expense guidance set at $135 million[54] Segment Performance - AECOM's adjusted segment income from operations for the Americas segment was $244.1 million for the three months ended September 30, 2025, compared to $241.3 million for the previous quarter, reflecting a 0.3% increase[50] - The international segment reported an adjusted segment income from operations of $92.7 million for the three months ended September 30, 2025, consistent with the previous quarter[50] - The Americas segment's income from operations for the twelve months ended September 30, 2025, was $897.8 million, up from $774.6 million in the previous year, indicating a 15.8% increase[50]

Non-GAAP Financial Information Fourth Quarter Fiscal 2025 East San Fernando Valley Transit Corridor Light Rail Los Angeles, California AECOM was appointed by the Los Angeles County Metropolitan Transportation Authority as the lead designer on the East San Fernando Valley Light Rail Transit project, providing engineering, architectural and design services for the 6.7-mile track extension. AECOM was appointed to Phase 2 work in Q4. Disclosures Forward-Looking Statements All statements in this communication ot ...

Core Insights - AECOM is hosting an Investor Day to outline transformative strategic initiatives and long-term financial targets [1] - The company emphasizes its focus over the past five years on building a strong culture, business profile, and operating structure to lead the industry [1] - Today's announcements reflect significant strategic successes achieved by the company [1]

Earnings Reports - Home Depot Inc. is expected to report quarterly earnings of $3.85 per share on revenue of $41.14 billion [2] - Helmerich and Payne Inc. reported a loss of 1 cent per share for the fourth quarter, with quarterly sales of $1.012 billion, exceeding the analyst consensus estimate of $973.678 million [2] - Medtronic PLC is anticipated to post quarterly earnings of $1.31 per share on revenue of $8.87 billion [2] - Aecom is expected to report quarterly earnings of $1.34 per share on revenue of $4.31 billion [2] Stock Movements - Home Depot shares fell 0.4% to $356.70 in after-hours trading [2] - Helmerich and Payne shares dipped 8.2% to $25.34 in after-hours trading [2] - Medtronic shares rose 0.1% to $96.29 in after-hours trading [2] - Aecom shares gained 0.8% to $132.99 in after-hours trading [2] Mergers and Acquisitions - Akzo Nobel N.V. and Axalta Coating Systems Ltd. agreed to an all-stock merger of equals, resulting in Axalta Coating shares jumping 13.2% to $31.90 in after-hours trading [2]

Core Insights - Aecom is a leading global infrastructure consulting firm with a diverse range of services and a strong international presence [1][3] Financial Performance - The financial outlook for Aecom has been stable, with the consensus price target showing minimal fluctuation from $145.00 a year ago to $144.50 last month, indicating steady confidence in its operational performance [2] - Citigroup has set a lower price target of $105 for Aecom, reflecting a divergent viewpoint that may arise from different evaluations of the company's valuation and profitability [3] Competitive Position - Aecom's diversified business model and extensive global operations provide a competitive edge against industry counterparts like Metallurgical Corp. of China, potentially buffering against market shifts [4]

Earnings Expectations - Aramark (NYSE:ARMK) is expected to report quarterly earnings of 65 cents per share on revenue of $5.16 billion [2] - J&J Snack Foods Corp. (NASDAQ:JJSF) is anticipated to post quarterly earnings of $1.19 per share on revenue of $419.09 million [2] - Aecom (NYSE:ACM) is projected to report quarterly earnings of $1.34 per share on revenue of $4.31 billion [2] - Helmerich and Payne Inc. (NYSE:HP) is expected to post quarterly earnings of 25 cents per share on revenue of $973.68 million [2] Stock Performance - Aramark shares fell 1.3% to close at $38.03 on Friday [2] - J&J Snack Foods shares rose 0.6% to close at $83.09 on Friday [2] - Sohu.com Ltd. (NASDAQ:SOHU) reported third-quarter earnings of 33 cents per share, compared to a loss of 39 cents per share a year ago, with sales of $180.161 million, up from $151.992 million [2] - Sohu.com shares fell 3.2% to close at $14.32 on Friday [2] - Aecom shares gained 0.3% to $133.89 in after-hours trading [2] - Helmerich and Payne shares gained 3.2% to close at $27.83 on Friday [2]

Company Overview - ACM Research is a leading provider of advanced wafer processing equipment for the semiconductor industry, specializing in single-wafer cleaning and plating technologies [4][8] - The company leverages proprietary innovations such as space alternated phase shift and timely energized bubble oscillation to meet the needs of cutting-edge chip fabrication [4][8] - As of November 14, 2025, ACM Research's market capitalization was $2.12 billion, with a revenue of $880.35 million and a net income of $117.11 million for the trailing twelve months (TTM) [3] Recent Developments - Seldon Capital LP disclosed a new position in ACM Research, adding 193,242 shares valued at approximately $7.56 million as of September 30, 2025 [1] - This new position represents 2.66% of Seldon Capital's total assets under management (AUM) [2] - ACM Research shares were priced at $31.51 on November 14, 2025, with a one-year total return of 68.2%, outperforming the S&P 500 by 57 percentage points [2] Financial Performance - In Q3 2025, ACM Research reported a 32% year-over-year increase in sales, reaching $269.2 million [9] - The company expects full-year revenue to be between $875 million and $925 million, indicating significant growth compared to 2024's revenue of $782.1 million [9] - ACM Research's diluted earnings per share (EPS) increased to $1.26 in the first three quarters of 2025, up from $1.07 in 2024 [10] Market Position - ACM Research positions itself as a key enabler of next-generation semiconductor production, focusing on enhancing manufacturing yields [5] - The company sells proprietary equipment and technology solutions to integrated circuit manufacturers through a direct sales force and third-party representatives [8]