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AECOM(ACM) - 2024 Q4 - Annual Results
ACMAECOM(ACM)2024-11-18 21:11

Financial Performance - Fourth quarter revenue increased 7% to 4.1billion,operatingincomeincreased1944.1 billion, operating income increased 194% to 236 million, net income increased 396% to 168million,anddilutedearningspershareincreased421168 million, and diluted earnings per share increased 421% to 1.25[4] - Full year revenue increased 12% to 16.1billion,operatingincomeincreased15516.1 billion, operating income increased 155% to 827 million, net income increased 343% to 506million,anddilutedearningspershareincreased358506 million, and diluted earnings per share increased 358% to 3.71[4] - Full year net service revenue (NSR) reached an all-time high of 7.165billion,with77.165 billion, with 7% growth year-over-year[3][4] - Adjusted EBITDA margin was 16.7% in the fourth quarter and 16.0% for the full year, reflecting increases of 140 basis points and 100 basis points, respectively[4] - Free cash flow for the full year reached a new high of 708 million, a 20% increase from the prior year, representing 10% of net service revenue[8][11] - AECOM's revenue for fiscal year 2024 was 16.1billion,representinga12.016.1 billion, representing a 12.0% increase compared to the previous year[26][33] - Net income attributable to AECOM for the twelve months ended September 30, 2024, was 402.3 million, a 627.0% increase year-over-year[33] - Gross profit for the twelve months ended September 30, 2024, was 1.08billion,up14.71.08 billion, up 14.7% from the previous year[33] - Income from continuing operations before taxes for the twelve months ended September 30, 2024, was 718.2 million, a 236.5% increase year-over-year[33] - Basic earnings per share for the twelve months ended September 30, 2024, were 2.97,a642.52.97, a 642.5% increase year-over-year[33] - Diluted earnings per share for the twelve months ended September 30, 2024, were 2.95, a 656.4% increase year-over-year[33] - Revenue for the three months ended September 30, 2024, totaled 4,110.5million,withAmericascontributing4,110.5 million, with Americas contributing 3,161.5 million and International contributing 948.4million[38]−GrossprofitforthethreemonthsendedSeptember30,2024,was948.4 million[38] - Gross profit for the three months ended September 30, 2024, was 294.2 million, with a gross profit margin of 7.2%[38] - Net service revenue for the three months ended September 30, 2024, was 1,812.1million,withAmericascontributing1,812.1 million, with Americas contributing 1,057.4 million and International contributing 754.1million[41]−RevenueforthetwelvemonthsendedSeptember30,2024,totaled754.1 million[41] - Revenue for the twelve months ended September 30, 2024, totaled 16,105.5 million, with Americas contributing 12,485.7millionandInternationalcontributing12,485.7 million and International contributing 3,618.4 million[38] - Gross profit for the twelve months ended September 30, 2024, was 1,084.3million,withagrossprofitmarginof6.71,084.3 million, with a gross profit margin of 6.7%[38] - Net service revenue for the twelve months ended September 30, 2024, was 7,165.0 million, with Americas contributing 4,204.6millionandInternationalcontributing4,204.6 million and International contributing 2,959.0 million[41] - Income from operations for the three months ended September 30, 2024, was 236.4million,withAmericascontributing236.4 million, with Americas contributing 203.4 million and International contributing 94.5million[38]−IncomefromoperationsforthetwelvemonthsendedSeptember30,2024,was94.5 million[38] - Income from operations for the twelve months ended September 30, 2024, was 827.4 million, with Americas contributing 774.6millionandInternationalcontributing774.6 million and International contributing 337.4 million[38] - Net income attributable to AECOM from continuing operations for the twelve months ended Sep 30, 2024 was 505.9million,comparedto505.9 million, compared to 114.1 million for the same period in 2023[53] - Adjusted net income attributable to AECOM from continuing operations for the twelve months ended Sep 30, 2024 was 616.9million,comparedto616.9 million, compared to 519.6 million for the same period in 2023[53] - Adjusted EBITDA for the twelve months ended Sep 30, 2024 was 1,094.8million,comparedto1,094.8 million, compared to 963.9 million for the same period in 2023[54] - Americas segment income from operations for the twelve months ended Sep 30, 2024 was 774.6million,comparedto774.6 million, compared to 714.6 million for the same period in 2023[57] - International segment income from operations for the twelve months ended Sep 30, 2024 was 337.4million,comparedto337.4 million, compared to 254.7 million for the same period in 2023[57] - Total segment income from operations (excluding ACAP and G&A) for the twelve months ended Sep 30, 2024 was 1,112.0million,comparedto1,112.0 million, compared to 969.3 million for the same period in 2023[57] Backlog and Cash Flow - Total backlog increased 3% to a new record of 23.863billion,withdesignbacklogincreasingby523.863 billion, with design backlog increasing by 5%[3][4] - Total backlog as of September 30, 2024, was 23,863.0 million, with Americas contributing 17,436.3millionandInternationalcontributing17,436.3 million and International contributing 6,426.8 million[38] - Total backlog – Design only as of September 30, 2024, was 22,556.9million,withAmericascontributing22,556.9 million, with Americas contributing 16,130.1 million and International contributing 6,426.8million[38]−FreecashflowforthethreemonthsendedSeptember30,2024,was6,426.8 million[38] - Free cash flow for the three months ended September 30, 2024, was 274.6 million, up from 262.9millioninthesameperiodlastyear[42]FinancialPosition−TotalcashandcashequivalentsasofSeptember30,2024,were262.9 million in the same period last year[42] Financial Position - Total cash and cash equivalents as of September 30, 2024, were 1.58 billion, up from 1.26billionthepreviousyear[35]−Accountsreceivableandcontractassets–netincreasedto1.26 billion the previous year[35] - Accounts receivable and contract assets – net increased to 4.60 billion as of September 30, 2024, from 4.07billionthepreviousyear[35]−Totaldebt,excludingunamortizeddebtissuancecosts,was4.07 billion the previous year[35] - Total debt, excluding unamortized debt issuance costs, was 2.54 billion as of September 30, 2024, compared to 2.22billionthepreviousyear[35]−Workingcapitalsignificantlyincreasedto2.22 billion the previous year[35] - Working capital significantly increased to 802.0 million as of September 30, 2024, from 319.2millionthepreviousyear[35]−Totaldebtincreasedto319.2 million the previous year[35] - Total debt increased to 2,539.9 million as of September 30, 2024, compared to 2,217.3millioninthesameperiodlastyear[42]−Netdebtstoodat2,217.3 million in the same period last year[42] - Net debt stood at 959.0 million as of September 30, 2024, slightly higher than 957.1millioninthepreviousyear[42]GuidanceandForecast−Fiscal2025guidanceincludesorganicNSRgrowthof5957.1 million in the previous year[42] Guidance and Forecast - Fiscal 2025 guidance includes organic NSR growth of 5% to 8%, adjusted EBITDA of 1.170 billion to 1.210billion,andadjustedEPSof1.210 billion, and adjusted EPS of 5.00 to 5.20[9]−GAAPEPSguidancefor2025is5.20[9] - GAAP EPS guidance for 2025 is 4.96 to 5.16[59]−AdjustedEPSguidancefor2025is5.16[59] - Adjusted EPS guidance for 2025 is 5.00 to 5.20,excludingamortizationofintangibleassets(5.20, excluding amortization of intangible assets (0.01), deferred financing fees (0.04),andtaxeffects(0.04), and tax effects (0.01)[59] - GAAP net income from continuing operations guidance for 2025 is 724Mto724M to 743M[59] - Adjusted net income attributable to AECOM from continuing operations for 2025 is 670Mto670M to 698M, excluding amortization of intangible assets (2M),deferredfinancingfees(2M), deferred financing fees (5M), and tax effects (1Mto1M to 2M)[59] - Adjusted EBITDA guidance for 2025 is 1,170Mto1,170M to 1,210M, excluding depreciation (160M),adjustedinterestexpense(160M), adjusted interest expense (129M), and tax expense (211Mto211M to 223M)[59] - GAAP interest expense guidance for 2025 is 169M,withadjustednetinterestexpenseguidanceat169M, with adjusted net interest expense guidance at 129M after excluding finance charges (5M)andinterestincome(5M) and interest income (35M)[62] - GAAP income tax expense guidance for 2025 is 210Mto210M to 221M, with adjusted income tax expense guidance at 211Mto211M to 223M after including tax effects of adjusting items (1Mto1M to 2M)[62] Segment Performance - The Americas segment revenue increased 8% to 3.2billioninthefourthquarter,withfull−yearrevenueup143.2 billion in the fourth quarter, with full-year revenue up 14% to 12.5 billion[15] - International segment revenue increased 5% to 948millioninthefourthquarter,withfull−yearrevenueup6948 million in the fourth quarter, with full-year revenue up 6% to 3.6 billion[17] Shareholder Returns - The company increased its share repurchase authorization to 1billionandraiseditsquarterlydividendby181 billion and raised its quarterly dividend by 18% to 0.26 per share[5][11] Adjustments and Non-Core Items - Adjusted income from operations for the three months ended September 30, 2024, was 261.5million,comparedto261.5 million, compared to 224.7 million in the same period last year[47] - Adjusted EBITDA with noncontrolling interests (NCI) for the three months ended September 30, 2024, was 303.1million,upfrom303.1 million, up from 265.7 million in the same period last year[47] - Adjusted income from continuing operations before taxes for the three months ended September 30, 2024, was 235.1million,comparedto235.1 million, compared to 202.4 million in the same period last year[47] - Adjusted income tax expense for continuing operations for the three months ended September 30, 2024, was 48.1million,comparedto48.1 million, compared to 47.6 million in the same period last year[46] - Adjusted net income attributable to noncontrolling interests from continuing operations for the three months ended September 30, 2024, was (14.7)million,comparedto(14.7) million, compared to (13.8) million in the same period last year[48] - Restructuring costs for the twelve months ended Sep 30, 2024 were 99.0million,comparedto99.0 million, compared to 188.5 million for the same period in 2023[54] - Amortization of intangible assets for the twelve months ended Sep 30, 2024 was 18.7million,comparedto18.7 million, compared to 18.5 million for the same period in 2023[57] - Noncore AECOM Capital loss (income), net of NCI for the twelve months ended Sep 30, 2024 was 40.5million,comparedto40.5 million, compared to 315.8 million for the same period in 2023[54] - Weighted average shares outstanding - diluted for the twelve months ended Sep 30, 2024 was 136.5 million, compared to 140.1 million for the same period in 2023[53]