AECOM(ACM) - 2025 Q1 - Quarterly Report

Revenue and Profitability - Revenue for the three months ended December 31, 2024, increased by $114.3 million, or 2.9$4,014.2 million compared to $3,899.9 million for the same period last year [143]. - Gross profit for the same period increased by$24.4 million, or 10.0%, to $268.4 million, with gross profit as a percentage of revenue rising to 6.7$3,745.8 million, an increase of $89.9 million, or 2.5$72.6 million, or 76.9%, to $167.0 million compared to$94.4 million in the prior year [141]. - Total revenue for the three months ended December 31, 2024, was $2,319.4 million, with a gross profit of$184.8 million [215]. - Net income for the same period was $122.5 million, attributable entirely to continuing operations [215]. Segment Performance - The Americas and International segments contributed significantly to revenue growth due to increased investments in infrastructure programs [144]. - Revenue for the Americas segment increased by$73.3 million, or 2.4%, to $3,112.0 million, driven by organic growth [162]. - Gross profit for the Americas segment rose by$19.2 million, or 11.2%, to $190.2 million, with gross profit as a percentage of revenue increasing to 6.1$41.0 million, or 4.8%, to $902.0 million, primarily due to growth in the Middle East and the U.K. [168]. Cash Flow and Working Capital - Net cash provided by operating activities was$151.1 million for the three months ended December 31, 2024, compared to $143.1 million for the same period last year [180]. - Cash and cash equivalents were$1,584.7 million at December 31, 2024, a slight decrease from $1,584.9 million at September 30, 2024 [179]. - Working capital increased by$57.8 million, or 7.2%, to $859.8 million at December 31, 2024, compared to$802.0 million at September 30, 2024 [183]. - Days Sales Outstanding (DSO) improved slightly to 69 days at December 31, 2024, from 70 days at September 30, 2024 [185]. Debt and Interest - Total debt as of December 31, 2024, was $2,547.1 million, up from$2,539.8 million at September 30, 2024 [188]. - The average effective interest rate on total debt decreased to 5.2% for the three months ended December 31, 2024, from 5.4% in the prior year [204]. - Interest income increased to $16.6 million from$12.1 million, attributed to a rise in interest-bearing assets [154]. - Interest expense was $43.0 million, up from$41.3 million, mainly due to increased debt levels [155]. - If short-term floating interest rates had increased by 1.00%, interest expense for the three months ended December 31, 2024, would have increased by $2.4 million [222]. Stock and Capital Management - The company has approximately$974.8 million remaining of the Board's stock repurchase authorization, with an increase in the total authorization to $1.0 billion approved on November 13, 2024 [137]. - Future cash will be allocated towards dividends and stock repurchases consistent with the company's capital allocation policy [137]. - The company exited substantially all of its former self-perform at-risk construction businesses to improve profitability and reduce risk [138]. Other Financial Metrics - General and administrative expenses increased by$4.8 million, or 13.4%, to $40.5 million for the three months ended December 31, 2024, compared to$35.7 million for the same period last year [151]. - Other income rose to $6.9 million from$2.6 million for the corresponding period last year, primarily due to an increase in the fair value of investments [153]. - Total assets decreased from $6,438.8 million as of September 30, 2024, to$6,391.7 million as of December 31, 2024 [213]. - Total stockholders' equity increased from $607.7 million to$678.1 million during the same period [213]. - Current liabilities decreased from $2,918.1 million to$2,807.0 million [213]. Pension and Compliance - The defined benefit pension plans had an aggregate deficit of approximately $119.9 million as of December 31, 2024 [208]. - The company contributed$2.5 million to multiemployer pension plans for the year ended September 30, 2024 [208]. - The company was in compliance with the covenants of the Credit Agreement as of December 31, 2024 [195]. Risk Management - The company actively uses derivative financial instruments to manage foreign currency and interest rate risks, but does not use them for trading purposes [220]. - The company limits exposure to foreign currency fluctuations through provisions requiring client payments in corresponding local currencies [221]. - Weighted average floating rate borrowings were $1,669.3 million, with$969.3 million excluding borrowings with effective fixed interest rates due to interest rate agreements [222].