AECOM(US:ACM)2024-11-18 21:11Financial Performance - Fourth quarter revenue increased 7% to $4.1 billion, operating income increased 194% to $236 million, net income increased 396% to $168 million, and diluted earnings per share increased 421% to $1.25[4] - Full year revenue increased 12% to $16.1 billion, operating income increased 155% to $827 million, net income increased 343% to $506 million, and diluted earnings per share increased 358% to $3.71[4] - Full year net service revenue (NSR) reached an all-time high of $7.165 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 $16.1 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 $1.08 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, 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 $4,110.5 million, with Americas contributing $3,161.5 million and International contributing $948.4 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 $1,812.1 million, with Americas contributing $1,057.4 million and International contributing $754.1 million[41] - Revenue for the twelve months ended September 30, 2024, totaled $16,105.5 million, with Americas contributing $12,485.7 million and International contributing $3,618.4 million[38] - Gross profit for the twelve months ended September 30, 2024, was $1,084.3 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 $4,204.6 million and International contributing $2,959.0 million[41] - Income from operations for the three months ended September 30, 2024, was $236.4 million, with Americas contributing $203.4 million and International contributing $94.5 million[38] - Income from operations for the twelve months ended September 30, 2024, was $827.4 million, with Americas contributing $774.6 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 $505.9 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 $616.9 million, compared to $519.6 million for the same period in 2023[53] - Adjusted EBITDA for the twelve months ended Sep 30, 2024 was $1,094.8 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 $774.6 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 $337.4 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 $1,112.0 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 $23.863 billion, with design backlog increasing by 5%[3][4] - Total backlog as of September 30, 2024, was $23,863.0 million, with Americas contributing $17,436.3 million and International contributing $6,426.8 million[38] - Total backlog – Design only as of September 30, 2024, was $22,556.9 million, with Americas contributing $16,130.1 million and International contributing $6,426.8 million[38] - Free cash flow for the three months ended September 30, 2024, was $274.6 million, up from $262.9 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 $1.26 billion the previous year[35] - Accounts receivable and contract assets – net increased to $4.60 billion as of September 30, 2024, from $4.07 billion the previous year[35] - Total debt, excluding unamortized debt issuance costs, was $2.54 billion as of September 30, 2024, compared to $2.22 billion the previous year[35] - Working capital significantly increased to $802.0 million as of September 30, 2024, from $319.2 million the previous year[35] - Total debt increased to $2,539.9 million as of September 30, 2024, compared to $2,217.3 million in the same period last year[42] - Net debt stood at $959.0 million as of September 30, 2024, slightly higher than $957.1 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 $1.210 billion, and adjusted EPS of $5.00 to $5.20[9] - GAAP EPS guidance for 2025 is $4.96 to $5.16[59] - Adjusted EPS guidance for 2025 is $5.00 to $5.20, excluding amortization of intangible assets ($0.01), deferred financing fees ($0.04), and tax effects ($0.01)[59] - GAAP net income from continuing operations guidance for 2025 is $724M to $743M[59] - Adjusted net income attributable to AECOM from continuing operations for 2025 is $670M to $698M, excluding amortization of intangible assets ($2M), deferred financing fees ($5M), and tax effects ($1M to $2M)[59] - Adjusted EBITDA guidance for 2025 is $1,170M to $1,210M, excluding depreciation ($160M), adjusted interest expense ($129M), and tax expense ($211M to $223M)[59] - GAAP interest expense guidance for 2025 is $169M, with adjusted net interest expense guidance at $129M after excluding finance charges ($5M) and interest income ($35M)[62] - GAAP income tax expense guidance for 2025 is $210M to $221M, with adjusted income tax expense guidance at $211M to $223M after including tax effects of adjusting items ($1M to $2M)[62] Segment Performance - The Americas segment revenue increased 8% to $3.2 billion in the fourth quarter, with full-year revenue up 14% to $12.5 billion[15] - International segment revenue increased 5% to $948 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 $1 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 $261.5 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 $303.1 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 $235.1 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 $48.1 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, compared to $(13.8) million in the same period last year[48] - Restructuring costs for the twelve months ended Sep 30, 2024 were $99.0 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 $18.7 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 $40.5 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]