AECOM(US:ACM)2024-11-19 21:24Revenue and Profit Growth - Revenue for fiscal 2024 increased to $16.105 billion, up from $14.378 billion in fiscal 2023, representing a growth of approximately 12%[260] - Gross profit for fiscal 2024 was $1.084 billion, compared to $945 million in fiscal 2023, reflecting a 14.7% increase[260] - Revenue increased by $1,727.0 million (12.0%) to $16,105.5 million in fiscal year 2024 compared to $14,378.5 million in fiscal year 2023[300] - Gross profit rose by $138.8 million (14.7%) to $1,084.3 million in fiscal year 2024 from $945.5 million in fiscal year 2023[300] - Income from operations surged by $503.3 million (155.3%) to $827.4 million in fiscal year 2024 compared to $324.1 million in fiscal year 2023[300] - Net income attributable to AECOM increased by $347.0 million (627.5%) to $402.3 million in fiscal year 2024 from $55.3 million in fiscal year 2023[300] Segment Operations - The Americas segment provides services in transportation, water, government, facilities, environmental, and energy markets, generating significant revenue from public and private clients[250] - The International segment operates in Europe, the Middle East, India, Africa, and the Asia-Australia-Pacific regions, focusing on similar end markets as the Americas[251] Capital and Investments - The company completed a transaction transitioning the AECOM Capital team to a new third-party platform in Q3 of fiscal 2024[257] - AECOM Capital (ACAP) primarily invests in and develops real estate projects, contributing to the company's diversified income streams[252] - At September 30, 2024, the company had approximately $560.5 million remaining in its stock repurchase authorization, with an increase to $1.0 billion approved on November 13, 2024[255] - The company has capital commitments of $5.9 million to the AECOM-Canyon Equity Fund over the next 4 years[392] Operational Efficiency and Restructuring - The company exited substantially all of its former self-perform at-risk construction businesses to improve profitability and reduce risk[256] - Restructuring costs for fiscal 2024 decreased to $99 million from $188 million in fiscal 2023, reflecting ongoing efforts to enhance operational efficiency[260] - Restructuring costs decreased by $89.5 million (47.5%) to $98.9 million in fiscal year 2024 from $188.4 million in fiscal year 2023[300] Expenses and Taxes - General and administrative expenses for fiscal 2024 were $160 million, slightly higher than the $154 million recorded in fiscal 2023[260] - Income tax expense from continuing operations increased by $96.9 million (172.7%) to $153.0 million in fiscal year 2024 from $56.1 million in fiscal year 2023[300] - No deferred taxes have been provided on the undistributed gross book-tax basis differences of non-U.S. operations of approximately $1.2 billion[286] Pension and Employee Benefits - The company expects to contribute $24.2 million to international pension plans and $11.2 million to U.S. plans in fiscal 2025[294] - The aggregate worldwide pension deficit decreased from $165.3 million to $134.0 million between September 30, 2023, and September 30, 2024[297] - The company's defined benefit pension plans had an aggregate deficit of approximately $134.0 million as of September 30, 2024[379] Debt and Credit Facilities - Borrowings under the New Revolving Credit Facility and New Term A Facility bear interest at a rate per annum equal to Term SOFR rate plus 1.225% or base rate plus 0.25%[361] - Borrowings under the New Term B Facility bear interest at a rate per annum equal to Term SOFR rate plus 1.75% or base rate plus 0.75%[362] - As of September 30, 2024, letters of credit totaled $4.4 million under the New Revolving Credit Facility[366] - As of September 30, 2024, the company had $1,495.6 million available under the New Revolving Credit Facility[366] - The estimated fair value of the 2027 Senior Notes was approximately $997.3 million as of September 30, 2024[369] - The average effective interest rate on total debt was 5.6% for the year ended September 30, 2024[374] - At September 30, 2024, the company had $389.8 million available under unsecured credit facilities[373] - The company's outstanding borrowings under term credit agreements and revolving credit facility were $1,446.6 million as of September 30, 2024, with a weighted average floating rate of $1,662.9 million[412] Legal and Contractual Obligations - The Former Affiliate submitted claims against the DOE seeking recovery of $103 million in 2014 and an additional $60.4 million in 2019, with potential recovery ranging from $148.5 million to $329.4 million[398] - The Company completed the sale of its Management Services business, including the Former Affiliate, with future DOE project claim recoveries and costs split 10% to the MS Purchaser and 90% to the Company[399] - The Company's Former Affiliate performed additional work outside of the original contract over $90 million and is entitled to payment of approximately $144 million for the Refinery Turnaround Project[401] - The Company retained the Refinery Turnaround Project, including related claims and liabilities, with trial expected to begin in the second quarter of fiscal year 2025[402] - The Company's total contractual obligations and commitments as of September 30, 2024, amounted to $4,132.7 million, including debt, interest, operating leases, and pension funding obligations[405] Financial Reporting and Compliance - The Company is evaluating the impact of new FASB guidance on segment reporting and income tax disclosures, effective for interim periods ending December 31, 2025, and annual periods beginning October 1, 2025, respectively[406][407] Equity and Joint Ventures - Equity in earnings of joint ventures improved by $281.5 million (100.8%) to $2.1 million in fiscal year 2024 from a loss of $279.4 million in fiscal year 2023[300] Contract Revenues - The Company recognized $16.1 billion in contract revenues for the year ended September 30, 2024, including $3.7 billion from fixed price contracts and $6.0 billion from guaranteed maximum price contracts[424]