AECOM(US:ACM)2025-11-18 12:08Revenue 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]