Why Is Aecom (ACM) Up 1.4% Since Last Earnings Report?

Core Viewpoint - AECOM reported strong fourth-quarter fiscal 2024 earnings, exceeding estimates and showing year-over-year growth in both earnings and revenues, alongside an increase in dividend and share repurchase authorization [2][3][4]. Financial Performance - Adjusted earnings per share (EPS) reached $1.27, surpassing the consensus estimate of $1.22 by 4.1% and increasing 25.7% from $1.01 in the prior-year quarter [4]. - Revenues totaled $4.11 billion, reflecting a 7% year-over-year increase, with adjusted net service revenues (NSR) rising 5% to $1.81 billion [5]. Segment Performance - Revenues in the Americas segment were $3.16 billion, up 8% year-over-year, with NSR of $1.06 billion increasing 6% [6]. - International revenues grew 5% year-over-year to $948.4 million, with NSR increasing 4% to $754.1 million [8]. Operating Metrics - Adjusted operating income was $207.7 million, a 9% increase year-over-year, with an adjusted operating margin expanding 70 basis points to 19.6% [7]. - Adjusted EBITDA rose 15% year-over-year to $290 million, with an adjusted EBITDA margin of 16.7%, up 140 basis points [13]. Backlog and Growth Opportunities - Total backlog at the end of fiscal 2024 was $23.86 billion, compared to $23.16 billion a year ago, with a 5% increase in the design business backlog [14]. - The company reported a 10% increase in its pipeline of opportunities, driven by robust funding across major markets [14]. Fiscal 2024 Highlights - For the full year, AECOM reported revenues of $16.1 billion, a 12% increase from the previous year, with NSR reaching an all-time high [15]. - Adjusted EPS increased 22% to $4.52, with adjusted EBITDA margins rising 100 basis points to 16% [16]. Liquidity and Cash Flow - Cash and cash equivalents at fiscal 2024-end totaled $1.58 billion, up from $1.26 billion at fiscal 2023-end, while total debt increased to $2.54 billion [17]. - Adjusted operating cash flow increased 19% year-over-year to $827 million, with adjusted free cash flow rising 20% to $708 million [17]. Fiscal 2025 Guidance - The company anticipates 5-8% organic NSR growth in fiscal 2025, with adjusted EPS expected in the range of $5.00-$5.20, indicating a 13% improvement from fiscal 2024 [18]. - Adjusted EBITDA is projected to be between $1.17 billion and $1.21 billion, reflecting 9% year-over-year growth at the midpoint [18]. Long-Term Outlook - AECOM expects to achieve 5-8% organic NSR growth annually, with double-digit adjusted EPS and free cash flow per share improvement [20]. - The company aims for at least 17% adjusted EBITDA margin by the end of fiscal 2026 and approximately 100% conversion of adjusted net income to free cash flow [21].