AECOM Q1 Earnings Call Highlights

Core Insights - AECOM has reported record first-quarter results, exceeding expectations across key financial metrics, including net service revenue (NSR), adjusted EBITDA, and margins, while backlog grew 9% to an all-time high [3][4][6] Financial Performance - The company achieved a segment-adjusted operating margin of 16.4%, a 100-basis-point increase, and adjusted EBITDA reached $287 million, with adjusted EPS at $1.29, both surpassing management's expectations [2][6] - AECOM raised its full-year adjusted EPS guidance to a midpoint of $5.95, up from $5.75, due to first-quarter outperformance and strong backlog visibility [17] Strategic Developments - AECOM completed the integration of an AI acquisition, which is now operational on projects, and plans to align its construction management business more closely with program management to enhance value [5][11][14] - The company has increased its share repurchase authorization to $1 billion after returning nearly $350 million to shareholders in the first quarter [3][18] Market Position and Opportunities - AECOM has secured significant contracts, including a role in the 2032 Olympic and Paralympic Games in Brisbane and engineering services for Scottish Water's capital investment program, indicating strong positioning in key markets [7][8] - The U.S. market remains robust, with over half of the Infrastructure Investment and Jobs Act funding yet to be utilized, and private-sector investments are gaining momentum [8][9] International Trends - While near-term trends in international markets are mixed, long-term infrastructure demand is strong, with a 25% increase in backlog and expectations for revenue growth as fiscal 2026 progresses [9][16] - The company noted geopolitical and funding uncertainties but remains optimistic about future growth opportunities [9] Segment Performance - The Americas segment reported a 9% growth in NSR, with an adjusted operating margin of 19.9%, driven by operational efficiencies and a shift to higher-margin services [15] - International NSR was flat after adjusting for fewer billable days, but backlog increased significantly, indicating potential for future growth [16]