AECOM 2025 Investor Day Summary Company Overview - **Company**: AECOM (NYSE: ACM) - **Event**: 2025 Investor Day - **Date**: November 18, 2025 Key Industry Insights - AECOM aims to position itself as a leader in the infrastructure sector through continuous improvement and innovation in design and consulting services [2][4] - The company is focusing on enhancing its advisory business, which is expected to be a key contributor to its competitive advantage [76][78] Core Business Strategies - AECOM has chosen a different growth path compared to competitors, avoiding mergers and acquisitions in favor of organic growth and innovation [3][5] - The company is undertaking a strategic evaluation of its construction management business to allocate resources to higher-return opportunities in design and consulting [4][5] - AECOM has built a strong backlog and raised guidance for fiscal 2026, expecting EBITDA and EPS growth of 9% to 79% [7][4] Financial Performance - AECOM delivered over $5 billion in capital to shareholders through dividends and stock repurchases [4] - The company has raised its long-term margin guidance to over 20%, indicating a shift in operating leverage paradigms within the industry [7][28] AI and Technology Integration - AECOM has invested significantly in artificial intelligence (AI) capabilities over the past two years, aiming to transform its business model and improve operational efficiency [10][29] - The use of AI is expected to reduce design time from months to weeks, enhance decision-making speed, and lower material costs by 10% to 20% [44][47] - AECOM has built a unique team of AI professionals to integrate AI into engineering processes, creating a competitive advantage [41][36] Advisory Business Development - AECOM's advisory business has grown from a few hundred million dollars to over $1.3 billion in four years, with healthy margins [22][76] - The company aims to increase its addressable market spend with existing clients from 15% to 35% by expanding its advisory and program management services [25][26] - AECOM is positioned to disrupt the advisory industry by leveraging its technical expertise, differentiating itself from traditional management consultants [78][79] Market Opportunities - AECOM is targeting long-term trends in infrastructure investment, including sustainability and resilience, which are expected to drive growth for decades [27][28] - The company sees significant opportunities in private capital and infrastructure financing, capitalizing on the growing interest from sovereign wealth funds and pension funds [86][89] - AECOM is well-positioned to assist clients in navigating the complexities of project prioritization and funding in the evolving infrastructure landscape [88][89] Conclusion - AECOM is confident in its ability to achieve organic growth at a rate faster than GDP, driven by its innovative approach, strong technical capabilities, and strategic focus on advisory services [28][74] - The company anticipates an EPS CAGR of over 15% and aims to maintain a cash flow profile that supports ongoing capital allocation and growth initiatives [74][75]