- Increased earnings guidance for fiscal 2024
- Delivered record third quarter performance
- Backlog remains near an all-time high, and total pipeline is
at a record level
- Returned $407 million to shareholders fiscal year-to-date,
including $150 million of share repurchases since the end of the
fiscal third quarter
AECOM (NYSE:ACM), the world’s trusted infrastructure consulting
firm, today reported third quarter fiscal 2024 results.
Third Quarter Fiscal
2024
Year-to-Date Fiscal
2024
(from Continuing Operations;
$ in millions, except EPS)
As Reported
Adjusted1
(Non-GAAP)
As Reported YoY %
Change
Adjusted YoY % Change
As Reported
Adjusted1
(Non-GAAP)
As Reported YoY %
Change
Adjusted YoY % Change
Revenue
$4,151
--
13%
--
$11,995
--
14%
--
Net Service Revenue (NSR)2
--
$1,826
--
8%
--
$5,353
--
8%
Operating Income
$227
$261
NM
19%
$591
$724
142%
16%
Segment Operating Margin3
--
16.3%
--
+110 bps
--
15.5%
--
+90 bps
Net Income
$129
$159
NM
21%
$338
$445
321%
17%
EPS (Fully Diluted)
$0.95
$1.16
NM
23%
$2.47
$3.25
333%
20%
EBITDA4
--
$286
--
16%
--
$805
--
13%
EBITDA Margin5
--
16.5%
--
+130 bps
--
15.8%
--
+90 bps
Operating Cash Flow
$291
--
4%
--
--
$529
--
29%
Free Cash Flow6
--
$273
--
3%
--
$434
--
32%
Total Backlog
$23,362
--
1%7
--
Third Quarter Fiscal 2024
Highlights:
- Reflecting as reported performance from continuing operations,
revenue increased 13% to $4.2 billion, operating income increased
to $227 million, net income increased to $129 million, and diluted
earnings per share increased to $0.95.
- Net service revenue2 increased by 8% to a record high, driven
by growth across all of the Company’s largest end markets and the
benefits from continued addressable market expansion.
- The adjusted EBITDA margin5 increased by 130 basis points to
16.5% and the segment adjusted1 operating margin3 increased by 110
basis points to 16.3%, both of which set quarterly records,
reflecting strong execution and the high return on the Company’s
organic growth investments.
- The Company is investing in growth while delivering record
quarterly margins.
- Adjusted1 EBITDA4 increased by 16% and adjusted1 EPS increased
by 23%.
- Total backlog increased and is near an all-time high.
- The book-to-burn ratio8 in the higher margin Americas segment
was 1.1.
- The Company’s win rate across the enterprise remains at a
record high.
- The pipeline of opportunities reached another new high, and the
pipeline of larger $25+ million pursuits with decisions expected in
fiscal 2025 is approximately 70% higher compared to this time last
year.
- Long-term demand and funding for investments in global
infrastructure, sustainability and resilience, and the energy
transition, combined with the Company’s focus on expanding its
addressable market and gaining market share, support its long-term
annual 5 - 8% net service revenue growth target.
Fiscal 2024 Financial
Guidance
- The Company increased its earnings guidance for fiscal 2024,
including its expectation to deliver adjusted1 EBITDA4 of between
$1,075 million and $1,105 million and adjusted1 EPS of between
$4.45 and $4.55, reflecting 13% and 21% year-over-year growth,
respectively.
- The Company’s fiscal 2024 guidance also includes expectations
for:
- Organic NSR2 growth at the lower end of the 8% to 10%
range.
- A segment adjusted1 operating income margin3 of approximately
15.6%, representing a 90 basis point increase from fiscal
2023.
- 100%+ free cash flow6 conversion, reflecting the highly cash
generative nature of the Company’s Professional Services
business.
- An average fully diluted share count of 136 million, which
reflects only shares repurchased to-date, though the Company
intends to continue repurchasing stock that would provide a benefit
to per share earnings.
- An adjusted effective tax rate of approximately 25% for the
full year.
- Return on invested capital9 (ROIC) of approximately 20%.
- See the Regulation G Information tables at the end of this
release for a reconciliation of non-GAAP measures to the most
directly comparable GAAP measures.
Cash Flow, Balance Sheet and Capital
Allocation Update
- Third quarter operating cash flow of $291 million and free cash
flow6 of $273 million, contributed to year-to-date free cash flow6
of $434 million, an increase of 32% over the prior year
period.
- The Company’s returns-focused capital allocation policy
prioritizes investments in organic growth followed by share
repurchases and dividends.
- Inclusive of $150 million of share repurchases since the end of
the fiscal third quarter and the Company’s July dividend payment,
the Company has returned $407 million to shareholders this
year.
- The Company has more than $700 million remaining under the
current share repurchase authorization.
“Our third quarter performance was highlighted by record revenue
and margins, strong cash flow growth, and we increased our earnings
guidance for a second time this year, which reflects our
competitive advantages,” said Troy Rudd, AECOM’s chief executive
officer. “We have built a record pipeline, trends across our
markets are strong, and we are energized by the opportunities
ahead. As the number one ranked water, environmental engineering,
transportation and facilities design firm by ENR, along with our
most recent rise to number two in Program Management, the
leadership position we’ve built in each of our market sectors is
unrivaled. We remain confident in delivering on our near- and
long-term financial commitments and will continue to deploy capital
to share repurchases to fully realize the value creation
opportunity.”
“With record levels of investment across nearly every market in
which we operate, clients are turning to AECOM now more than ever
to help deliver the largest and most complex projects and programs
in the world,” said Lara Poloni, AECOM’s president. “We are
increasingly capitalizing on opportunities to expand our
addressable market and lead with high-value advisory and consulting
services that complement our industry-leading technical expertise.
The investments we are making in our technical academies and in
leadership development programs are fortifying and expanding this
advantage as the employer of choice in our industry.”
“Through our consistent execution, double-digit earnings growth
and strong cash flow, we are delivering on the key elements of
shareholder value creation,” said Gaurav Kapoor, AECOM’s chief
financial and operations officer. “We are executing on our
returns-focused capital allocation policy, which is led by share
repurchases after investments in high-returning organic growth
opportunities. We will not hesitate to continue deploying capital
in this manner to maximize shareholder value.”
Business Segments
Americas
Revenue in the third quarter was $3.2 billion. Net service
revenue2 was $1.1 billion, an 8% increase from the prior year.
Operating income increased by 11% over the prior year to $207
million. On an adjusted1 basis, operating income increased by 11%
to $212 million. The adjusted operating margin on net service
revenue increased by 50 basis points to 19.3%. The Company’s
profitability reflects the strong returns on investments in
business development, leadership development and technical
training, as well as productivity enhancing investments in digital
initiatives.
International
Revenue in the third quarter was $904 million. Net service
revenue2 was $729 million, a 7% increase from the prior year.
Operating income and adjusted1 operating income both increased
by 25% to $85 million. The adjusted operating margin on net service
revenue increased by 180 basis points over the prior year to 11.7%,
which marked a new quarterly high for the International segment.
This result reflects the benefits of the Company’s focus on its
highest-returning end markets.
Balance Sheet
As of June 30, 2024, AECOM had $1.6 billion of total cash and
cash equivalents, $2.5 billion of total debt and $897 million of
net debt (total debt less cash and cash equivalents). Net
leverage10 was 0.8x.
Tax Rate
The effective tax rate was 23.9% in the third quarter. On an
adjusted1 basis, the effective tax rate was 26.9%. The adjusted tax
rate was derived by re-computing the quarterly effective tax rate
on adjusted net income11. The adjusted tax expense differs from the
GAAP tax expense based on the taxability or deductibility and tax
rate applied to each of the adjustments.
Conference Call
AECOM is hosting a conference call tomorrow at 8 a.m. Eastern
Time, during which management will make a brief presentation
focusing on the Company's results, strategy and operating trends,
and outlook. Interested parties can listen to the conference call
and view accompanying slides via webcast at
https://investors.aecom.com. The webcast will be available for
replay following the call.
1 Excludes the impact of certain items,
such as restructuring costs, amortization of intangible assets,
non-core AECOM Capital and other items. See Regulation G
Information for a reconciliation of non-GAAP measures to the
comparable GAAP measures.
2 Revenue, less pass-through revenue;
growth rates are presented on a constant-currency basis.
3 Reflects segment operating performance,
excluding AECOM Capital and G&A, and margins are presented on a
net service revenue basis.
4 Net income before interest expense, tax
expense, depreciation and amortization.
5 Adjusted EBITDA margin includes
non-controlling interests in EBITDA and is on a net service revenue
basis.
6 Free cash flow is defined as cash flow
from operations less capital expenditures, net of proceeds from
disposals of property and equipment; free cash flow conversion is
defined as free cash flow divided by adjusted net income
attributable to AECOM.
7 Backlog represents the total value of
work for which AECOM has been selected that is expected to be
completed by consolidated subsidiaries and includes the
proportionate share of work expected to be performed by
unconsolidated joint ventures. Backlog in the construction
management business is included on a net service revenue basis.
Growth rates are presented on a constant-currency basis.
8 Book-to-burn ratio is defined as the
dollar amount of wins divided by revenue recognized during the
period, including revenue related to work performed in
unconsolidated joint ventures.
9 Return on invested capital, or ROIC,
reflects continuing operations and is calculated as the sum of
adjusted net income as presented in the Company’s Regulation G
Information and adjusted interest expense, net of interest income,
divided by average quarterly invested capital as defined as the sum
of attributable shareholder’s equity and total debt, less cash and
cash equivalents.
10 Net leverage is comprised of EBITDA as
defined in the Company’s credit agreement dated October 17, 2014,
as amended, and total debt on the Company’s financial statements,
net of total cash and cash equivalents.
11 Inclusive of non-controlling interest
deduction and adjusted for financing charges in interest expense,
the amortization of intangible assets and is based on continuing
operations.
About AECOM
AECOM (NYSE: ACM) is the world’s trusted infrastructure
consulting firm, delivering professional services throughout the
project lifecycle – from advisory, planning, design and engineering
to program and construction management. On projects spanning
transportation, buildings, water, new energy, and the environment,
our public- and private-sector clients trust us to solve their most
complex challenges. Our teams are driven by a common purpose to
deliver a better world through our unrivaled technical and digital
expertise, a culture of equity, diversity and inclusion, and a
commitment to environmental, social and governance priorities.
AECOM is a Fortune 500 firm and its Professional Services business
had revenue of $14.4 billion in fiscal year 2023. See how we are
delivering sustainable legacies for generations to come at
aecom.com and @AECOM.
Forward-Looking Statements
All statements in this communication other than statements of
historical fact are “forward-looking statements” for purposes of
federal and state securities laws, including any statements of the
plans, strategies and objectives for future operations,
profitability, strategic value creation, capital allocation
strategy including stock repurchases, risk profile and investment
strategies, and any statements regarding future economic conditions
or performance, and the expected financial and operational results
of AECOM. Although we believe that the expectations reflected in
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Important factors that could cause our
actual results, performance and achievements, or industry results
to differ materially from estimates or projections contained in our
forward-looking statements include, but are not limited to, the
following: our business is cyclical and vulnerable to economic
downturns and client spending reductions; potential government
shutdowns or other funding circumstances that may cause
governmental agencies to modify, curtail or terminate our
contracts; losses under fixed-price contracts; limited control over
operations that run through our joint venture entities; liability
for misconduct by our employees or consultants; failure to comply
with laws or regulations applicable to our business; maintaining
adequate surety and financial capacity; potential high leverage and
inability to service our debt and guarantees; ability to continue
payment of dividends; exposure to political and economic risks in
different countries, including tariffs, geopolitical events, and
conflicts; currency exchange rate and interest fluctuations;
retaining and recruiting key technical and management personnel;
legal claims; inadequate insurance coverage; environmental law
compliance and adequate nuclear indemnification; unexpected
adjustments and cancellations related to our backlog; partners and
third parties who may fail to satisfy their legal obligations;
managing pension costs; AECOM Capital real estate development
projects; cybersecurity issues, IT outages and data privacy; risks
associated with the benefits and costs of the sale of our
Management Services and self-perform at-risk civil infrastructure,
power construction and oil and gas businesses, including the risk
that any purchase adjustments from those transactions could be
unfavorable and result in any future proceeds owed to us as part of
the transactions could be lower than we expect; as well as other
additional risks and factors that could cause actual results to
differ materially from our forward-looking statements set forth in
our reports filed with the Securities and Exchange Commission. Any
forward-looking statements are made as of the date hereof. We do
not intend, and undertake no obligation, to update any
forward-looking statement.
Non-GAAP Financial Information
This press release contains financial information calculated
other than in accordance with U.S. generally accepted accounting
principles (“GAAP”). The Company believes that non-GAAP financial
measures such as adjusted EPS, adjusted EBITDA, adjusted
net/operating income, segment adjusted operating margin, adjusted
tax rate, net service revenue and free cash flow provide a
meaningful perspective on its business results as the Company
utilizes this information to evaluate and manage the business. We
use adjusted operating income, adjusted net income, adjusted EBITDA
and adjusted EPS to exclude the impact of certain items, such as
amortization expense and taxes to aid investors in better
understanding our core performance results. We use free cash flow
to present the cash generated from operations after capital
expenditures to maintain our business. We present net service
revenue (NSR) to exclude pass-through subcontractor costs from
revenue to provide investors with a better understanding of our
operational performance. We present segment adjusted operating
margin to reflect segment operating performance of our Americas and
International segments, excluding AECOM Capital. We present
adjusted tax rate to reflect the tax rate on adjusted earnings. We
also use constant-currency growth rates where appropriate, which
are calculated by conforming the current period results to the
comparable period exchange rates.
Our non-GAAP disclosure has limitations as an analytical tool,
should not be viewed as a substitute for financial information
determined in accordance with GAAP, and should not be considered in
isolation or as a substitute for analysis of our results as
reported under GAAP, nor is it necessarily comparable to non-GAAP
performance measures that may be presented by other companies. A
reconciliation of these non-GAAP measures is found in the
Regulation G Information tables at the back of this release. The
Company is unable to reconcile certain of its non-GAAP financial
guidance and long-term financial targets due to uncertainties in
these non-operating items as well as other adjustments to net
income. The Company is unable to provide a reconciliation of its
guidance for NSR to GAAP revenue because it is unable to predict
with reasonable certainty its pass-through revenue.
AECOM
Consolidated Statements of
Income
(unaudited - in thousands,
except per share data)
Three Months Ended
Nine Months Ended
June 30, 2023
June 30, 2024
% Change
June 30, 2023
June 30, 2024
% Change
Revenue
$
3,663,549
$
4,151,251
13.3 %
$
10,536,076
$
11,995,004
13.8 %
Cost of revenue
3,413,471
3,866,207
13.3 %
9,842,916
11,204,816
13.8 %
Gross profit
250,078
285,044
14.0 %
693,160
790,188
14.0 %
Equity in (losses) earnings of joint
ventures
(303,503)
7,647
(102.5)%
(286,218)
(1,835)
(99.4)%
General and administrative expenses
(42,883)
(36,209)
(15.6)%
(112,642)
(116,619)
3.5 %
Restructuring costs
(9,115)
(29,025)
218.4 %
(50,547)
(80,670)
59.6 %
(Loss) income from operations
(105,423)
227,457
(315.8)%
243,753
591,064
142.5 %
Other income
1,797
963
(46.4)%
6,282
6,154
(2.0)%
Interest income
8,802
15,817
79.7 %
24,492
43,341
77.0 %
Interest expense
(38,868)
(51,370)
32.2 %
(117,940)
(140,350)
19.0 %
(Loss) income from continuing operations
before taxes
(133,692)
192,867
(244.3)%
156,587
500,209
219.4 %
Income tax (benefit) expense for
continuing operations
(20,000)
46,035
(330.2)%
46,870
118,078
151.9 %
(Loss) income from continuing
operations
(113,692)
146,832
(229.1)%
109,717
382,131
248.3 %
(Loss) income from discontinued
operations
(7,607)
5,677
(174.6)%
(49,770)
(104,998)
111.0 %
Net (loss) income
(121,299)
152,509
(225.7)%
59,947
277,133
362.3 %
Net income attributable to noncontrolling
interests from continuing operations
(11,829)
(17,355)
46.7 %
(29,562)
(44,585)
50.8 %
Net income attributable to noncontrolling
interests from discontinued operations
(1,573)
(881)
(44.0)%
(526)
(2,830)
438.0 %
Net income attributable to noncontrolling
interests
(13,402)
(18,236)
36.1 %
(30,088)
(47,415)
57.6 %
Net (loss) income attributable to AECOM
from continuing operations
(125,521)
129,477
(203.2)%
80,155
337,546
321.1 %
Net (loss) income attributable to AECOM
from discontinued operations
(9,180)
4,796
(152.2)%
(50,296)
(107,828)
114.4 %
Net (loss) income attributable to
AECOM
$
(134,701)
$
134,273
(199.7)%
$
29,859
$
229,718
669.3 %
Net (loss) income attributable to AECOM
per share:
Basic continuing operations per share
$
(0.90)
$
0.95
(205.6)%
$
0.58
$
2.48
327.6 %
Basic discontinued operations per
share
(0.07)
0.04
(157.1)%
(0.36)
(0.79)
119.4 %
Basic earnings per share
$
(0.97)
$
0.99
(202.1)%
$
0.22
$
1.69
668.2 %
Diluted continuing operations per
share
$
(0.90)
$
0.95
(205.6)%
$
0.57
$
2.47
333.3 %
Diluted discontinued operations per
share
(0.07)
0.03
(142.9)%
(0.36)
(0.79)
119.4 %
Diluted earnings per share
$
(0.97)
$
0.98
(201.0)%
$
0.21
$
1.68
700.0 %
Weighted average shares outstanding:
Basic
138,741
136,025
(2.0)%
138,785
135,976
(2.0)%
Diluted
138,741
136,790
(1.4)%
140,339
136,868
(2.5)%
AECOM
Balance Sheet
Information
(unaudited - in
thousands)
September 30, 2023
June 30, 2024
Balance Sheet Information:
Total cash and cash equivalents
$
1,260,206
$
1,644,812
Accounts receivable and contract assets,
net
4,069,504
4,545,176
Working capital
319,228
829,020
Total debt, excluding unamortized debt
issuance costs
2,217,255
2,541,521
Total assets
11,233,398
12,046,598
Total AECOM stockholders’ equity
2,212,332
2,298,326
AECOM
Reportable Segments
(unaudited - in
thousands)
Americas
International
AECOM Capital
Corporate
Total
Three Months Ended June 30,
2024
Revenue
$
3,246,882
$
904,206
$
163
$
—
$
4,151,251
Cost of revenue
3,043,053
823,154
—
—
3,866,207
Gross profit
203,829
81,052
163
—
285,044
Equity in earnings of joint ventures
3,478
3,617
552
—
7,647
General and administrative expenses
—
—
(540
)
(35,669
)
(36,209
)
Restructuring costs
—
—
—
(29,025
)
(29,025
)
Income from operations
$
207,307
$
84,669
$
175
$
(64,694
)
$
227,457
Gross profit as a % of revenue
6.3
%
9.0
%
—
—
6.9
%
Three Months Ended June 30,
2023
Revenue
$
2,829,519
$
834,262
$
(232
)
$
—
$
3,663,549
Cost of revenue
2,646,633
766,838
—
—
3,413,471
Gross profit (loss)
182,886
67,424
(232
)
—
250,078
Equity in earnings (losses) of joint
ventures
3,517
234
(307,254
)
—
(303,503
)
General and administrative expenses
—
—
(4,010
)
(38,873
)
(42,883
)
Restructuring costs
—
—
—
(9,115
)
(9,115
)
Income (loss) from operations
$
186,403
$
67,658
$
(311,496
)
$
(47,988
)
$
(105,423
)
Gross profit as a % of revenue
6.5
%
8.1
%
—
—
6.8
%
Nine Months Ended June 30, 2024
Revenue
$
9,324,140
$
2,670,034
$
830
$
—
$
11,995,004
Cost of revenue
8,764,863
2,439,953
—
—
11,204,816
Gross profit
559,277
230,081
830
—
790,188
Equity in earnings (losses) of joint
ventures
11,866
12,847
(26,548
)
—
(1,835
)
General and administrative expenses
—
—
(12,667
)
(103,952
)
(116,619
)
Restructuring costs
—
—
—
(80,670
)
(80,670
)
Income (loss) from operations
$
571,143
$
242,928
$
(38,385
)
$
(184,622
)
$
591,064
Gross profit as a % of revenue
6.0
%
8.6
%
—
—
6.6
%
Contracted backlog
$
8,883,852
$
3,909,146
$
—
$
—
$
12,792,998
Awarded backlog
8,468,398
2,100,828
—
—
10,569,226
Total backlog
$
17,352,250
$
6,009,974
$
—
$
—
$
23,362,224
Total backlog – Design only
$
15,884,131
$
6,009,974
$
—
$
—
$
21,894,105
Nine Months Ended June 30, 2023
Revenue
$
8,039,000
$
2,496,879
$
197
$
—
$
10,536,076
Cost of revenue
7,519,898
2,323,018
—
—
9,842,916
Gross profit
519,102
173,861
197
—
693,160
Equity in earnings (losses) of joint
ventures
9,278
8,943
(304,439
)
—
(286,218
)
General and administrative expenses
—
—
(9,605
)
(103,037
)
(112,642
)
Restructuring costs
—
—
—
(50,547
)
(50,547
)
Income (loss) from operations
$
528,380
$
182,804
$
(313,847
)
$
(153,584
)
$
243,753
Gross profit as a % of revenue
6.5
%
7.0
%
—
—
6.6
%
Contracted backlog
$
8,094,025
$
4,219,746
$
—
$
—
$
12,313,771
Awarded backlog
8,771,369
2,125,692
—
—
10,897,061
Total backlog
$
16,865,394
$
6,345,438
$
—
$
—
$
23,210,832
Total backlog – Design only
$
14,918,971
$
6,345,438
$
—
$
—
$
21,264,409
AECOM
Regulation G
Information
(in millions)
Reconciliation of
Revenue to Net Service Revenue (NSR)
Three Months Ended
Nine Months Ended
Jun 30, 2023
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Americas
Revenue
$
2,829.5
$
3,038.6
$
3,246.9
$
8,039.0
$
9,324.2
Less: Pass-through revenue
1,814.5
1,965.4
2,150.6
5,124.6
6,177.0
Net service revenue
$
1,015.0
$
1,073.2
$
1,096.3
$
2,914.4
$
3,147.2
International
Revenue
$
834.3
$
904.8
$
904.2
$
2,496.9
$
2,670.0
Less: Pass-through revenue
145.4
159.0
175.0
436.2
465.1
Net service revenue
$
688.9
$
745.8
$
729.2
$
2,060.7
$
2,204.9
Segment
Performance (excludes ACAP)
Revenue
$
3,663.8
$
3,943.4
$
4,151.1
$
10,535.9
$
11,994.2
Less: Pass-through revenue
1,959.9
2,124.4
2,325.6
5,560.8
6,642.1
Net service revenue
$
1,703.9
$
1,819.0
$
1,825.5
$
4,975.1
$
5,352.1
Consolidated
Revenue
$
3,663.6
$
3,943.9
$
4,151.2
$
10,536.1
$
11,995.0
Less: Pass-through revenue
1,959.9
2,124.4
2,325.6
5,560.8
6,642.1
Net service revenue
$
1,703.7
$
1,819.5
$
1,825.6
$
4,975.3
$
5,352.9
Reconciliation of Total Debt to Net
Debt
Balances at:
Jun 30, 2023
Mar 31, 2024
Jun 30, 2024
Short-term debt
$
3.9
$
2.9
$
2.5
Current portion of long-term debt
53.0
88.6
63.6
Long-term debt, excluding unamortized debt
issuance costs
2,162.6
2,114.4
2,475.4
Total debt
2,219.5
2,205.9
2,541.5
Less: Total cash and cash equivalents
1,257.7
1,185.8
1,644.8
Net debt
$
961.8
$
1,020.1
$
896.7
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow
Three Months Ended
Nine Months Ended
Jun 30, 2023
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Net cash provided by operating
activities
$
279.3
$
94.3
$
291.3
$
410.8
$
528.7
Capital expenditures, net
(14.4)
(20.3)
(18.4)
(83.0)
(94.9)
Free cash flow
$
264.9
$
74.0
$
272.9
$
327.8
$
433.8
AECOM
Regulation G
Information
(in millions, except per share
data)
Three Months Ended
Nine Months Ended
Jun 30, 2023
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Reconciliation of
Income from Operations to Adjusted Income from Operations to
Adjusted EBITDA with Noncontrolling Interests (NCI) to Adjusted
EBITDA
(Loss) income from operations
$
(105.4)
$
200.5
$
227.5
$
243.8
$
591.1
Noncore AECOM Capital loss (income)
311.5
(0.6)
(0.2)
313.9
38.3
Restructuring costs
9.1
35.5
29.0
50.5
80.7
Amortization of intangible assets
4.6
4.7
4.7
13.9
14.0
Adjusted income from operations
$
219.8
$
240.1
$
261.0
$
622.1
$
724.1
Other income
1.7
2.5
1.1
6.2
6.2
Fair value adjustment included in other
income
—
—
1.6
—
1.6
Depreciation
37.5
38.3
37.7
113.6
113.5
Adjusted EBITDA with noncontrolling
interests (NCI)
$
259.0
$
280.9
$
301.4
$
741.9
$
845.4
Net income attributable to NCI from
continuing operations excluding interest income included in NCI
(11.8)
(12.7)
(15.9)
(29.5)
(40.3)
Amortization of intangible assets included
in NCI
(0.1)
—
—
(0.4)
(0.2)
Adjusted EBITDA
$
247.1
$
268.2
$
285.5
$
712.0
$
804.9
Reconciliation of
Income from Continuing Operations Before Taxes to Adjusted Income
from Continuing Operations Before Taxes
(Loss) income from continuing operations
before taxes
$
(133.7)
$
170.8
$
192.9
$
156.6
$
500.2
Noncore AECOM Capital loss (income)
311.5
(0.6)
(0.2)
313.9
38.3
Fair value adjustment included in other
income
—
—
1.6
—
1.6
Restructuring costs
9.1
35.5
29.0
50.5
80.7
Amortization of intangible assets
4.6
4.7
4.7
13.9
14.0
Financing charges in interest expense
1.2
1.2
7.0
3.6
9.5
Adjusted income from continuing operations
before taxes
$
192.7
$
211.6
$
235.0
$
538.5
$
644.3
Reconciliation of
Income Taxes for Continuing Operations to Adjusted Income Taxes for
Continuing Operations
Income tax (benefit) expense for
continuing operations
$
(20.0)
$
45.4
$
46.1
$
46.9
$
118.1
Tax effect of the above adjustments(1)
90.2
10.4
11.6
103.9
36.0
Valuation allowances and other tax only
items
(21.4)
—
0.8
(20.8)
0.8
Adjusted income tax expense for continuing
operations
$
48.8
$
55.8
$
58.5
$
130.0
$
154.9
_________________________
(1) Adjusts income taxes during the period
to exclude the impact on our effective tax rate of the pre-tax
adjustments shown above
Reconciliation of
Net Income Attributable to Noncontrolling Interests (NCI) from
Continuing Operations to Adjusted Net Income Attributable to
Noncontrolling Interests from Continuing Operations
Net income attributable to noncontrolling
interests from continuing operations
$
(11.8)
$
(14.1)
$
(17.4)
$
(29.5)
$
(44.6)
Amortization of intangible assets included
in NCI
(0.1)
—
—
(0.4)
(0.2)
Adjusted net income attributable to
noncontrolling interests from continuing operations
$
(11.9)
$
(14.1)
$
(17.4)
$
(29.9)
$
(44.8)
AECOM
Regulation G
Information
(in millions, except per share
data)
Three Months Ended
Nine Months Ended
Jun 30, 2023
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Reconciliation of
Net Income Attributable to AECOM from Continuing Operations to
Adjusted Net Income Attributable to AECOM from Continuing
Operations
Net (loss) income attributable to AECOM
from continuing operations
$
(125.5)
$
111.3
$
129.4
$
80.2
$
337.5
Noncore AECOM Capital loss (income), net
of NCI
311.5
(0.6)
(0.2)
313.9
38.3
Fair value adjustment included in other
income
—
—
1.6
—
1.6
Restructuring costs
9.1
35.5
29.0
50.5
80.7
Amortization of intangible assets
4.6
4.7
4.7
13.9
14.0
Financing charges in interest expense
1.2
1.2
7.0
3.6
9.5
Tax effect of the above adjustments(1)
(90.2)
(10.4)
(11.6)
(103.9)
(36.0)
Valuation allowances and other tax only
items
21.4
—
(0.8)
20.8
(0.8)
Amortization of intangible assets included
in NCI
(0.1)
—
—
(0.4)
(0.2)
Adjusted net income attributable to AECOM
from continuing operations
$
132.0
$
141.7
$
159.1
$
378.6
$
444.6
_________________________
(1) Adjusts the income taxes during the
period to exclude the impact on our effective tax rate of the
pre-tax adjustments shown above
Reconciliation of
Net Income Attributable to AECOM from Continuing Operations per
Diluted Share to Adjusted Net Income Attributable to AECOM from
Continuing Operations per Diluted Share
Net (loss) income attributable to AECOM
from continuing operations per diluted share
$
(0.90)
$
0.81
$
0.95
$
0.57
$
2.47
Per diluted share adjustments:
Noncore AECOM Capital loss, net of NCI
2.22
—
—
2.24
0.28
Fair value adjustment included in other
income
—
—
0.01
—
0.01
Restructuring costs
0.06
0.26
0.21
0.36
0.59
Amortization of intangible assets
0.03
0.03
0.03
0.10
0.10
Financing charges in interest expense
0.01
0.01
0.05
0.03
0.07
Tax effect of the above adjustments(1)
(0.63)
(0.07)
(0.08)
(0.75)
(0.26)
Valuation allowances and other tax only
items
0.15
—
(0.01)
0.15
(0.01)
Adjusted net income attributable to AECOM
from continuing operations per diluted share
$
0.94
$
1.04
$
1.16
$
2.70
$
3.25
Weighted average shares outstanding –
basic
138.7
136.0
136.0
138.8
136.0
Weighted average shares outstanding –
diluted
140.0
136.7
136.8
140.3
136.9
________________________
(1) Adjusts the income taxes during the
period to exclude the impact on our effective tax rate of the
pre-tax adjustments shown above
Reconciliation of
Net Income Attributable to AECOM from Continuing Operations to
Adjusted EBITDA
Net (loss) income attributable to AECOM
from continuing operations
$
(125.5)
$
111.3
$
129.4
$
80.2
$
337.5
Income tax (benefit) expense
(20.0)
45.4
46.1
46.9
118.1
Depreciation and amortization
43.1
44.2
46.4
130.5
133.7
Interest income, net of NCI
(8.8)
(14.1)
(14.3)
(24.5)
(39.1)
Interest expense
38.9
47.7
51.4
118.0
140.4
Amortized bank fees included in interest
expense
(1.2)
(1.2)
(4.0)
(3.6)
(6.4)
Noncore AECOM Capital loss (income), net
of NCI
311.5
(0.6)
(0.2)
313.9
38.3
Fair value adjustment included in other
income
—
—
1.7
—
1.7
Restructuring costs
9.1
35.5
29.0
50.6
80.7
Adjusted EBITDA
$
247.1
$
268.2
$
285.5
$
712.0
$
804.9
AECOM
Regulation G
Information
(in millions, except per share
data)
Three Months Ended
Nine Months Ended
Jun 30, 2023
Mar 31, 2024
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Reconciliation of
Segment Income from Operations to Adjusted Income from
Operations
Americas Segment:
Segment Income from operations
$
186.4
$
189.2
$
207.4
$
528.4
$
571.2
Amortization of intangible assets
4.3
4.3
4.4
13.0
13.0
Adjusted segment income from
operations
$
190.7
$
193.5
$
211.8
$
541.4
$
584.2
International Segment:
Segment Income from operations
$
67.6
$
81.2
$
84.6
$
182.8
$
242.9
Amortization of intangible assets
0.3
0.4
0.3
0.9
1.0
Adjusted segment income from
operations
$
67.9
$
81.6
$
84.9
$
183.7
$
243.9
Segment Performance (excludes ACAP and
G&A):
Segment Income from operations
$
254.0
$
270.4
$
292.0
$
711.2
$
814.1
Amortization of intangible assets
4.6
4.7
4.7
13.9
14.0
Adjusted segment income from
operations
$
258.6
$
275.1
$
296.7
$
725.1
$
828.1
AECOM
Regulation G
Information
FY2024 GAAP EPS
Guidance based on Adjusted EPS Guidance
(all figures approximate)
Fiscal Year End 2024
GAAP EPS guidance
$3.51 to $3.74
Adjusted EPS excludes:
Amortization of intangible assets
$0.14
Amortization of deferred financing
fees
$0.08
Non-core AECOM Capital
$0.28
Restructuring expenses
$0.75 to $0.59
Tax effect of the above items
($0.31) to ($0.28)
Adjusted EPS guidance
$4.45 to $4.55
FY2024 GAAP Net
Income from Continuing Operations Guidance based on Adjusted EBITDA
Guidance
(in millions, all figures approximate)
Fiscal Year End 2024
GAAP net income from continuing operations
guidance
$537 to $558
Net income attributable to noncontrolling
interests from continuing operations
($60) to ($50)
Net income attributable to AECOM from
continuing operations
$477 to $508
Adjusted net income attributable to AECOM
from continuing operations excludes:
Amortization of intangible assets
$19
Amortization of deferred financing
fees
$11
Noncore AECOM Capital
$38
Fair value adjustment
$2
Restructuring expenses
$100 to $80
Tax effect of the above items
($42) to ($39)
Adjusted net income attributable to AECOM
from continuing operations
$605 to $619
Adjusted EBITDA excludes:
Depreciation
$152
Adjusted interest expense, net
$118 to $122
Tax expense, including tax effect of the
above items
$200 to $212
Adjusted EBITDA guidance
$1,075 to $1,105
FY2024 GAAP
Interest Expense Guidance based on Adjusted Interest Expense
Guidance
(in millions, all figures approximate)
Fiscal Year End 2024
GAAP interest expense guidance
$180 to $184
Finance charges in interest expense
($11)
Interest income, net of NCI
($51)
Adjusted net interest expense guidance
$118 to $122
FY2024 GAAP
Income Tax Guidance based on Adjusted Income Tax
Guidance
(in millions, all figures approximate)
Fiscal Year End 2024
GAAP income tax expense guidance
$158 to $174
Tax effect of adjusting items
$42 to $38
Adjusted income tax expense guidance
$200 to $212
FY2024 GAAP Income from Operations as a
% of Revenue Guidance based on Segment Adjusted Operating Income as
a % of Net Service Revenue Guidance
(all figures approximate)
Fiscal Year End 2024
Income from operations as a % of
revenue
5.7%
Pass-through revenues
8.3%
Amortization of intangible assets
0.1%
Corporate net expense
0.9%
Restructuring expenses*
0.6%
Segment adjusted operating income as a %
of net service revenue
15.6%
*Based on midpoint of FY2024 guidance
Note: Variances in tables are due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805974035/en/
Investor Contact: Will Gabrielski Senior Vice President,
Finance, Treasurer 213.593.8208 William.Gabrielski@aecom.com
Media Contact: Brendan Ranson-Walsh Senior Vice
President, Global Communications 213.996.2367
Brendan.Ranson-Walsh@aecom.com
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