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. |
