- Unveils long-term financial framework highlighted by
high-returning organic growth, a substantial margin expansion
opportunity, and double-digit annual adjusted EPS and free cash
flow per share growth
- Reaffirms commitment to its returns-focused capital
allocation policy that prioritizes investments in organic growth
followed by share repurchases and dividends
- Expects to achieve a return on invested capital of 25%+,
driven by 100%+ conversion of adjusted net income to free cash flow
and delivering on its 17%+ long-term segment adjusted operating
margin target
- Affirms fiscal 2024 guidance including 13% and 20% adjusted
EBITDA and adjusted EPS at the mid-points of the ranges, supported
by a record design backlog in FY’23 and strong growth across
markets
AECOM (NYSE:ACM), the world’s trusted infrastructure consulting
firm, will host an Investor Day today at 10 a.m. Eastern Time,
during which it will unveil the details of its commitment to
deliver on its strategy and financial commitments as a leading
Professional Services infrastructure consulting firm.
Key Financial Highlights and
Targets
In addition to its guidance for fiscal 2024, AECOM has
established a long-term financial framework that includes the
following:
FY’24
Guidance
Long-Term Annual Growth Targets
Organic NSR1 Growth
+8 - 10%
+5 - 8%
Segment Adjusted2 Operating Margin3
Expansion
+90 bps to 15.6%
20 - 30+ bps 17%+ Target
Adjusted2 EPS and Free Cash Flow4 per
Share Growth
20%*
Double-Digits
Free Cash Flow4 Conversion of Adj.2 Net
Income
100%+
100%+
Return on Invested Capital5
~20%
25%+
Per Share Dividend Growth
22%
Double-Digit Increase
* Percentage refers to only adjusted
EPS.
Key Themes of the Event
- By executing on its Think and Act Globally strategy, the
Company has created an industry leader as evidenced by its 13%
design backlog growth outperformance in FY’23 and an expected 20%
adjusted2 EPS CAGR from FY’20 to FY’24.
- The Company’s Day 1, Day 2, and Day 3 strategy that builds on
its technical capabilities with program management and advisory
services has enhanced the value proposition for clients, resulted
in a record win rate, including on large pursuits, and has more
than doubled the addressable share of profit opportunity on a
project.
- The Company has built an enviable leadership position as the
top ranked global transportation, environmental, and facilities
design firm by Engineering News-Record, and number three ranked
water firm with approximately 24% of its NSR1 from the water
market.
- Program Management NSR has more than doubled over the last
three years and has been instrumental in many of its marquee wins,
that have enhanced visibility and expanded its long-term earnings
power while accelerating organic growth.
- Investments in these markets are accelerating and driven by
multi-decade secular growth drivers including:
- Global Infrastructure Investment
- Investments in the Energy Transition
- Investments in Sustainability and Resilience
- The Company is leveraging key enablers, including its scale,
capacity to invest and culture that fosters collaboration and
innovation, to accelerate its digital strategy, which includes:
- Leveraging AECOM’s technical expertise and experience to build
digital libraries that automate and standardize key elements of a
design.
- The Company believes it can automate 5% to 15% of its hours
overtime, creating a delivery advantage and capacity to grow.
- Utilizing proprietary digital tools such as PlanEngageTM to
create a unique and enriching client experience that results in a
strong delivery moat and extends its competitive advantage.
- Reflecting the next phase of its value creation journey, the
Company unveiled a long-term financial framework that features
continued strong organic growth, a commitment to further expanding
margins, strong free cash flow, and deploying capital through its
returns-based capital allocation policy, resulting in a substantial
increase in its already industry-leading return on invested
capital.
- This framework reflects the Company’s goal of achieving a
best-in-class financial profile and competitive advantages that
mirror the highest-value Professional Services and consulting
firms.
“Our outperformance over the last three years is the result of
the competitive advantage we have built through our Think and Act
Globally strategy, which has enabled us to deliver industry-leading
shareholder value creation,” said Troy Rudd, AECOM’s chief
executive officer. “We have created a sustainable competitive
advantage through our technical expertise, expanded addressable
market in program management, advisory and digital, and a culture
of collaboration to win the highest value pursuits. This positions
us to deliver outsized growth as the secular megatrends are
creating unprecedented long-term funding commitments in our core
markets. The strength of our new long-term financial framework is a
testament to our teams, the competitive advantages of our team, and
elevates our ambitions beyond our industry to put us on par with
the highest value best-in-class Professional Services Consulting
firms.”
“With record levels of funding entering our markets, we are
ideally suited to deliver as leaders in the markets in which we
operate and have a strategy built on collaboration to win our
highest value pursuits,” said Lara Poloni, AECOM’s president.
“AECOM is already home to some of the most talented technical
professionals in the industry, and through this deep expertise,
combined with our investments in growth, we will further extend our
competitive advantages and create exceptional value for our
clients, employees and shareholders.”
“Our transformation into a higher-margin, lower-risk
Professional Services firm is delivering superior value for our
shareholders and consistently strong financial performance,” said
Gaurav Kapoor, AECOM’s chief financial and operations officer. “The
benefits of our consulting business model are evident in our
margins, return on invested capital, and consistently strong free
cash flow conversion.”
The live webcast, presentation, and a replay will be available
online at http://investors.aecom.com.
1 Revenue, less pass-through revenue; growth rates are presented
on a constant-currency basis. 2 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. 3 Reflects segment operating performance,
excluding AECOM Capital and G&A. 4 Free cash flow is defined as
cash flow from operations less capital expenditures, net of
proceeds from disposals of property and equipment. 5 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.
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, 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; 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; 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; additional risks associated with AECOM Capital’s real
estate development projects; managing pension cost; cybersecurity
issues, IT outages and data privacy; risks associated with the
expected benefits and costs of the sale of our Management Services
and self-perform at-risk civil infrastructure, power construction
and oil and gas construction businesses, including the risk that
any contingent purchase price adjustments from those transactions
could be unfavorable and result in lower aggregate cash proceeds
and any future proceeds owed to us under those 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
income, segment adjusted operating margin, net service revenue
(NSR) 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 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 NSR to exclude
pass-through subcontractor costs from revenue to provide investors
with a better understanding of our operational performance. We
present adjusted operating margin to reflect segment operating
performance of our Americas and International segments, excluding
AECOM Capital and G&A. We also use constant-currency, which is
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
Regulation G
Information
(in millions, except per share
data)
FY2024 GAAP EPS
Guidance based on Adjusted EPS Guidance
(all figures approximate)
Fiscal Year End 2024
GAAP EPS guidance
$3.85 to $4.16
Adjusted EPS excludes:
Amortization of intangible assets
$0.12
Amortization of deferred financing
fees
$0.04
Restructuring expenses
$0.51 to $0.36
Tax effect of the above items
($0.17) to ($0.13)
Adjusted EPS guidance
$4.35 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
$591 to $624
Net income attributable to noncontrolling
interest from continuing operations
($60) to ($50)
Net income attributable to AECOM from
continuing operations
$531 to $574
Adjusted net income attributable to AECOM
from continuing operations excludes:
Amortization of intangible assets
$17
Amortization of deferred financing
fees
$5
Restructuring expenses
$70 to $50
Tax effect of the above items
($23) to ($18)
Adjusted net income attributable to AECOM
from continuing operations
$600 to $628
Adjusted EBITDA excludes:
Depreciation
$152
Adjusted interest expense, net
$115
Tax expense, including tax effect of the
above items
$198 to $210
Adjusted EBITDA guidance
$1,065 to $1,105
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231211383357/en/
Media Contact: Brendan Ranson-Walsh Senior Vice
President, Global Communications 1.213.996.2367
Brendan.Ranson-Walsh@aecom.com
Investor Contact: Will Gabrielski Senior Vice President,
Finance & Investor Relations 1.213.593.8208
William.Gabrielski@aecom.com
AECOM (NYSE:ACM)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
AECOM (NYSE:ACM)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024