Financial Highlights

• Organic revenue growth of 9.7% at constant currency¹.
• Adjusted EPS² of $0.58.
• Free cash flow³ of $19 million; $277 million in first half of FY15.
• Debt reduction of $110 million.
• New wins of $4.6 billion; backlog of $40.7 billion.
• Company increases fiscal year 2015 adjusted EPS² guidance to $3.15 to $3.55.

LOS ANGELES — (BUSINESS WIRE) — May 12, 2015 — AECOM (NYSE: ACM), the world’s #1-ranked engineering design firm, reported second-quarter revenue of $4.5 billion today. Net income⁴ and earnings per share⁵ were flat. On an adjusted basis, diluted earnings per share² were $0.58 for the quarter.

Note: All comparisons are year over year unless otherwise noted.

“We delivered strong organic revenue growth and made substantial progress on our integration priorities,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “The solid results we delivered today reflect our global leadership position and the complementary skill sets we have integrated over time. We are on track with our vision to become the world’s premier fully integrated infrastructure services firm, and our addressable market opportunity has never been greater.”

“We generated strong free cash flow through the first half of the fiscal year,” added AECOM’s President and Chief Financial Officer Stephen M. Kadenacy. “This cash generation drove our debt reduction as we build on our track record of disciplined capital allocation.”

New Wins and Backlog

New wins in the quarter of $4.6 billion were driven by growth in the company’s Europe, Middle East, Africa, and India region and its building construction business. After adjusting for acquisitions, total backlog grew six percent organically. The company’s book-to-burn ratio⁶ was 1x for the quarter, with total backlog at March 31, 2015, of $40.7 billion.

Business Segments

In addition to providing consolidated financial results, AECOM reports separate financial information for its three segments: Design & Consulting Services (DCS), Construction Services (CS), and Management Services (MS).

Design & Consulting Services (DCS)

The DCS segment delivers planning, consulting, architectural and engineering design services to commercial and government clients worldwide in major end markets such as transportation, facilities, environmental, energy, water and government.

Revenue of $2 billion in the quarter increased 56 percent. Constant-currency organic revenue increased one percent¹. Adjusted operating income⁷ was $108 million, an increase of 34 percent.

Construction Services (CS)

The CS segment provides construction services for energy, commercial, industrial as well as public and private infrastructure clients.

Revenue in the quarter was $1.6 billion. On an organic basis, revenue increased 62 percent. Adjusted operating income⁷ was $26 million. Results were favorably impacted by strong performance in the building construction business.

Management Services (MS)

The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems-integration services, primarily for agencies of the U.S. government, national governments around the world, and commercial customers.

Revenue increased 266 percent to $829 million in the quarter. Adjusted operating income⁷ was $105 million, benefiting from the strength of the acquired operations and strong execution.

Tax Rate

Inclusive of the non-controlling interest deduction — and excluding acquisition and integration related expenses, financing charges in interest expense, amortization of intangible assets, and unusual discrete items — the effective tax rate was 29.3 percent.

Impact of Acquisition-Related Accounting Items

AECOM continues to evaluate the accounting impact of recently completed acquisitions. The net impact of acquisition-related accounting items did not have a significant impact on second-quarter adjusted earnings per share. In conjunction with the evaluation, the company retrospectively adjusted results for the fiscal first quarter ended Dec. 31, 2014, to include the adjustment to the margin fair value liability, included in billings in excess of costs on uncompleted contracts. As a result, the firm’s first-quarter adjusted earnings per share increased by $0.09 to $0.80. For the remainder of the year, recognition in income from the margin fair value liability is anticipated to result in a $0.21 favorable impact to adjusted earnings per share. The company’s updated 2015 adjusted earnings per share guidance reflect these impacts.

Cash Flow

Cash flow from operations for the quarter was $50 million. Free cash flow³ was $19 million in the quarter. In the first six months of the fiscal year, AECOM generated free cash flow of $277 million.

Balance Sheet