• Delivered continued accelerating organic NSR growth and margin expansion
• Design backlog increased by 9% to a record high, driven by a 1.3 book-to-burn ratio and continued near-record win rate
• Strong cash flow enabled the execution of the Company’s returns-focused capital allocation policy
• Reiterated all financial guidance for fiscal 2023 and all long-term 2024 financial targets

DALLAS — (BUSINESS WIRE) — February 6, 2023 — AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today reported first quarter fiscal 2023 results.

First Quarter Fiscal 2023 Highlights

• Revenue increased 4% to $3.4 billion, operating income decreased 10% to $152 million, the operating margin decreased 70 basis points to 4.5%, net income decreased 26% to $88 million and diluted earnings per share decreased 23% to $0.62.
• Organic net service revenue² growth accelerated to 8% and included 9% growth in the design business, which was driven by accelerating growth in the Americas and continued strong growth in International markets.
• The design business had a 1.3 book-to-burn ratio⁶ and design backlog increased by 9%⁷ to a record high, including strong growth in both the Americas and International markets.
  • The Company’s pipeline of opportunities expanded at an even faster rate than backlog and NSR, including nearly 30% growth in proposals and submitted bids, which is up from 20% growth in the prior quarter and is a strong leading indicator of continued backlog and NSR growth.
• The segment adjusted¹ operating margin³ increased by nearly 40 basis points to 14.0%, setting a new high for a first quarter.
  • This performance reflects strong execution and accelerated investments to deliver on a growing pipeline of opportunities.
• Adjusted¹ EBITDA⁴ of $224 million and adjusted¹ EPS of $0.86 were consistent with expectations and included strong underlying operational growth.
  • Adjusting for the lower first quarter tax rate in the prior year, adjusted EPS increased by 8% and 13% on a constant-currency basis.

Cash Flow, Balance Sheet and Capital Allocation Update

• Operating cash flow was $120 million and free cash flow ⁵ was $84 million.
• The Company’s capital allocation policy is built on the continued intent to return substantially all available cash flow to stockholders through share repurchases and dividends.
  • The Company executed additional share repurchases in the quarter and has now repurchased approximately $1.5 billion of stock since September 2020 when share repurchases commenced, which represents more than 16% of shares outstanding.
  • As part of its quarterly dividend program, the Company paid a quarterly cash dividend of $0.18 per share in January, which marked a 20% increase over the prior quarterly dividend and reflected the Company’s commitment to increasing its quarterly dividend by a double-digit percentage annually.