• 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

DALLAS — (BUSINESS WIRE) — December 11, 2023 — 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:

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 PlanEngage^TM 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.”