- Delivered strong second quarter and first half financial performance
- Increased financial guidance based on year-to-date operational outperformance and confidence in the second half of the year
- Backlog reached an all-time high, driven by a continued near record win rate and strength in nearly all end markets
- Strong cash flow enabled the return of $145 million to shareholders in the first half of the year through share repurchases and dividends, consistent with the Company’s returns-focused capital allocation policy
DALLAS — (BUSINESS WIRE) — May 6, 2024 — AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today reported second quarter fiscal 2024 results.
|
Second Quarter Fiscal 2024 |
|||
(from Continuing Operations; $ in millions, except EPS) |
As Reported |
Adjusted1
|
As Reported
|
Adjusted
|
Revenue |
$3,944 |
-- |
13% |
-- |
Net Service Revenue (NSR)2 |
-- |
$1,820 |
-- |
8% |
Operating Income |
$200 |
$240 |
2% |
13% |
Segment Operating Margin3 |
-- |
15.1% |
-- |
+70 bps |
Net Income |
$111 |
$142 |
(6%) |
10% |
EPS (Fully Diluted) |
$0.81 |
$1.04 |
(4%) |
13% |
EBITDA4 |
-- |
$268 |
-- |
10% |
EBITDA Margin5 |
-- |
15.4% |
-- |
+40 bps |
Operating Cash Flow |
$94 |
-- |
725% |
-- |
Free Cash Flow6 |
-- |
$74 |
-- |
NM |
Total Backlog |
$23,745 |
-- |
3%7 |
-- |
Second Quarter Fiscal 2024 Highlights
- Reflecting as reported performance from continuing operations, revenue increased 13% to $3.9 billion, operating income increased 2% to $200 million, the operating margin decreased 60 basis points to 5.1% due to restructuring-related expenses, net income decreased 6% to $111 million, and diluted earnings per share decreased 4% to $0.81.
-
Net service revenue2 increased by 8%, driven by the Water, Transportation and Environment end markets, where AECOM is ranked #1 by ENR, and a growing contribution from larger wins.
- The net service revenue growth rate included an approximately 100 basis point headwind from fewer working days compared to the prior year period.
- The segment adjusted 1 operating margin 3 increased by 70 basis points to 15.1% and the adjusted EBITDA margin 5 increased by 40 basis points to 15.4%; both metrics set a new second quarter record driven by the benefits of growth, operating efficiencies, and strong execution, while enabling strong investments in business development.
- Adjusted 1 EBITDA 4 increased by 10% to a new record and adjusted 1 EPS increased by 13%; adjusted 1 EPS increased by 17% on an operational basis 8 , which was partially offset by a higher tax rate compared to the prior year.
- Total backlog increased by 3% 7 to a record level driven by a continued high win rate and a growing contribution from larger wins that enhance long-term earnings visibility.
‒ Program Management backlog increased by 45% to a record high, with strength driven by large Transportation, Water, and energy transition related wins.
