The Company’s presentation of its non-GAAP financial information for its pro forma Professional Services business reflects the results of the DCS, Construction Management and AECOM Capital businesses, and excludes the Management Services business and at-risk, self-perform businesses within the Construction Services segment, which the Company intends to divest.

• Full year revenue was $13.6 billion and full year net service revenue⁵ was $6.2 billion, which increased by 2% on an organic⁴ basis due to solid execution, strong end market trends that resulted in growth in self-perform revenue.
• Adjusted EBITDA¹ of $662 million in the full year increased by 25% over the prior year, reflecting a growth rate significantly above the enterprise.
• Adjusted EBITDA¹ margin on net service revenue⁵ was 10.6% in the full year, an increase of 210 basis points over the prior year, reflecting the combined high margins on self-perform work in the Company’s Professional Services⁷ businesses, the benefits of the restructuring actions completed earlier in the fiscal year and increased profitability in both the Design & Consulting Services and the Construction Management businesses.

Fiscal 2020 Outlook and Update on Strategic Value Creation Actions:

• AECOM reiterated its fiscal 2020 enterprise financial guidance, including its expectation for adjusted EBITDA¹ of between $1,040 million and $1,080 million.
  • This guidance includes approximately $10 million from AECOM Capital contributions.
  • The Company expects free cash flow, excluding expected cash uses for restructuring and timing impacts related to the sale of the Management Services business, to be within the Company’s annual $600 million to $800 million range.
• The Company reiterated its fiscal 2020 financial guidance for its pro forma Professional Services⁷ adjusted EBITDA¹ of between $720 million and $760 million, which would represent 12% year-over-year growth at the mid-point and reflects underlying growth and the benefits of the Company’s ongoing strategic value enhancing initiatives, including:
  • Restructuring initiatives and expanded use of best-cost design and shared service centers to enhance profitability.
  • Actions to de-risk and simplify the Company, including the planned exit of more than 30 countries, planned and actual business divestments, extraction from international at-risk construction, and AECOM Capital’s successful closing of a private equity real estate fund with Canyon Partners that limits AECOM’s future balance sheet contributions.
  • The Company reiterated its forecast for unlevered free cash flow⁸, excluding expected cash use for restructuring in fiscal 2020, to approximate 75% of adjusted EBITDA on a normalized basis.
• In addition, on October 14^th, the Company announced an agreement to sell its Management Services business for a purchase price of $2.405 billion, reflecting a premium valuation.
  • The Company expects the transaction to close in the second quarter of fiscal 2020, subject to regulatory approvals and other customary closing conditions.

“Our strong fiscal 2019 results are a testament to the impacts of the strategic actions we began executing two years ago to enhance profitability and maximize shareholder value,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “We delivered a record quarterly margin in the DCS segment in the fourth quarter and for the full year. We also exceeded the mid-point of our adjusted EBITDA guidance with 13% growth for the full year. Importantly, this growth was driven by 25% growth in our Professional Services business. We significantly accelerated our value creation strategy with the recently announced agreement to sell the MS business at a premium valuation. The proceeds from this transaction, combined with our record fourth quarter cash flow, are expect to result in substantial capital to deploy for debt reduction and share repurchases in a higher-returning, lower-risk Professional Services business at a highly attractive valuation.”