Aecom · NYSE:ACM
Aecom — Q3 2024 Earnings Presentation
23 slides from Aecom's earnings presentation, Aug 6, 2024
Slide 1: Great Grid Upgrade, United Kingdom
GREAT GRID UPGRADE United Kingdom AECOM is helping upgrade the national grid in one of the United Kingdom’s most important and complex infrastructure projects in decades. This major grid modernization program will deliver five times more electricity infrastructure over the next six years than has be
Slide 2: Disclosures
Disclosures Forward-Looking Statements All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitabili
Slide 3: Today's Participants
Today’s Participants Troy Rudd Lara Poloni Gaurav Kapoor Chief Financial & Chief Executive Officer President Operations Officer Page 2
Slide 4: Key Themes
Key Themes Our Strategy to Expand Our Competitive Advantage: Day 1 Day 2 Day 3 Holistically Advising Our Clients As Projects Increase in Size Advisory Program Management Project Design & Execution and Complexity • Adj.1 EPS and adj. EBITDA2 growth rates • Fiscal year to date free cash flow5 has (23%
Slide 5: Highlights of Our Financial Performance
Highlights of Our Financial Performance Record Net Service Revenue Record Adj. EBITDA Margin Strong Adj. Earnings Growth Cash Flow & Capital Return to Shareholders +8% +130 bps 23% 16% YoY Adj. EPS Growth Adj. EBITDA Growth $407M YTD capital returns (through August 2) 16.5% $1,826M $1.16 $286M $434M
Slide 6: Affirming Our Commitment to Shareholder Value Creation
Affirming Our Commitment to Shareholder Value Creation 1 Organic Growth Investments • • Our highest-returning use of capital We are re-investing in business development, technical and digital 40%+ Expected ROIC from Investments In capabilities, and career development Organic Growth training more tha
Slide 7: Long-Term Algorithm for Double-Digit Profit Growth
Long-Term Algorithm for Double-Digit Profit Growth Consistent performance delivered by an industry-leading professional services infrastructure consulting firm 1 5 – 8% Annual Organic NSR3 Growth Minimum 20 – 30+ bps of Annual Margin 2 Delivering Expansion Double-Digit Annual Adjusted EPS Highly Cas
Slide 8: Positioned for Unprecedented Long-Term Funding Commitments
Positioned for Unprecedented Long-Term Funding Commitments Market Market Trends % of NSR3 in Q3’24 Our Leading Position SECULAR GROWTH MEGA • U.S. gov’t estimates $630B+ is TRENDS: Water needed in water infrastructure over the coming decades 24% #1 • 80% of climate change expected Ranked Water Firm
Slide 9: Near Record Backlog and Record Pipeline Create Substantial Visibility
Our Near Record Backlog and Record Pipeline Create Substantial Visibility Program Management Water Pipeline Value of Larger Pursuits in Pipeline for 2025 Decisions Our record high win rate 7 of last 8 45% ~70% continues to Pursuits won valued at over $25 Water large pursuit pipeline million growth Y
Slide 10: Increased Our Fiscal 2024 Guidance
Increased Our Fiscal 2024 Guidance $1,075M- 8-10% $1,105M 15.6% $4.45-$4.55 8% $964M $3.71 $886M $3.40 5% 14.7% 14.2% FY’22 FY’23 FY’24E FY’22 FY’23 FY’24E FY’22 FY’23 FY’24E FY’22 FY’23 FY’24E Net Service Revenue3 Growth Segment Adjusted1 Operating Margin7 Adjusted1 EBITDA2 Growth Adjusted1 EPS Gro
Slide 11: We Are Outperforming Our Sector
We Are Outperforming Our Sector We have repurchased 20% of shares outstanding since Q4’20 LEADING PROFITABILITY HIGHEST SUBSTANTIAL VS. PEERS RETURN ON CAPITAL VALUATION GAP 17.3% 16.5% 18.1x 15.4% 15.4% 15.0% Peer Avg9: 13.9% 13.3% 12.3x FY'23 Q1'24 Q2'24 Q3'24 ACM Peer Avg 9 ACM Peer Avg 9 FY'23 F
Slide 12: Portfolio Transformation Update
Portfolio Transformation Update • AECOM has taken several actions to exit legacy businesses and transform its portfolio, including: – Sold the government services business in 2020. – Sold at-risk construction businesses in 2020-2022. – Announced the transition of the AECOM Capital team in 2024 and c
Slide 13: Performance Update
Performance Update Delivering a better world A=COM
Slide 14: Q3'24 Financial Performance by Segment
Q3’24 Financial Performance by Segment Americas Segment International Segment GAAP Results: GAAP Results: Total Revenue $3.25 billion +15% Total Revenue $904 million +8% Operating Income $207 million +11% Operating Income $85 million +25% Key Performance Indicators (Non-GAAP): Key Performance Indica
Slide 15: Winning What Matters in Our Key Markets
Winning What Matters in Our Key Markets PUBLIC ASSISTANCE PROGRAM U.S. NAVY’S PACIFIC REGION GREAT GRID UPGRADE SAN DIEGO AIRPORT EXPANSION DCS – ENVIRONMENT DCS - ENVIRONMENT DCS – ENVIRONMENT DCS – TRANSPORTATION Leading the Atlantic zone of FEMA’s Providing facility support services for the Desig
Slide 16: Attractive Balance Sheet
Attractive Balance Sheet A strong balance sheet with historically attractive cost of funds and no material near-term debt maturities DEBT BREAKDOWN: AECOM MATURITY PROFILE: Funded Amount Rate Maturity (millions) 1 $1.5B REVOLVER T-SOFR + 122.5 2029 1 TERM LOAN A $750 T-SOFR + 122.5 2029 2 TERM LOAN
Slide 17: Appendix
Appendix Delivering a better world A=COM
Slide 18: Who We Are
Who We Are We are the.world’s trusted infrastructure consulting firm. Across the globe, we partner with our clients in the public and private sectors to solve their most complex challenges and pioneer innovative solutions. FORTUNE Rankod os a Miltary Friendly Employer 18 yearsin rou Featured on Fort
Slide 19: As a Professional Services Business, AECOM Is Poised to Thrive
As a Professional Services Business, AECOM Is Poised to Thrive Attractive Exposure Balanced Geographic Diverse Deep Technical Lower-Risk to Key End Markets Exposure Funding Sources Expertise Business Model Non-U.S. Engineers Water U.S. Governments Program 10% 6% 8% 24% 30% 19% Managers / Cost-Plus D
Slide 20: Footnotes
Footnotes 1 Excludes the impact of certain items, such as restructuring costs, amortization of intangible assets, non-core AECOM Capital and other items. See Regulation G Information for a reconciliation of non-GAAP measures to the comparable GAAP measures. 2 Net income before interest expense, tax
Slide 21: Regulation G Information
Regulation G Information Page 20
Slide 22: Regulation G Information
Regulation G Information Page 21
Slide 23: A=COM ovreiier ora
A=COM ovreiier ora