Q3 2024 AECOM Earnings Call Transcript
Key Points
- AECOM (ACM) reported an 8% increase in net service revenue (NSR) to a new high for the third quarter.
- Adjusted EBITDA and EPS increased by 16% and 23%, respectively, with record quarterly margins.
- Free cash flow has increased by 32% year-to-date, demonstrating strong cash flow performance.
- The company has a robust backlog and pipeline, providing significant visibility and confidence in future growth.
- AECOM (ACM) has repurchased $200 million of stock since the end of the second quarter, with more than $700 million remaining under current board authorization.
- The International segment experienced some client repositioning of priorities and funding, particularly in the UK and Middle East, causing temporary delays.
- The withdrawal of congestion pricing in the New York metro market has created uncertainty in funding for infrastructure investments.
- The company has entered into agreements with its previously disposed civil construction business, including a $30 million revolving loan commitment and a non-cash guarantee on other outstanding debt.
- There is a potential for lumpiness in design backlog growth due to the pursuit of larger projects, which may not provide consistent and linear growth.
- The reprioritization of funding in the Middle East and the pause in the UK due to elections have impacted the International segment's growth.
Good morning and welcome to the AECOM third-quarter 2024 conference call. I would like to inform all participants this call is being recorded at the request of AECOM. This broadcast is the copyrighted property of AECOM. Any rebroadcast of this information in whole or part without the prior written permission of AECOM is prohibited. As a reminder, AECOM is also simulcasting this presentation with slides at the Investors section at www.aecom.com. Later, we'll conduct a question-and-answer session.
I would like to turn the call over to Will Gabrielski, Senior Vice President, Finance, Treasury, and Investor Relations. Please go ahead.
Thank you, operator. I would like to direct your attention to the Safe Harbor statement on page 1 of today's presentation. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's
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