AECOM Reports Record Third Quarter Fiscal 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
AECOM Reports Record Third Quarter Fiscal 2024 Financial Results
AECOM (NYSE: ACM), the world's trusted infrastructure consulting firm, reported its financial results for the third quarter of fiscal 2024.
Key Financial Metrics
| Metric | Q3 FY2024 | Q3 FY2023 | YoY Change | Q2 FY2024 | QoQ Change | Consensus Estimates | Difference |
|---|---|---|---|---|---|---|---|
| Total Revenue | $4.2B | $3.72B | +13% | $4.0B | +5% | $3.98B | +5% |
| Earnings Per Share | $0.95 | $0.77 | +23% | $0.77 | +23% | $1.13 | -16% |
Interpretation: AECOM delivered significant financial growth in Q3 FY2024 with a 13% year-over-year increase in revenue and a 23% increase in earnings per share (EPS). While total revenue exceeded Wall Street consensus estimates by 5%, the EPS fell short by 16%.
Segment Revenue Performance
| Segment | Q3 FY2024 Revenue | YoY Change | Q3 FY2024 NSR | YoY Change |
|---|---|---|---|---|
| Americas | $3.2B | +8% | $1.1B | +8% |
| International | $904M | - | $729M | +7% |
Interpretation: Both the Americas and International segments demonstrated strong performance. The Americas segment showed robust growth with revenue and net service revenue (NSR) both increasing by 8% year-over-year. The International segment also saw a commendable 7% growth in NSR.
Operational Data
| Metric | Q3 FY2024 |
|---|---|
| Net Backlog | Near all-time high |
| Pipeline of Opportunities | Record level |
| Book-to-Burn Ratio (Americas) | 1.1 |
| Free Cash Flow | $273 million |
| YTD Free Cash Flow | $434 million (+32%) |
Executive Commentary
CEO Troy Rudd stated, "Our third quarter performance was highlighted by record revenue and margins, strong cash flow growth, and we increased our earnings guidance for a second time this year, reflecting our competitive advantages."
President Lara Poloni noted, "We are increasingly capitalizing on opportunities to expand our addressable market and lead with high-value advisory and consulting services."
CFO Gaurav Kapoor added, "We are delivering on the key elements of shareholder value creation and maximizing shareholder value through share repurchases."
Dividends and Share Repurchase Program
AECOM has returned $407 million to shareholders fiscal year-to-date, including $150 million of share repurchases since the end of the fiscal third quarter. The company has more than $700 million remaining under the current share repurchase authorization.
Forward Guidance
AECOM increased its earnings guidance for fiscal 2024, now expecting adjusted EBITDA between $1,075 million and $1,105 million and adjusted EPS between $4.45 and $4.55, representing 13% and 21% year-over-year growth respectively.
Stock Price Movement
Following the earnings release, AECOM's stock price declined by 1.77%.
Overall, AECOM's third quarter fiscal 2024 results underscore its strong financial position and optimistic outlook, driven by record revenue and continued investment in growth and development.