AECOM Reports Strong Fourth Quarter and Full Year Fiscal 2024 Financial Results
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AECOM Reports Strong Fourth Quarter and Full Year Fiscal 2024 Financial Results
AECOM (NYSE:ACM), the global infrastructure leader, announced its financial results for the fourth quarter and full year of fiscal 2024. The company observed substantial growth across key financial metrics, setting new records despite economic challenges.
Key Financial Metrics
The table below illustrates AECOM's financial performance, comparing year-over-year and quarter-over-quarter results, alongside Wall Street consensus estimates:
| Metric | Q4 FY2024 | Year-over-Year Change | Consensus Estimate | FY2024 | Year-over-Year Change |
|---|---|---|---|---|---|
| Revenue | $4.1B | +7% | $4.12B | $16.1B | +12% |
| Operating Income | $236M | +194% | N/A | $827M | +155% |
| Net Income | $168M | +396% | N/A | $506M | +343% |
| Diluted Earnings Per Share | $1.25 | +421% | $1.25 | $3.71 | +358% |
Overall, AECOM delivered strong financial performance for fiscal 2024, surpassing previously increased guidance and consensus estimates, particularly in terms of operating margins and net income.
Revenue Performance by Segment
The table below highlights the revenue performance across AECOM's major segments for the fourth quarter and full year:
| Segment | Q4 FY2024 Revenue | Year-over-Year Change | FY2024 Revenue | Year-over-Year Change |
|---|---|---|---|---|
| Americas | $3.2B | +8% | $12.5B | +14% |
| International | $948M | +5% | $3.6B | +6% |
The Americas segment led in revenue growth, increasing by 8% in the fourth quarter and 14% for the full year, while the International segment exhibited more modest growth. Both segments contributed to AECOM's record high net service revenue.
Key Developments and Operational Highlights
- Fiscal 2025 guidance projects record net service revenue, margins, and earnings.
- Fourth quarter and full year results surpassed previously-increased guidance.
- Total backlog and pipeline reached all-time highs.
- Increased the share repurchase authorization to $1 billion and the quarterly dividend by 18% to $0.26 per share.
Management Commentary
CEO Troy Rudd emphasized the robust results as a testament to AECOM's strategic direction and competitive advantage. He cited high market win rates, investment in higher-margin platforms, and a record backlog as key factors driving these results. President Lara Poloni highlighted the expansion into advisory services through the newly-formed Water and Environment Advisory business, positioning AECOM for future growth. CFO Gaurav Kapoor noted AECOM's compounded EPS growth and the company's commitment to shareholder returns through disciplined capital allocation.
Capital Allocation
AECOM announced a significant $1 billion share repurchase authorization and an increase of its quarterly dividend by 18%, further underlining its commitment to returning value to shareholders.
Forward Guidance
AECOM's fiscal 2025 guidance anticipates continuous strong performance, including adjusted EBITDA between $1,170 million to $1,210 million. They have forecasted adjusted EPS to be in the range of $5.00 to $5.20, reflecting an expected 13% growth at the mid-point.
Stock Price Movement
Following the earnings release, AECOM’s stock price increased by approximately 2.2%.
In summary, AECOM's financial results for fiscal 2024 demonstrated significant growth and met or exceeded various performance metrics, while its forward guidance indicates continued strong momentum into fiscal 2025.
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