ACM - Earnings call transcript Q1 2025

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Operator

Good morning, and welcome to the AECOM First Quarter 2025 Conference Call. I would like to inform all participants that 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. Instructions] [Operator

to Finance, over Treasury like Senior Will the President, Vice and turn would to call Gabrielski, I Investor Relations.

Will Gabrielski

I harbor X Actual results operator. to about future discussion you, would differ financial direct statements to Thank expectations. and your contains the forward-looking safe today's significantly statement of Page may business SEC. on presentation. Today's by our like attention due uncertainties, including those we and periodic filed obligation projected our risks reports in to required to forward-looking today's various Except with undertake no statements. the forward-looking law, described in as statements update those from

We year-over-year into use the financial our basis and Any reference unless our are margins our in incorporated are appropriate Americas International which segments. rates presentation. to otherwise segment reflects posted noted. The certain margins non-GAAP segment adjusted operating materials, website. performance to are a GAAP or the on reconciliations for Growth measures presented

revenue or unless rates to on and NSR refer growth constant growth, are will is revenue excluding noted. revenue. revenue basis currency which discussing as a NSR, When pass-through we revenue, otherwise presented service net defined

performance key Lara will and our outlook discuss operations. Officer, focus on our call, outlook and Operations Financial and Kapoor, today's greater Rudd, and strategy key financial Chief Poloni, in will priorities. business. our remarks successes Executive President, will for Chief operational review On the our our Officer, detail. review Gaurav our Today's Troy continuing accomplishments, will our And

We will with conclude session. a question-and-answer

Troy. now I will to that, turn Troy? the over call With

W. Rudd

Southern by by us to you, and I Will, joining acknowledging the California. would devastation start thank you, the Thank caused today. fires in for like everyone,

safe. that in our report employees the of region are We are relieved to all

significant community anticipated However, will what prolonged a challenges recognize is we recovery period. the during that be to face

support direct teams in L.A. areas the to the our Metro We are Region. and affected providing to committed

throughout the our with gets recovery region. process efforts rebuilding underway, our clients are highly the to and equipped teams assist reconstruction the skilled As well

pride industry. paying best to workplace culture Fortune's consecutive named We the ranked efforts as the are Last on ourselves being our off. we XXth in Admired including pleased were am industry. in year #X our company the Most the World's I week, having Companies list, on featured report for

engagement all-time results high in linked employee to a which firm-wide satisfaction strong the reached is addition, survey, In employee recent new employee retention. our and in directly

underscore first performance, share to would beyond. XXXX Before markets some quarter in and fiscal end our our we which like insights our discuss I and client regarding confidence exposure,

business single First foremost, reliance and our market any is diverse, highly or client. on eliminating

last XX Act Reduction backlog. our together EPA detailed the in our reflect for is to a and proportion material pipeline not USAID quarter, and account of similar us. only Notably, the trailing and we months As basis XX points revenue Inflation

fiscal critical of as essential XXXX. for revolve years. we majority and financial negligible federal our around reflected Defense, The growth XX-day U.S. expect engagements we for stemming increased guidance of and disruptions Department anticipate the to be or our where reviews temporary the strong Consequently, from any freezes coming funding short in the term, services in

these World economy, we active U.S. from positions prudent for arising a to ahead, of and investment Looking destination deregulation heart new anticipate capital push objectives. that the energy robust at supported opportunities and commitment independence administration's infrastructure for the a growth. is the by class

guide Growth The X.X%, point for basis design adjusted to where was X% NSR business. in XX which the our our Turning ahead strongest profitable segment, performance. our the a largest first quarter points, by increased was in margin increased exceeding segment and XX increase. expectations. operating slightly our of by Americas, by most basis NSR increased annual

practices. and industry-leading competitive initiatives, water including environment business in disaster invest and development allowing and strong advantage, in enhance response our to our consistently Our growth margins advisory us and

for to XX%. X% EPS tax by contemplated tax prior by growth EPS initial rate increased When due rate rose the compared in to of items in a timing adjusting adjusted from the variance, It's the lower unchanged and EBITDA year. lower The quarter guidance, by EPS our Adjusted this XX%. approximately benefited year-over-year were increased that important to that first was tax at rate which note is while XX%.

also XX%, through cash returned Free had to We by dividends. we million shareholders strong increased and cash flow flow. repurchases and $XX

growth Backlog in backlog in increased our including X%, to the and design pipeline. the Turning business by Americas. X%

total result, a high. all-time achieved a new backlog As

cycle. on a Importantly, in to our the included to than reiterate, and at later budget USAID. areas most as multiyear exposure the we pressure, double-digit growth including To have pipeline is less EPA pipeline expected in be a remain record also X% and pursuits we under growth stages our

strong we which created As advantage, have ways. performance our a consistently in demonstrates, several apparent is competitive

First, winning we rate gaining share. record and are at market a

rate deliberate XXX% in rankings largest in In consistently success by rate strategic fact, we our evidenced ENR the an the water, and approach reflects scale as to expertise win technical markets, create our environment, we each This bring advantage. to pursuit our facilities a had and and high and in first quarter. #X and by most business transportation client

our create are we professional great proposition for example in past the The our an is clients. program substantial even the technical on our highly market over existing a management Second, that expertise expanding complementary addressable our greater services with business years of build several growth and value opportunity.

in in double Environment to added million investing services next has next ENR revenue, years. X program billion expect that & growing platform, are leverage and demand for Advisory, that in client to our similar the approximately our expertise. Water we Today, $XXX characteristics which annually $X net we with domain management is NSR

we're Third, further to committed to our lead expansion. industry, continue margins our and

XX% in of higher a margin technical delivering in result are delivery the over as meaningfully global capital This capabilities. clients to strong advantages. we profitability XXXX fiscal deliver higher-margin margins Our time. as scale exiting advisory digital and invest confident the the margins our and delivery direct to value remain AI, our and well We in creates achieving

highest policy and essentially capital allocate operating allocation value shareholder strong creation cash and returning returns-based flow the to and returning We opportunities, our the of driver available shareholders. of compounds capital benefits our to Finally, earning time all performance.

nearly under grown and We the past billion have years, leads have remaining industry over by repurchase share dividend authorization X CAGR our our multiples. a which our $X XX% at several existing

markets. in Turning a growth the drivers and supported we capital turn, are to largest and This project U.S. resilience the investment our a a In Trump gaining and our more momentum. the creating the permitting U.S., review have potential of administration, priorities of the of lines accelerating The including as end in costly drivers means of emergency national will secular sustainability, apparent attract the market, energy infrastructure, declaring delays energy investment attract long includes industry. and, to reducing for time incentives to reform, to which capital in are

of period U.K., well Across us In final new our AMPX our our than won XXX% recompetes International positions several determination on in remain the markets, We multiyear than investment the the as expected billion. as expand market of share. to favorable. higher to position more came long-term frameworks trends GBP XXX that

remains transmission and energy strong. electric in structure investments Additionally,

transport Our frameworks on key visibility. additional create positions

as East, well Middle key investments Saudi by the as to in priority growth the supported In Arabia be strong, in UAE. continues growth

XXXX, are dearly World as global events, which create support such Expo investments to suited. upcoming and Cup we the to continue new Importantly, for opportunities

attributes success. us of broadly, of our backdrop begins change continued for business inherent professional the More services position a

First, a and our creating of certainty. level, backlog record strong opportunities pipeline and are at ability

market. Second, are we our addressable expanding

opportunities. work disciplines, we XX% Third, we model. across of have professionals to our variable growth cost workforce. which More have can to a resources us than highly Fourth, pivot an highest agile the allows

have strong balance and leverage we certainty. gives strong flow, ability us cash with and be opportunistic the with a Finally, which low sheet to operate

which expect margins increased another and strong underscored year XXXX, fiscal conversion. with in free is cash guidance we earnings, revenue, of Our for confidence flow continued in our record

call that, to turn With the I'll Lara. over

Lara Maria Poloni

Troy. Thanks,

start we more strong Think largest are of reason technical We key selected the strategy XX% advantage, are on Act cited year, is than reflecting benefits of and as off our to the our wins. the a and Globally which our to

to opportunities, high-margin presenting services, we the management last size for several over As us. have our the opportunities our years. clients, on our that complexity rapid growth we also project challenges professional program our but continue for including To capabilities capitalize rise, of we markets, growth these significant expanded navigate and see

to over XX% report for professional now business our revenue. am of that pleased our increased I has accounts and years threefold X total past

In International largest manager Toronto fact, our program for program. wins one of in quarter a the the award support Capital Airports was to Pearson

better the with larger our client role planning, the master of a opportunity. environmental for Our the clients' success deeper informed needs program understanding helping management early with advisory

a is built to major example This This market. advantage project business the all expertise by we to client. project the have on which of X advantage elements lines, the our of cemented further able our draws multiled bring being of competitive in great

$X ahead, platform growth in Water are anticipate what billion through investing next we Advisory our we & business. Looking actively Environment be to our

to the that milestones. reached Similar already client strengths Water Environment service this several the advisory technical report for established management, growing & complements business and to demand program addresses I'm Advisory our services. has pleased advisory infrastructure-informed key

appointed a quarter, a brings world experience Last expertise to and we Jill AECOM. leader, Hudgins, who

we been further advisory are technical the we pipeline value made of the adds our a hires overwhelmingly senior credibility pursuing Client emphasizing to feedback enhance several with months, positive, that few have has and past key opportunities. the wins, Over space. robust unique our expertise

market our water opportunity of increasingly expertise billion we in In digital in and market. months, potential have clients growth quarter, underserved guidance the for digital Last recent and and a the their confident the investments. are space the seek further evaluated the white significant automation that opportunity exists as we $XX market in highlighted

water U.K. Annually, This of annually is which want clients unaccounted our to billion amount in that Germany, is lost quarter, and nearly nonrevenue $XXX to highlight the combined, for S&P equivalent opportunity estimates loss goes the the in which total loss, of usage costs unpaid. water France, Italy to and refers Spain, water revenue. I the the

us client positions we well growing selected advisory were for water higher-end U.S. advanced major metering to project. a challenge significant This a services. by provide Recently,

has advanced priority of a age in water the in metering infrastructure, investing become our Given for clients. accuracy existing metering more technology

have already we the result, developed and in a are substantial excited potential about market a pipeline this growth lies that ahead. As promising

and advisory we services least time, management XX% of represent expect business. Over at to our program

that await about more opportunities early evidenced As we us. than by successes and ever expanding our are the pipeline, confident

I that, Gaur. will the over to With call turn

Gaurav Kapoor

Thanks, Lara. by increased XX%. report and EBITDA to pleased increased start. I'm X.X%, increased strong by adjusted EPS X% to NSR results

adjusting As the Troy XX% up [ for EPS was variance in after the year-over-year our rate. ] noted, tax

results and in enabled strong organic ongoing to performance as investment dividends. included shareholders and cash through which well returns flow repurchases as on Our margins

expertise, XXth was is highly strong client business enterprise-wide X, our which X.X. the in quarter ratio a design Our technical book-to-burn which our in testament investments. book-to-burn to development was than consecutive and marks business relationships This industry-leading effective the greater

of near- achieving that is long-term our we returns delivering why we on high both It today confident and because financial are our targets. realized and investments we in so are

beginning results, the segments our client X%, in the type to design broad-based growth Americas. in market. Turning was business. Growth X% accelerated NSR and by including to

remains several the continued quarter, and IIJA XX% State from we had strong and federal large trends programs. double-digit and remaining strong, our benefiting of deployed are we funding, also expect We of visibility. years which less are in critical growth with multiyear than local growth

advisory we increased high. high XX in included expand includes as and This business The benefit XX.X%, development higher-margin quarter well to growth by margin as investments new basis of organic the our adjusted operating points first substantial as a returning services. [indiscernible] margin

we well. not backlog accelerating grow at but our Importantly, pace, to as grew renewed only an

backlog design ratio. driven Americas X.X a by book-to-burn increased X%, Our by

and as book-to-burn practices. contributions well as and was facilities sizable in our Our U.S. wins environment driven positive water, across transportation the Canada, by

increased, it across segment, In although revenues International markets. the different varied

up water diverse as Our sectors, near the frameworks and slightly, and In markets growth the our by U.K., positions market, afforded from remains focus on stability the energy. largest lower. backlog, strong term, was certain on benefiting key our transportation like such

the improving a as X.X U.K. However, year. supports the we move in the book-to-burn through our business trends for had quarter expectation which

our by new and Revenue in our East work digits Saudi was on by single increased first high Australia. XX the by quarter. rate in X.X and mega increased revenue International the high in International Middle partially increased backlog sector margin ramping UAE. in also a projects operating remains water growth Arabia all-time to up XX%, an in a points and including backlog in the investments X% strong. a Even continuing were the high, first for new the so, basis book-to-burn offset wins with Australia decline Adjusted at quarter.

million the our to our and Turning balance returned quarter policy sheet. We cash through supported total, capital by strong during $XX flow and allocation we allocation. cash executed share first repurchases flow quarter. dividends, capital on In returns-focused and

of our flow the the reminder, cash in free and confidence our guidance. second to the to conversion be gives weighted XXX% As to half year, flow us our tends year start strong a cash

capital Our priorities unchanged. are allocation

to growth We maximize and to returning substantially invest return over time. will all shareholders cash opportunities by organic available

to Turning guidance.

are backlog fiscal moved which adjusted We funding majority for of and guidance XXXX against increasing strong record midpoint for balanced is the includes across EPS. far our of This this that EBITDA headwind foreign from our and performance, [indiscernible] rates and markets, year-to-date guidance year. pipeline, a have so exchange again both

of XX% Our outperformance the is by guidance year tax quarter driven only. in as full was first timing unchanged the items

second half. the to We second quarter in XX% high and the XXs the expect our approximate in tax be rate in to

next rate expect our the several We continue to years. over approximate XX% to tax

we operator, ready that, questions. With for are

Operator

question from first the from Instructions] Feniger Michael of line [Operator Your of America. comes Bank

Michael Feniger

you Americas talk back the to lack lot half? And the there's there obviously headlines to Do like off secondly, certain growth the picture, more on just build come freezes there's guys driven? just the still certain X.X%. of year of impacting really you back for is are International Positive pipeline. funding out agencies. Or it year? programs starting starting visibility big Is in that Look, that to through start, NSR a Troy, with growth

even observing IRA are highlight you have some into the of your what not we you But of kind in that from building of some Some can guys kind week? I as talk maybe on and hearing of been ground pipeline across visibility just recent you gives wheelhouse. a that There's had peers to how your you're project weeks, growth week of and in to kind come these around that different that even some headlines what IRA have projects. is view realize to IIJA headlines broadly that. is

W. Rudd

in for Thanks right. order. reverse I'm going Mike. All question, the take to them

our has we're what First, as marketplace. of I'm X just sort certainly last And attributed the starting over a to just lot through weeks, the all been going last that by it's going we been is over I things. But found we've on business. impact the to start a with a seeing at to what digest. there isn't material X in process And saying there weeks, few think

clients change funding this of continue pipeline broadly portfolio, exposed pointed backlog there still again, I think growing. the not we some the pipeline up out, level, you But for best is we're of example as the we importantly, all, -- our quarter. was already our world First you for to where that. the just as risk across significant when grow. funding year-over-year is our of at our look across to of And And said, our

of at But over them sort the say sort of be So forward certainly there's look and are. important well, where when and that are with are you around weeks to in probably being still are play, and objectives still And you of in trends. we're impact months. kind to infrastructure again, the more and infrastructure really, digest the look these going stack global sort again, There what aligned up the I made coming really macro the you think there of we U.S. investments

at the the looking look in they're States. economic you development current United goals, If administration's

that the in means infrastructure. United water accelerate that by it's all to be would to permitting infrastructure, is that's so is there permitting of your should environmental goods get done reform, long to be is because whether infrastructure, that be there more going going And the supported infrastructure, your if certainly then if projects. States, agenda development work markets the transportation you domestically term to economic be energy in And and done that work And -- internationally.

have around and So is agendas, governments that certain we do their half been [indiscernible] us we we're that the that see of the are objectives year. similar look infrastructure. U.S., same broadly aligned we we although to certainly thing, And say where switching markets, in the we and there with and globally, in first the so think something in

growth. just it question not little in a see the as your in would do expected, And to NSR half to in year. opportunities turn did we the the but of and up was about first quarter. We growth we've than we ramp that's me And in our quite We we better be expected anything backlog. as don't changing. let function NSR that it had So have second of that the expect we the a pipeline won our things that also good

our pursuits And to opportunities very to Again, $XX significance, we ability a just rate. for XXX%. the not we that one. our high marketplace, the -- as of I X we our that sort the quarter, for had made million this are one and point define you in was think have them, I'll address at we our X. mention said And look our that out in for if backlog is over size, In we win that

significant And winning example that's a of how the we're pretty marketplace. so in

Operator

comes next Citigroup. from from of Andrew question Our Kaplowitz the line

Andrew Kaplowitz

Troy, bit quarter. actually accelerated NSR in the a just growth, Americas little looking at

Your you design backlog there's looks talked a there. cross-currents good. of Obviously, out lot just about

it's in think needed you it? balanced? drive So 'XX? And it we Is Is of private more how equally balance about expect would sector? between Like it to water then state facilities? transportation local would it revenue growth or more what is versus growth to and water kind you and FY related say do

W. Rudd

built it Yes. Think certain just a the terms being way. we've about of Again, balanced. in in it business

is the for we investments infrastructure. what think in So gates longer-term that's in aligned important

every marketplace different is our of slightly part Now objectives.

would U.K., just success broad-based. we're the focused. the that now our But to look we certain exposed might business, more water is business. And we to used market we that be that when to Very the look say energy are water, environment, going across transportation-focused like so what business across and energy and example, imply across transportation, trends entire we buildings at see

Andrew Kaplowitz

would And our of but above do would the talked still could -- the Or limited then sort the to you that expect I worry on the at know drift state the you of about we on a noise, period of book-to-bill all expect local? and federal floor -- rest of that or business? given year? already you've exposure over budgets Or bookings in and X uncertainty should average side you

W. Rudd

we expect over X we on of our year. actually and at year. of sort improve the we be the throughout [indiscernible] we -- would as the it based our at there we pipeline win and are opportunities that we year, move through pipeline do see, to look over Well, rate, look our And actually the again, course certainly

anticipate opportunity actually don't shrinking, the course we So our year. over it pipeline view we the expanding of as and of

Operator

Your next Truist from the from Jamie question of Cook is line Securities.

Jamie Cook

business second And guess, in first maybe year? investments my can talk the water to of in the a on question, on then, in you to turning like growth some positives sounded organic making Gaur, of just that there question, of terms net quarter. guess book-to-bill I environmental side, that some sort organically, talk particular,in nice to last were in order Congrats the the you're about and compare I year -- X. the it continue International this

As backlog the we year, growth how sort of about you exit year? the for international think do design

Lara Maria Poloni

sort great talent XXX to space white where, that update a those first we've is we're We've to water importantly, quite ahead the start the joining of might and know, of had backlog, you adjacencies [indiscernible]. around part the most still operations. in got solid in. us There's great sector, in digital question across in and winning disciplines, And just straight environment are recently most water great in and water team work. And of opportunities. terms we're days disaster We're market-leading the of team, milestones members recovery growing already I of expect key position the responding the here. we but for optimistic. and success have Lara and in good a the But this It's we our Jamie. Thanks, as momentum. of with tremendous some running pipeline environment

lot water wins terms I And example, addressable that to a for as more said, market in had had and there's we've We infrastructure attack some been So has in very great us for and positive. project. a the environment, response the quarter. advanced large, of metering client

as us we we're away, did some as [indiscernible] what next it for that's a believe still said in with backlog accelerator I'll International the I across have. that earlier, just the builds we across book-to-burn. leading some and of was We see market. Americas. that on guidance. that in bookings and catalyst, line technical was X.X big well grew make It growth higher-margin patchy, and But basically portfolio, our that X% seeing And East advantage then Troy international had so think, Middle We growth but as the for quarter it about

total I to are capitalizing exist U.K. for from all market assets. know, us forward we to going the we continues that's on strong. importantly, to we have. are of mean looking [indiscernible] be up going that frameworks addressable most AMPX, And as those known dollar to we

have captured all of recompetes on of the AMPX. XXX% We

So of around a lot that. positivity

continue the market. also, position in you that key as the the and But across all wins continue sectors said,

single operations. the work not positive geographic market, on across we have any sort and And various So I factor. fungibility a of our think we're workforce that to dependent overall, of

Operator

of from from comes Adam Bubes next Your Goldman Sachs. question the line

Adam Bubes

this You And growth drive you line to to what for us program Can in had outlook that momentum continue the update really that like year? growth being in medium in just business? in sustained levers are business term management. strong for on the your capacity pulled

W. Rudd

Yes.

our outlook of program that first So success have. management of level for we unchanged from remains all, the

by to going at I'm our to is year, taking back Sort what start out said an which last think Day of Investor objective. set we you -- about we

quarter, management into from our that has double-digit of and business of XX% significantly work, businesses. I And we design our advisory. At rate. program is our came have we're expanding our a during -- management grown and NSR about up the XX% science-based program which again ultimately, at of and with now will this kind in be think So expertise, into moment,

continue to But building a double-digit out advisory that grow expect we're towards the we're heading practice, rate. at We XX-XX now split. to importantly, as

the that these more of significantly is we're exposing important for becomes budgets. ourselves reason And us to

you, got the confidence we're success our is our the design, right greater if to are advisory We exposed what we've So diverse describing the of exposed business. -- believe about we that to influence in degree again, our much spend being through clients and that we're think the business marketplaces. that right a think our program management

then rate. really And experiencing we're a high very win

And for doing high been those that so rate projects. now a few in that extraordinarily large win we've years,

And so some the experience of when that again, way. business future the confidence along gives the that -- just you even the overall bumps us in

Adam Bubes

And that I increased Is scope the in in strong end growth sort up versus in targeted teams? between be to really that's could seeing project bifurcate at way there growth what revenue trend any think the what you're X%. showing of Americas underlying the market

W. Rudd

a across higher program of rate business seeing way are in when lines it's about we we're look our again, broad-based. the But Well, kind you growth management. [indiscernible], think

Adam Bubes

laid contributor up strong investments side, margins on the the initiatives You versus puts out this for And and of centers have takes and Can just and but much year? the wondering in and you've a the mix benefit advisory, previously? think the the automation in me. is positive last how one client of accelerating digital quarter, then capability help you about the quarter basis points. margins us on Really balance XX

W. Rudd

and bit that take discussion Gaur on I'll up let of I'll investments. little then question, with digital our follow So a

Gaurav Kapoor

Yes, Adam.

strong. So you're continue right, to be very margins

We've led all-time of segments, Americas make As for out you you our and also both significant And to at continued the XX in organic markets. in QX investments of XX this in margins includes we was recall, correct increase business. our high in of year guidance the by exited International our increase. bps bps point are

through benefit Environment Advisory right think the our business, in Lara drive Let through opportunities international -- it where business any to returns be the we Advisory -- articulated -- markets. earlier. Water can we

we're and that was book-to-burn, our market. to -- report the Pleased very pleased X.X ahead in which expectations of international

margins margins International had bps out, And year-over-year. a I'd to the not international also also lot remiss So definitely higher-than-planned they plan, still XX to be our point business and had development. headwind, grew FX compared

strong has forward, So the we seeped culture in expect we drive continue investments based operation, business, our just through all as turn that make, shareholders. representative of in we it's margin the a will value our continue to good people to very the drive generation finding this move because opportunities is culture value to focused which on for especially right also which the for clients, on

W. Rudd

the the So talk of about investments. little nature just a to some of

ancillary the management business. Gaur As in we more pointed professional again, invest in We're the as building investing their have our then than program out, we're We're in investing ever building we're more and than ever business business. development. And development. to continuing growing in

digital digital way how few the And slightly to ago, has recognized developed transforming our about was into we But itself work. artificial we investments We XX started different. months we're all those in ago, something intelligence. the importantly, deliver years we again, But digitally making that so transformation, investing transform that's a also work. really underlying delivered, out

map, bids been so with road starting that investing And a we've map, road using developed potentially and we against prepare to working AI our tools.

And the our executing also run use support those developed map, that And something cases the now so are we business across how were now is road or And that organization. On cases. other those. use projects. do against actually those some or we we underway,

we started actually is map working engineering that way we've that design the and road on on deliver our work. our Next

in XX%. amount Investor about through to amount we And way, in our those that we again, reduce as to -- the deliver it so by our that And work is of a going year, digital initiatives. to, I think X% of think, investing digital we have and Day would gave effort efforts, a guidance money profound we're I thought last would this significant impact,

where based forward. on larger that we're with we AI, number Well, headed being now we're digital as in we and making and the move see investments

margins. our the a making So hopefully, on that you gives investments perspective to that we're

Operator

from question Capital from comes Sangita Markets. the Next Jain KeyBanc line of

Sangita Jain

about that. to and that of should the contribution help there's So think to can If also type you rebuild FEMA us your be of Maybe term if ask of L.A. what short I understand the scope. be? historical we how it's to can in work going type and could there the a opportunity parallel revenue more long-term

W. Rudd

Yes.

the of work participation work our in individual I resiliency with we them, customers. The projects our certainly of call pieces our our thanks phases as is. X just not And of discussion would and would first the work with So way or -- I think out question. sort about and say, don't about and individual main recovery for all, here's it to participation or think

Over decade, the we've participated recovery disasters. last kind of from XXX the in climate over

part climate really this to but of business, as kind communities have continue I'll recover they of So is just to disasters, to support say, from, to events other our again, recover. which is continuing of and kinds

So that's and we help of a a we that. do that, them have do short-term where deal great to experience

as community helping really of through help sort more then of And amount of that that become more a long term And the resilient. recovery, is there's significant you them to get become phase in resilient. even work

impact in that like reduce certainly event an and is there the cost. future, the if that could you So the

it, you but mitigate never way. a certainly long can go can You

It recovery Sorry, certainly had resilient. line. communities way long making the with a beyond more go a we problem goes those to and

U.S. multiple helping state agencies, doing the again, have communities recover. around whether a they're working we of in with certainly long And world. in or that and So history federal the local,

Sangita Jain

pipeline? of grow on I that has what And than margins. that's Appreciate feel you're you a seeing ask lot you the faster driven by? margins year in if been And like Americas color. think be will segment margins to Do based international what can still do this going made. progress Great. on Clearly,

Gaurav Kapoor

in those that clean to any take before. of as Gaur, note is created appreciate than past. that I'll restructuring had It Sangita, what terms it's year, north is margin -- I very expect higher the to on activities. our continue better to of taken probably this activities comment drive we this the have And we in even that don't margins, important we all the the Current question. a restructuring a is professionals industry-leading even generation again star margins. with impressive

as strong that margins, consistent had better to we do put I outpace base. continue the than margin were we coming I So because provided off guidance forth you're of expect before, continue with commentary margins lower to the bps. XX mentioned International before, had just generation seeing American grow, a we will

standpoint, So our very and the And opportunities still what are In with a to. we've In value going of ambitions from shoulders from consistent above drive drive we're International. exists Americas, generation to what that peers. to us already in Americas. And international, margin we're our delivered. heading exists that's front better

continue in the with from going plan, a as always growth but our we've standpoint look we that consistent investments is growth said, that of international have to organic is Now the had there's abundant. a sustained business opportunities pursuits we our positioned necessary guidance as knew And to not ensure as make the creation. and forth, for said, we business, our to pipeline, with that put are International be we long-term balance, will year, strong a value

investment those made we've business dollars. So

continue that our we'll of and in year. throughout that returns the book-to-burn, do to the seen You've

enterprise and much So an from we it not so better. those of look at segment instead to view results, we'll margins, be confident drive strong able focusing feel overall if very on the

Operator

the Dudas next of from line Vertical Our Michael question Research. comes from

Michael Dudas

comments in you is growing you're your expansion your pipeline now seeing that but well. as the highlighted backlog, Troy,

the are past, your the do opportunities the in I about the let's bringing get U.S.? being accelerating? investing and say, X optimistic forward reshoring you sense Is capital think you clients months election, over since -- the that expect more

on power how you especially types the of your certainly business, of can side, of in expand that projects, next here are talking the be in really lot us quarters? it with part a remind helpful about the -- several Is people could the those water front. data pipeline certainly center that And in where and

W. Rudd

pipeline the So the a is the little pursuit, have in we the answer moment, or -- of change answer pipeline play In in that makeup a we certainly have not more at in. But not seen the -- yes. our simple me not let detail. the the markets give

where improvement that an of the creates think that expedite the look no Some change. But exposed environment, And of with the that's those activities. more a you we there's seeing certainly to opportunity combine markets. intention if we that administration projects, in where you forward, not we're to, question as markets the is of you're reshore delivery permitting can in here, actually U.S. the

And so well very we're aligned I think against that.

the We see of have impact forward that haven't And time, the to no federal budget. after tacked I government doubt, its think for start an puts yet. you'll impact. It next to will take probably that

Operator

the Judah UBS. Your from of next from question line comes Aronovitz

Judah Aronovitz

On for Steve Fisher.

organic we're versus squarely of the the next steadier end to out moderation upper now And or X% we what the range. years, factors look few within that acceleration So range maybe could that the growth? towards over drive are as growth X% long-term

W. Rudd

think combination again, Well, it's of I things. a

of that before, a X think federal I out, there X period we world, of elections of said over reelection, a pointed year period unusual where governments. sometimes as First months, this had last agendas there around was means which the those change months Or change. you've really, been in a or all, XX we this we've significant where, the were

design I been period work work, the clients with that again, a business markets to, where to change react through think And way entire But by focusing our program there's that's growing. working we have that obviously, there's meaningful that advisory vessel decision with, has we win of, uncertainty been rate. change, and we exposed period, this so now and management you markets a to we've and the on clients to those been our influential and been in in have way are that. a then in and high or certainly been some where a there agendas, as And work some has the a that result in more

And And stability way continue holding marketplace years, create that we think the in so next I to few better true I over the of invest is same the business think for you we all as as the will us. a see course are.

We over the next years. have more optimism around improved growth few in business the

Judah Aronovitz

That's Xx. last Leverage, question. think then under I one helpful. And just it's

opportunitic, M&A? so more but to You mentioned would do comment what I that you refer M&A? get didn't to do M&A, more get what will necessarily to probably being you know

W. Rudd

Yes.

all, returns-based a we we again, say this take just of all time, First So approach. the

in returning It's And organic have investments so opportunities actually see of limitation business we business. that there's we no on highest the today question that making time [indiscernible]. the management time. are team The investments the in the is

we So business we're we the the investing at moment. in into can everything think

to to you that believe should start do capital shareholders. we when of looking continue we externally, then sort return And

places I would we a how this it much where growth. at be to as M&A doubt our organic that, question consider think no becomes of there we returns-based that's accelerate might and look we where out, There's approach. look

So again, for do we'll may growth in that. some to But returns-based invest the -- business, we to we'll we would if way growth, accelerate for about M&A true there example, of find our that to look think ways to accelerate business. our approach. hold opportunities be stick advisory it is organic our us advisory maybe to But can at

we're or the that environment same we because differently, we've with Again, even people not is I'll see wonderful of would less opportunity that in especially an investments where, making, we in for deliver work. their our needing our that the amount a future. accomplish Or of creates based means said it M&A clients. more done something it [indiscernible] people actually to to that see say

Operator

will over I Troy closing for turn Rudd, remarks. concludes that call session. And now CEO, to our back question-and-answer the

W. Rudd

your joining this Great. appreciate much. the And at to and continue job do. quarter us you and employees and Thank professionals done Again, they've engagement. for the to thank thank everyone, AECOM amazing today. you past We all over for support very you,

Operator

participation. This call. you your concludes for Thank today's conference

You now may disconnect.

AECOM (ACM) 4 Feb 252025 Q1 Earnings call transcript