AECOM Q4 Earnings Beat Estimates, Up Y/Y, Raises Dividend by 18%

In This Article:

AECOM ACM reported impressive results for fourth-quarter fiscal 2024, where earnings surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. Revenues also increased from the prior year, backed by solid organic net service revenues (NSR) growth in its design business.

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Shares of this global infrastructure leader lost 1.2% in the after-hours trading session on Monday despite being exceeding its previously-increased guidance for all major metrics.

Apart from this, ACM announced an 18% increase in its quarterly dividend payout to 26 cents, payable on Jan. 17, 2025, to stockholders of record on Jan. 2. Also, it increased its share repurchase authorization to $1 billion. Impressively, AECOM has grown per share dividend at a 20% CAGR since inception.

Delving Deeper

The company reported adjusted earnings per share (EPS) of $1.27, which topped the consensus mark of $1.22 by 4.1% and increased 25.7% from $1.01 reported in the prior-year quarter. The strong improvement was backed by benefits received from high-returning organic growth initiatives.

AECOM Price, Consensus and EPS Surprise

AECOM Price, Consensus and EPS Surprise
AECOM Price, Consensus and EPS Surprise

AECOM price-consensus-eps-surprise-chart | AECOM Quote

Revenues of $4.11 billion rose 7% on a year-over-year basis. Adjusted NSR moved up 5% to $1.81 billion.

Segment Details

Americas’ revenues came in at $3.16 billion during the reported quarter, up 8% from the prior-year quarter’s levels. NSR of $1.06 billion moved up 6% year over year, backed by 8% growth in the design business, partially offset by impacts from Hurricane Helene in September.

Adjusted operating income of $207.7 million was up 9% year over year. Adjusted operating margin (on an NSR basis) expanded 70 basis points (bps) year over year to 19.6%, indicating the underlying strength of the business, positive impacts of growth and ongoing reinvestment in long-term organic growth initiatives, as well as strong execution and growth.

The total backlog at the fiscal 2024-end was $17.4 billion compared with $16.9 billion a year ago.

International revenues were up 5% year over year to $948.4 million. During the quarter, NSR increased 4% year over year to $754.1 million.

Adjusted operating income in the segment rose 31% year over year to $94.9 million. Adjusted operating margin (on an NSR basis) also moved up 260 bps year over year to 12.6%. This was backed by continued strong execution and the benefits of actions to narrow its focus on high-returning opportunities across its largest geographies.

The total backlog at the end of fiscal 2024 was $6.43 billion compared with  $6.27 billion a year ago.

AECOM Capital's quarterly revenues were $0.5 million.

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