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1、GREAT GRID UPGRADEUnited KingdomAECOM is helping upgrade the national grid in one of the United Kingdoms most important and complex infrastructure projects in decades.This major grid modernization program will deliver five times more electricity infrastructure over the next six years than has been c
2、onstructed over the past 30 years.Forward-Looking StatementsAll statements in this communication other than statements of historical fact are“forward-looking statements”for purposes of federal and state securities laws,including any statements of the plans,strategies and objectives for future operat
3、ions,profitability,strategic value creation,capital allocation strategy including stock repurchases,risk profile and investment strategies,and any statements regarding future economic conditions or performance,and the expected financial and operational results of AECOM.Although we believe that the e
4、xpectations reflected in our forward-looking statements are reasonable,actual results could differ materially from those projected or assumed in any of our forward-looking statements.Important factors that could cause our actual results,performance and achievements,or industry results to differ mate
5、rially from estimates or projections contained in our forward-looking statements include,but are not limited to,the following:our business is cyclical and vulnerable to economic downturns and client spending reductions;potential government shutdowns or other funding circumstances that may cause gove
6、rnmental agencies to modify,curtail or terminate our contracts;losses under fixed-price contracts;limited control over operations that run through our joint venture entities;liability for misconduct by our employees or consultants;failure to comply with laws or regulations applicable to our business
7、;maintaining adequate surety and financial capacity;potential high leverage and inability to service our debt and guarantees;ability to continue payment of dividends;exposure to political and economic risks in different countries,including tariffs,geopolitical events,and conflicts;currency exchange
8、rate and interest fluctuations;retaining and recruiting key technical and management personnel;legal claims;inadequate insurance coverage;environmental law compliance and adequate nuclear indemnification;unexpected adjustments and cancellations related to our backlog;partners and third parties who m
9、ay fail to satisfy their legal obligations;managing pension costs;AECOM Capital real estate development projects;cybersecurity issues,IT outages and data privacy;risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure,power co
10、nstruction and oil and gas businesses,including the risk that any purchase adjustments from those transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect;as well as other additional risks and factors that could cause ac
11、tual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission.Any forward-looking statements are made as of the date hereof.We do not intend,and undertake no obligation,to update any forward-looking statement.Non-GAAP
12、 Financial InformationThis press release contains financial information calculated other than in accordance with U.S.generally accepted accounting principles(“GAAP”).The Company believes that non-GAAP financial measures such as adjusted EPS,adjusted EBITDA,adjusted net/operating income,segment adjus
13、ted operating margin,adjusted tax rate,net service revenue and free cash flow provide a meaningful perspective on its business results as the Company utilizes this information to evaluate and manage the business.We use adjusted operating income,adjusted net income,adjusted EBITDA and adjusted EPS to
14、 exclude the impact of certain items,such as amortization expense and taxes to aid investors in better understanding our core performance results.We use free cash flow to present the cash generated from operations after capital expenditures to maintain our business.We present net service revenue(NSR
15、)to exclude pass-through subcontractor costs from revenue to provide investors with a better understanding of our operational performance.We present segment adjusted operating margin to reflect segment operating performance of our Americas and International segments,excluding AECOM Capital.We presen
16、t adjusted tax rate to reflect the tax rate on adjusted earnings.We also use constant-currency growth rates where appropriate,which are calculated by conforming the current period results to the comparable period exchange rates.Our non-GAAP disclosure has limitations as an analytical tool,should not
17、 be viewed as a substitute for financial information determined in accordance with GAAP,and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP,nor is it necessarily comparable to non-GAAP performance measures that may be presented by other com
18、panies.A reconciliation of these non-GAAP measures is found in the Regulation G Information tables at the back of this release.The Company is unable to reconcile certain of its non-GAAP financial guidance and long-term financial targets due to uncertainties in these non-operating items as well as ot
19、her adjustments to net income.The Company is unable to provide a reconciliation of its guidance for NSR to GAAP revenue because it is unable to predict with reasonable certainty its pass-through revenue.DisclosuresPage 1Todays ParticipantsTroy RuddLara PoloniGaurav KapoorChief Executive OfficerPresi
20、dentChief Financial&Operations OfficerPage 2 Record third quarter profitability Plenty of opportunity remains on our path to deliver and exceed our 17%margin target Successfully implementing digital and AI across the organization to transform delivery Increasing the usage of offshore design centers
21、to augment onshore capabilities and drive an AECOM standard way of working Adj.1 EPS and adj.EBITDA2 growth rates(23%and 16%,respectively)accelerated in Q324 as compared to first half FY24 Record third quarter net service revenue3 Near-record backlog4 and record pipeline provide substantial visibili
22、ty Value of larger$25+million pursuits with decisions expected in the next 12 months is 70%higher compared to the same metric last year Multi-decade secular growth drivers are firmly in placeKey Themes Fiscal year to date free cash flow5 has increased by 32%Returned$407 million to shareholders fisca
23、l year to date,including nearly$300 million of share repurchases More than$700 million remaining under the current share repurchase authorization Committed to returns-focused capital allocation policy,including high organic growth,dividend growth,and share repurchase Day 1Day 2Day 3AdvisoryProgram M
24、anagementProject Design&ExecutionOur Strategy to Expand Our Competitive Advantage:Holistically Advising Our Clients As Projects Increase in Size and ComplexityMulti-Decade Secular Growth Megatrends in Our Key MarketsGlobal Infrastructure InvestmentSustainability and ResilienceEnergy TransitionPage 3
25、Highlights of Our Financial PerformanceRecord Net Service Revenue+8%YoYRecord Adj.EBITDA Margin+130 bpsStrong Adj.Earnings Growth23%16%Adj.EPS Growth Adj.EBITDA GrowthCash Flow&Capital Return to Shareholders$407M$1,704M$1,826MQ323Q324$0.94$1.16 Q323Q324Net Service Revenue3 GrowthAdjusted EBITDA Marg
26、in6Record Adjusted1 EPS 15.2%16.5%Q323Q324$328M$434MYTD FY23YTD FY24Free Cash Flow5Page 4$247M$286MQ323Q324Record Adjusted1 EBITDA2YTD capital returns(through August 2)Affirming Our Commitment to Shareholder Value CreationOrganic Growth Investments Quarterly Dividend ProgramShare Repurchases12321%Av
27、erage Annual Dividend Increase(Last 2 Years)$150MCompleted Stock Repurchases Since the End of the Fiscal Third QuarterPage 5Our highest-returning use of capital We are re-investing in business development,technical and digital capabilities,and career development training more than ever beforeBest an
28、d highest return after organic growth investmentsCommitted to return substantially all available cash flow to investorsMore than$700 million remaining under Board repurchase authorizationProvides a consistent return of capitalCommitted to grow at a double-digit percentage annually40%+Expected ROIC f
29、rom Investments In Organic Growth$434 MillionDeliveringDouble-Digit Annual Adjusted EPS and Free Cash Flow Per Share GrowthOur Long-Term Targets:Segment Adjusted1 Operating Margin7/Adjusted EBITDA Margin617%+Return on Invested Capital8(ROIC)25%+Long-Term Algorithm for Double-Digit Profit GrowthPage
30、65 8%Annual Organic NSR3 GrowthMinimum 20 30+bps of Annual Margin ExpansionHighly Cash-Generative Business Converting 100%+of Adj.Net Income to Free Cash Flow5Returns-Focused Capital Allocation1234Consistent performance delivered by an industry-leading professional services infrastructure consulting
31、 firmMarketMarket Trends%of NSR3 in Q324Our Leading PositionU.S.govt estimates$630B+is needed in water infrastructure over the coming decades80%of climate change expected to impact the water market#1Ranked Water FirmGrowing global investment in transit and transportationTransformative rail and aviat
32、ion investments globally#1Globally Ranked Transportation and Transit PracticesAmbitious Net Zero and decarbonization commitmentsIncreasingly touches the water sector,such as through pumped hydro storage#1Ranked Environmental Engineering,Science and Consulting FirmOur pipeline is up by nearly 25%Majo
33、rity of our work is for the public sector,in areas such as aviation and transportation where we lead#1Ranked Facilities PracticePositioned for Unprecedented Long-Term Funding CommitmentsPage 7Source:2023/2024 ENR rankings,reflecting global revenue.Growing Global Infrastructure InvestmentInvestments
34、in Sustainability and ResilienceInvestment in Energy TransitionsSECULAR GROWTH MEGA TRENDS:WaterTransportationEnvironment/New EnergyFacilities24%37%10%29%Our Near Record Backlog and Record Pipeline Create Substantial VisibilityPage 8Program Management7 of last 8Pursuits won valued at over$25 million
35、20%Program Management pipeline growth YoYWater Pipeline45%Water large pursuit pipeline growth YoYValue of Larger Pursuits in Pipeline for 2025 Decisions70%Our pipeline of larger$25+million opportunities with decisions expected over the next year,as compared to the same point in the prior yearOur rec
36、ord high win rate continues to demonstrate our competitive advantage through our strategyIncreased Our Fiscal 2024 GuidanceNet Service Revenue3 GrowthSegment Adjusted1 Operating Margin7Adjusted1 EPS GrowthAdjusted1 EBITDA2 Growth5%8%8-10%$886M$964M$1,075M-$1,105M15.6%14.7%14.2%$4.45-$4.55$3.71$3.40F
37、Y24EFY22FY23FY24EFY22FY23FY24EFY22FY23FY24EFY22FY23Page 915.0%15.4%15.4%16.5%FY23Q124Q224Q324We Are Outperforming Our SectorLEADING PROFITABILITY VS.PEERSHIGHEST RETURN ON CAPITALSUBSTANTIAL VALUATION GAP Page 10Note:Some peer data may not match public reporting due to estimates and calculations use
38、d in the analysis to create comparability.12.3xACMPeer Avg18.1x17.3%13.9%ACMFY23Peer AvgFY23Adjusted EBITDA Margin6(on Net Service Revenue3)Return on Invested Capital8(ROIC)EV/EBITDA(FY24E)99Peer Avg9:13.3%We have repurchased 20%of shares outstanding since Q420Portfolio Transformation UpdateAECOM ha
39、s taken several actions to exit legacy businesses and transform its portfolio,including:Sold the government services business in 2020.Sold at-risk construction businesses in 2020-2022.Announced the transition of the AECOM Capital team in 2024 and continue to exit investments with an expected positiv
40、e cash impact to AECOM.The Company retained certain contingent liabilities related to these actions including:Secondary indemnitor on the surety bonds supporting legacy projects sold with divested Civil business;as of Q324,have provided that business with$30 million of cash in the form of a revolvin
41、g loan facility and a non-cash loan guarantee.Our contingent exposure declines as the underlying projects advance,with substantial progress expected in the next 12 months.This is partially offset by 7.7 million shares received in exchange for resolving outstanding AECOM litigation,worth approximatel
42、y$25 million as of August 2,2024.Other remaining items:Government sale retained claim recovery:project completed in 2019;pursing collection which can only result in cash upside;any write down would be non-cash.Oil&Gas legacy claim recovery:project completed in 2019;pursuing collection which can only
43、 result in cash upside;any write down would by non-cash.AECOM Capital:ongoing exit of investments and guarantees over the next several years carried at fair value and expected to yield positive cash flow over a four-year period.Additionally,the Company continues to execute the San Onofre Nuclear Dec
44、ommissioning project consistent with as-sold margins,which is reported in discontinued operations and expected to be completed in 2028.Page 11Performance UpdateQ324 Financial Performance by SegmentYoY ChangeNet Service Revenue3$1.10 billion+8%Adj.1 Operating Income$212 million+11%Adj.1 Operating Mar
45、gin19.3%+50 bpsGAAP Results:Total Revenue$3.25 billion+15%Operating Income$207 million+11%Key Performance Indicators(Non-GAAP):Americas SegmentInternational SegmentPage 13Delivering Growth:Net service revenue3 increased by 8%Strong Profitability:The adjusted1 operating margin increased by 50 basis p
46、oints to 19.3%,which set a third quarter recordBuilding Backlog Visibility:Our book-to-burn10 ratio of 1.1 in the quarter reflects our high win rateWaterTransportationFacilitiesEnvironment/New EnergyU.S.CanadaLatin America88%10%2%27%38%24%11%of TTM Segment Net Service Revenue3(as of Q324)Total Reven
47、ue$904 million+8%Operating Income$85 million+25%GAAP Results:Delivering Growth:Net service revenue3 increased by 7%Record Margins:The adjusted1 operating margin expanded by 180 basis points to 11.7%,which marked a new quarterly recordWinning What Matters:Our year-to-date book-to-burn10 ratio is 1.02
48、7%19%17%17%8%12%21%36%35%8%of TTM Segment Net Service Revenue3(as of Q324)WaterTransportationFacilitiesEnvironment/New Energy U.K.&IrelandAustralia-New ZealandHong KongMiddle EastContinental EuropeOtherYoY ChangeNet Service Revenue3$729 million+7%Adj.1 Operating Income$85 million+25%Adj.1 Operating
49、Margin11.7%+180 bpsKey Performance Indicators(Non-GAAP):Winning What Matters in Our Key MarketsPUBLIC ASSISTANCE PROGRAMU.S.NAVYS PACIFIC REGIONSCAPE UTILITIESLeading the Atlantic zone of FEMAs largest Public Assistance grant program,which has historically been the most activeProviding facility supp
50、ort services for the U.S.Navy Pacific region,building on our extensive federal disaster recovery capabilities worldwide SAN DIEGO AIRPORT EXPANSIONProviding program management services for the airports Capital Improvement Program,including two megaprojects for Terminal One and Terminal TwoDCS ENVIRO
51、NMENT DCS-ENVIRONMENTDCS TRANSPORTATION&ENVIRONMENTDCS TRANSPORTATIONEDMONTON CAPITAL LINE SOUTHGREAT GRID UPGRADEPORTAGE BAY BRIDGEDesign partner for phase one,which includes a 4.5-kilometer extension,two new stations,and a light rail vehicle storage and maintenance facility Design and consenting s
52、ervice partner for the transmission infrastructure upgrade that will connect clean energy through England and WalesLead designer for the replacement of the existing bridge,including the technical design of two new parallel bridgesSOUTHERN WATERHelping realize Southern Waters largest and most ambitio
53、us business plan to date in preparation for the AMP8 regulatory periodDCS TRANSPORTATIONDCS ENVIRONMENTDCS TRANSPORTATIONDCS WATERPage 14Supporting a range of engineering and technical services across multiple renewable energy and rail transit projects in the U.K.Attractive Balance SheetFunded Amoun
54、t(millions)RateMaturity$1.5B REVOLVERT-SOFR+122.512029TERM LOAN A$750T-SOFR+122.512029TERM LOAN B$700T-SOFR+187.5220312027 BONDS$9975.13%2027TOTAL DEBT$2,447A strong balance sheet with historically attractive cost of funds and no material near-term debt maturitiesAmount(millions)%MixTOTAL FLOATING R
55、ATE DEBT$75031%FIXED+HEDGED$1,69769%TOTAL DEBT$2,447WEIGHTED AVERAGE COST OF DEBT5.2%WEIGHTED AVERAGE MATURITY(YEARS)4.6DEBT BREAKDOWN:AECOM MATURITY PROFILE:$750M$700M$997MFY24FY25FY26FY27FY28FY29FY30FY31Term Loan ATerm Loan BSenior NotesDollars are presented in millions;110 bps of CSA consistent w
56、ith the prior deal;2no CSA vs 11.5 bps in prior deal;3does not include 90 bps of premium.Page 15SWAPS$4001.28%2028INTEREST RATE CAP3$3003.47%2028Closed amend and extend transaction on April 19,2024Increased revolver to$1.5 billion from$1.15 billionExtended maturity profile and preserved attractive c
57、ost of fundsAdded$320 million of liquidity to the balance sheetMaintained prudent fixed/floating percentage AppendixAs a Professional Services Business,AECOM Is Poised to ThriveFocused on our core higher-returning and lower-risk businessesLeader in key transportation,water and environment markets an
58、d ideally positioned to advise clients on their sustainable and resilience priorities Strengthened financial profile with transformed balance sheet and returning capital to shareholdersCapitalizing on market leading positions,substantial backlog and ongoing continuous improvement initiatives to driv
59、e long-term profitable growthAttractive Exposure to Key End MarketsBalanced Geographic ExposureDiverse Funding SourcesDeep Technical ExpertiseLower-Risk Business ModelU.S.Europe,Middle East&IndiaAsia PacificCanadaCost-Plus DesignFixed-Price DesignConstruction ManagementEngineersProgram Managers/Proj
60、ect ManagersConsultants/PlannersScientistsDesign,Digital&OtherPage 18All financial information is presented as a percentage of TTM Segment 7 Net Service Revenue3(as of Q324).54%38%8%53%23%18%6%30%26%9%35%Non-U.S.GovernmentsState&LocalGovernmentsFederal U.S.GovernmentPrivate24%37%29%10%WaterTransport
61、ationFacilitiesEnvironment/New Energy42%17%12%10%19%FootnotesPage 191 Excludes the impact of certain items,such as restructuring costs,amortization of intangible assets,non-core AECOM Capital and other items.See Regulation G Information for a reconciliation of non-GAAP measures to the comparable GAA
62、P measures.2 Net income before interest expense,tax expense,depreciation and amortization.3Revenue,less pass-through revenue;growth rates are presented on a constant-currency basis.4Backlog represents the total value of work for which AECOM has been selected that is expected to be completed by conso
63、lidated subsidiaries and includes the proportionate share of work expected to be performed by unconsolidated joint ventures.Backlog in the construction management business is included on a net service revenue basis.Growth rates are presented on a constant-currency basis.5Free cash flow is defined as
64、 cash flow from operations less capital expenditures,net of proceeds from disposals of property and equipment;free cash flow conversion is defined as free cash flow divided by adjusted net income attributable to AECOM.6 Adjusted EBITDA margin includes non-controlling interests in EBITDA and is on a
65、net service revenue basis.7 Reflects segment operating performance,excluding AECOM Capital and G&A,and margins are presented on a net service revenue basis.8Return on invested capital,or ROIC,reflects continuing operations and is calculated as the sum of adjusted net income as presented in the Compa
66、nys Regulation G Information and adjusted interest expense,net of interest income,divided by average quarterly invested capital as defined as the sum of attributable shareholders equity and total debt,less cash and cash equivalents.9 AEC peers consist of Jacobs,Tetra Tech,Stantec and WSP.10Book-to-burn ratio is defined as the dollar amount of wins divided by revenue recognized during the period,including revenue related to work performed in unconsolidated joint ventures.Regulation G InformationPage 20Regulation G InformationPage 21