Engineering Company AECOM Tops Q4 Earnings, Boost Shares Buyback & Dividend

AECOM (NYSE:ACM) reported Q4 FY23 revenue growth of 12% Y/Y to $3.84 billion, beating the consensus of $3.69 billion.

Adjusted Net Service Revenue (NSR) increased by 8% Y/Y to $1.73 billion.

Total backlog in the design business increased by 12% Y/Y, including a 1.3 book-to-burn ratio.

AECOM Americas' gross margin contracted to 6.1% from 6.3% a year ago, with International gross margin improving to 7.9% from 6.4% prior year.

Segment-adjusted operating margin (NSR) expanded 60 bps Y/Y to 15.2%.

Adjusted EBITDA increased by 10% Y/Y to $252 million. Adjusted EPS of $1.01 beat the consensus of $0.97.

As of September 30, 2023, AECOM had $1.3 billion of cash and cash equivalents and $2.2 billion of total debt.

AECOM raised share repurchase authorization to $1 billion and boosted quarterly dividend per share by 22% to $0.22.

FY24 Outlook: AECOM sees adjusted EPS of $4.35-$4.55 versus the consensus of $4.32 and adjusted EBITDA of $1.065 billion-$1.105 billion.

Also Read: AECOM Likely To Report Higher Q4 Earnings; Here's A Look At Recent Price Target Changes By The Most Accurate Analysts

Price Action: ACM shares are trading higher by 1.65% at $81.80 premarket on the last check Tuesday.

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