AECOM (ACM) Reports Robust Fiscal 2023 Results with Record Backlog
AECOM (NYSE:ACM) announces a 12% year-over-year revenue increase in Q4 and a 9% increase for the full fiscal year 2023.
Adjusted EPS for Q4 shows a 22% increase, with a 9% increase for the full year.
Record design backlog at $21.4 billion, indicating strong future growth potential.
Company leadership expresses confidence in fiscal 2024 with expected 20% adjusted EPS growth.
On November 13, 2023, AECOM (NYSE:ACM) released its 8-K filing, disclosing its financial results for the fourth quarter and full fiscal year 2023. The company, a global leader in infrastructure consulting, reported a significant increase in revenue and earnings, underpinned by a record design backlog that bodes well for sustained growth.
Fiscal 2023 Performance Overview
AECOM (NYSE:ACM) reported a 12% increase in fourth-quarter revenue to $3.84 billion and a 9% increase for the full year to $14.38 billion. Net Service Revenue (NSR) also saw an 8% increase for both the quarter and the full year, reaching $1.73 billion and $6.70 billion, respectively. Despite a reported decrease in operating income, adjusted operating income showed a 15% increase in Q4 and a 12% increase for the full year, reflecting the company's strong underlying performance.
Financial Highlights and Commentary
Adjusted earnings per share (EPS) for Q4 grew by 22% to $1.01, and by 9% to $3.71 for the full year. The company's design backlog increased by 12% to a record $21.4 billion, indicating a robust pipeline for future growth. CEO Troy Rudd highlighted the company's success, stating,
We have focused our capital and technical expertise on the fastest-growing markets around the globe, which has resulted in a record win rate on the highest-returning opportunities."
President Lara Poloni emphasized AECOM's competitive position,
The secular megatrends of global investments in infrastructure, sustainability, resilience, and the energy transition are converging to create an undeniable growth cycle and we are well positioned to lead."
Segment and Regional Performance
The Americas segment reported a 12% increase in Q4 revenue to $2.9 billion, with full-year revenue up 10% to $11.0 billion. The International segment also saw a 12% increase in Q4 revenue to $905 million and a 6% increase for the full year to $3.4 billion. Both segments reported significant growth in operating income and adjusted operating margins, reflecting efficiency and profitability improvements.
Capital Allocation and Shareholder Returns
AECOM (NYSE:ACM) continued its shareholder-friendly capital allocation, returning $2 billion to stockholders since 2020 through share repurchases and dividends. The company's CFO, Gaurav Kapoor, expressed confidence in the company's financial strategy,
Our consistently strong financial performance is a testament to the inherent attributes of our Professional Services business, including high-returning, lower risk consulting activities for well-funded clients, that result in consistently strong cash flow."
The company also announced an increased repurchase authorization and increased quarterly dividend.
Looking Ahead to Fiscal 2024
With a strong end to fiscal 2023, AECOM (NYSE:ACM) is well-positioned for the upcoming year. The company has provided fiscal 2024 guidance that includes an expected 20% growth in adjusted EPS, reflecting confidence in its strategic direction and market opportunities.
For a more detailed analysis of AECOM's financial results, including income statements, balance sheets, and cash flow statements, investors and interested parties are encouraged to review the full 8-K filing.
Value investors seeking to capitalize on infrastructure growth may find AECOM (NYSE:ACM)'s strong performance and future guidance compelling reasons to consider the company as a potential addition to their portfolios.
Explore the complete 8-K earnings release (here) from AECOM for further details.
This article first appeared on GuruFocus.
