AECOM · Q2 2021 earnings

Briefing

AECOM reported second quarter fiscal year 2021 results, showing improved margin performance and earnings growth.

AECOM's Q2 2021 results reflect improved margin performance and earnings growth driven by the Think and Act Globally strategy. Market conditions are improving, leading to increased guidance for the year. Substantial COVID relief funding in the U.S. and improving global economic conditions have strengthened client budgets, resulting in accelerating award activity and a growing pipeline of opportunities.

• Americas revenue was effectively unchanged year-over-year at $2.5 billion, with net service revenue declining by 1% to $924 million; operating income increased by 10% to $155 million.
• International revenue increased by 3% to $796 million, with net service revenue increasing by 3% to $645 million; backlog increased by 16%.
• The adjusted operating margin on an NSR basis for the Americas increased by 160 basis points to 17.2%, a record high for a fiscal second quarter.
• The adjusted operating margin on an NSR basis for International increased by 130 basis points to 7.3%, a new quarterly high.

Headline financials

Revenue & EPS history

AECOM reiterated its long-term financial targets, which include its target to more than double both adjusted EPS to at least $4.30 and free cash flow to at least $680 million from fiscal 2020 to fiscal 2024, as well as its target to achieve a 15%+ segment adjusted operating margin and 15%+ return on invested capital (ROIC) by fiscal 2024.