NYSE$ACM

AECOM · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

AECOM's second quarter performance was driven by rising demand, strong secular tailwinds, and a focus on key priorities.

AECOM reported strong second quarter fiscal 2023 results, driven by rising demand and strong secular tailwinds. The company's focus on building the best franchises and culture in the industry is resulting in strong returns. AECOM is delivering on its key priorities, including highly profitable and high returning organic growth and strong shareholder value creation through its returns-focused capital allocation policy.

  • Americas revenue reached $2.6 billion, with net service revenue at $976 million, driven by 5% growth in the design business.
  • International revenue was $860 million, with net service revenue increasing by 12% to $703 million, led by growth in the largest geographies.
  • Operating income in the Americas increased by 9% year-over-year to $178 million.
  • International operating income increased by 10% year-over-year to $60 million.

Headline financials

Total Revenue

$3.49B

Previous: $3.21B+8.6%
EPS (adj)

$0.92

Previous: $0.83+10.8%
Capital Expenditures

-$68.8M

Previous: -$48.5M-41.9%
Free Cash Flow

$7.8M

Previous: -$6.93M+212.5%
Net Income

$76.6M

Previous: $41.6M+84.4%
Operating Income

$197M

Previous: $111M+77.1%
Gross Profit

$228M

Previous: $210M+8.6%
Cash & Equivalents

$1.07B

Previous: $965M+11.2%
Total Assets

$11.4B

Previous: $11.2B+1.7%
Stock-Based Comp

$12.7M

Previous: $11.9M+6.7%

Revenue & EPS history

AECOM · Revenue · Quarterly

$3.49B

Q2 2023+8.6%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

AECOM · $3.46B total across 2 segments · Q2 2023

  • Americas
    $2.6B+8.3%
  • International
    $860M+5.8%

Forward guidance

AECOM is confident in its ability to capitalize and outperform due to unprecedented levels of funding from three secular megatrends: global infrastructure investments, sustainability and resilience, and long-term supply chain and energy transitions, combined with continued market share gains and an expanding addressable market.

Tailwinds

  • Rising demand and strong secular tailwinds driving performance.
  • Focus on building the best franchises and culture in the industry.
  • Investments in teams and focus on winning what matters to expand long-term earnings power.
  • Highly profitable and high returning organic growth.
  • Strong shareholder value creation through returns-focused capital allocation policy.

Headwinds

  • Business is cyclical and vulnerable to economic downturns and client spending reductions.
  • Limited control over operations that run through joint venture entities.
  • Potential liability for misconduct by employees or consultants.
  • Failure to comply with laws or regulations applicable to the business.
  • Maintaining adequate surety and financial capacity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.2%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+0.8%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+16.9%

Q4 2016

Best reaction

-16.9%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.3%-10.3%-12.6%
Q1 2026+1.1%-14.0%-12.6%
Q4 2025-3.7%-21.5%-26.2%
Q2 2025+0.7%+2.4%+8.3%
Q1 2025+0.3%+3.2%-6.9%
Q4 2024+1.8%+8.8%+0.0%
Q3 2024+3.2%+9.5%+9.3%
Q2 2024-1.7%-1.8%-8.9%
Q1 2024-1.8%-0.8%-0.9%
Q4 2023+7.6%+8.3%+15.4%
Q3 2023-1.3%+2.2%-1.2%
Q2 2023-4.2%-6.6%-0.7%
Q1 2023+3.4%+2.5%+1.7%
Q4 2022+2.8%+2.9%+9.5%
Q3 2022+1.8%+7.0%+3.1%
Q2 2022-7.5%-6.5%-0.4%
Q1 2022+5.6%+4.6%+6.9%
Q4 2021+3.5%+3.2%+5.6%
Q3 2021-0.5%+1.7%+4.7%
Q2 2021-0.7%-3.3%-6.7%
Q1 2021-1.6%+3.0%+11.8%
Q4 2020+0.8%+1.5%-4.2%
Q3 2020+4.2%+3.4%+1.9%
Q2 2020+3.0%+5.1%+28.3%
Q1 2020-1.6%-2.3%+3.6%
Q4 2019-1.8%+0.4%+0.8%
Q3 2019+0.1%+1.4%+10.9%
Q2 2019+2.3%-0.5%+1.1%
Q1 2019-3.1%-7.2%-2.8%
Q4 2018-3.9%+0.7%-12.4%
Q3 2018-1.1%-2.0%-3.8%
Q2 2018-0.7%-3.7%-0.9%
Q1 2018+1.6%-3.5%+1.4%
Q4 2017-3.9%-2.4%+7.6%
Q3 2017+5.4%+3.0%+6.1%
Q2 2017+0.3%-3.3%-2.1%
Q1 2017-0.3%+3.4%-5.5%
Q4 2016+16.9%+13.9%+18.3%
Q3 2016-1.9%-2.5%-14.9%
Q2 2016+3.6%
Q1 2016-1.1%
Q4 2015+3.6%
Q3 2015-5.5%
Q2 2015+4.5%
Q1 2015-2.1%
Q4 2014-1.7%
Q3 2014+0.1%
Q2 2014-2.2%
Q1 2014+1.5%
Q4 2013-7.5%
Q3 2013-16.2%
Q2 2013+0.8%
Q1 2013+9.7%
Q4 2012-11.2%
Q3 2012+16.6%
Q2 2012-16.9%
Q1 2012-3.5%
Q4 2011-2.8%
Q3 2011-15.4%
Q2 2011+0.2%
Q1 2010-2.9%
Q1 2011+0.7%
Q2 2010-2.6%
Q4 2010-2.6%
Q4 2008-2.6%
Q4 2009+5.1%
Q3 2010+5.1%
Q3 2009+5.1%

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