Q1 2025 AECOM Earnings Call Transcript
Key Points
- AECOM (ACM) reported a 5.5% increase in net service revenue (NSR), slightly ahead of expectations, with the Americas segment showing a 9% growth in the design business.
- The company achieved a 100% win rate in its largest and most strategic pursuits, reflecting strong technical expertise and market position.
- Adjusted EBITDA rose by 8% and adjusted EPS increased by 25%, with a significant contribution from a lower tax rate.
- AECOM (ACM) has a record backlog and pipeline, with a 5% increase in design business backlog and a 7% growth in the Americas.
- The company is investing in its Water & Environment Advisory business, aiming to double its revenue in the next three years, and has already reached several key milestones.
- The lower first-quarter tax rate, which contributed to the EPS increase, was due to timing of items and is expected to normalize in the following quarters.
- Revenue growth in the International segment was varied, with certain markets like transportation in the UK remaining lower.
- The company faces foreign exchange rate headwinds, which have moved against them so far this year.
- Despite strong performance, AECOM (ACM) acknowledges potential disruptions from temporary funding freezes or reviews, although they expect these to be negligible.
- The company is making significant investments in business development and digital transformation, which could impact short-term margins.
Good morning, and welcome to the AECOM first-quarter 2025 conference call. I would like to inform all participants that this call is being recorded at the request of AECOM.
This broadcast is the copyrighted property of AECOM. Any rebroadcast of this information in whole or part without the prior written permission of AECOM is prohibited. As a reminder, AECOM is also simulcasting this presentation with slides at the Investors section at www.aecom.com. (Operator Instructions)
I would like to turn the call over to Will Gabrielski, Senior Vice President, Finance, Treasury and Investor Relations.
Thank you, operator. I would like to direct your attention to the Safe Harbor statement on page 1 of today's presentation.
Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward
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