AECOM (ACM) 8 Feb 222022 Q1 Earnings call transcript

Good morning, and welcome to the AECOM First Quarter 2022 Conference Call. I would like to inform all participants, 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. a conduct will we question-and-answer session. Later, Instructions]. [Operator would Will Gabrielski, like Relations. turn Finance to to over call the Senior Investor I and now Vice of President go Please ahead.

uncertainties, the to by the Thank margins presentation SEC. from today's filed of those the segments. differ in forward-looking financial Except we Americas where financial discussion reflect posted including about to available, GAAP operating today's your financial would expectations. Operator. statements Today's References obligation as statement statements. statements like projected the our forward-looking and various appropriate business you, International attention Page certain in The required I to presentation. Forward-looking update risks to which margins non-GAAP described is We due reconciliations significantly presentation. future reports use safe contains and website. One adjusted law, Actual our harbor the on our may are our and direct no into risks to to for our in periodic performance measures undertake and results with incorporated

will pass-through We Service to which or revenue. revenue as refer is defined NSR, Net excluding Revenue

operations results adjustments in discontinued Chief operations call, expectations. our outlook growth businesses as President performance and discontinued financial of Gaur comments classified power our capital from and unless are the Services operations discuss gas begin XXXX. our Today's Executive we of the reminder a oil Troy Kapoor, priorities, sale otherwise Poloni, of long-term a our construction these financial and Officer respectively. the January key on of in accomplishments, previously strategy, our statements. continuing October the greater noted. businesses results the Officer completed estimates will working Financial will in will business As maintenance Professional focus XXXX civil XXXX key and The today's operational and transactions. business, sale financial review The oil closing gas Lara January on and detail. and in and our sale closed with And Chief services will Rudd, include On of the for review of turnaround and the

session. turn over We Troy? I will With the that, call question-and-answer to will a with Troy. conclude

And all Thank you you, joining Will. today. thank us for

We clients. quarter and our are is and working like outstanding across business markets. the to who are pleased incredibly deliver begin I around with would our by call performance first collaboratively momentum today's our to for our our professionals world results thanking building

of including now value is And to greater market AECOM. a we advisory program deliver by the are shape The passion reaffirmed teams industry our and was stakeholders. is result week number work list. trillion and include the innovation, is well-established. focused parts and in our communities, by last when Our us positioned to our day. on clients global has their well-defined elements dedication deliver win. infrastructure our Companies ESG Through our Investment A to beginning, bring $X.X Admired every teams, services, U.S. law success objectives. ever the that growth of and for a share infrastructure addressable of on and ESG growing the ranking one excellence our our for priorities in investment a infrastructure working to clients These clients management, are Fortune uninterrupted the Most World's better multirate our and for than by highlighted commitments strategy, on and This expanded its global renaissance clients, increasingly

in and results, to our first by International both Americas with Turning every X% financial increased key on segments. our we metric. expectations growth exceeded quarter's NSR strong our

book-to-burn Americas history rate ratio design highest across ratio billion $X.X with a global totaled book-to-burn the at of work winning our our a business. X.X X.X Wins are we our in in Importantly, the business design company. and

is NSR organic growth. Our emphasizing our strong consistent book-to-burn given of quarters four worth

also key to never construction efficient XX.X%, been of innovation. investments pipeline in benefits and reflecting our teams delivery continued operating stronger. high-value global and points clients. for has management The by our and organic our business wins margin in increased growth basis the our had our XX are The delivering We segment highly capabilities, adjusted

Our our remains. peers, opportunity for margins lead but improvement of plenty

we guidance year for target. tools Adjusted deploying our to focus innovation EBITDA advisory XX% and increasing services backdrop longer-term and demand by and EPS XX%. Our for our increased clients by on program and deliver adjusted of for digital this transform a against management margin increased XX% how supports

dollars $X.X our stock to to when shares. shareholders XXXX repurchased billion is benefiting strategy, our well program; September XX% as in of is driven we since our repurchases. performance, or and launched flow. repurchases dollars from stock Including Capital the first of share repurchase focused accelerating Our outstanding benefit allocation have we of conversion the earnings million strong strong as from of growth; cash of operational now quarter, by our execution EPS organic $XXX

fact, a next increase The per our our with highly and percentage cost this first confidence, December, dividend occurred by It trends in We'll a flow our capital U.S., initiated our the highest our double-digit steadfast dividend in quarterly and of to cash Beginning allocation to for strong. company's the turn our cash total lowest of markets. maximize a expectations our business model across to capitalized program are and business a largest use market, the a deliver one conditions in deliver variable marks consistently first our slide we history capital share the quarter. priorities. underpins This attributes structure to and payment demonstrates company's a allocation tools in our to strong a for In and our included quarter dividend was history the return. profile, January. our to annually. intention flow discussion milestone for of on Reflecting is commitment shareholder return in high

expected up $X.X time. for the infrastructure several Typically, endorsed health. Federal in investment trillion rise and gearing generational and for correlated which infrastructure are has years clients benefits of includes of in local bipartisan represents increases fiscal to and a support law. at and local state, operating been federal, infrastructure an state sustained Our the infrastructure U.S. This investment,

state budget are local record clients, our for which XX% is resulting NSR, surpluses, backdrop. and which revenues account a reporting favorable our only However, of and in very

our public multi-decade ESG our ambition. are addition, advisory increasingly of an a and sector its Today, investments demanding clients and help has relationship ESG. achieve clients scope advance broader are In private nearly them project to more element to holistic that proposal every thinking in and prioritizing

which This is center the trajectory. very is and noteworthy Law our the fronting by likely addressable and you The ESG double-digits. of material is the to and for is up similar be growth markets you're momentum consider expansion apparent our strong considering Our and growth, were our in encouraging benefits Bipartisan strong services clients of growth we when experiencing wins seeing especially markets aren't quarter. how a XXXX. agendas, positive are until pipeline this seeing are pipeline technical our expertise. Infrastructure fiscal are on International advisory backlog demand

UK, single-digit for and international of transportation pipeline infrastructure increased percentage, in key roles clients expanded rates East, our the program highlighted high largest Middle Asia-Pacific markets, by backlog and the Our and management in by win in key region. our frameworks each in increased high the

digital the us on built growth. trends professional have our narrowing two ways spent well our we for new global foundation strong favorable Think is solving of and the expertise bringing ahead, biggest higher margin, most built solutions. The services clients end-market strategy. sustained multiyear We've implementing technical leading and and and Globally positioned complex and lower-risk on with years business capabilities, our last Act innovative have Looking strategy on challenges our focus our

and success, are investments to in this our continue accelerating We with our area. AECOM advance digital we our strategy

that quarter. for the the which the their introduced platform PlanEngage, similar our a as of market platform community will our position, course project solutions announced base. we public process Over engagement is the across our global we quickly digital infrastructure PlanEngage, year, launch to client engagement being as establish reinvents for announce last

in Bipartisan will these the from our one XXXX, funding become Act connected with theme Across more tool PlanEngage even is our business, constant. U.S. As the is valuable. projects in later Infrastructure

expand industry. will the Our demand our and challenge constraints as investments labor advantage grows

win our and We at are largest consistently with all-time rate levels. highest high our pursuits, priority winning

to accelerating still growth our our global ten that identified For [Indiscernible] team on priority report, pursuits pleased two I'm top projects are deemed a for delivering very leadership be we expectations. to and example, and pending decisions. already for and positioning won we've strategic that

a over federal enough past A we the several addition, including competitor quarters, key environment the takeaway say over from been confidence. few key means international on we've future. value a pursuits and and have market. in In culture for has high excellence for from incumbent about nine-figure winning a our it daily key our call Lara. an can't nine-figure other a and of that key takeaway expanded that, With other I how U.S. underpin I'll program, wins turn had what our numerous to selected

with now actions Thanks, are our ahead. the on clients Troy. opportunities to for accomplished success to-date Against we fully more strong in and for we taking mind, the the we slide. in pleased well couldn't future. are what Please I how be to with positioned foundation have place, turn backdrop and capitalize next the of

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or and a selective growth focus opportunities the assessment energy, water market. returns on giving in our be As resilience, to opportunity time mediation, new strong us and to growing on of are rapidly climate invest the including types is with capital. systems, and exposure infrastructure, to environmental about we capital transit also profitable on we areas change, poised benefit and from latest which electrification, This disciplined

program clients. by in to we expanding we earlier are engagement services management to market our adding capabilities. continuing with advisory capabilities, addressable are opportunity Second, these and that invest Through lead

to large NEON Al-'Ula past have talent Saudi in year, including the support key We and wins the onboarded programs Arabia. over several

and in in market. a of central will helping our scope clients Looking the ahead as even infrastructure AECOM will high-value role initiatives an program and expand, distinguish and more advisory complexity take and management the ESG

in are and we of that we AECOM and how clients. to capabilities products investing transform develop change engage deliver extend Third, our the digital with

PlanEngage destruction a example. great Our compound, solution the of proprietary and for of Payfacs tool commercialization a [Indiscernible]

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the and of slide. turn Please the metric first and flows financial one key benefit to a free company's record to to organic NSR delivered compared will timing Lara. to We Thanks, items. every in cash exceeded We quarter double-digit EPS and margin, history. quarter. first EBITDA, on our quarter first-quarter Tax plan next adjusted spend of the be growth positive our fore quantum another our growth, the expectations due EPS highest discrete of in

on delivered is of a repurchases. and also compliment more quarterly our digital repurchases AECOM, and XXX to We ongoing share commitments, the our our The dividend in program. including investments dividend than capital million initiation allocation of share teams a

in We predictable well returning and cash cash as available all investments which free balance flow a allows flow strong to as sheet consistently have business, for shareholders. highly our the

winning are we high work a at rate. Importantly,

Americas, ipartisan the and NSR see business to benefit the both slide. Please design across have highlighted Infrastructure next double-digits up turn construction the from to begun management increased yet growth in B by In pipeline material by X%, is the Law. not Our businesses. the and we

continues was visibility. Our contracted book-to-burn which near to Americas X%, the level record backlog in of total strongest increased X.X which the a design provides include in backlog, and design business revenue business by

benefiting are in conditions increase believe year. our of course management next and backlog will from addition, the In the over business construction we strengthened

efficiently. point Please growth streamlined basis a reflects operating First This prior more to more delivers a margin investments the both quarter slide. adjusted was operate year. ongoing XX turn from next organization that XX.X%, we and making benefits the are increase to to from ongoing taken actions result support the

International our largest NSR with across Turning to of segment, all regions. the by X% increased growth

and backlog were wins X%. strong by increased Our

our gains a key the in share and public continue East, Hong the building, sector, We gain Middle number and on been Australia. UK in in of to Kong successful have our pursuits

margin a operating first XXX quarter point year. the was adjusted basis prior the improvement Our in X.X%, from

of benefits our turn structure, the to eliminate inefficiencies, next share, steel of realizing Please to are our the global actions the and have We centers. service slide. we regain better utilization including increasing shared cost market taken

flow cash to capital Turning liquidity allocation. and

the as First and improves cash us to allowed is throughout year. the year million, return million. more $XXX quarter substantial $XXX delivering focus result. execute capital cash with was expected was operating our better was free repurchases and in flow This phasing a and consistent This than on flow we on our earlier consistent

policy flow returns allocation quarter percentage. returning order shareholder maximize return annual a dividend included This in initiation to capital. grow of on program is on investors dividend the we to a first our double-digit made announcement during capital per-share free Troy As at our and intent to all focused of the milestone our and cash the substantially total noted, quarterly

is on Our contributed reduce earnings first quarter the consistently The financial payment which was we steps has have a to operational over dividend and testament and to to January the leverage flow. dividend years taken cash our new XXst. strong two past made

and we continue in between our cash $XXX continue at free to ahead, million fiscal to earnings flow a look expect million expect we As XXXX. of to rate, convert and $XXX cash high we to flow

half expect year. to As a next prior second we the typically cash the to flow year, cash weighted slide. though, reminder, Please half more the our of to flow first is fiscal turn from strongly our the improve

at our delivered $X.XX first are repurchases XX% than reflects we to guidance share quarter would We increase This operational completed increasing benefits the in performance the and XXXX in lower rate. $X.XX, growth and a midpoint. fiscal adjusted which our quarter, between the tax out reflect first of the planned EPS

the executed part our reminder, expect capital only incorporates a allocation share benefit to As of back stock, adjusted continue buy to as we of program. guidance EPS repurchases. our But already

EPS also adjusted which the of start Based between midpoint continue margin our million, reaffirming million to operating financial NSR year, we million a growth targets also to at of approximately EBITDA XXXX $X.XX our expect than X%, X% expectation of for We the reflect deliver on adjusted range. of organic and segment the to of $XXX in adjusted greater and long-term including would XX.X%, and growth flow. $XXX $XXX strong free cash are our

for our We rest Longer-term, ready year. expectations and tax of mid-XXs. questions. expect our approximately the full-year XX% rate be to With incorporates to XX%, be that, impact tax the the expect first-quarter tax rate the the we for are which we in our of Operator, rate for

[Operator you much. very Instructions]. Thank

line the from comes is Michael line today of your question first Michael, open. of America. from Feniger Our Bank

I questions. with question the wanted on inflation. taking you to Thank for my Hey, just off everyone. start

first maybe this in a relative the in margins good inflationary to are are an a guys able backdrop to contract that industry up handle pressure how AECOM to it your able inflation? peers? seeing would quarter, where to just how handle guess, structure Is the year. get inflationary guess, start helps, I I built and business, the you better and to You

for inflation. has do we you if to to some questions. and like of typically that had look your inflation we have Thanks been inflation, along morning. Michael, industry, had passed Good history go our have certainly have our back And today, costs customers. you we've don't and Troy. grids but -- With the we periods, respect at

like costs an particular business at you that in it a industry business, consulting look existing of pointed was get what passed ours, question our and your you And to when structures. part think is those our already continue to customers. I so, in predominantly, And along our contract is out

point to then either one other costs business really back the of we our increased bid, costs that fixed. paying We there I'll professionals, in as typically [Indiscernible] include things. have contracts. long-term costs And you a that take longer-term using important But will wage escalations costs all continue put together to are our we our and is, in the of our turn to lot bid

is there a certainly cost that So estate we labor But our and an costs our are of number cost flexible certainly costs increased items our professionals. like real see other paying are fixed of business. and in

ability in terms today. our margins time in to we other our at along that, our growing our And increase. And so growing experience continues in inflation continue and digital you the our at And, investing investing fact, costs pass of people, a those the and don't customers point to and investing profile where to margins. we to pointed least is improve our we're fact in increased backlog, in business while proof

for not our inflation, business. is an again, So, the most part impact on

shares and see it's guys to to Troy, dividend Great, that. you interesting in see same the Good quarter initiation. of the repurchased

are seeing your in being Now, some you peers more aggressive much are of M&A.

assets. at there's been landscape allocation does we've and in any change Some your software looking structure. AECOM capital M&A just going you are about the guys view curious terms if of I'm how how

Yes.

going there's first structure. our in capital no about all, So how of we're allocation change

record to our little our obligation And we an we lot term. we think in a margins. us shareholders. the of a of also in over even growth, do we in to and think business return EPS believe of bit it invest the our our different terms we lower higher converting perhaps are to have signal return confidence people with that gives increase permanent that, industry our to in have cash, risk, shareholders capital more we're through strong earnings of I in with long than to track the business the transformed dividend, a to a believe business to fact we And -- again, that able returning capital a that's paying that

change grow thinking and how business value And have the ample about capital we're allocation. -- of I again capital to increase no So think the we in business. to deploy the we to

one going more sneak Great. to in I'm the just on there CER.

Sure.

business in seeing right still how XXXX? even your Thanks. the you do impact impact -- how But XXXX? the view had next is hitting happen any Are we of organic And few your playing good kind of any out there You CR the would CR should that in with with now. growth CR the disruption on infrastructure see you that days?

Well, that's good question. a

First all, government is the of of the to in predicting I'm federal not business do. what going

we the broadly just business our America as in importantly exists of to we've that but question; times; next XXXX, it's in is on funding So coming more aside, is their put in base federal our decision across it if again, in believe think I few of operate a and creates view see an that that weeks in probably government that place that impact the funding which eventually fact, I'll putting that's decline book-to-burn in business there going a Bipartisan be for that answer continued putting X.X the or, about but started in a it Infrastructure in a the made again, grow that they'll Again, budget's seen to for whether an will Bill. the support aside at and to U.S. continue to we infrastructure. place customer our the resolution then place, in happen. funding But, appropriations indication budget -- grow, all under lot we There's we with

being long the the I resolution So, business the for about that bill in think and again, term. upside Infrastructure our continuing

Kaplowitz next Andy Citi. Andy, from Our from today open. line comes line of your question is the

everyone. morning, Good

Good morning, Andy.

all the that result quarterly International to Full adjusted of low and to highest is XX%. International year from margin operating I the in to stuck mid know seen X.X% was segment. progression of I 'XXXX. result We just X% But was the part the range think get for we've think margin

should quarter now? rest see a in continued centers here, in first comp improvement aids mean a of 'XXXX? we kicking just shared does did the increase that is So it really the the progressive mix for And just service sales

the to to going Yes. And I'm Andy, question. pass off it thanks for to answer it. Gaur

thanks Hey, the for Andy, question.

Our our increased and year-over-year International consistent margins with to expectations. significantly very your portion,

which heavily now. probably through march quite the not it's recall, towards As marketplace to efficiencies, going we've We're operational to those come double-digits, you at invested in we're XX%. starting just to and clip margins continue see a to uplift higher

part for to overall of the aspirations XX% in is be going International remind enterprise longer-term large Our to everybody it. a

for incurring consistent phasing margin business results Now, significant progression and not year. XXXX And restructuring year. will are last throughout is did we we our international margins the specific We're like charges, to for consistent the see very the the of very clean. therefore, International,

And could phasing of Gaurav. for Thanks you that, then ask maybe I about revenue.

here, guiding QX, X% 'XX, in did to for more as continue Should like at know see be you kicks see we in maybe So then about ramp steady supply but it normal in late We the you're the some steady from your 'XXXX? a infrastructure is said bill chain? all Or you've season, do X% NSR the money and to we in build really from up Omicron disruption and go concerned cadence? Infrastructure she year. seasonal on you from slow

growth seasonality just project in a again, Troy steady funding markets the throughout improvement we're the clients again, could up ramp from incurring and Andy, certainly see I the we some in to There's going think our So, certain but also, year. look, to overtime. see it

growth. anything sort again, steady of So, don't see I continued slow, but

then that that January. felt and to orders we from significantly. those replacing backlog and through first adding business impact out But fairly, right of the our in point You're did everyone's that. impact putting substantially towards not certainly quarter aside, still in business that and X%, grew certainly grew COVID we immune the were the We December

that year. over back -- steady I continued remainder growth through just nothing hold So us the of will improvement see again, a the I

Appreciate it, guys.

Thanks, Andy.

the showing next Capital Our comes question yours. KeyBanc from floor from Markets, is Sean Eastman

acceleration, war the top-line front growth I'm and be risks mind talent the Good trying course, tends just for to morning, to of there. this of think to anticipated about team.

of and you us on and employee update on enhancements pace base? the working in can what productivity AECOM has been of our in So perhaps terms hiring leveraging

Sure.

think two I all, go things revenue there's growth. of first that into So

First comments of mark clear things what on we that really marketplace think were our you've what we're matter and we is people winning, the got our professionals win matters, feel the our are in to doing based that and and in winning and all to I prepared comfortable the us. certainly

think that's, back about So again, tick it, off. box

talent. Secondly, point you out

people group on You of have in we but our the increase market a add and to during professional have network, to professionals to continue quarter, see great is that deliver an grow did it certainly is challenging; a so headcounts, we people to business. making other But those investments, again, people and people as are more to in are building our place about want talked the have want for a career. a business it to investments that We the we building work. in also

is We're offering technical long-term. absolutely that investing in of investing development leadership investment for the and extending people. capability invest our tools, are their focused the which We on or capacity of our people, in the in or opportunities that part also digital and is

take actually day in have And have past. more thing to work opportunity And been amongst same capability and able we to they in the the they're centers put that these third in it is so investing focus. then been that's So the in building to groups. would the the accomplish we've than

So efficiency ultimately productivity improve network. we on can the or

work? three addressing talented enough to those there are is, all which challenge, second ways. this deliver in in that marketplace people address the We're to really So

couple ultimately the X% broader would the cost it's outlined? cycle. concern, to the going that And would years, you is growth not to target risk characterize discussion, that extent of I'm clear demand. a that drivers the just inflation macro core and the the element much back you've next price degrade inflation organic behind That's how the that impacts curious be how it's interesting. business to does sensitivity more probably X% really the around inflation over How there And

I in seeing guess, maybe an improvement answer Well, that pipeline. we're is to way the that our Sure. easiest

increase look base, we're and pursuing are opportunities business, that certainly business amount Americas a in our is as amount sort it conditions, a the of I the is international significant projects ambition ESG infrastructure also that And at funding we're underlying customer and you has And now. isn't But seeing that So driven. the a of currently made of when both of the been that that in within we tremendous the costs of if see typically increasing. funding said sensitive to undertake there's available, lot is there that available. becoming to

again, as So seeing base. not the a ambition in our inflation, within change just we're funds customer the change the result of and in a

Thanks for Understood. the insights.

Thanks, Sean.

from comes from your today question Fisher next please Our Steven Steven, UBS. proceed with question.

Shifting win back, of that maybe high. very are that the think Could sustainable rate how what support conditions you that quantify is you and underlying your was level great success?

whether sustainable. asking believe question win your Steve, I is rate you So, but about and win is our a our little understand, rate to difficult were

sorry, So Steve.

answer at this try bidding it's breaking improving an or results. And win rate quarters. which question were I'll been our on, for I And last that conditions. extraordinary again, which You steadily capturing But five out. over is and XX% last work the one quarter, that four for us high all-time underlying and almost look -- an us, it's we're the underlying the hit to the of we're competent has

So doing we're things the And our those compete win, changing. bringing we're organization, best are -- we're globally, are There companies that competitors matter. of That's to terms those to to to changing that no doing really win we and we're not question. the are against. doing in that things there's in that marketplace. good There's great what those clients

term. work us and don't rate building the so investing, in an underlying it ourselves we to And, of we're to been see an the see differentiate I have and more high tools conditions. on investing us expect a it's actually typically past. long again, changing. advisory see gives and long-winded us I bid are have the competition don't doing and changing in win actually and management to Also, at the We a for what the digital opportunity in working growing don't I win change than because business, the we've way saying, I program

Dudas, Our today Michael from next question Michael, ahead. please comes Research. go from Vertical

Good morning, gentlemen, Lara.

Mike. morning, Good

Good morning.

project Just to Steve's answer a question follow-up your business. management your advisory about on

in So business. see treat you're grow, the other to growing -- How engineering traditional design for to you that whether in opportunities core you is presentation down the of have. this relative the what services chart the that different business that

the to the of difference other to from that and you margin the the within companies of there's I'm experts the three project margin design is If if management have and or have the in at the that? size, And all could there that get promoted a important how be just the engineering on that and excellent much profile as it in type abroad Could or to assuming the lifetime separate below over that. looking cost well? elaborate it difference market is improvement your that U.S. or project to you point? talent on from a in you And the

question. thanks Mike, for Again, your Sure.

opportunities expanding gain So our as over we again, long clients, funding. see our more term the

were that In businesses, what greater so terms exposed to they what spend. of a now we but of the share we advisory management and those business and addressable to program that again, or of designed two of the market do exposed past so believe adding is program management advisory, increasing; the times -- exposed we're much growing allow us added they three more to we're that be a focused exposed size past, market, have see a market of now So, could budgets. in we and those project the what in building that we we're as the to we've multiple to on were

by our does in opportunity the that it for be have period we we obviously projects advisory in it sooner in process means participate it actually program the earlier those -- longer will or thing participate of other to projects and those a time. that means The management, to

thought advising was business work match complementary our to of it They business So, design is again, to and what perfectly. those management skills businesses obviously it our that's with perfectly because important does program designers, and design we an build our why business. the

we're [Indiscernible] we those the are both. building actually skills was, the And margins. it or I'll question people design we over turn adding, have participating folks our And expect great from having we're the adding to within? hiring to business So answer. outside Gaurav from we We're then answer are is, doing already from your also network. second who and

Michael. Yeah,

minimal as of margins utilization minimal. to core very at other those design specific our you look is core that higher employees within need, The designed it's is when reason it's PM much our The our longer-term business they're utilization of that costs to business, the the for For consistent the overheads is, higher, -- high with facilities business. most are compared projects, clients. the are And overhead much business.

And we business respective higher-value a geographies. Now our is our margins. all and services lines better advisory provide within services clearly, embedded are those

part it's the So business. of design

And is or that faster, you. generate profitable Thank can there growth others? better, program markets clients platform more certain who, regionally, than end management your

out how of give to Again, question Mike, a rolls the flavor to going us. you across to that globe over the for I'm turn management program business Lara

involvement can case, project that engagement with with there last time. full provide and the But lot Mike. around longer a There's beyond advisory management definitely clients term by those some opportunities project infrastructure reviews. we those good particular. and are major earlier those Americas projects ensuring pent-up get clients Certainty that front-end cycle, are provide business well. We through Troy, for in rapid help as assist with of constructability the services delivered Thanks, for can obviously see to cost program them the to infrastructure government contractor the gains world, that then will looking prioritization, demand we of morning, in with the substantial and for

so day there they just ESG assistance, with front-end energy that, for all the how those things. sector private some tremendous we of and gear it's But As really it need are even are but services predominantly us advisory. extending or providing that we earlier, advisory particular, how -- support every they in particular. schemes they is our much extends that our program for approaching involvement front-end through demand do transition, do in construction up management that in manage Troy big longer but How services do like role those clients, example, said, even the much the their say, are

it's So business ground to very a offering. for grow that futile us

guys. much so you Thank Excellent.

Sure.

today question Suisse. from next comes from Our line Cook is Credit Jamie Jamie, open. your

a questions. you flow cash quarter performing by the quarter. a I and strengthening when where there with cash a And other record companies flow is of calling just quarter? quarter free nice to guess, or about talk was Omicron. margins Is sick free conversion are lot I obviously upside the just changed headwinds guide morning, two in pull given are forward there The then, free for people improvement cash flow you we good the in it guess to in better chain, structural quarter, isn't talking Hey, there? of can but guys; because first about any the this supply of COVID, second why are associated what

better longer-term weighed guess, that I'm margins performance we that they're underlying good, your degree to on while where to are your down Thanks, be need So, if or very being targets. by some perhaps is wondering I to your we're closer

Jamie, thank you.

Gar that So over -- month-to-month, I'm be years, then to is we learned respect answers it cash comments let that face in proven we two from can free environments. the challenges sometimes have they're, they our questions. agile. -- to think you. professionals kinds quarter-to-quarter and just to I through in proven I we they've with on have our let for those -- some results. a the that have and But Gar learned here your question to turn specific your thing But just to the business, with we'll to have last flow leaders reflective Meaning, to difficult week-to-week, our navigate that's over going changing of answer and I'll move I as think way and one margin, high-level all their And think I

Jamie. Hey,

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Okay. Thank you.

Thank you.

comes Adam Davis. next go Salama ahead. please Our question from from Adam, Thompson

your good guys. how wanted good to prices? just Congrats year. responding to start are Hey, on customers the I the in ask general, to materials morning, higher

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that now like things happens opportunities expanding. the the seeing where of One a we're in are marketplace

just the great aggressively. business. being, been the the have two And years, we're $XX sometimes that maybe to lot of managing to last got And you But a what the pursuing they're we're over backlog take won and for and really of going very projects. appetite and of we're on we've things has that how course time billion grow

them Some size the Cores. very Metro of significant in

time. Great. Thanks the for

you. Thank

we all have today. are questions the for Those

to for back hand now CEO, concluding comments. will Rudd, I any Troy you So

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Please, our Thank call. This your you, everyone, disconnect for today. lines. now joining concludes us