AECOM (ACM) 7 Feb 232023 Q1 Earnings call transcript

Good morning, and welcome to the AECOM First Quarter 2023 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 Gabrielski, Senior to Please ahead. the and turn Will to go over call Vice Relations. I Investor like President, Treasury Finance,

Thank Operator. you,

to the statements today's presentation. projected significantly including discussion Safe and like described I and to future statements from due in Today's our periodic risks your results financial uncertainties, Page of on those expectations. contains the Actual would to in X various Harbor direct filed risks about statement forward-looking business the with forward-looking today's attention differ may reports SEC.

are by will undertake GAAP segments. to statements. appropriate Americas measures reflect references Any Except margins law, as margins our our non-GAAP and the our international update in obligation reconciliations forward-looking are required segment website. use financial posted certain adjusted segment we operating which to the no incorporated The to or for into presentation. performance We materials, our

net growth, NSR When or and revenue revenue. otherwise operations. on discussing rates is revenue backlog pass-through will NSR, a and refer growth we remarks basis, on are focus service as excluding noted. unless currency which continuing presented revenue defined revenue constant to Today's will

financial Troy our and Kapoor, Lara our call, Chief today's and will and Gaurav and will Financial in successes our performance priorities; for Poloni, outlook our discuss the Chief our will President, review On Officer, our key Executive outlook greater Rudd, our review strategy, accomplishments, business; detail. key Officer, operational

question-and-answer will We conclude a session. with

Troy. will I over turn that, the to With call

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

our our shared of continued better fulfilling begin purpose professionals world. like by a to I'd the XX,XXX commitment acknowledging of delivering approximately

passion, our industry, teams best from advantage the global collaboration. We and stems expertise, have and widening technical competitive the in their

our are rate, win of the testament to and flow of a record margin high cash the continued our design benefits team strategy. and strength continued strong expansion backlog, Our

from Strong workforce and our to macro to continue our of are our professional the continued are to many adding us commitments. end end deliver and All we market growth seeing our aggressively businesses on markets conditions differentiates that soften. of are growing, conditions workforce

highlight in is year in been company couldn't by the I a our Fortune. also admired recognized for of row, great have industry be the as accomplishment most and our This want to we'd proud a more people. I third that

financial funding strong, strong Notably, our budget, cycle. Turning segments matches growth growth included the federal accelerate. NSR confident when and growth and to and and enacted to to led X% which our recently in past the by performance. with in accelerated our across design a for continued are Americas X%, both local we Organic unprecedented State design, in was decade. combined in U.S. remains the the U.S. growth growth activity business XXXX which infrastructure in increases highest the multi-year the

segment operating Our high margin new XX for points our by which increased a quarter. basis adjusted nearly is to first XX%,

backlog Our reflects strategy industry profitability our our of the benefits lower execution, leads strong value risk, higher our and composition. and

are increasingly our time. are deliver continued in target, fiscal over we confident XX% margin path We our to XXXX in and our well expansion margin on advanced

targets our us million $XXX to record $X.XX growth our year-over-year our to of XX% underlying contributed Consistent with deliver growth. strong to Adjusted EBITDA which and of macro-related on delivering despite and our expectations adjusted were included consistent factors. of with operational on earnings, performance strong allowed EPS track operational commitments,

enabled flow execution is also our policy. Free focused of cash strong, allocation the capital returns which

consistent increase repurchases, dividend per intent growth payment, double-digit organic January capital is opportunities, quarterly a over share our marked Our program. dividend should with primary annually. in include prior use which share investments I dividend percentage recent our XX% highlight to that by and of our our our grow a

have we our visibility. The prioritizing are and record X.X by which of and where This from resulted level the competitive record high unprecedented a win is to book-to-burn high, design growth pursue a opportunities driven increased momentum, quarter strong was another prior we an by rate, an acceleration Importantly, backlog advantage. investments backlog in near to X% transformational a ratio.

of also and includes high. submitted, pipeline growth our in at up the addition, opportunities prior is quarter. which In all-time increase XX% is in nearly an XX% a proposals This bids from

a backlog design that as As progresses. to our result, year confident the increase we will continue are

apparent business, Think our in the Globally backlog. of our the Across composition our Act and changing are benefits strategy

share me examples. a Let few

During program world water unrivaled resulted our from selected the practices, management for technical win water Southern quarter, led This the an for sizable were which solution our California. and management class we between collaboration program contract to in client.

rapidly win this sizeable growing this won Water where leadership region Purification the in our San addition, we quarter fortifies Dam Diego. in Padre Program position Advanced last In

result, a billions drought as persistent address to supply well-positioned and increase. As planned investments we to benefit are the of challenges water

program, also for five our the including award this programs last client, the which years. were run builds in least selection success program. on at of Atlantic CLEAN for CLEAN We more successful with Navy Pacific year's Both our will

the similar marquee in in the business. decade region. light to were project, on we a one as We on selected next project a number Canada, experiencing serve rail our trajectory technical transformative the In are transportation a creating visibility ranked advisor global over

were our in on win quarter addition, figure that notified backlog, rail another global been we the In nine on market. not selected first will we've reflect

allocate how best focus highest the We are opportunities. and very deliberate value a on time return in capital, and with we

are an and result, wins share generated increases existing our a phases from As additional scope on of programs. increasing

increase held. than $XXX project phase to have In We've fact, existing an the we potential quarter identified quarter wins to more largest first in million we quarter our of was and our and time. design more value. to wins win already with wins that it over first our opportunity and add to Several demonstrates the visibility of contributes first incremental backlog composition of from valuable additional potential the confidence. expect our the This the backlog,

our activity coming position IIJA for funding An our share materialize fund the we continue increasing today and the of of the benefits wave are and powered to clients the our our beginning years. our the to pipeline is confidence largest across IIJA contributing clients U.S., markets. in Also from funding increasingly expect initial navigator. growth In to digital funds utilize is to helping accelerate AI to us this funding tool is to turning end through

Arabia. an our In true and rail large NSR, we growth. position market supporting The UK infrastructure and where Canada, in Australia, the backlog wins. increased and has East, our And converting investments on positioning double-digit at key pace the our same NSR Middle win we which pursuits due in provincial the momentum investment frameworks in pipeline lead further a backlog is and visibility. another have transforming where are have on continued In first quarter, including is infrastructure extended backlog established finally, the to to substantial Saudi our

finally, AECOM time the capital value to and and industry to is addressable strength our we remain fully collaboration executing platform, employee expanding on our our As growth opportunities, an transformation, digital growth retain digital which returning through lead our of investing through proposition prioritizing attract in strategy, field. an and focused ahead, practices, our industry-leading creating digital at on the to committed best professionals driving capture in management organic the rate our advisory, market to unprecedented highest global in the we look and program

growing are Taken positioned front capitalize on than us. in opportunities of set the ever to of better together, we

long-term expanding are earnings advantages competitive of the Our power the company.

we As confident remain guidance our a XXXX aspirations. targets long-term are our result, on reaffirming financial in financial and and XXXX delivering

With Lara. that, to let me turn the call over

Troy. Thanks,

and across with our I'd the Please performance the like slide. next built we teams feedback. strategy. consistent our expanding and We've quarter. represents strong acknowledge conversation around advantages our also receive clients, turn collaboration our the realization culture to every our of competitive nearly for another to globe In strong a

solutions. Our technical teams are delivering unrivaled

competitive Our the most advantage, proposal essential technical consistently dollar technical apparent element are factor winning we we our of wins. in of often strong cited are which win in and is capabilities an bid. every is rate, our half These our

professionals a several secular capitalize markets, in post-COVID we by chain opportunities three investments investments. positioned on work including of great we are prevalent These are in our ideally to resilience, drivers wins. and reflection do our asset of infrastructure energized megatrends, investments, global and and our the the we sustainability ahead. were and recent growing Across The supply is

to U.S., in and differentiator. the leadership our sustainability continues a be resilience In

highlighted For was and impact selection instance, renewable energy expanding. on the investments modernize digital a support line to innovative tool our for key a technical are statement. by and environmental capabilities strengthen This our U.S. large transmission electric both plan that the the our in grid U.S. NEPA will leverage engage interstate to client

activity XXXX. of PFAS regulatory addition, expected ahead is in In milestones accelerating

in programs the in market, and We backlog this by are leaders increased XX% quarter. for the PFAS-related our

program, deliver Cloudburst services to York Finally, This across the and advise flood the storm in which clustered management communities plays strengths. New similar selected other its projects water which City prone positions win on creates of us to globally, to our metros underserved we city. in were

In technical infrastructure. a Australia, of wins highway transportation series project in tunneling building levels investing this in project. reduced our global year. the developing impacts bid. client in the in solution successful of The expertise key the on for first contract large government our the for is was design We over This a of and ingenuity that a won substantial a at critical environment record the tunneling transportation the biodiversity differentiator quarter, past was

reconnect reaffirmed its as commitment the support expand where vision. of communities up rail we its UK, the and part this strategy, marquee in are has to Finally, leveling network government that projects winning its

accelerating make healthcare collaboration. our bring earlier technical To strong am U.S. set and report includes of ongoing in to are fully on investments we year, ahead, academies This to to together which we we experiencing on foster pleased that teams. return a investments and professionals investments. investment these continuing capitalize rolled in out our are in I increased this benefits, the opportunities

is globe professionals, to is Our on employee return targets. our engagement of is our workforce advantage. The and high, and across attracting these which best expanding ahead is the competitive investments the employee growing, retaining essential retention to internal key is

empowered have business, best our energize us of and business on we pursuing our a opportunities in technical focus contributed and substantial opportunities to record pursue the today. excellence culture by as a momentum of pipeline collaboration Across our growth

I will turn that, Gaur. With to over the call

Thanks, Lara.

teams, turn strength to return one the Please focused strength policy by capital of allocation our results testament element, our strength that of disciplined the is next opportunities, and our the returning harnessing time of financial to investment. through highest allocation power key is the a on capital that The collaboration of to our driven and slide.

quarter entered. driving place. backlog our rate, secular on pursuits business behind funding first win transformational we the three even megatrends, is the and exited than our we more levels in growth Importantly, firmly at historic accelerated, especially momentum with is NSR and

the with delivering we growth, consistent are XX.X% XXXX by nearly our expectations a basis adjusted our increased segment importantly, fiscal margin in for which as points, margin. income Just profitable guidance operating XX is

Our the geographies, by are of market, collaborating highest the lines opportunities. across competitive capital our and addressable value the and we expand focus performance our narrowing on time reflects advantage creating investing and to business

Please prior up X%, quarter. turn the in the high. increased by driven slide. to continues a an X.X marked points The by XX book-to-burn expanded new adjusted X% and Visibility NSR ratio. to from by first increase to basis Americas next design a margin quarter backlog acceleration the business operating with

opportunities result In at call. increased to contracted and to profile capitalize conference our targets. are enabling a to long-term we deliver invest These activity activity to expansion direct growth by bid our and create quarter backlog about while development accelerated of on on ahead and profitability fourth our our the also business spoke power, The trends growth addition, proposal high continuing delivering all-time we on is best margin the is earnings are us double-digits.

slide. next the to turn Please

increased also reflects built which the value the International Middle key XX% the growth years. to our focus segment. most Margins we two organization. the by an led UK, incredibly backlog and where past position on sectors narrowed the Turning have to markets Australia, and strong NSR drive the by East, that over expanded,

Backlog growth accelerated to double-digits ratio. with X.X book-to-burn

projects which of enhanced We creates of of committed with billions dollars funding, an positioned level are multi-year on now several visibility.

the to the slide. quarter, with to to of flow It had start repeating. in reflect the which $XX next turn flow free bears cash a on cash continues Please better year phasing. We strong million

into higher which high clients put attributes Our lower risk flow cash we of and the the strong business, our earnings inherent work. remains because rigor services with to balance and cash consistently strong quality the sheets and our includes nature margin of of professional converting

to invest able cash and our As we a opportunities substantial are growth result, capital our execute other available organic to allocation in have priorities.

our growth best organic in remained investing opportunities, After highest repurchases share the use and cash flow. of

our element shareholders. return of capital commitment key is a to our dividend to quarterly Our long-term

During shareholders we've years. approximately the total, past returned quarter, the the approximately returned billion over $XX we and two-and-a-half have $X.X in million to

and with tapped balance until remains rates years our for interest no in XX% XXXX highly come. bond Our several great or of maturities attractive debt sheet fixed at is shape to

Please turn to next slide. the

the quarter and year. affirming remainder for created guidance are to strategy we built first for the in of the has outlook, all on strong Turning our visibility the foundation of that we strong our financial metrics the set strength

to XX% growth at compared year. currency on the the expect and mid-point to the accelerating growth of constant We continue for EPS organic adjusted a basis EBITDA last year with NSR X% to X% ranges

We new our high operating XX margin to would mark XX.X%, adjusted continue which basis lead industry. points continue to to a expect by also segment to increase annual and

platform. growth is our testament to expand investing ability the margins, of and in top-line Our our accelerating strength a to teams delivering while

for operator, we ready that are With questions.

you. Instructions]. Thank [Operator

comes Feniger of from with Bank Michael. question Please The America. first Michael ahead, today go

my thanks DC. taking the these concerns headlines some Hi question. Troy, market in there's everyone with for in

lot of is? I the but it just funding on headlines defense to ground -- hearing can about that you that funding, public when we your the like Are help understand it pipeline could exposure in think the you a building want issues any off. some slow the of look at seems locked how us budget,

headlines if actual flesh can of risk we're comment there? some the what kind outlook your And growth Just we you if curious that to on of out, the seeing?

question. Yes, Okay. the thanks for Michael,

where all, I'm And about of terms I act If at ultimately we it perspective, of back [ph]. periods a So think there debt has a to it that of At way. some been out the I'm for there first of and going guess does been going least, all, always will and go take look have is certainly -- government very debate our broad that a government the the time rationally. federal spending parts. ongoing in that's turn we few our days. certainly impacted government, that seem to question. few an in first history, it's

to government, And in low-single-digit irrelevant those exposure importantly, shutdowns really cycle For and have and on times only no of the us, infrastructure. performance the has of business business long-term impact short-term. really the we again, investment federal material and our are most our for the long-term that

infrastructure appropriated. the building of has that question again the is, the again, when of most time, and look And certainly the has part I part United bipartisan been think for period has we it the States, second that in funding at have and a come for been into been those funds

don't there So IAG when aside set by the forward, really act. the risk we look we other being significant monies the or a see to

not for opportunity in our see And in as that business an so U.S. long-term, we having the on the the impact

we and the being to significant and even local state And the then, in level and think deeper when look back very and rainy governments, the going XXXXs. governments funding, at since bit going than we day I state at funds local little that, governments have see highest a state our local

strong for again, really there's investment there aside that's so long-term think I for certainly underpinning And it. set is the infrastructure, for been demand just

just the the trends about business. across overall Again, focusing on our And U.S., but we're seeing business. our that last the entire we're comment are

don't really So opportunity, of are be they're certainly business. value to terms and long-term any significant the long-term again, always the being the in see we see, nature, going to we blips risk there global while of in that

many about And stayed and businesses, some of XX you some are the Troy, have the share. course your increasing last you. peers acquired public Thank talking over months, win of other

projects, think up M&A these how the more as ramp approach we some of as, as into these bigger versus growing pick start scale capturing your really projects approach the funding XXXX. you about to view So do level bigger organic up and

been Yes. of built Michael, our taking opportunities. the focus so Again, and has strategy our advantage on long-term

that I'll organic upon had allocating to us. it disciplined we a and around capital, against said expand And look believe opportunities and off terms and for it. of the we in growth. then us. for second, returning We paying return certainly strategy forward we're highest a so that, And off again, profile. built in invest And that, is is our still in executing around we paying it And but

Now as Maybe focused returning is capital shareholders. we it our opportunity, organic time, just return best as we're certainly of and on. growth, net today look look at but what we it shareholders over next to the is changes to and in investing forward, it

just businesses had difficult have comfortable the organic to are in earnings contrast doing time XXx growth being And we M&A, that that really mid-single-digits. in transactions opportunities when doing that a at that you

can time. and hard return reach on they makes in a deployed points is XXx at that at certainly, the double-digits So sense. for capital certain being It transaction

we're the capital. to are And so by sure making we're discipline providing the just again, best -- return we on governed

see that, certainly don't paying that see And seeing in so fact that our And around look wins portfolio reference built we business and And has they're it's the in strategy that just don't opportunities off. that robust the and large we we market the our we're made at changing. increased -- the significantly. to we

So number number go long-lived million. wins XX%, of now We've great over really in years, XX%, us the get almost well. And of future. projects. We because XX%, we bodes and XX% was $XX approximately back those a are are that created that a visibility kind for of our if

expand the see statistically with projects actually that fairly to And expand and we they significantly. customers. your have long those is you the have other The speaking, ability relationship using expand them

what's programs, those it's winning by number. in not just something backlog, winning over much long-term, a the you're you're winning long-term So higher

Please go Baird. ahead. from Our next question with comes Wittmann Andy

quarter, you've benefit questions, that. guiding expected the year growth that you guess first Great. And and posted for on. said NSR guys even got the quarter, and organic year of accelerate as of things to referred X% Thanks this are for the you of I stimulus the the taking some you the goes previously you that to guys. my year

to that's me planning the the could is case, that is developed in seems about? that there forecast an or be we offset know was And I if So X% that should your or wondering conservative. if somewhere

QX in for is committed and of in that we and bit FYXXXX. I'll the you in a take to we're early Look, ahead and this our strong to to change year us But conservative the correctly, the our There's our as question. macroeconomic Andy, expectations have always plan prior delivering no design similar, thought underlying Hey years little is what Gaurav. bookings noted prudently outlook be business. growth have was on team focused its commitment. very be but across will conditions, ever-changing due management on

Got longer-term XX% is guidance you would In any that the that, of today. which maybe, margin And Thanks. it. reiterated Gaur, here not said maybe longer-term, you've the be XXXX that target. kind more

question the and margin, guess in the guess look what's it that I likely margin XX% so rates organic the million with, rate expense you by $XXX million. XX% confidence the in the exceeding material way at And imply a does exceeding get you to assumptions, medium-term? or when I Is the $XXX frankly, the well organic my get is, growth I fairly newer growth there? increasing like most in target? interest Are to acceleration

for question again. Good that, Thanks Andy. Yes.

outlook, three So when confident. just FYXXXX in months our no we In you're what committed right. we There's feel two, have spoke to, we change back. including

three as here ago. more months confident fact, we today, were we In than sit we're

three allocation The we're model. focused on growth, capital are and dynamic our expansion, pillars a key margin strategy. it's And

We one metrics. of outperformed single those to-date on every have

been over that deliver and with focus it delivery months XX that months as Our -- maximize margin of next the on move growth faster, our we has call forward we to into the expansion to XX XX% XXXX. expect being expectations, ahead

overcome these are forward you can best said, some control, focused outside the even like very facet XX% the control. every two the are those, And us things how is allowing or sure we on A really making things is if emphasize of foot interest is of management to our favorable. FX single we created years, debt of where fixed team to at as our on sheet great of and put but And interest, balance I sheet favorable we've balance example very that our last rates. want our strength over this

are factors So there. absolutely can delivered headwinds those on that we over control. the We

into XXXX on layer top last of our expect Now results but seen we only really for months to over you put our it supports QX, deliver forth years book-to-burn come. you've that, strong not XX to model, strong continuing the

RBC with The next go Please question comes ahead. from Capital Sabahat Khan Markets.

Hi, good great. morning. Thanks and

up to engineers those do guess with of question maybe a things the the the support kind comments know the around continue peers you you're some and ramp of Just trying of visibility of in using you the Are just balancing some hiring that. this of that still hiring? against how earlier are outlook. understand used backdrop? enough of demand sort some given hiring And to to just have I I on sort Or you how tools some needs balancing like your of backdrop? contract uncertainty evolving

of an you. focused we're to trying to on that, with we're create Sabahat Kind to capacity up Troy. keep the work. Yes. winning which rate It’s unusual predicament. continue thank In

capacity team, that business. and time, tools centers, allow enterprise also to us and some building so to actually efficiencies digital broadly focused on capability professional to entire work. And we're deployed are increase same the the And on and doing our using be we're and by focused we're at expanding of the projects, create across we trying hiring our of on delivering which our

the at trying really we again, up with so at our the to we're winning is point which don't And increase I'm to rate in capacity time, focus this -- work. -- keep

projects. And comments increased rates, particularly Great. I just, larger the then around the win guess, on

moderate. to your demand next demand cycle, XX cycle, adjust be some the that the you environment last made do are to could structural are that, and of through the may projects, these color win over through of to you things think sort you bidding sort these maybe economic you months changes that like could XX how months these share approach So the on things and

made how are? Just on maybe you've the bit some impacts think of of a little you changes color those sustainable and

Okay. Yes.

So of that to again seeing highly by sustainable. start that and And competitive advantage. create saying We've strategy is, backlog a they're way grow, going again payoff I I'm I the more are in think the focused visibility that in seeing opportunities our guess pay creates trying change also meaningful much to off. guess our composition And but I that backlog the and seeing think here. I people therefore, long-term we're for

done we've In to is thing of past, on you're other exposed the business, more components we've the ourselves exposed to The project. the a if certain client projects. of spend on design a spend you're

XX% building by year. budget. now in so And business exposes out been of our program advisory management and over business client more an us much to program It that growing a at has management per

structural have And sort the don't teams, technical then best things in solutions focused that's of our clients. that to bringing around our again, the projects. that and really most which in our around will the we creating are that is It important we investing change. built so on competitive terms that And provide sure globe to of it think best advantage, we making is clients,

create digital tools our on are our it's but to differently we in that deliver we we And is how that importantly, delivering building different different and efficiencies. by some used and consulting AECOM, refer external work how in really focused investment And it's clients. deliver. But changes it as services actually

to to the that seeing bit example Lara, we're winning building. I'm give a in this to -- of great a going what about I'm just over little going competitive around talk to is terms And we're world advantage the send of

a the and Yes. the mean, Sabahat, question, I technical I point is of of that differentiation. example answer think difference academy to great your

our key that. another and -- return seeing in that on the people our with and we're investments investment So of element

So and we have we've technical and our invested uptake engagement in got all is that employees and of learning. XX,XXX ongoing technical from academies great

we why technical critical up positioning. AECOM key terms nine key differentiator that technical that and scores, differentiator key wins top winning. XX and we that's enterprise we've a our of and And a which recent of reason capability the that out anecdotally, how means key know in that show had, is our And on earned interviews province to they're

material talent. a point and terms moment, in the So think off paying that really differentiation that's very it's investment of in I us technical of for at

next Our ahead. comes from question Please with Andy go Kaplowitz Citigroup.

accelerated doing? bid -- accelerated X.Xx. are QX in how bids Book-to-bill you book-to-bill So

bids mentioned proposals and from I year. last think in you increase the XX%

contracted had obviously backlog well. a movement nice You as in

you book-to-bill that just based questions. Americas NSR kind the next So you more two carry X%? based for Can growth see current your few double-digit growth And of that Or rise increased to year? X% do continue this from proposals international for maintain on it on is quarters? to conditions the growth will you the

able question -- I consider Andy, do yes, being it to I your book-to-burn. So the the answer yes. to is, see high

$X every $X that Just again, did. out in given the actually winning fact that, as Lara pointed we out our prepared we're comments, of

five it's frankly, now And XX%. been at that is for rate quarters. way capture our So

you confidence create is really the you of define are things So lot a you when winning matter.

we're clip pipeline, around our we're world. is the backlog and our U.S. to yes, going think keep rate, so as growing increased With keep at pipeline, Secondly at that the the significantly, building the in pipeline and we with this is do we winning seeing. that

that. I'll take So And do Gaur second question. confidence your have it we to to around answer

have Yes. Andy, you key our were priority we we that as focus. at funding nine on what's being we really confidence our simple, is our market how tailwinds. the how forward, yes, macroeconomic We're geographies look the and is successful focused the look marketplace really in it, significant in strategy driving -- if

Our industry. continues brand outpace brand, professionals their people are best the their to competition of technical that We're in the in the some investing ensuring significantly in marketplace.

and being at program time as investment to earlier, digital advisory those geographies key Troy the return-based looking at alluded While same focused tools. very and management, on

we to and for we continue sustaining into platform differentiating So and funding only not our future have the have bodes all to to created be us. so this continue on capitalize builds available take done, but to well going what the competitive that's

last out know than growing on you And your us on non-traditional convention by business? developers update aviation an update us pointing quarter, Are that are Can construction in was management but what markets. your you end you the market I supported you're then And business give other on more you backlog some could mentioned centers business? seeing?

Yes.

we're is a residential of of softness and the across in seeing opportunities, investment still the and convention there certainly I opportunities, portfolio are So In in large some is that pipeline particular making a same businesses more focused great aviation. cities and it's markets investments certainly commercial are there's centers seeing United same States, thing. sort the and we while it and happening. mean the some is in It's and thing diversified it's opportunities. It of around country. sports the leisure;

So I around see projects that long-term four think a we business is -- robust But part to continue build do we the years that visibility for have large we of see us really some important and work great to almost upon. do that will pipeline. create

how And it about some terms then and the just is, in again, do softness that point have we of the business wins -- last market, lumpy were. to even is with in

was book-to-burn X this almost in Our quarter.

to seating other of it's but exposure our is some to created the I in market So exposed we've segments is because great business shape. think slower, market is

Cook Jamie ahead, from comes question Jamie. Suisse. go Please with next Our Credit

the we against and relative were helps you two three Thank backlog understanding getting question, you're And higher you months up guess you. international the second happen my talk that margin profit XX or the I like where sort are are rates type opportunities. from visibility. to ago then just profile of to win on questions. here projects which need margins with execute duration, to Can order to confidence refocusing One, ago double-digit, just your in of have things XX what to Troy longer level that? today that create or in two the months as

again, I'll kind that those rates. the of Thanks, with they let Okay. are the question. of higher handle win our of projects, Jamie. take even part with didn't Even in that. first win rates to say all, large win pleased respect -- question. I'd Gaur than I'll And really we're rates, second the first high

which, again, is continues winning, gives move in profile And part as the of to in forward. us better, we of the confidence over margin terms expanding margin margins get profile

that backlog than few If back points. are in more the up few a percentage margins you go currently comparison our by exists years, a

the part significantly on to work to again, our we're opportunity is winning than of continue because making us ago. it years So which margins, of margins gives we're profile progress invest did improving comes that margins with the to the the higher

portfolio they going And going margins go margins which We're various there's during be already that double-digit from in to in the we profile. the make we've while review right for the and focus. return of our rigorous to to be them Yes. investments people making going providing the marketplace, sure platform our the very and time, looking how to in pieces, is it to in right double-digit successful our same at Jamie, being risk deliver XXXX, spoken call, about some at meets the our

the knew, a shareholder the risk quarter, on marketplace signed value we the in business and sustained as long-term deliver QX, those in consistent want for creation. what not return Southeast in expect because we first basis, we of and we the spoke in you to is Something with available Asia businesses our parts exited

what the top terms going Our international not it factor expectations are can speak And on marketplace. on the driven be the that's And the bit margin to is delivery. for in of the similar path international to be what Lara, in to you business; It of that significantly to in to path more. the business only the Americas a marketplace in not we're seeing the little growth, done our our U.S. by should double-digit maybe, margins. in get we long-term have just leading

we have definitely of in we're international wins. is Yes, momentum And we we the moment, the long-term business. the X.X business. across those of infrastructure side the at they than that international have a of ever And backlog and of have sure. of our secular of have taken trends, some geographies the lot winning more those the we Jamie, of we great before examples long-term one comprise had key because that share market and nature confidence are all

Arabia, it's in wins ANZ, the have Middle particularly a transformational about Saudi position talked and in the So key we wins East market. the whether leading where in the we very long-term

very where And some on consider strong go the we that if to all plan, in position we had a some market even simple might infrastructure that somewhat secured had positions. we we've we all had uncertain a a the ensure frameworks -- then And you key UK, those wins. and to great

So our business long-term. again, around confidence those very have of and our long-term, are on infrastructure trends, capitalize we strength margin improvement strategy to which the

ahead, from Research. Vertical Michael Please Michael. comes go with question Dudas next The

then in you a capturing of guess, cetera, very the talk transportation tackling you've and and and a finding et uplift get that move funds. block of in that from there? your of funding bit Can maybe Troy, a and remarks, helping highway whole of work and acceleration just that others, local and your the clients business projects to timing federal I the you acceleration the we for base in as about in Is typical prepared IIJA, provide left been and XXXX XXXX? going big water municipality some state successful your mentioned that little ecosystem

answer the yes. Mike, beyond I that And the to uplift goes that. think Yes. long-term is,

So the would federal build, in if that put funds the place investment funds start. from it about think -- have how the offers been you or IIJA slowly investment other

today, but starting And the local XXXX, more see so XXXX. we of and and through in think that we're funding matched XXXX but see funding impact marketplace state we the see significant well the with in the impact when IIJA to going we'll from the

that and moves in XXXX to peak when XXXX, In out we're being XXXX. and project the and But probably money XXXX of see that forecasting fact, what we'd in that's market again, and is peak. the is infrastructure

long quite period set these the like funding funds. investments aside again, we governments, they So well-funded. have good a for those again local they're infrastructure. of I -- opportunities day large time. in the see they made And for rainy comment extended They have And

time. for of an to opportunity it. take So think advantage that's is looking period been We're again, I of a long this

here to to transmission share new the quite, a big And could maybe you. renewable energy, exposure in projects offshore you booking energy wind certainly follow-up, certainly U.S. in Thank is supportive you've us are some and phase quite and, wind Europe. thoughts been those, on your

a) an you're any higher of of part improving the next there? area be about, of margin? where or Or Can how's -- an there subset? that couple in that yes, that composition the that you the is pie that in talking So, margin -- years? work is some capturing over And better value

coming generation Yes, of just and business. again, it We're support new the opportunity energy that the expand funding do see into that the to entire economy, call is as, of the the as we support new then I'll energy. Mike, across to generation infrastructure and well-positioned

yes. that not our it's reference actually wins, people made of elements those our group like So of to on of transmission you projects some focused

But the -- that. our in we participate crossover business,

So the process, our in teams of And to that. participate business in that. to then and around usually the environment all of are place that beginning entire the in go infrastructure that our able would in see participate has

infrastructure infrastructure the-- So as isn't will last investment decades. for in that part the participate that long-term trends is just for and going again, investment energy last those in the that years and that that's will mega something are think I of

that, for well-positioned very and very broadly. we're again So

with go comes next from Davis. ahead. Please Thompson question Thalhimer Adam Our

demand. outlook can particularly you there in I mentioned just you color the is Troy, weakness give resi. Hey, more in a curious bit was U.S. little what to little question, think in of sector on private your a Andy's guys, response there. non-resi, And

is exposure So U.S. in to the our, again, limited residential very our

it construction really So business. management through our been is

us environment, our for of management business. our And portfolio of only -- our look private our business, is remind X% exposure that work, our you most again, our our in broader ports, just represents transportation we When limited. is of I'll business, is our exposure across the aviation. at construction So overall water

-- those pieces base our And invested touches are the of on all private really in. that really, so economy our customer being

And just exposed we're so really -- significantly to we're not residential.

then I'm about good up now, just curious a you're And talking if Perfect. might ramp when time adding to M&A? capacity, be

competitive and clients in I to business you keep differentiation, sort And right? what important success starts the you a could That's us. to better you more a a which in then, deliver organic for It's building is, the And little really a having will say, and expand. do, people growth, bit creating around that, this give I'll pay and you effect, attention culture. solution. join we're create I'm that, going momentum, effect, create the you, to Not say you consistent as -- of you we're business flywheel you because I'd on like more look, best color invest flywheel great that. answer

been. that focus on to distracted to is, being and just we an returns want where much focus that So on by culture. has better don't together, returns to our important integrate and But businesses We And focus everybody culture produce is, drive where be driven And that's again, -- want focused having collaborate it's inconsistent flywheel strategy. that's it's and to working effect into think results. because I driven other our too, having people continuing

comes Jaroslawicz ahead, next Please from go Our Avi. question UBS. from Avi

taking for Good the time. morning. afternoon. Thanks good Fisher. I'm Hey, on for Steve

in in it's the you enough you growth that not, an today X% double-digits X% Just being presumably it the is there resources to need question how kind Americas, have the add? in actually meet year? would for work burn? Or that terms when place, is terms much to ready of, with of acceleration of in Or is if to and from the up international just

Avi, Gaur. question. Hey thanks for is This that

XXXX in making labor very successful good platform So we have. the forward, quarter X% we making we in right did on for but are we're have. sure the ambitions with is providing, a investments to be is asked our question we you deliver only not long-term focused as people And the and focused our the delivering we're look again, base

automation. to continue edge, competitive We this is that digital Great this differentiation we on expand of about. example talked

to in three part truly to call opportunity capture years the more that as business able only deliver out also to business we -- few to what we position the marketplace, we're firms lines single one investments that's number for We the and capture not do and is practically in the very only benefit, what making deliver the last making marketplace but that and enterprise have over capture operate. that right, in can of ever where doing, we And use competition. strategy because to we're two our been efficiently capability effectively center, scale the the we sure across our globe a have is the than we operate or geography it have and every in

there Got pretty it. areas any in That's share are notably the just gaining capturing, outperforming? you're sector. much in very And market then terms share that you are every of Or so clear. where you're

what I is the, across larger that the would characterize projects. this I'll seeing our as call we’re in really, it, But broad-based sector.

across we're seeing ourselves geography business, that it's whether broad-based line, we're but whether seen that's the business or -- it's that’s by what the we've very by seeing so gaining market share. And where

with next from Capital Alex comes ahead. Markets. Dwyer Our KeyBanc Please go question

Hi guys, I one Sean. Alex question. for just have on

wanted will to transportation? to just wanted on would in and thoughts end get profile I we just markets? I get two model business, to where do into see your there. environment IIJA be first. there it you hit these between go guys I difference Like and the water be thoughts your to And -- wanted major is what what margin in work updated So that the it a your will just your

that the don't our yes, that's entire how wouldn't with IIJA in broadly matched by I business covered all of funds So are we signal coming being see any roll across out I difference. lines. funds portfolio see there difference terms it of when our see any

don't profile of that And earlier, of continues haven't project generally, see business seen difference, And to we what in business line. terms the across lines. the a backlog we I across the margins but improve. that within not margin across said you as profile our our see is Obviously,

of our questions. all were Those

Troy to So will CEO, remarks. Rudd, closing for call I hand back now the

Thank you, Operator.

the to and And they've create importantly across everyone continue thank work our done that the opportunities quarter, first joining analysts. great their great entire for and to appreciate our contributions thank us want the teams our today. I do call most to the and our momentum opportunities business Again, for to for create great the our from professionals to work I to is clients. I want for questions on

conditions we're markets we many volatile. around benefiting in world, funding trends. see an lucky a lot we're As very are But look we that in favorable long-term industry from that's of the certainly

And a really yes, involved to -- take say, or the done people position to those I'm here, we've created great of with long-term. all I've really proud to advantage capitalize work opportunity for ourselves opportunities

you all So professionals And AECOM. you. at we'll next the here again, thank you I talk quarter. Thank to

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