AECOM (ACM) 8 Aug 232023 Q3 Earnings call transcript

Good morning, and welcome to the AECOM Third 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 investor section at www.aecom.com. a conduct will we question-and-answer session. Later Instructions]. [Operator would Gabrielski, Senior to the and turn Will to over call Vice Relations. I Investor like President, Treasury Finance,

attention SEC. financial Statement operator. the contains including reports today's forward-looking you, forward-looking I future statements. like results discussion projected due direct to update Thank the business may about and uncertainties, significantly would presentation. in Today's Safe filed Actual Page and on periodic your our today's to Harbor statements as statements X expectations. we of to those to those requires, in from risks described obligation law undertake Except with various no forward-looking our differ

which growth, to to will as reflect our segment or Americas The measures and We are use margins When reconciliations financial segment adjusted discussing certain segments. constant revenue our presented operating for revenue pass-through on performance excluding revenue appropriate presentation. non-GAAP which refer website. we backlog Any posted NSR, NSR margins a revenue. are to and growth will basis. and our or references are rates revenue, service the is in materials, International the currency GAAP net incorporated defined into

Officer, key our President, Gaurav Executive the successes discussion performance our And will transition accomplishments, today’s and and for our business. operational Unless otherwise company’s Financial greater outlook as will our On in financial review will reported key Poloni, on exclude call, will strategy, review Chief detail. and Officer, Kapoor, indicator AECOM which business. the outlook the our to continuing focus discuss today's Lara key priorities. Rudd, noted of operations, performance the Capital will the Chief our and non-core intent Troy given

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

matters act again to the pleased think of in have recognized and Will results our the XX,XXX was experts, through and strong of of long-term collaboration to our survey. advantage the you us technical enabled has our I'm expand a on we competitive The annual strategy, for what say built you leadership that which by ENR testament globally are joining earnings the winning all thank recent its and power consistency today. our and they Thank focus to strength company.

In to in design spot mass transportation rankings our environmental we top and addition overtook remediation, environmental in chemical and top and consulting. transit, design, the facilities

resulted margin high their by our driven gains organic achievements. in continue. strong and acquisitive. we congratulate focus growth, to rankings, want thank Our organic program are I our in share growth the for and group contrast to on these remains management also highly peer commitment success to These notable moving market competitors, as is especially and to trend this them on displacing up our they're which business our remarkable us expect that teams

Turning to our apparent in results. trends our quarter third performance, are a key few

we operate. our strong First, are paying in geography nearly in NSR and performance rate growth is was highest across every business which years many growth design which off. XX%, growth and investments included the major in organic

adjusted increases high. us EPS to operating Both resulted this in Americas strong adjusted EBITDA our adjusted in the and is of a high XX% XX% margin and consistently a performance, invest rate pipeline, constant margin which this and enabling backlog an segments the confidence a delivering international growth This all-time Second, which and future. currency of in coming in is growth reflected at XX.X% margins, our of in on high XX% trend basis. and our contributed affirms to

million execution enabled returning to policy, flow in capital than million $XXX a more cash allocation quarter, the including of we consistent the to year-to-date. free focused strong generate of Third, $XXX continue which flow returns investors cash fiscal with

for Americas growth XX% foundation international driven Backlog to a both pipeline continued new a businesses. noteworthy in the increased business our record, built by by targeted and throughout three strong the we've and This design investments. Finally, included attributes. other growth

our record profitable First, than is quarterly backlog ever. margins, more given our

double-digit increase strength in double-digit rate. backlog Second, in reflects on pipeline, top win increase our our of a of high delivering a the continued and revenue

greater greater share the million our certainty past wins than years, Third, of have than which into the valued few doubled future. at more $XX over and creates visibility

turn the to slide. next Please

increasing our for the IIJA, state and Brent Turning selection Reduction the U.S. Act, of infrastructure Inflation Corridor markets, awarded Bridge project, designer quarter and infrastructure closed. advancing. a is funding as after serve includes the in we local renovation to investment. great for were the lead example our to key historic is Spence activity initiatives This robust for which A the

out Our $X.X supported of beat expertise that formidable on been competition technical pursuit has billion this the the landmark from funding by IIJA.

bids and these XXXX which continued of and in expect We to accelerate drivers submitted. growth with pipeline beyond, further proposals is in our consistent the

national backlog high Across Both are aligned markets, major every market. nearly remediation, backlog and markets across energy infrastructure with In international and well are strength our a increase. environmental to priorities to positioned transportation, Canada, reached capitalize. continued provincial we transition, investment, our hydrogen around where new

the in Importantly, and is each increase high to with the continuing at our margins target, future. our our margins valuable effectively point our of now is to and growth enterprise increasingly double-digit confidence

management program market expanded all addressable our businesses a our provide markets, to in to of and have expertise. technical our these strong advisory Importantly, complement

a term Ukraine's as during leader Infrastructure Territories quarter, which Ukraine, Communities, understanding as serve successfully I $X.X a and to reconstruction positioned noteworthy nearly for accomplishment partner. cost estimated of the to want is This Development highlight its the we to Ministry long delivery in another rebuilding with of AECOM included memorandum trillion.

Ukraine. Restoration of National reconstruction underway, critical be at provide to of are Development we In begin Ukraine Agency are infrastructure Infrastructure, will and for with Discussions and we agreement signed already an State for forefront projects. addition, Standards advance proud engineering support and of which the Design the to

recent that the consistent transition and our pleased also planned include activities AECOM our following. with Capital are I'm of

manner to reduce basis, the obligations. existing the close enable a sheet delivery transaction, for AECOM consistent which with costs on team signed will support will be and for a have investment AECOM, a of to year, overhead for term vehicles facilitated continue platform, team team, will which we create Capital ensure a AECOM expect commitments. right investments continuity support this and later This ongoing the will and AECOM’s to their current transition by new in the management level fiscal of we First, to our and transactional the

$XX on million AECOM of project Second, disposition we next over AECOM return several and capital expect we a review, years. of the investments to million by the $XXX project to have of completed Based investments. between our this existing review Capital

be if Third, be for carrying conditions with the investment on our market we its investments determine allocation sheet, in current return inconsistent required also We policy. persist. these evaluated that balance additional capital investments driven would that alternatives capital might of additional and costs funding time including

which While our a to impact change, we've P&L. reflect to these adjusted this resulted the in of value non-cash investments carrying

I higher spoke create investments that will for realization confident a as and contributed are capital positive additional ago, we moment be returning cash opportunities. However, AECOM the a to of our

are mark have fiscal outperformed the that, Against year-to-date to a turn With the Lara. to strong we our call that financial update consecutive initial our we our to guidance. performance, I and call strengthening an fourth year backdrop want I Lara, provide our guidance. turning increasing performance Before XXXX would over expectations. on over will with market This the

to thriving. ahead. investing validates report growth across turn next as a engaged capitalize opportunities positioned work. career that well teams of benefits record position superior and afforded Thanks, highly our on recent of on The to globe. In are leadership career which Please of recommend the level high programs, that projects element demand most employees is great substantial To our to a survey, would our stated business am This to teams positive Troy. in and feedback the a at by development are backdrop is and for rising level our Against essential AECOM of opportunities we that the I the slide. marking leading our the and an our delivering we talent, our they employee point, success. pleased are place the

that is element safety and of record any retention, business. advantage our employee key is is of our of our stakeholders. indicator a great Safety satisfaction, safety which the a to In critical industry, the addition, and performance all pursuit our of leads a success matters leading

In to key increase a client with human report capital hand hand satisfaction. business, benchmarks. I'm employee that continues to also engagement and exceed point, in safety go satisfaction and that To pleased client

convergence is past create critical in we playing Our success. strong our and environmental employee speed component global iconic rail long-term the Middle transitions customer each projects and resilience development Canada, converge a as every trends mega largest look and and excellence especially transit decade transformational we of sustainability East, projects a three And over resilience, remains continued the across around globe the technical win, world. high to multi our secular federal role the important and chain energy the year. in the to leading programs and mega satisfaction This supply in the are wins most cycle. is in of to powerful growth city investments and in infrastructure, key From U.S. the our across as apparent and

apart from of ubiquitous, standards becomes megatrends further the convergence more As these strength competition. our the

size our transportation clients and examples, our businesses, few tunneling demanding and great are of more. a share in are global example distinguish me how both water Let A increasing practice. across is ourselves we projects

of essential evaluations, projects. a as any expertise team technical is as a such While tunneling seen represents a our success, tunneling is small and [ph] its even critical on proposal project, element incumbent unseen in larger nature of heavily to overall weighted project given a percentage

the high the rest as of every as rate the Additionally, pool within creates disciplines for tunneling We through tunneling other that $XX revenue is dollar often of estimate revenue to opportunity much organization. a organization. of

other energy from provided momentum, particularly the in in Act transition Reduction also Investment funds and Inflation gaining U.S. initiatives. by the is

and We expertise. are This positions program us inherent benefit our quality, with emerging equipped advisory, leading the lead in well and offshore rapid market. wind, in poised where expertise for technical is air this to permitting, transmission distribution, growth many ways environmental challenges multi-discipline the to management in

hydrogen the hydrogen, recently a awarded manage Similarly, energy were to alternative for green where contract a Chemours. of as we are such forms we delivery the leading of other of facility advancement

rapidly on advance growing PFAS the clear with also XXX is Our is Gas Momentum the proposed by experience largest in where in well as also transmission to Diego a are U.S. more of several than we sites engagements bolstered over clients. mega lines transmission underground, business move lines as continued Electric with building years XX San market, and the distribution for leader transmission growth to

to utilities XX% pipeline regulations and plans this stringent respectively. timeline water The is in new XX% EPA’s to in a meet backlog March, several to and Demand years. water created passed next the market accelerate increased advance requirements. Our which set for drinking over

our to leadership continues Lastly, opportunities. in create sustainability

carbon to experts across globe. reputation a be November testament to the advise a leaders global to subject leading credibility with COPXX, summit matter appointment Our climate is delivering neutral and thought our held a key on this the and

All of substantial growth AECOM. these for markets opportunities represent

demand investments and include digital across will of making we investments of workforce process. markets, the to elements the As enable delivery are extend capabilities repeatable capacity These our our us automating the increases design to deliver.

local design of an accelerate improve scripts which key projects, quality. transportation capability we elements our bridges, integrating automate and centers teams example, As as computational enterprise with to such delivery are our to

compound deliver we With call I'll turn embrace will over Gaurav. an the our the and As how we over to work, competitive time. which that, organization, innovate transform now to our opportunity advantage

Thanks, slide. next Lara. turn to Please the

continue year strategy being is driving initial to and the this advantage competitive to performance teams guidance which extending This consecutive expectations. outperform and in culture Our strong embrace as which expect our we evidenced fourth by removal especially our million and in was X has is more XX to adjusted contribution contemplated to initial guidance. strong previous offset of the EBITDA from million AECOM underlying our increase our that year's performance that than Capital expected notable our

capital on our mindset our instilling into culture, in we on have adjusted making spent three the years continuous a have improvement of We rooted and risk and time. decision returns last

we avoid winning and our on organization, an what and matters and for unnecessary clients. focus As layers complexity, delivering

a record As several that we milestones, included result, backlog. including quarter a double-digit key delivered growth and organic design another NSR

basis our a at addition, for surpass profitable, ever the XX highly year. over remains our increase the time In margins growth XX.X%, prior first point XX%

we and we target. across reached to longer our on business continued delivering margins as profitability X.X% international our way are XX% improvements Our towards well the progress term

build accomplishments on confidence and these of past in over few momentum our All opportunities the ahead. create the years

basis adjusted The was Please up in next turn points was NSR to XX the XX.X% XX%. from the growth operating the year. slide. margin Americas prior

This proposals the to pursuits. backlog the and faster high us X%, accelerating critical and growing our design ideas more bids continued bring replacing are by and collaborate resources our grow backlog, revenue our growth. Our to investments than our allowed and submitted rate than which win to reflects best

Please turn NSR to with nearly slide. every the XX%, in in international growth key the segment next increased region. by

the While have key significantly X.X%, our The weakness we efficiencies, operational taken decrease in initiatives our drive persist, increased visibility. to margin highest in exposure region. was that adjusted on Hong several progress operating continued our actions Mainland East and large by focus and China in Middle to the Kong, reflecting the markets. included enhance on returning wins XX% Backlog and the UK,

for guidance and Please we expectation next was turn to ninth cash affirmed consecutive flow year. range to our deliver our the slide. cash strong, free within the flow Free

is unchanged and sheet great in remains shape. Our balance

XXXX We highly majority attractive maturities have until the or debt of capped bond at rates. our vast fixed and no is

capital focused our growth returns is allocating to policy and supported followed highly and by allocation the investments, repurchases which nature by unchanged capital This share opportunities, business. generative Our cash includes is remains organic dividends. highest the returning of

development in shareholders to more our payment. we and year, this including XXX to investment our July addition have business million initiatives, returned In than growth dividend

slide. next the to turn Please

to from given questions. At is Troy financial adjusted reflected EPS results business. As noted, our margin the strong for reflect we intent and our guidance adjusted our are this constant for the Capital for XX% and currency operator, AECOM to performance. With ready transition that we are XX% growth raising and EBITDA guidance growth our adjusted respectively. excluded midpoint, the year

Instructions]. [Operator

Your comes KeyBanc Eastman with Sean first the question from of line Capital Markets.

is line open. Your

a exposure, revenue a particularly that headed confusion momentum XXXX start? be I business some home the of last the some team, the nice in commercial driving fiscal would around the Hi, to of the would kind build, of just in be update here. estate thought around good the place comments start quarter into in light resilience real helpful

good Well, question. you morning, the Sean, Right. for thank

in has I'll NSR maybe we've pipeline, quarter behind the that been start which seen quarters. the So the the has our we've sort but important, which of that of last to and been consistently backdrop actually success grow is again, in well, our business. have accelerating is seen XX% few with again, growth, it had DCS continue in year-over-year business, win We've of behind faster rates. backlog backlog a winning we than which at rate our growth, been in particular another work. represents overall And then And quarter. extraordinarily in XX% our that And again our grew the the growing within that

is we And to We this seventh quarter it's a for our let -- dollar me extraordinarily over you that work are continuing rate capture we XX%. our is has work where benefit, capture row dollar in remind at an much just that every been win. everyone's win rate for high how of dollars level, bid,

our and complex most And rate. we've to as extraordinary been so winning higher what in within and even important pursuits, And refer that's we a in even an that, result. largest

capture our important is largest most amongst bids year-to-date rate XX%. over our fact, and In

construction next rate, year are is future. even great and just driving to our little So winning kind extraordinary and even I I'll predictability we certainty the that of grows built it very that the construction management us would say also a master is confidence that will will which business. And this a QX The the our gives in I around Again great what leads success. we our at next to success. competitive than for make business, to that beyond it for backlog continue building work, start. the obviously our continue advantage management visibility design bit you an again, great off year, should lumpier win And of [ph] that to comment leads And is what it's the our business. see a or call great way the we above kinds or

positive heading lumpy but QX. it's And really so had success again, some we've into already

around management even business, actually the sequentially. and the important in up is pipeline pipeline thing year-over-year, then our is construction And our up

that Right, opportunities they're again, front we're us different in to sports aviation geographies, on particular, centers. even us tells And is convention the or in so than quarter. have year continuing in focused last of and were are greater what But ago a and different. they that success just

to opportunities construction the were are management for be markets. different and they in the than they're So I different go geographies aggregate past. as as And said, going we just forward, actually greater in again, in

bridge we're about that, the bit mean, then refresh plus a and I working helpful? just margin for very kind there's XX% There's target. the building enterprise it'd Troy understanding XX% helpful. Thanks real build, a XX% of most switching thought centers, margins, plus significant helpful get talking on new segment from to that blocks, of the level the contributors to And no over capability way the to the be to to strategy. be the of estate just bridge would I

question pass thanks to the it Yeah, in I'll on over for fact, Sean, Gaurav.

for the you? that how markets platform the is, achieving which a in what by is growth What best morning, the focused has the important where years us. creating great on years we last good over built edge. talent over collaborated little XX%, so dominate done strategy, a Hey, that global what those to bringing we thought are And best have Sean, a thinking lines, matters to it's the want markets. ago. achievement. business winning I opportunities three team because to tagline. But the It's key like in question. and we're mean it's it what have our sounds three about especially we whole a on if expectations, reason The is talk It's this, bit we last main competitive years towards ahead three Good a of

the As It's we facets the Troy go just a win in in articulated, business. experienced have improvement there. seven all continuous on now a more on culture fantastic for cost rates having to there's row. of quarters And

three program As resources And you successfully the centers productivity And platform, is years, and opportunities on Troy workload, strategy, advisory, of focused digital. scratching you surface. abundant. real and capability those pointed for our out globe Digital the looking our initiated more the few across in cost the our we're then just this the something support structure. things, have very our share and estate, Lara and including combine with last most efficient how we on at that a delivery are is management business over functions

December. You put a of lot a gives we're our look just forward each out unachievable of XX% that ambitious building us detailed few XX% all one during of those confidence together, laying people it was Day to years of go pillars in thought our from to to now blocks going those the Investor and discussed targets what I

Again, Thanks, there. Gaurav. really turn I'll helpful. over it

you. Thank

Our with next question Andy Wittmann Baird. of comes from the line

open. Your line is

I Okay, the FX probably $X is interesting. historical the taking like and good of morning, guess But of forgot, Thanks everyone. EPS for on at hey, historical my XX comments adjusted you said, I rates or north so $X guess, just running question. I interest that assumes, factors.

us and could and means year end just Analyst want your Day? to level help Gaurav understand I into the today's all just what you today's kind down boils as it in what to of So FX, we head interest that for

things continues, first you all, path you I'm of again, exceed just operational question can that out we back is Troy. to we're performance a And our Andy, release financial set we gets exceeded earnings XXXX, performance. that said, that, Because to backlog can of we Gaurav our going is on that and we've and high. we in growth that. have talk answering been NSR the world set we as this performing for I I certain all-time separate said, on improving control, control business importantly, we building across by and it's based and bar and opportunity grow. that as Gaurav. that as in And a organic that certain sort an about certainly out I the most the continuing to surprise into out and to our of Yeah, terms margins we of to performance. And think behind But and in pipeline guess, that we pointed control. to pointed can’t our things an what instead

exceed our look with and we on to at control. that margin that XX%, things we can and certainly to when target, that, expect get overtime we're about optimistic combine then where So to is we those new continuing

have as things can't look believe exchange, have of performance growing over against below certainly and that those going are us stabilized. point year. significant things they that be of and accurate we are as simply stabilized some industry. control foreign we they have and out, gone prediction in rate, our can't been But it's are the as headwinds interest this operating that believe And terms certainly our those have we the course you in most but that not impact, the line. And this we the to two there we Again, that those belief past forward, be future really do as they significant and they're items

I'm guidance XXXX. not sort at here's And say, what again, our is point ready of for this to so

is do it right the that overall believe to do do targets, at say will in But we give exists in XXXX, earnings. and process November, we're this. I in foreign we that exchange those incorporate in so interest We guide and planning middle all we And for time. our growth it's our a will long-term can of when significant our our of point in that have us will in premature terms that,

in check rates your the find your you're guess, makes I wanted and number that the ability and that people Okay, growth here. utilization fill right the right follow to I my to for delivering just up, on to sense. just

are in AECOM’s seeing little wondering, overall been all what we've it's the bit been sorts, last has front, I of well XX you days are labor terms the you're cost last industry. rates you as projects just the the has labor for knowledge been technical that that labor labor the to years, turnover on scarce couple that of the of more of what executing as including a some stabilization was seen common today? But higher in greater force XXX the in in Over experience and of seeing

Andy, good our obviously our most growth obviously, a for input that's our Yeah, great the clients. our because important in perform what fuels ability people. to our is question, to is And business really work really continue

in And going of terms deal so people to our I'm just with it respects. in two

just we've course all, this and actually to our to people. grown of of in by grows headcount faster terms rate add over in First adding hiring business overall retention, force at the the been past though limited significantly a able Even rate, the we've a of labor the only year.

that, And then where of place. a productivity, to improved productivity to over comfortable, I always trying are. that wouldn't it very the course Lara look can don't that turnover where frankly, and decline improve sort let we the question. even turn -- at And, productivity. I doing last in we're things also, certainly to significant of industry And we we at continue whole point should has in part of in a gone say But turnover and over down lower we're say good see we're with the set benchmarks in at lot terms where the I and terms from to answer be And that to to expectations significantly, we we last there that a of that. a healthy business, we are six why are Our we're just year, question in -- what the below a wouldn't looks months. you're and like. want the of we're where go drive point respect about

on year-on-year, Yeah. centers Andy, we're part XX% just quarter, other going our proposition. strategy to our be building our employee said, volumes leverage key to this laser just capability continuous and improvement continuing Troy continue it's And just so enterprise our productivity of key on the were and strategy. this part labor value a is to just what focused of up with

exceeding benefits the work just X% So above training -- runs know per that are own feeling well we're and believe industry done we on in we really annum. industry being about paths, lot our -- growth typically the fitting that so and about that pretty a in standards of turnover investment leading in we've headcount where the which voluntary industry, expectations good sector at career the an

when So, a of to picture of terms all you most consider retain pretty continue to it's and those productivity attract ability talent. top and things, the and in importantly grow positive

very much. thank you Great,

Andy. Thanks,

of question comes next Your with Fisher line from the Steven UBS.

open. Your line is

Thanks, good morning.

So it's hit nice double-digit organic to see the XX% that rate. growth rate

that consistent QX, I'm XX% Just slight bit the at year implied curious that to on anything potential double-digit about full if a what's QX it's I be organic in looking related then, that though in growth see XXXX, but the growth kind X% from of XXXX rate, of particular? you you've in would with little assumption, think, of into this, reacceleration, think a slowdown, driving metric? a kind And for do of talked that so I

our to going for become of line brutally conservative. a use in terms famous which has I'm we Andy, simply Gaurav guidance, remain still just that So is

frankly, again, While we've in quarters, for still over we've growth growth right we seen you're than a set growth the across business And organic years expectation XX% the out, accelerated and more point approach. the right well, that's decade. organic that for to is time the double-digit think year first our had that and than more we the for the an X%

a it milestone is for So us.

that, the to again, profitable. As number. not we're top balance just there's because X% make grow we but always look line more forward, growth priority to we our business the to do grow it But to see it's revenue an make have opportunity accelerated looking sure that and it's to our, the off

pipeline based opportunities, business to the frankly, clearly in beyond those in make that making a are and an means we're we're balancing that that going makes to going accelerate growth there's we always we're believe the in we're wins on maintaining, investments So in to rate. at X% And structure that opportunity to But the profitability future. be grow our that sure business. faster a actually important -- that cost the

progression, us helpful. Okay, you if has while, with your roadbuilding down, moderating cover I from some is a progression can disruptive where now that's what's all things, another infrastructure what been some side little inflation of things on it and, seeing we spending? for And of been that on of you're an I'm we transportation particularly company customers. that give has project doing quarter the of sort it's update of slowing impact pace kind impact to of heard the infrastructure, know the on just steadied of maybe very it on inflation the of kind rumblings this been curious inflation the

Yeah.

we or obviously Steve, have the impact few have been seen planned that an budgets, years ago. And a So on that the has impact. actually inflation, ambitions existed

has costs So has But an had of seen that increased. stabilize. the it impact, delivering the certainly see, projects actually infrastructure cost we've as to started to those thing begin other we

again, us, to period that our a the time. they But while rise so front over period costs as the stabilized. in seem of of most interesting pipeline continue terms in what's grow time, seen over is, did have of we've of And to opportunities

this of I expenditure. And the was into market is the come that mentioned we're year that billion I here place the IIJA the into So Corridor in a Bridge quarter. just has example see money a to Spence significant. we're to the been in today get of projects. And deployed planned the What Brent for fact $X.X lot And project marketplace. the just is great there that's seeing that starting a coming starting that's the is That a money project that's in IIJA U.S. think actually that funding put exists

an a well, seen So impact. inflation has stabilize, impacting growing this see don't it but point future. than had We've Pipeline we at backlog. really for faster pipeline still our the rate the is it at

Okay, thank much. you very

Thanks.

Kaplowitz the Your Andy with next from the of question comes line Citi.

Your line is open.

everyone. morning, good Hey

morning. Good

Troy, be continue international question the margin So might digits. double at or rise, to basically Gaurav, for Lara,

materially sort above in XX% international that efficient I mid-teens there you you clarity are days? think making have but, and said mean process gone it's your be does gotten low could what these you've to of As you it where it go, on around of a more see where more to

that and our to it question. ourselves we very are team. double-digit. set to get Hey, Andy, And It earlier to a again testament and that laid this clear had Thanks fantastic is out. objectives again than a for It forward, wasn't It was for we unchanged. achieving Gaurav. our expectations milestone we move as the

to for much Day clearly December, there laid point margins, expanding and ambitious as will delivered Investor That's head the that of our out. provide us we having international see have we in be a us will well. is And we achieve objective lot the to process and margin XX% Our we earlier, that more for there But today, detail. we XXXX we're clarity planning have competitors. overall shoulders will opportunity middle above targets help we're and which we here what international FY targeting in Americas, Troy’s of sit as for our what is in our

very see, for And like international Middle recently. obviously of then Lara, it, been here, of East that drivers Got you helpful. the the has maybe pretty the some strong longevity

tend does to or it faster. maybe cycle Sometimes be cyclical

your of cycle a clarity see as in international your do sort markets So bigger maybe more markets? elongated in you more and this

the Yeah, thanks for question, Andy.

comparte our grow also strategy, you comprised it's program Americas. by typified projects, burn of to healthy of long-term that are across wins. Middle increasingly say those East. management very in much segment, book the lot the the just in the But -- obviously, For a to but all more X.X, And for not those international international as

think is longer-term key contracts us certainty of the management and in that more much give more pipeline, about much much terms of long-term visibility getting So more program the outlook. strategy longer-term for that I

As a we intend very key growing management part set business, that in of the to terms growth our grow and we at double-digits. of it program is which at the rate targets ambitious

track So with there. we're on our aspiration

color. Appreciate the

next Your with RBC the comes Sabahat Capital from question line Khan of Markets.

is line Your open.

maybe just I curious, talked just you bit good seeing have global where end others, money? the the some the color the then And you the across the IIJA a end a footprint, IIJA talk doing you various give Great, any I'm about environment the end can when maybe you're as broader turning? better kind markets some of maybe can about some of if funding, think thanks, and have around, of of of might morning. question, any than markets you that may be curious Thanks. markets macro just in look be moderated, little accelerated,

thanks, Saba. Sure,

opportunities. There's not a just also I there's again, deployment out So all will Act, money, have get marketplace period that increased first around for across that the Act, Inflation diversely and opportunities there come that some very right. fact to the across are all number then things roads, But There alternative transportation the be of it of those seeing enough have seeing significant into the time. amount Reduction transits, Chips other U.S. will and across water transportation impacts programs and either in business. the there energy in money, see just not market the also opportunities. those, funding long the undertaking of caused states of a U.S. is nevertheless, in are business, point there's in ambitious IIJA water IIJA and the a address There of are too I and Again, of And are rail a of our a be of funding really we funding much lot all, the of deployment we or regions it so water the and there's energy. significant we're also that the will that water the lot you

script themes the even the her many in be it in And funding that And are money hydrogen, to the seeing again most technologies is areas energy. earlier for themes now the of store and significant deploy in our going think that see mentioned about impact years. I transmission. But and we're Lara here those As U.S. those in to new we

around But China. a example, globe, places for a they're are few all of seeing in that. to strength. like actually exceptions few When major we markets, are still in There we the our go

in not strength again, it China. China And than I us, not our have represents of that actually we're exposure that it's market seen the means is X.X% We that again, less a large And of reaction to And that revenue what think long run. shrinking ultimately, in we've decreasing for to doing, the business. business. our been

a market. material us of see habit, to very see we see, very significant significant But we positive infrastructure we indications again, and certainly the slowdown not in rest that So but do funding. funding still positive it's of world, the

able their we constraints clients bring mark originally and of and have the frankly, seen quickly awards is to to constraint of their been had markets in the anticipated. just contracts our as being they One market that their as

where had than that longer us so, the the And clients of isn't fact a our organic only for started again, to little wins, growth. say that lot XX% in markets, we it's but down we had bit taken expected, had a thing our will really have given I we is expected, the moment, slowing get

what the one be say Great, to out we're to and I next next this will will Thanks. not look you I years, rollout a little then ending quick, the of the fiscal curious year, guess, would of up the follow XXXX year, you when funding over do IIJA over as out you up think in showing that in bit of is back where the the look just but about push funding the year? you and kind just few on we guess guidance obviously, be half next

accelerating said, this and point funds think year. but see is all peaking the peaking the significant through said from XXXX or at I those a deployments XXXX even before, then XXXX, other XXXX. we or in time. IIJA, perhaps IIJA and funds maybe that that actually to as IIJA we continue in I instruments may And not I money see we funds see next XXXX deployment available, but have of is growing amount the that again, the just funding and that's growing in There

much. Thanks so

Sabahat. Thanks

Your next Research. with Michael Dudas Vertical question comes from the line of

line Your Vertical open. is Research. Michael Dudas with

Your line open. is

you. morning, Troy, Thank Gaurav, Lara, Good Will.

the comments. up with following some Just of

pace, overall First, AECOM? pace the some that to you secondly, Canada, contributor projects, prepared the major bit the we couple little remarks did call mix or has in Middle years? what your of been how over as the Neons better the internationally, world East of there And a see digestion think the and appears be so maybe to that you areas a out to they for see you yellow move slowdown of accelerate like of next just still as in want are of on

the part, the I question. the East will turn for Yeah, second to of then take Mike, over will thanks the part Middle And first Lara. and I

this major have in been a transportation a has But year, And again, water, Canada urban to in U.S. similar been is go seeing back energy. then and that it's infrastructure. with around upped those we're of then environment infrastructure. of there always in if the seeing funding of we and investing it for transit. always here we're in And provinces federally it the to number lot years, in It's seeing funding So actually of also investing for robust they've on number their items. and respect around what markets, we're there's -- the water, and investment, re Canada, a focused Certainly, ambitions a past sort very

investments in significant energy Just and transmission. in transition

our we're from the seeing as and here are in themes U.S. really the describes same, that Canada. our business the in So perspective,

We energy transportation, water, Canada. in are and a business

our So Canadian it lines up business. really for well

the great Canada. amount of in So optimism for a future

Troy, in are infrastructure aligns and could very if I number Canada. perfectly globally. also, largest to our just transit one of again continue we play well, most the some with respect add ambitious in with The this position Canada, world's to to transit be going projects programs

our remediation that Canada, the some a our expertise scale the is have that lot of and to Canadian be environmental and in bringing markets. again very we're the of And leading franchise, very leading not technical Canadian business outlook to we skills dimension the So continues projects the bringing of those from and in transit just large global another that but bear fantastic resources, Canadian programs, growth to that the also outlook environmental strong. we're

in limited out shovel Neon Neon. had And but But comprehensive in some now of newer as of programs, some pretty presence major to and presence, our long-term our longer a the project key involvement on East like we ambitious well. We've the some realization Mike about Neon question outlook, [indiscernible] Middle we're bookings optimistic the around about of such these just programs ready. Riyadh aren't your that in and and construction, with as Jeddah, East strategy also probably in many respect and will the the cities, to And as of very programs. very our of and term be and Middle you specifically know, timeframes the all the

and in markets. since much play, Arabia these as said, growing this and technical we've set the long of positioned broader in the all well of global Saudi And across we're particularly are a programs capabilities bringing been bear programs there beginning. decade a we've long-term. in it's to the fastly we're So And our on strengths

Thank and you Troy Lara.

Thank you.

next question Thalhimer Adam comes of & line from the with Your Thompson Davis Co.

line Your open. is

guys. morning, good Hey,

process with higher at rate environment. on Does First I capital allocation. or specifically your buybacks? all, thought question we are that that a in calculations change know

Yeah, Adam. doesn't. really It

it opportunities. clearly us. we rising capital has to Our with about interest sometimes but the That shareholders, still the highest the opportunity forget the deploy opportunity I going first returning that for capital highest rates the our in world. think the allocation capital then policies always to highest organic is headline priority Again, that beyond next obviously that, again, when we still this unchanged. is, returning is business And we're growth. returning even to remains it's remains at look returning And

invest growth, I look? offices, your say you opportunities more that you backlog opening the even greater, new how when are Okay, you does are with in said hiring mean people, and growing

something overall of say that respect work. our invest real in I you we're have the more is places, is for not real estate as for to just certain significant us. become of Obviously, answer lot continue the part new investment. you with that to would investment That's have people in that's not to for offices. business we to a create efficient capacity strategy a Well, to create, grows not estate. opening But to

development. However, terms significant in making in business the we growing investments are business, of

our similar rates, fact, span remains at year's In this elevated business to past development year.

also development And so margins technologies to at XX%, over rates many an going and while development. front more business get invest investments growth, to when business, capability in, our our work our enterprise we've productive. we're continue in in organic as in and our so elevated centers, But we our to and and to people, it's while that investing investing elevated opportunities I the we've we're us, is ability, investing things able got important, developing of to have grow in way so deliver been investing the business other which say because program to that advisory investing grow in management we in technical continuing become business, investing that can our transform

what that's be so I organic those And mean things. by money all of investment in It's growth.

more lastly, one we in than We Okay, sorry sneak to in. sense. past. water the And about that more have talked makes today

size help you where the can forthcoming water if opportunity markets curious Just historically? been that versus

of think government Well, all United from federal states. there to tendency been have States. in but it, is water, when focused a also about the has certainly water lot expanding water on a the I about But the that talk we we funding it across think again,

been trend where is to causing over it water And, probably situations too very based. has it's that the situations And the few so I fact first and is The last way along state biggest and really impact this broad is, have best years. mean, and we and have much don't accelerated you water. along look it's the describe you it's too where we have governments in And -- investment the enough along -- we probably concern And look the the shortage. East U.S. the Coast, drought water. and biggest is certainly it's water the local look U.S. the and you and Southwest, on Again, to frankly water. and their Gulf Coast, city focus much

those of on very because across end rest the And significant investment. the a projects doesn't put is there, and the world we funding starting And see just more But it so world. to world around are of focus experiencing same water trends. being the goes it the focus just there's and

our perspective, from -- long a that's say great opportunity. growing I'd a is term, fast again, So that

Troy. Thanks,

you. Thank

I'll no Troy to closing further are turn for the remarks. There back Rudd questions. call

consistent to long-term things very have our continue And Great, by us shareholder And It's I start success proud thanking and this to performance. teams and for and sustained over our really of and again, well thank of really continued team create year. our I'm great position strong tremendous clients past to do you will course the operator. their value. just the great hard work quarter for

and quarter. thank forward talking look time to today to we again, So for next you you your

concludes This conference today's call.

disconnect. now may You