AECOM(ACM) - 2025 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended March 31, 2025, was $3,771.6 million, a decrease of$172.3 million or 4.4% compared to $3,943.9 million for the same period in 2024[142] - Revenue for the three months ended March 31, 2025 decreased by$172.3 million, or 4.4%, to $3,771.6 million compared to$3,943.9 million for the same period last year[144] - Pass-through revenues for the three months ended March 31, 2025 were $1.9 billion, representing 50$2.1 billion and 54% in the same period last year[146] - Revenue for the Americas segment decreased by $141.9 million, or 4.7$2,896.7 million for the three months ended March 31, 2025, compared to $3,038.6 million for the same period last year[168] - Revenue for the International segment decreased by$30.0 million, or 3.3%, to $874.8 million for the three months ended March 31, 2025, compared to$904.8 million for the same period last year[176] - Revenue for the Americas segment for the six months ended March 31, 2025 decreased by $68.6 million, or 1.1$6,008.7 million compared to $6,077.3 million for the same period last year[169] Profitability - Gross profit increased by$29.7 million or 11.4% to $290.8 million for the three months ended March 31, 2025, compared to$261.1 million for the same period in 2024[142] - Gross profit for the three months ended March 31, 2025 increased by $29.7 million, or 11.4$290.8 million, with gross profit as a percentage of revenue rising to 7.7% from 6.6%[149] - Income from operations for the three months ended March 31, 2025, was $257.6 million, an increase of$57.1 million or 28.5% compared to $200.5 million for the same period in 2024[142] - Net income attributable to AECOM from continuing operations for the three months ended March 31, 2025, was$154.0 million, an increase of $42.7 million or 38.4$111.3 million for the same period in 2024[142] - Net income attributable to AECOM for the six months ended March 31, 2025, was $129.9 million[223] Expenses and Costs - Cost of revenue for the three months ended March 31, 2025 decreased by$202.0 million, or 5.5%, to $3,480.8 million compared to$3,682.8 million for the same period last year[147] - General and administrative expenses decreased by $4.7 million or 10.5$40.0 million for the three months ended March 31, 2025, compared to $44.7 million for the same period in 2024[142] - Interest expense decreased by$5.4 million or 11.3% to $42.3 million for the three months ended March 31, 2025, compared to$47.7 million for the same period in 2024[142] - Income tax expense for the three months ended March 31, 2025 was $51.2 million, an increase from$45.4 million in the corresponding period last year, primarily due to an increase in pre-tax income[161] Discontinued Operations - The company reported a net loss from discontinued operations of $10.3 million for the three months ended March 31, 2025, a decrease of$99.1 million or 90.6% compared to a net loss of $109.4 million for the same period in 2024[142] - Net loss from discontinued operations for the three months ended March 31, 2025 was$10.3 million, a decrease of $99.1 million from$109.4 million for the same period last year[164] Joint Ventures - The company’s equity in earnings of joint ventures decreased by $12.7 million or 65.1$6.8 million for the three months ended March 31, 2025, compared to $19.5 million for the same period in 2024[142] - The company reported a loss of$2.1 million in equity earnings from joint ventures for the three months ended March 31, 2025, a decrease of $11.8 million compared to the previous year[183] Cash Flow and Working Capital - Net cash provided by operating activities increased to$341.7 million for the six months ended March 31, 2025, compared to $237.4 million for the same period in 2024, driven by a net income increase of approximately$214.1 million[188] - Net cash used in investing activities decreased to $86.0 million for the six months ended March 31, 2025, from$121.9 million in the same period of 2024[189] - Net cash used in financing activities increased to $236.4 million for the six months ended March 31, 2025, compared to$188.4 million for the same period in 2024, primarily due to a $24.4 million increase in stock repurchases[190] - Working capital increased by$113.6 million, or 14.2%, to $915.6 million at March 31, 2025, from$802.0 million at September 30, 2024[191] Debt and Interest Rates - Total debt as of March 31, 2025, was $2,546.9 million, slightly up from$2,539.8 million at September 30, 2024[195] - The average effective interest rate on total debt decreased to 5.1% for the six months ended March 31, 2025, from 5.5% for the same period in 2024[210] - If short-term floating interest rates had increased by 1.00%, interest expense for the six months ended March 31, 2025, would have increased by $4.8 million[229] Stock Repurchase and Authorizations - The company had approximately$899.2 million remaining of the Board's stock repurchase authorization as of March 31, 2025, following an increase in the authorization to $1.0 billion on November 14, 2024[138] Restructuring and Future Outlook - The company expects to spend approximately$45 million for restructuring costs in fiscal 2025, aimed at delivering continued margin improvement and efficiencies[185] - The company anticipates seasonal trends, with typically higher revenue in the last half of the fiscal year, particularly in the fourth quarter[184] Pension Plans - As of March 31, 2025, the defined benefit pension plans had an aggregate deficit of approximately $112.1 million[215] - For the year ended September 30, 2024, contributions to multiemployer pension plans amounted to$2.5 million[215] Assets and Equity - Current assets increased to $3,491.6 million as of March 31, 2025, compared to$3,405.2 million as of September 30, 2024[221] - Total liabilities decreased to $5,750.1 million as of March 31, 2025, from$5,831.1 million as of September 30, 2024[221] - Total stockholders' equity increased to $699.8 million as of March 31, 2025, compared to$607.7 million as of September 30, 2024[221]