10-Q - AECOM (0000868857) (Filer)

Tue, May 6, 8:26 PM (12 days ago)

**AECOM (ACM) Q1 2025 Financial Performance Summary** **Revenue and Profit Margins:** - Q1 2025 revenue was $3,771.6 million, down 4.4% YoY. - Gross profit increased by 11.4% YoY to $290.8 million. - Net income attributable to AECOM was $143.4 million, up from $1.0 million in Q1 2024. - Operating income increased by 28.5% YoY to $257.6 million. **Cash Flow:** - Net cash provided by operating activities was $341.7 million, up from $237.4 million in Q1 2024. - Net cash used in investing activities was $86.0 million, down from $121.9 million in Q1 2024. - Net cash used in financing activities was $236.4 million, up from $188.4 million in Q1 2024. **Earnings Changes:** - Basic earnings per share (EPS) was $1.08, up from $0.01 in Q1 2024. - Diluted EPS was $1.08, up from $0.01 in Q1 2024. **Quarterly Performance Discussion:** - Revenue decline was primarily due to a decrease in pass-through revenues. - Gross profit improvement was driven by restructuring actions, growth in advisory services, and continuous improvement initiatives. - Operating income growth was driven by increased gross profit and controlled general and administrative expenses. **Trends and Uncertainties:** - Seasonal trends indicate higher revenue in the last half of the fiscal year. - The company faces risks related to economic downturns, government contract uncertainties, and regulatory compliance. - The company is exposed to foreign currency exchange rate fluctuations and interest rate risks. **Future Operations Impact:** - The company plans to deploy future available cash towards dividends and stock repurchases. - The company is evaluating new accounting guidance and its impact on financial statement presentation. - The company is focused on improving profitability and maintaining a reduced risk profile. **Segment Performance:** - Americas: Revenue decreased by 4.7% YoY, but gross profit increased by 15.2% YoY. - International: Revenue decreased by 3.3% YoY, but gross profit increased by 2.6% YoY. - AECOM Capital: Revenue was negligible, but equity in earnings of joint ventures decreased significantly. **Debt and Liquidity:** - Total debt was $2,546.9 million, with $1,495.6 million available under the revolving credit facility. - The company is in compliance with the covenants of the Credit Agreement. **Forward-Looking Statements:** - The company's forward-looking statements are subject to risks and uncertainties, including economic downturns, government contract uncertainties, and regulatory compliance. - The company's ability to achieve its objectives and plans is subject to various factors, risks, and uncertainties.