Company Reports

Aecom reported solid fiscal second-quarter results, as its adjusted EPS improved by 13% from the prior-year period. While nothing in the no-moat firm's earnings release materially alters our long-term outlook, we've bumped up our fair value estimate to $90 from $89 due to time value of money. We view the name as fairly valued at current levels.

In recent years, Aecom has transformed its portfolio and focused on expanding its professional services business. It exited several business lines including fixed-price combined-cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. In January 2020, Aecom completed the sale of its management services business. We view this transformation favorably, as we believe that the strategic shift has resulted in a less volatile and more profitable portfolio.

In recent years, Aecom has transformed its portfolio and focused on expanding its professional services business. It exited several business lines including fixed-price combined-cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. In January 2020, Aecom completed the sale of its management services business. We view this transformation favorably, as we believe that the strategic shift has resulted in a less volatile and more profitable portfolio.

Aecom reported solid fiscal first-quarter fiscal 2024 results, featuring a 25% year-over-year increase in adjusted EPS, from $0.84 to $1.05. We’ve modestly raised our fair value estimate to $89 from $88, mostly due to the time value of money. We see shares as fairly valued at current levels.

In recent years, Aecom has transformed its portfolio and focused on expanding its professional services business. It exited several business lines including fixed-price combined-cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. In January 2020, Aecom completed the sale of its management services business. We view this transformation favorably, as we believe that the strategic shift has resulted in a less volatile and more profitable portfolio.

After Aecom’s 2023 investor day, we’ve raised our fair value estimate to $88 per share from $87, mostly due to our slightly more optimistic midcycle operating margin assumptions. The company reiterated its fiscal 2024 guidance for adjusted earnings per share of $4.35-$4.55 and adjusted EBITDA of $1,065 million-$1,105 million.

Aecom posted solid fiscal fourth-quarter results, as its adjusted EPS of $1.01 beat our estimate by $0.06. After rolling our model forward one year, we’ve raised our fair value estimate to $87 from $85, which reflects our slightly higher operating margin assumptions as well as time value of money.

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm exited several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably, as we believe that the strategic shift has resulted in a less volatile and more profitable portfolio.

Aecom grew its fiscal third-quarter adjusted EPS by 12% year over year on a constant currency basis. While nothing in Aecom’s earnings release materially alters our long-term outlook for the firm, we’ve increased our fair value estimate to $85 from $84, mostly due to time value of money. We view the name as fairly valued at current levels.

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm is in the process of exiting several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably and believe that the strategic shift will result in a less volatile and more profitable portfolio.

Aecom delivered solid fiscal second-quarter results, featuring an 11% year-over-year increase in adjusted EPS, from $0.83 to $0.92. We’ve increased our fair value estimate to $84 from $82, which reflects our slightly more optimistic revenue growth projections as well as time value of money.

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm is in the process of exiting several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably and believe that the strategic shift will result in a less volatile and more profitable portfolio.

Aecom posted solid fiscal first-quarter earnings, as its adjusted EBITDA of $224 million increased by 8% from the same period last year. We’ve increased our fair value estimate for Aecom to $82 from $77, driven by our slightly more optimistic revenue growth and operating margin projections as well as time value of money.

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm is in the process of exiting several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably and believe that the strategic shift will result in a less volatile and more profitable portfolio.

Aecom closed out its fiscal 2022 in strong fashion, as its fiscal fourth-quarter adjusted EPS of $0.89 came in $0.04 above our expectations. After rolling our model forward one year, we’ve increased our fair value estimate for Aecom to $77 from $74, which reflects a more robust revenue growth and operating margin outlook as well as time value of money.

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm is in the process of exiting several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably and believe that the strategic shift will result in a less volatile and more profitable portfolio.

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm is in the process of exiting several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably and believe that the strategic shift will result in a less volatile and more profitable portfolio.

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm is in the process of exiting several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably and believe that the strategic shift will result in a less volatile and more profitable portfolio.

Aecom delivered solid fiscal third-quarter results, with adjusted EPS of $0.86 up 18% from the prior-year period. We’ve modestly bumped up our fair value estimate to $74 from $73, mostly due to time value of money, and we see shares as appropriately valued at current levels.

While nothing in Aecom’s fiscal second-quarter earnings release materially alters our long-term outlook for the firm, we’ve increased our fair value estimate to $73 from $71, mostly due to time value of money. Aecom increased its adjusted EPS by 24% year over year, from $0.67 to $0.83. Reported EPS of $0.34 included a roughly $69 million pretax expense related to the firm’s decision to exit its operations in Russia. The company expects the cash impact from the exit to be around $10 million.