AECOM — Feb 3, 2025 release

“We are seeing positive proof points that reinforce our investment in our new Water and Environment Advisory business. We have already made several key hires, and as the number one water, environment, facilities and transportation firm as ranked by ENR, we are confident that we will achieve our goal of doubling the $200 million of net service revenue in this business over the next three years.”   “We are off to a strong start in fiscal 2025 with first quarter results that exceeded our expectations,” said Gaurav Kapoor, AECOM’s chief financial and operations officer. “This includes accelerating NSR growth, record first quarter margins and double-digit adjusted EPS growth. As we look ahead, continued expected growth and the high return on our strategic investments underpin our confidence in delivering a 17% margin exit rate by the end of fiscal 2026 and even higher margins over time. Importantly, our balance sheet remains strong and we delivered a 28% increase in free cash flow, which supported continued returns of capital to our shareholders under our returns-based capital allocation policy.”   1       First Quarter Highlights   · Revenue increased by 3%; net service revenue 2 increased by 5.5%, highlighted by 9% growth in the Americas design business. · Operating income increased by 46%; the segment adjusted 1 operating margin 3 increased by 40 basis points to 15.4% and the adjusted 1 EBITDA margin 5 increased by 20 basis points to 15.6%, both of which set firs