AECOM reiterates long-term financial forecast at 2019 Investor Day

AECOM (NYSE:ACM), a premier, fully integrated global infrastructure firm, will hold its Investor Day in New York City today, at which the Company is reiterating its long-term financial targets through fiscal 2022. This positive outlook reflects a strong foundation for growth exiting fiscal 2018, including a record backlog and end market and business development momentum. In addition, the Company’s outlook is benefitting from recently-announced strategic actions, including a substantial $225 million reduction in G&A and ongoing efforts to prioritize investments to higher-margin and lower-risk opportunities.

Accordingly, AECOM’s long-term financial forecast includes the following growth targets:

				(FY’18 – FY’22 CAGR)
Organic Revenue Growth1				5%+
Adjusted EBITDA2				9%+
Adjusted EPS2				12% – 15%
Cumulative Free Cash Flow3				$3.5+ billion

The increase in the adjusted EBITDA CAGR to 9% from the prior 7% target incorporates the expected 12% adjusted EBITDA growth at the mid-point of the Company’s fiscal 2019 guidance. As a result, the Company is positioned to achieve fiscal 2022 adjusted EBITDA of approximately $1.2 billion, which is consistent with the target set in fiscal 2018.

“We exited 2018 with substantial momentum, including revenue of more than $20 billion, record wins of more than $28 billion, and a record backlog of more than $54 billion, which gives us great confidence in the trajectory of our business and in achieving our financial targets,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “In addition, the strategic actions we are taking to capitalize on our record backlog position us to maximize shareholder value by deploying substantially all free cash flow to share repurchases under our existing $1 billion Board authorization.”