AECOM (ACM) Q3 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 8, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the AECOM Third Quarter 2023 Conference Call. I would like to inform all participants this call is being recorded at the request of AECOM. This broadcast is the copyrighted property of AECOM. Any rebroadcast of this information in whole or part without the prior written permission of AECOM is prohibited. As a reminder AECOM is also simulcasting this presentation with slides at the investor section at www.aecom.com. Later we will conduct a question-and-answer session. [Operator Instructions]. I would like to turn the call over to Will Gabrielski, Senior Vice President, Finance, Treasury and Investor Relations.

William Gabrielski

Thank you, operator. I would like to direct your attention to the Safe Harbor Statement on Page 1 of today's presentation. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including those described in our periodic reports filed with the SEC. Except as law requires, we undertake no obligation to update our forward-looking statements.

We use certain non-GAAP financial measures in our presentation. The appropriate GAAP reconciliations are incorporated into our materials, which are posted to our website. Any references to segment margins or segment adjusted operating margins will reflect the performance for the Americas and International segments. When discussing revenue and revenue growth, we will refer to net service revenue, or NSR, which is defined as revenue excluding pass-through revenue. NSR and backlog growth rates are presented on a constant currency basis.

Unless otherwise noted today’s discussion of key performance indicator will focus on the continuing operations, and will exclude AECOM Capital which reported as non-core given the company’s intent to transition the business. On today's call, Troy Rudd, our Chief Executive Officer, will review our key accomplishments, our strategy, and outlook for the business. Lara Poloni, our President, will discuss the key operational successes and priorities. And Gaurav Kapoor, our Chief Financial Officer, will review our financial performance and outlook in greater detail. We will conclude with a question-and-answer session. With that, I will turn the call over to Troy. Troy.

Troy Rudd

Thank you Will and thank you all for joining us today. The strength and consistency of our results are a testament to the competitive advantage we have built through our think and act globally strategy, which has enabled the strong collaboration of our 50,000 technical experts, and they focus on winning what matters to expand the long-term earnings power of the company. I'm pleased to say that our leadership was again recognized by ENR in its recent annual survey. In addition to our top rankings in transportation and facilities design and environmental design, we overtook the top spot in mass transit, chemical remediation, and environmental consulting. Our focus on organic growth and our program management business also resulted in us moving up the rankings, displacing strong competitors, and we expect this trend to continue. These market share gains are especially notable as they're driven by high margin organic growth, which is in contrast to our peer group that remains highly acquisitive. I want to thank our teams for their commitment to our success and congratulate them on these remarkable achievements.