AECOM (ACM): history, ownership, mission, how it works & makes money

A Brief History of AECOM

Company Overview

AECOM, a premier infrastructure and environmental services firm, has established itself as a leader in delivering solutions for infrastructure development, environmental remediation, and construction management. As of 2024, AECOM operates across multiple sectors, including transportation, water, and energy.

Financial Performance

For the nine months ended June 30, 2024, AECOM reported total revenue of $11.995 billion, an increase of 13.8% compared to $10.536 billion in the same period of the previous year. The revenue growth was driven by strong demand across its segments, particularly in the Americas.

Cost Structure

The cost of revenue for the nine months ended June 30, 2024, amounted to $11.205 billion, resulting in a gross profit margin of 6.6%. This is consistent with the gross profit margin from the same period in 2023.

Debt and Capital Structure

As of June 30, 2024, AECOM's total debt was reported at $2.542 billion, with long-term debt accounting for $2.452 billion. The company has a robust working capital position, which increased to $829 million, reflecting a significant improvement from $319 million at the end of September 2023.

Cash Flow Analysis

AECOM generated $528.7 million from operating activities for the nine months ended June 30, 2024, up from $410.8 million in the previous year. This increase was primarily attributed to improved net income and better working capital management.

Recent Developments

The company has been actively restructuring its operations to enhance profitability and streamline costs. Restructuring expenses totaled $80.7 million for the nine months ending June 30, 2024, reflecting ongoing efforts to reposition its business strategies.

Market Position

AECOM remains a key player in the global infrastructure market, with a significant backlog of projects valued at approximately $20.7 billion as of June 30, 2024. The majority of this backlog is expected to be recognized as revenue within the next twelve months.

Conclusion

As of 2024, AECOM is well-positioned for continued growth, supported by a strong financial foundation, strategic restructuring initiatives, and a healthy project pipeline.

A Who Owns AECOM (ACM)

Ownership Structure

As of 2024, AECOM (NYSE: ACM) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders include:

Major Institutional Shareholders

The major institutional shareholders of AECOM as of 2024 include:

Insider Ownership

Insider ownership at AECOM is relatively low, with key executives and board members holding a combined total of approximately:

Recent Share Performance

AECOM's stock performance has shown resilience in the market. As of June 30, 2024, the stock price was:

Stock Performance Metrics

Key stock performance metrics for AECOM as of June 30, 2024 include:

Recent Financial Highlights

For the nine months ended June 30, 2024, AECOM reported:

Conclusion on Ownership Trends

Ownership trends indicate a strong institutional presence, reflecting confidence in AECOM's strategic direction and financial health. The company is well-positioned to leverage its market opportunities as it navigates through ongoing infrastructure and sustainability projects.

AECOM (ACM) Mission Statement

Mission Statement Overview

AECOM's mission statement emphasizes its commitment to delivering sustainable solutions that create a positive impact on communities and the environment. The company aims to provide innovative engineering, construction, and design services globally.

Core Values

• Integrity: A commitment to ethical practices and transparency.
• Excellence: Striving for the highest standards in service delivery.
• Collaboration: Emphasizing teamwork and partnerships with stakeholders.
• Sustainability: Focusing on environmentally responsible practices.

Financial Performance

As of 2024, AECOM reported a revenue of approximately $14.3 billion, showcasing a growth trajectory compared to previous fiscal years. The company's operating income was reported at $1.1 billion, reflecting a robust operational efficiency.

Stock Performance

AECOM's stock (ACM) has shown resilience in the market, trading at around $79.50 per share as of early 2024. The company's market capitalization stands at approximately $12.5 billion.

Strategic Goals

• Global Expansion: Targeting growth in emerging markets.
• Technology Integration: Investing in digital solutions and smart technologies.
• Workforce Development: Enhancing skills through training and education programs.

Recent Projects

AECOM has been involved in several high-profile infrastructure projects, including:

• Los Angeles International Airport (LAX) Improvement Program: A multi-billion dollar project aimed at modernizing the airport.
• High-Speed Rail Project in California: A significant investment in sustainable transportation infrastructure.
• Flood Mitigation Projects: Initiatives in various states to enhance resilience against climate change impacts.

Market Position

AECOM holds a competitive position in the engineering and construction industry, ranking among the top firms globally. Its expertise spans across various sectors including transportation, water, and environmental services.

Recent Financial Highlights

Community Engagement

AECOM actively participates in community development initiatives, focusing on education, environmental stewardship, and disaster response. The company has allocated over $10 million annually to various philanthropic efforts.

Conclusion

The mission statement and strategic objectives of AECOM reflect its commitment to sustainability, innovation, and community engagement, positioning the company for continued growth and impact in the engineering and construction sectors.

How AECOM (ACM) Works

Business Model

AECOM operates as a premier infrastructure and environmental services firm, delivering comprehensive solutions across multiple sectors including transportation, water, and environmental services. The company engages in both project delivery and management consulting, often utilizing a mix of subcontracting and direct labor to fulfill client needs.

Financial Overview

As of June 30, 2024, AECOM reported significant financial growth compared to the previous year. The total revenue for the three months ended June 30, 2024, was $4,151.2 million, reflecting a 13.3% increase from $3,663.6 million for the same period in 2023. For the nine months ended June 30, 2024, revenue reached $11,995.0 million, a 13.8% increase from $10,536.1 million in the prior year.

Cost Structure

The cost of revenue for the three months ended June 30, 2024, was $3,866.1 million, up from $3,413.5 million in Q3 2023, marking an increase of 13.3%. For the nine months, the cost of revenue was $11,204.8 million, compared to $9,842.9 million, a 13.8% increase.

Segment Performance

AECOM reports its financials across various segments, including Americas, International, and AECOM Capital. For Q3 2024, the Americas segment generated $3,246.9 million in revenue, while the International segment contributed $904.2 million.

Debt and Working Capital

As of June 30, 2024, AECOM's total debt was $2,541.5 million, a rise from $2,217.3 million at the end of September 2023. The company reported an increase in working capital to $829.0 million, up from $319.2 million at the end of September 2023.

Equity and Earnings

For Q3 2024, net income attributable to AECOM was $134.3 million, compared to a loss of $134.7 million in Q3 2023. The effective tax rate for the nine months ended June 30, 2024, was 23.6%, down from 29.9% for the same period in 2023.

Strategic Focus

AECOM's strategic focus includes investments in infrastructure, sustainability, and resilience, driven by large publicly financed global infrastructure programs, including the Infrastructure Investment and Jobs Act in the U.S.

How AECOM (ACM) Makes Money

Revenue Streams

AECOM generates revenue through various segments, primarily divided into the Americas and International segments, as well as AECOM Capital. For the three months ended June 30, 2024, AECOM reported total revenue of $4.151 billion, a 13.3% increase from $3.664 billion in the same period of 2023. For the nine months ended June 30, 2024, total revenue reached $11.995 billion, up 13.8% from $10.536 billion in the prior year.

Cost of Revenue

The cost of revenue for AECOM for the three months ended June 30, 2024 was $3.866 billion, an increase of 13.3% from $3.413 billion in Q3 2023. For the nine months, the cost of revenue was $11.205 billion, up 13.8% from $9.843 billion in the prior year. The increase in costs was primarily due to higher subcontractor and direct costs related to increased project activity.

Gross Profit

AECOM's gross profit for the three months ended June 30, 2024, was $285.1 million, a 14.0% increase compared to $250.1 million in Q3 2023. The gross profit margin for Q3 2024 was 6.9%, slightly up from 6.8% in the previous year. For the nine months, gross profit increased to $790.2 million from $693.2 million, maintaining a margin of 6.6%.

Equity in Earnings of Joint Ventures

For the three months ended June 30, 2024, AECOM reported equity in earnings of joint ventures amounting to $7.7 million, a significant recovery from equity losses of $303.5 million in the same period last year. For the nine months, the equity in losses decreased to $1.8 million from $286.2 million in the previous year.

Net Income

Net income for the three months ended June 30, 2024, was $152.5 million, compared to a net loss of $121.3 million in the same quarter of 2023. For the nine months, net income was $277.1 million, up from $59.9 million in the prior year.

Cash Flow and Working Capital

Net cash provided by operating activities for the nine months ended June 30, 2024, was $528.7 million, compared to $410.8 million for the same period in 2023. Working capital increased to $829.0 million as of June 30, 2024, from $319.2 million at the end of September 2023.