Aecom increases long-term financial targets

Aecom (ACM) announced its strategic initiatives and increased long-term financial targets. CEO Troy Rudd said, “…we have set new financial targets, including our raised 20%+ margin exit rate target by FY28 and our raised expectation for an adjusted EPS CAGR of 15%+ for FY26 through 2029. Aecom has increased its long-term financial targets through FY29, including: increased the segment adjusted operating margin and adjusted EBITDA margin targets to a 20%+ exit rate by FY28, reflecting expectations for substantial increases in operating leverage; increased adjusted EPS CAGR to 15%+ to reflect NSR growth and margin expansion; expected 2020-2029 adjusted EPS CAGR is approximately double the expected median of S&P 500 companies over this same period. Expects per share dividend growth to increase in the double digits, including the 19% dividend increase announced at this date. Aecom is announcing a step change in its operating leverage opportunity, enabled by proprietary Aecom AI solutions and the expected doubling to $400M of annual NSR in its higher-margin Advisory business over the next three years. Aecom has spent several years building and executing a strategy to develop and deploy AI at scale across its markets. Aecom also announced a 19% increase to its quarterly per share dividend payment to 31c. As a result, the company has grown the per share value of its dividend by 20% annually since initiation. Maintains $645M of capacity under its existing Board repurchase authorization.”