- Strong performance exceeded expectations on all key financial metrics
- Raised earnings guidance for fiscal 2026
- Backlog increased year-over-year and sequentially to a record high, driven by a 1.5x book-to-burn ratio
- Completed review of strategic alternatives for the Construction Management business and will continue to own and operate the business
-
Returned more than
$340 million to shareholders through repurchases and dividends during the quarter -
Board of Directors approved an increase of the share repurchase authorization to
$1 billion
|
(from Continuing Operations; $ in millions, except EPS) |
As Reported |
YoY % Change |
Adjusted1 (Non-GAAP) |
YoY % Change |
|
Revenue |
|
(5%) |
-- |
-- |
|
Net Service Revenue (NSR)2 |
-- |
-- |
|
5%3 |
|
Operating Income |
|
(7%) |
|
10% |
|
Segment Operating Margin4 |
-- |
-- |
16.4% |
+100 bps |
|
Net Income |
|
(21%) |
|
(3%) |
|
Tax Rate |
19.7% |
+630 bps |
21.5% |
+720 bps |
|
EPS (Fully Diluted) |
|
(20%) |
|
(2%) |
|
EBITDA5 |
-- |
-- |
|
6% |
|
EBITDA Margin6 |
-- |
-- |
16.4% |
+80 bps |
|
Operating Cash Flow |
|
(54%) |
-- |
-- |
|
Free Cash Flow7 |
-- |
-- |
|
(62%) |
|
Total Backlog8 |
|
9% |
-- |
-- |
“We outperformed our expectations on every key financial metric in the quarter and raised our full year guidance as a result," said
“Across our markets, clients are increasingly turning to us to deliver their biggest and most critical infrastructure projects and programs,” said
“Our strong performance, record backlog and increased guidance demonstrate we are creating significant competitive differentiation in the market,” said
First Quarter Highlights:
-
Reflecting as reported GAAP performance from continuing operations, first quarter revenue declined 5% to
$3.8 billion , operating income declined 7% to$222 million , net income declined 21% to$140 million and diluted earnings per share declined 20% to$1.06 . -
Net service revenue2 increased 2%; net service revenue increased by 5% after adjusting for fewer working days compared to the prior year first quarter, highlighted by 9% growth in the
Americas segment. -
The segment adjusted1 operating margin4 and the adjusted1 EBITDA margin6 increased to 16.4% by 100 basis points and 80 basis points, respectively.
- Our margins include the investments in the Company’s AI and technology teams and capabilities, in growing its Advisory teams, and in record business development.
-
Adjusted1 EBITDA5 increased by 6% and adjusted1 EPS decreased by 2%.
- Adjusting for the lower tax rate in the prior year period, adjustedEPS increased by 8%.
-
Total backlog8 increased by 9% to a record high, highlighted by a 1.5 book-to-burn9 ratio.
- The Company delivered a 21st consecutive quarter with a book-to-burn ratio in excess of 1.0.
-
The
Americas design business had a 1.0 book-to-burn ratio despite the unprecedented 43-dayU.S. federal government shutdown that resulted in award delays. -
The pipeline of opportunities increased by double digits to a new record, including growth in both the
Americas and International segments, with the fastest growth in the earlier stages of the pipeline demonstrating strong long-term demand trends.
Cash Flow, Capital Allocation and Raised Repurchase Authorization
-
Free cash flow7 was
$42 million and the Company returned more than$340 million to shareholders through repurchases and dividends in the quarter. -
After the quarter ended, the Board of Directors approved an increase to the share repurchase authorization to
$1 billion .-
Since the initiation of its repurchase program in
September 2020 , the Company has returned nearly$3.4 billion of capital to shareholders through repurchases and dividends.
-
Since the initiation of its repurchase program in
- The Company maintains a strong balance sheet with net leverage10 of 1.0x.
Fiscal 2026 and Long-Term Financial Guidance
- The Company raised its fiscal 2026 earnings guidance, which reflects the outperformance delivered in the design business in the first quarter, the benefits of our capital allocation strategy, a lower than previously expected tax rate, and a record backlog and pipeline across the enterprise, which creates strong full year visibility.
-
As a result, the Company’s guidance, which includes the Construction Management business, now includes expectations for:
-
Adjusted1 EPS of between
$5.85 and$6.05 , as compared to$5.65 to$5.85 previously. -
Adjusted1 EBITDA5 of between
$1,270 million and$1,305 million , as compared to$1,265 million and$1,305 million previously. - Organic NSR2 growth of 6% to 8%, which excludes the expected approximately 200 basis point impact of fewer working days in fiscal 2026.
- A segment adjusted operating margin4 of 16.8% and an adjusted EBITDA6 margin of 17.0%, which are materially consistent with prior expectations.
-
Free cash flow7 of approximately
$400 million . - An average fully diluted share count of 131 million, which does not include any potential future benefits from capital allocation actions not yet taken, including potential repurchases.
- An adjusted effective tax rate of approximately 20 – 22%, as compared to 22 – 23% previously.
-
Adjusted1 EPS of between
- In addition, the Company reiterated its long-term financial targets, which includes its expectation to deliver a 20%+ margin exit rate by fiscal 2028 and to grow adjusted1 EPS at a 15%+ CAGR from fiscal 2026 to fiscal 2029.
- See the Regulation G Information tables at the end of this release for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.
Business Segments
Revenue in the first quarter was
Operating income increased 9% over the prior year to
Backlog in the
International
Revenue in the first quarter was
Operating income decreased by 6% over the prior year to
Backlog in the International segment grew 25% to a new record high, driven by a 2.3 book-to-burn ratio9 andincluded substantial wins in each of the Company’s International regions.
Construction Management Strategic Alternatives Update
The Construction Management business is an industry leader with a strong backlog and pipeline, great teams of professionals, and is widely recognized by its clients for its track record of delivering the largest and most iconic projects in its markets.
Tax Rate
The effective tax rate was 19.7% in the first quarter. On an adjusted1 basis, the effective tax rate was 21.5% in the first quarter. The adjusted tax rate was derived by re-computing the quarterly effective tax rate on adjusted net income11. The adjusted tax expense differs from the GAAP tax expense based on the taxability or deductibility and tax rate applied to each of the adjustments.
Resolution of a Legacy Matter
After the quarter ended,
Conference Call
|
1 |
Excludes the impact of certain items, such as restructuring costs, amortization of intangible assets, non-core |
|
2 |
Revenue, less pass-through revenue; growth rates are presented on a constant-currency basis. |
|
3 |
Adjusted to reflect for fewer working days in the first quarter of fiscal 2026 compared to the prior year first quarter. |
|
4 |
Reflects segment operating performance, excluding |
|
5 |
Net income before interest expense, tax expense, depreciation and amortization. |
|
6 |
Adjusted EBITDA margin includes non-controlling interests in EBITDA and is on a net service revenue basis. |
|
7 |
Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from disposals of property and equipment; free cash flow conversion is defined as free cash flow divided by adjusted net income attributable to |
|
8 |
Backlog represents the total value of work for which |
|
9 |
Book-to-burn ratio is defined as the dollar amount of wins divided by revenue recognized during the period, including revenue related to work performed in unconsolidated joint ventures. |
|
10 |
Net leverage is comprised of EBITDA as defined in the Company’s credit agreement dated |
|
11 |
Inclusive of non-controlling interest deduction and adjusted for financing charges in interest expense, the amortization of intangible assets and is based on continuing operations. |
About
Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, capital allocation strategy including stock repurchases, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of
Non-GAAP Financial Information
This communication contains financial information calculated other than in accordance with
Our non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of these non-GAAP measures is found in the Regulation G Information tables at the back of this communication. The Company is unable to reconcile certain of its non-GAAP financial guidance and long-term financial targets due to uncertainties in these non-operating items as well as other adjustments to net income. The Company is unable to provide a reconciliation of its guidance for NSR to GAAP revenue because it is unable to predict with reasonable certainty its pass-through revenue. In addition, the Company is unable to provide a reconciliation of its guidance for financial metrics excluding the Construction Management business due to uncertainties in these non-operating items as well as other adjustments to these measures.
|
|
||||||||||
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|||||||||
|
|
|
|
|
|
% Change |
|||||
|
|
|
|
|
|
|
|||||
|
Revenue |
$ |
3,830,834 |
|
|
$ |
4,014,152 |
|
|
(4.6 |
)% |
|
Cost of revenue |
|
3,549,844 |
|
|
|
3,745,748 |
|
|
(5.2 |
)% |
|
Gross profit |
|
280,990 |
|
|
|
268,404 |
|
|
4.7 |
% |
|
Equity in earnings of joint ventures |
|
9,827 |
|
|
|
9,553 |
|
|
2.9 |
% |
|
General and administrative expenses |
|
(40,839 |
) |
|
|
(40,459 |
) |
|
0.9 |
% |
|
Restructuring costs |
|
(27,933 |
) |
|
|
— |
|
|
NM |
|
|
Income from operations |
|
222,045 |
|
|
|
237,498 |
|
|
(6.5 |
)% |
|
Other income |
|
7,819 |
|
|
|
6,924 |
|
|
12.9 |
% |
|
Interest income |
|
13,741 |
|
|
|
16,564 |
|
|
(17.0 |
)% |
|
Interest expense |
|
(45,266 |
) |
|
|
(43,034 |
) |
|
5.2 |
% |
|
Income from continuing operations before taxes |
|
198,339 |
|
|
|
217,952 |
|
|
(9.0 |
)% |
|
Income tax expense for continuing operations |
|
39,083 |
|
|
|
29,232 |
|
|
33.7 |
% |
|
Income from continuing operations |
|
159,256 |
|
|
|
188,720 |
|
|
(15.6 |
)% |
|
Loss from discontinued operations |
|
(65,904 |
) |
|
|
(9,516 |
) |
|
592.6 |
% |
|
Net income |
|
93,352 |
|
|
|
179,204 |
|
|
(47.9 |
)% |
|
Net income attributable to noncontrolling interests from continuing operations |
|
(18,832 |
) |
|
|
(11,370 |
) |
|
65.6 |
% |
|
Net income attributable to noncontrolling interests from discontinued operations |
|
— |
|
|
|
(792 |
) |
|
(100.0 |
)% |
|
Net income attributable to noncontrolling interests |
|
(18,832 |
) |
|
|
(12,162 |
) |
|
54.8 |
% |
|
Net income attributable to |
|
140,424 |
|
|
|
177,350 |
|
|
(20.8 |
)% |
|
Net loss attributable to |
|
(65,904 |
) |
|
|
(10,308 |
) |
|
539.3 |
% |
|
Net income attributable to |
$ |
74,520 |
|
|
$ |
167,042 |
|
|
(55.4 |
)% |
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to |
|
|
|
|
|
|||||
|
Basic continuing operations per share |
$ |
1.07 |
|
|
$ |
1.34 |
|
|
(20.1 |
)% |
|
Basic discontinued operations per share |
|
(0.50 |
) |
|
|
(0.08 |
) |
|
525.0 |
% |
|
Basic earnings per share |
$ |
0.57 |
|
|
$ |
1.26 |
|
|
(54.8 |
)% |
|
|
|
|
|
|
|
|||||
|
Diluted continuing operations per share |
$ |
1.06 |
|
|
$ |
1.33 |
|
|
(20.3 |
)% |
|
Diluted discontinued operations per share |
|
(0.50 |
) |
|
|
(0.08 |
) |
|
525.0 |
% |
|
Diluted earnings per share |
$ |
0.56 |
|
|
$ |
1.25 |
|
|
(55.2 |
)% |
|
|
|
|
|
|
|
|||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|||||
|
Basic |
|
130,888 |
|
|
|
132,500 |
|
|
(1.2 |
)% |
|
Diluted |
|
131,982 |
|
|
|
133,625 |
|
|
(1.2 |
)% |
|
Balance Sheet Information (unaudited - in thousands) |
|||||
|
|
|
|
|
||
|
|
|
|
|
||
|
Balance Sheet Information: |
|
|
|
||
|
Total cash and cash equivalents |
$ |
1,246,687 |
|
$ |
1,585,739 |
|
Accounts receivable and contract assets, net |
|
4,383,899 |
|
|
4,282,326 |
|
Working capital |
|
610,093 |
|
|
801,411 |
|
Total debt, excluding unamortized debt issuance costs |
|
2,738,511 |
|
|
2,743,719 |
|
Total assets |
|
11,940,036 |
|
|
12,200,249 |
|
Total |
|
2,231,942 |
|
|
2,492,584 |
|
|
|||||||||||||||||||
|
|
|
International |
|
Corporate |
Total |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenue |
$ |
2,977,285 |
|
$ |
853,549 |
|
$ |
— |
|
$ |
— |
|
$ |
3,830,834 |
|
||||
|
Cost of revenue |
|
2,767,689 |
|
|
782,119 |
|
|
36 |
|
|
— |
|
|
3,549,844 |
|
||||
|
Gross profit (loss) |
|
209,596 |
|
|
71,430 |
|
|
(36 |
) |
|
— |
|
|
280,990 |
|
||||
|
Equity in earnings of joint ventures |
|
4,516 |
|
|
4,592 |
|
|
719 |
|
|
— |
|
|
9,827 |
|
||||
|
General and administrative expenses |
|
— |
|
|
— |
|
|
(1,799 |
) |
|
(39,040 |
) |
|
(40,839 |
) |
||||
|
Restructuring and acquisition costs |
|
— |
|
|
— |
|
|
— |
|
|
(27,933 |
) |
|
(27,933 |
) |
||||
|
Income (loss) from operations |
$ |
214,112 |
|
$ |
76,022 |
|
$ |
(1,116 |
) |
$ |
(66,973 |
) |
$ |
222,045 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Gross profit as a % of revenue |
|
7.0 |
% |
|
|
8.4 |
% |
|
|
|
|
|
7.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Contracted backlog |
$ |
8,789,324 |
|
$ |
4,699,425 |
|
$ |
— |
|
$ |
— |
|
$ |
13,488,749 |
|
||||
|
Awarded backlog |
|
9,241,609 |
|
|
3,231,872 |
|
|
— |
|
|
— |
|
|
12,473,481 |
|
||||
|
Total backlog |
$ |
18,030,933 |
|
$ |
7,931,297 |
|
$ |
— |
|
$ |
— |
|
$ |
25,962,230 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Total backlog – Design only |
$ |
16,408,768 |
|
$ |
7,931,297 |
|
$ |
— |
|
$ |
— |
|
$ |
24,340,065 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenue |
$ |
3,111,955 |
|
$ |
902,010 |
|
$ |
187 |
|
$ |
— |
|
$ |
4,014,152 |
|
||||
|
Cost of revenue |
|
2,921,695 |
|
|
824,053 |
|
|
— |
|
|
— |
|
|
3,745,748 |
|
||||
|
Gross profit |
|
190,260 |
|
|
77,957 |
|
|
187 |
|
|
— |
|
|
268,404 |
|
||||
|
Equity in earnings of joint ventures |
|
5,512 |
|
|
2,881 |
|
|
1,160 |
|
|
— |
|
|
9,553 |
|
||||
|
General and administrative expenses |
|
— |
|
|
— |
|
|
(2,395 |
) |
|
(38,064 |
) |
|
(40,459 |
) |
||||
|
Income (loss) from operations |
$ |
195,772 |
|
$ |
80,838 |
|
$ |
(1,048 |
) |
$ |
(38,064 |
) |
$ |
237,498 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Gross profit as a % of revenue |
|
6.1 |
% |
|
8.6 |
% |
|
|
|
|
|
6.7 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Contracted backlog |
$ |
8,818,821 |
|
$ |
4,352,692 |
|
$ |
— |
|
$ |
— |
|
$ |
13,171,513 |
|
||||
|
Awarded backlog |
|
8,689,718 |
|
|
2,015,736 |
|
|
— |
|
|
— |
|
|
10,705,454 |
|
||||
|
Total backlog |
$ |
17,508,539 |
|
$ |
6,368,428 |
|
$ |
— |
|
$ |
— |
|
$ |
23,876,967 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Total backlog – Design only |
$ |
16,241,174 |
|
$ |
6,368,428 |
|
$ |
— |
|
$ |
— |
|
$ |
22,609,602 |
|
||||
|
|
||||||||
|
Reconciliation of Revenue to Net Service Revenue (NSR) |
||||||||
|
|
Three Months Ended |
|||||||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
Revenue |
$ |
2,977.3 |
|
$ |
3,240.0 |
|
$ |
3,112.0 |
|
Less: Pass-through revenue |
|
1,862.6 |
|
|
2,042.3 |
|
|
2,061.1 |
|
Net service revenue |
$ |
1,114.7 |
|
$ |
1,197.7 |
|
$ |
1,050.9 |
|
|
|
|
|
|
|
|||
|
International |
|
|
|
|
|
|||
|
Revenue |
$ |
853.5 |
|
$ |
935.2 |
|
$ |
902.0 |
|
Less: Pass-through revenue |
|
117.3 |
|
|
166.2 |
|
|
151.8 |
|
Net service revenue |
$ |
736.2 |
|
$ |
769.0 |
|
$ |
750.2 |
|
|
|
|
|
|
|
|||
|
Segment Performance (excludes ACAP) |
|
|
|
|
|
|||
|
Revenue |
$ |
3,830.8 |
|
$ |
4,175.2 |
|
$ |
4,014.0 |
|
Less: Pass-through revenue |
|
1,979.9 |
|
|
2,208.5 |
|
|
2,212.9 |
|
Net service revenue |
$ |
1,850.9 |
|
$ |
1,966.7 |
|
$ |
1,801.1 |
|
|
|
|
|
|
|
|||
|
Consolidated |
|
|
|
|
|
|||
|
Revenue |
$ |
3,830.8 |
|
$ |
4,175.3 |
|
$ |
4,014.2 |
|
Less: Pass-through revenue |
|
1,979.9 |
|
|
2,208.5 |
|
|
2,212.9 |
|
Net service revenue |
$ |
1,850.9 |
|
$ |
1,966.8 |
|
$ |
1,801.3 |
| Reconciliation of Total Debt to Net Debt | ||||||||
|
|
Balances at |
|||||||
|
|
|
|
|
|||||
|
|
|
|
|
|
||||
|
Short-term debt |
$ |
3.3 |
$ |
4.1 |
$ |
3.5 |
||
|
Current portion of long-term debt |
|
62.6 |
|
62.2 |
|
65.9 |
||
|
Long-term debt, excluding unamortized debt issuance costs |
|
2,672.6 |
|
2,677.4 |
|
2,477.7 |
||
|
Total debt |
|
2,738.5 |
|
2,743.7 |
|
2,547.1 |
||
|
Less: Total cash and cash equivalents |
|
1,246.7 |
|
1,585.7 |
|
1,580.7 |
||
|
Net debt |
$ |
1,491.8 |
$ |
1,158.0 |
$ |
966.4 |
||
|
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
||||||||
|
|
|
|
|
||||||||
|
Net cash provided by operating activities |
$ |
70.2 |
|
$ |
196.1 |
|
$ |
151.1 |
|
||
|
Capital expenditures, net |
|
(28.3 |
) |
|
(62.0 |
) |
|
(40.1 |
) |
||
|
Free cash flow |
$ |
41.9 |
|
$ |
134.1 |
|
$ |
111.0 |
|
||
|
|
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
|
Reconciliation of Income from Operations to Adjusted Income from Operations to Adjusted EBITDA with Noncontrolling Interests (NCI) to Adjusted EBITDA |
|||||||||||
|
Income from operations |
$ |
222.0 |
|
|
$ |
237.3 |
|
|
$ |
237.5 |
|
|
|
|
1.2 |
|
|
|
2.0 |
|
|
|
1.0 |
|
|
Restructuring and acquisition costs |
|
27.9 |
|
|
|
59.4 |
|
|
|
— |
|
|
Amortization of intangible assets |
|
12.9 |
|
|
|
0.4 |
|
|
|
1.1 |
|
|
Adjusted income from operations |
$ |
264.0 |
|
|
$ |
299.1 |
|
|
$ |
239.6 |
|
|
Other income |
|
7.9 |
|
|
|
11.5 |
|
|
|
6.9 |
|
|
Fair value adjustment |
|
(5.1 |
) |
|
|
(9.6 |
) |
|
|
(5.0 |
) |
|
Depreciation |
|
37.7 |
|
|
|
43.6 |
|
|
|
39.8 |
|
|
Adjusted EBITDA with noncontrolling interests (NCI) |
$ |
304.5 |
|
|
$ |
344.6 |
|
|
$ |
281.3 |
|
|
Net income attributable to NCI from continuing operations excluding interest income included in NCI |
|
(17.7 |
) |
|
|
(15.9 |
) |
|
|
(9.9 |
) |
|
Adjusted EBITDA |
$ |
286.8 |
|
|
$ |
328.7 |
|
|
$ |
271.4 |
|
|
|
|
|
|
|
|
||||||
|
Reconciliation of Income from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes |
|||||||||||
|
Income from continuing operations before taxes |
$ |
198.3 |
|
|
$ |
207.7 |
|
|
$ |
218.0 |
|
|
|
|
1.2 |
|
|
|
2.0 |
|
|
|
1.0 |
|
|
Fair value adjustment |
|
(5.5 |
) |
|
|
(9.6 |
) |
|
|
(5.6 |
) |
|
Restructuring and acquisition costs |
|
27.9 |
|
|
|
59.4 |
|
|
|
— |
|
|
Amortization of intangible assets |
|
12.9 |
|
|
|
0.4 |
|
|
|
1.1 |
|
|
Financing charges in interest expense |
|
1.4 |
|
|
|
13.5 |
|
|
|
1.4 |
|
|
Adjusted income from continuing operations before taxes |
$ |
236.2 |
|
|
$ |
273.4 |
|
|
$ |
215.9 |
|
|
|
|
|
|
|
|
||||||
|
Reconciliation of Income Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations |
|||||||||||
|
Income tax expense for continuing operations |
$ |
39.0 |
|
|
$ |
58.3 |
|
|
$ |
29.3 |
|
|
Tax effect of the above adjustments (1) |
|
8.5 |
|
|
|
16.2 |
|
|
|
(0.5 |
) |
|
Valuation allowances and other tax only items |
|
(0.7 |
) |
|
|
(0.2 |
) |
|
|
0.5 |
|
|
Adjusted income tax expense for continuing operations |
$ |
46.8 |
|
|
$ |
74.3 |
|
|
$ |
29.3 |
|
|
Reconciliation of Net Income Attributable to |
|||||||||||
|
Net income attributable to |
$ |
140.4 |
|
|
$ |
132.1 |
|
|
$ |
177.3 |
|
|
|
|
1.2 |
|
|
|
2.0 |
|
|
|
1.0 |
|
|
Fair value adjustment |
|
(5.5 |
) |
|
|
(9.6 |
) |
|
|
(5.6 |
) |
|
Restructuring and acquisition costs |
|
27.9 |
|
|
|
59.4 |
|
|
|
— |
|
|
Amortization of intangible assets |
|
12.9 |
|
|
|
0.4 |
|
|
|
1.1 |
|
|
Financing charges in interest expense |
|
1.4 |
|
|
|
13.5 |
|
|
|
1.4 |
|
|
Tax effect of the above adjustments (1) |
|
(8.5 |
) |
|
|
(16.2 |
) |
|
|
0.5 |
|
|
Valuation allowances and other tax only items |
|
0.7 |
|
|
|
0.2 |
|
|
|
(0.5 |
) |
|
Adjusted net income attributable to |
$ |
170.5 |
|
|
$ |
181.8 |
|
|
$ |
175.2 |
|
|
(1) Adjusts the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
|||||||||||
|
|
|||||||||||
|
Three Months Ended |
|||||||||||
|
|
|
|
|
|
|||||||
|
Reconciliation of Net Income Attributable to |
|||||||||||
|
Net income attributable to |
$ |
1.06 |
|
|
$ |
0.99 |
|
|
$ |
1.33 |
|
|
Per diluted share adjustments: |
|
|
|
|
|
||||||
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Fair value adjustment |
|
(0.04 |
) |
|
|
(0.07 |
) |
|
|
(0.04 |
) |
|
Restructuring and acquisition costs |
|
0.21 |
|
|
|
0.45 |
|
|
|
— |
|
|
Amortization of intangible assets |
|
0.10 |
|
|
|
— |
|
|
|
0.01 |
|
|
Financing charges in interest expense |
|
0.01 |
|
|
|
0.10 |
|
|
|
0.01 |
|
|
Tax effect of the above adjustments (1) |
|
(0.07 |
) |
|
|
(0.12 |
) |
|
|
(0.01 |
) |
|
Valuation allowances and other tax only items |
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
Adjusted net income attributable to |
$ |
1.29 |
|
|
$ |
1.36 |
|
|
$ |
1.31 |
|
|
Weighted average shares outstanding – basic |
|
130.9 |
|
|
|
132.3 |
|
|
|
132.5 |
|
|
Weighted average shares outstanding – diluted |
|
132.0 |
|
|
|
133.4 |
|
|
|
133.6 |
|
|
(1) Adjusts the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. |
|||||||||||
|
Reconciliation of Net Income Attributable to |
|||||||||||
|
Net income attributable to |
$ |
140.4 |
|
|
$ |
132.1 |
|
|
$ |
177.3 |
|
|
Income tax expense |
|
39.0 |
|
|
|
58.3 |
|
|
|
29.3 |
|
|
Depreciation and amortization |
|
52.0 |
|
|
|
47.5 |
|
|
|
42.3 |
|
|
Interest income, net of NCI |
|
(12.5 |
) |
|
|
(16.4 |
) |
|
|
(15.2 |
) |
|
Interest expense |
|
45.3 |
|
|
|
58.9 |
|
|
|
43.0 |
|
|
Amortized bank fees included in interest expense |
|
(1.4 |
) |
|
|
(3.5 |
) |
|
|
(1.4 |
) |
|
|
|
1.2 |
|
|
|
2.0 |
|
|
|
1.0 |
|
|
Fair value adjustment included in other income |
|
(5.1 |
) |
|
|
(9.6 |
) |
|
|
(4.9 |
) |
|
Restructuring and acquisition costs |
|
27.9 |
|
|
|
59.4 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
286.8 |
|
|
$ |
328.7 |
|
|
$ |
271.4 |
|
|
|
|||||||||||
|
Reconciliation of Segment Income from Operations to Adjusted Segment Income from Operations |
|||||||||||
|
Americas Segment: |
|||||||||||
|
Segment Income from operations |
$ |
214.1 |
|
|
$ |
243.7 |
|
|
$ |
195.8 |
|
|
Amortization of intangible assets |
|
8.1 |
|
|
|
0.4 |
|
|
|
1.1 |
|
|
Adjusted segment income from operations |
$ |
222.2 |
|
|
$ |
244.1 |
|
|
$ |
196.9 |
|
|
International Segment: |
|||||||||||
|
Segment Income from operations |
$ |
76.0 |
|
|
$ |
92.7 |
|
|
$ |
80.8 |
|
|
Amortization of intangible assets |
|
4.8 |
|
|
|
— |
|
|
|
— |
|
|
Adjusted segment income from operations |
$ |
80.8 |
|
|
$ |
92.7 |
|
|
$ |
80.8 |
|
|
Segment Performance (excludes ACAP and G&A): |
|||||||||||
|
Segment Income from operations |
$ |
290.1 |
|
|
$ |
336.4 |
|
|
$ |
276.6 |
|
|
Amortization of intangible assets |
|
12.9 |
|
|
|
0.4 |
|
|
|
1.1 |
|
|
Adjusted segment income from operations |
$ |
303.0 |
|
|
$ |
336.8 |
|
|
$ |
277.7 |
|
|
Regulation G Information |
|
|
|
|
|
FY2026 GAAP EPS Guidance based on Adjusted EPS Guidance |
|
|
(all figures approximate) |
Fiscal Year End 2026 |
|
GAAP EPS guidance |
|
|
Adjusted EPS excludes: |
|
|
Amortization of intangible assets |
|
|
Amortization of deferred financing fees |
|
|
|
|
|
Fair value adjustment |
( |
|
Restructuring and acquisition costs |
|
|
Tax effect of the above items |
( |
|
Adjusted EPS guidance |
|
|
FY2026 GAAP Net Income from Continuing Operations Guidance based on Adjusted EBITDA Guidance |
|
|
(in millions, all figures approximate) |
Fiscal Year End 2026 |
|
GAAP net income from continuing operations guidance |
|
|
Net income attributable to noncontrolling interest from continuing operations |
( |
|
Net income attributable to |
|
|
Adjusted net income attributable to |
|
|
Amortization of intangible assets |
|
|
Amortization of deferred financing fees |
|
|
|
|
|
Fair value adjustment |
( |
|
Restructuring and acquisition costs |
|
|
Tax effect of the above items |
( |
|
Adjusted net income attributable to |
|
|
Adjusted EBITDA excludes: |
|
|
Depreciation |
|
|
Adjusted interest expense, net |
|
|
Tax expense, including tax effect of above items |
|
|
Adjusted EBITDA guidance |
|
|
FY2026 GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance |
|
|
(in millions, all figures approximate) |
Fiscal Year End 2026 |
|
GAAP interest expense guidance |
|
|
Finance charges in interest expense |
( |
|
Interest income, net of NCI |
( |
|
Adjusted interest expense guidance, net |
|
|
FY2026 GAAP Income Tax Guidance based on Adjusted Income Tax Guidance |
|
|
(in millions, all figures approximate) |
Fiscal Year End 2026 |
|
GAAP income tax expense guidance |
|
|
Tax effect of adjusting items |
|
|
Adjusted income tax expense guidance |
|
|
|
|
|
Note: Variances in tables are due to rounding. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260209894846/en/
Investor:
Senior Vice President, Finance, Treasurer
213.593.8208
William.Gabrielski@aecom.com
Media:
Senior Vice President,
213.996.2367
Brendan.Ranson-Walsh@aecom.com
Source:
