Aecom (NYSE:ACM) barely cleared breakeven, Monday as the world’s premier infrastructure firm reported first-quarter fiscal year 2020 results.
The Los Angeles-based Aecom said revenue was $3.2 billion, and net service revenue increased by 1% on an organic basis, reflecting growth in the Americas segment and stable performance in the International segment.
Net income was $31 million and diluted earnings per share proved to be $0.19; on an adjusted1 basis, diluted earnings per share were $0.46.
Adjusted EBITDA increased by 27% over the prior year to $173 million, reflecting the benefits of the Company’s strategic actions that focused on increasing profitability and margins and capitalizing on a near-record level of backlog.
What’s more, AECOM reiterated its fiscal 2020 financial guidance, including its expectation for adjusted EBITDA between $720 million and $760 million and for free cash flow between $100 million and $300 million.
Last Friday, AECOM completed the sale of its Management Services (MS) business at a premium valuation.
The Company expects to utilize the proceeds from the MS sale to reduce debt in the second quarter, including the immediate repayment of substantially all of its pre-payable debt, and to repurchase stock while maintaining its long-term net leverage target of 2.0-2.5x.
Said CEO Michael Burke, "The strategic actions we have taken and continue to take to simplify our operating structure and transform into a higher-returning and lower-risk Professional Services business have delivered a substantial increase in shareholder value."
Shares started out Monday, the week and the month, up only two cents to $48.25
