AECOM reiterates its capital allocation policy, increases its share repurchase authorization to $1 billion and increases its quarterly dividend by 18%
November 18 2024 - 4:08PM
Business Wire
AECOM (NYSE: ACM), the trusted global infrastructure leader,
today affirmed the priorities of its returns-based capital
allocation policy. Accordingly, the Company announced that its
Board of Directors has approved an increase to its share repurchase
authorization to $1 billion and an increase to its quarterly
dividend by 18% to $0.26 per share.
“The increases to our share repurchase authorization and
quarterly dividend payment reflect our confidence in delivering
strong earnings and cash flow growth, as well as the strength of
our balance sheet,” said Troy Rudd, AECOM’s chief executive
officer. “Through this announcement, we are affirming our
returns-driven capital allocation policy focused on high-returning
investments in accelerating organic growth and margin expansion, as
well as capital returns to shareholders. This includes returning
$2.5 billion to shareholders since 2020, primarily through share
repurchases.”
AECOM’s Returns-Focused Capital
Allocation Policy
AECOM prioritizes its capital allocation based on returns,
including:
- Investments in organic growth
- Share repurchases
- Dividend payments
Consistent with these priorities, the Company has bought back
$2.2 billion of stock since the initiation of its repurchase
program in September 2020, which has reduced its shares outstanding
by 21%. In addition, the Company remains committed to increasing
the per share value of its dividend by double-digits annually, as
reflected in the 20% average annual increase it has delivered over
the last three years.
The increased dividend as declared by the Board will be
reflected in its next dividend payment on January 17, 2025, to
stockholders of record on January 2, 2025.
About AECOM
AECOM (NYSE: ACM) is the global infrastructure leader, committed
to delivering a better world. As a trusted professional services
firm powered by deep technical abilities, we solve our clients’
complex challenges in water, environment, energy, transportation
and buildings. Our teams partner with public- and private-sector
clients to create innovative, sustainable and resilient solutions
throughout the project lifecycle – from advisory, planning, design
and engineering to program and construction management. AECOM is a
Fortune 500 firm that had revenue of $16.1 billion in fiscal year
2024. Learn more at aecom.com.
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 AECOM. Although we believe that the expectations reflected in
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Important factors that could cause our
actual results, performance and achievements, or industry results
to differ materially from estimates or projections contained in our
forward-looking statements include, but are not limited to, the
following: our business is cyclical and vulnerable to economic
downturns and client spending reductions; potential government
shutdowns or other funding circumstances that may cause
governmental agencies to modify, curtail or terminate our
contracts; losses under fixed-price contracts; limited control over
operations that run through our joint venture entities; liability
for misconduct by our employees or consultants; failure to comply
with laws or regulations applicable to our business; maintaining
adequate surety and financial capacity; potential high leverage and
inability to service our debt and guarantees; ability to continue
payment of dividends; exposure to political and economic risks in
different countries, including tariffs, geopolitical events, and
conflicts; currency exchange rate and interest fluctuations;
retaining and recruiting key technical and management personnel;
legal claims; inadequate insurance coverage; environmental law
compliance and adequate nuclear indemnification; unexpected
adjustments and cancellations related to our backlog; partners and
third parties who may fail to satisfy their legal obligations;
managing pension costs; AECOM Capital real estate development
projects; cybersecurity issues, IT outages and data privacy; risks
associated with the benefits and costs of the sale of our
Management Services and self-perform at-risk civil infrastructure,
power construction and oil and gas businesses, including the risk
that any purchase adjustments from those transactions could be
unfavorable and result in any future proceeds owed to us as part of
the transactions could be lower than we expect; as well as other
additional risks and factors that could cause actual results to
differ materially from our forward-looking statements set forth in
our reports filed with the Securities and Exchange Commission. Any
forward-looking statements are made as of the date hereof. We do
not intend, and undertake no obligation, to update any
forward-looking statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241118723271/en/
Media Contact: Brendan Ranson-Walsh Senior Vice
President, Global Communications 213.996.2367
Brendan.Ranson-Walsh@aecom.com
Investor Contact: Will Gabrielski Senior Vice President,
Finance, Treasurer 213.593.8208 William.Gabrielski@aecom.com
AECOM (NYSE:ACM)
Historical Stock Chart
From Nov 2024 to Dec 2024
AECOM (NYSE:ACM)
Historical Stock Chart
From Dec 2023 to Dec 2024