AECOM Exits Russia Operations; Reiterates FY22, Long-Term Forecast

AECOM ACM said it is immediately exiting its business operations in Russia. The financial contribution from the business related to Russia is not material.
AECOM will impair the assets of its Russia-related business and expects to incur a one-time pre-tax expense of $40 million - $50 million in Q2. The company expects the cash impact from this action to approximate $10 million.
FY22 Outlook: AECOM reiterated its FY22 guidance and long-term fiscal 2024 financial targets.
The company expects an adjusted EPS of $3.30 - $3.50 versus the consensus of $3.35.
The company expects adjusted EBITDA of $880 million - $920 million, reflecting an 8% growth at the mid-point of the range.
It anticipates segment adjusted operating margin of 14.1%, free cash flow of $450 million - $650 million, first-half cash flow to exceed first-half cash flow in fiscal 2021.
The company’s long-term financial targets for FY24 include an expectation to deliver adjusted EPS of $4.75+, a 15% segment adjusted operating margin, and a long-term segment adjusted operating margin goal of 17%.
Price Action: ACM shares are trading lower by 1.84% at $68.91 on the last check Monday.

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