AECOM affirms its capital allocation policy, increases share repurchase authorization to $1 billion and increases its quarterly dividend by 22%

Rhea-AI Summary

AECOM (NYSE: ACM) Announces $1 Billion Share Repurchase Authorization and 22% Increase in Quarterly Dividend. The Board of Directors approved increases to both its share repurchase authorization and quarterly dividend program. The increased share repurchase authorization builds on the $1.8 billion of shares repurchased since September 2020, which has reduced shares outstanding by 19%. The increased dividend will be reflected in the next dividend payment on January 19, 2024, to stockholders of record on January 4, 2024, consistent with the Company’s commitment to annual double-digit increases in the per share value of its dividend. CEO Troy Rudd reaffirmed the company's returns-focused capital allocation policy, emphasizing high-returning investments in organic growth and returning available cash flow to shareholders through share repurchases and dividends.

Positive

• The increased share repurchase authorization and dividend program demonstrate the company's commitment to returning value to shareholders and confidence in long-term shareholder value creation. The $1.8 billion of shares repurchased since September 2020 has significantly reduced shares outstanding by 19%, potentially leading to increased earnings per share for investors.

Negative

• None.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced that its Board of Directors has approved increases to both its share repurchase authorization to $1 billion and its quarterly dividend program by 22% to $0.22 per share.

The increased share repurchase authorization builds on the $1.8 billion of shares repurchased since September 2020, which has reduced shares outstanding by 19%.

The increased dividend as declared by the Board, which will be reflected in its next dividend payment on January 19, 2024, to stockholders of record on January 4, 2024, is consistent with the Company’s commitment to annual double-digit increases in the per share value of its dividend.

“As today’s announcement demonstrates, we are committed to our returns-focused capital allocation policy, which is focused on high-returning investments in organic growth followed by returning substantially all available cash flow to shareholders through share repurchases and dividends,” said Troy Rudd, AECOM’s chief executive officer. “Under this policy, we have delivered highly profitable organic revenue growth, built a record design backlog, and returned $2 billion to shareholders since 2020, which has enhanced our total shareholder return. Our competitive advantages, combined with accelerating end market growth and our strong cash flow and balance sheet, underpin our confidence in long-term shareholder value creation.”

About AECOM

AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231113257663/en/

Media:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investors:

Will Gabrielski

Senior Vice President, Finance, Treasurer

213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What is the new share repurchase authorization amount?

The Board of Directors approved an increase in the share repurchase authorization to $1 billion.

When will the increased dividend be reflected in the next dividend payment?

The increased dividend will be reflected in the next dividend payment on January 19, 2024, to stockholders of record on January 4, 2024.

What is the CEO's statement regarding the capital allocation policy?

CEO Troy Rudd reaffirmed the company's returns-focused capital allocation policy, emphasizing high-returning investments in organic growth and returning available cash flow to shareholders through share repurchases and dividends.