- AECOM (NYSE: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.
