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What changed in AECOM's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of AECOM's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+280 added−284 removedSource: 10-K (2024-11-19) vs 10-K (2023-11-15)

Top changes in AECOM's 2024 10-K

280 paragraphs added · 284 removed · 223 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

61 edited+8 added−19 removed53 unchanged
Biggest changeProgram Management – We provide program management and advisory services for large scale public- and private-sector infrastructure programs around the world, including: ● Megacity development. ● Transformational transportation infrastructure, such as high-speed rail. ● Aviation. ● Environmental remediation programs. ● Energy and grid infrastructure. ● Water supply systems.
Biggest changeProduction facilities such as ethanol plants, onshore and offshore wind farms, hydroelectric power, dams, flood control systems and geothermal subsections of regional power grids. ​ 6 Table of Contents ​ Program Management – We integrate the complexity of large-scale programs and projects through tailored approaches, proven methodologies, and multidisciplinary solutions to deliver transformative outcomes for our clients and the communities they serve, including: ● Megacity development. ● Transformational transportation infrastructure, such as high-speed rail. ● Aviation. ● Environmental remediation programs. ● Energy and grid infrastructure. ● Water supply systems.
Freedom to Grow . Freedom to Grow is our global framework designed to support employees in finding the balance and flexibility they need to be their best and deliver for clients, and a key factor in our ability to attract and retain talent.
Freedom to Grow is our global framework designed to support employees in finding the balance and flexibility they need to be their best and deliver for clients, and a key factor in our ability to attract and retain talent.
We have aggregated various operating segments into our reportable segments based on their similar characteristics, including similar long-term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers. ● Americas : Planning, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America in major end markets such as transportation, water, government, facilities, environmental, and energy. ● International : Planning, consulting, architectural and engineering design services and program management to public and private clients in Europe, the Middle East, India, Africa, and the Asia-Australia-Pacific regions in major end markets such as transportation, water, government, facilities, environmental, and energy. ● AECOM Capital (ACAP) : Primarily invests in and develops real estate projects.
We have aggregated various operating segments into our reportable segments based on their similar characteristics, including similar long-term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers. ● Americas : Planning, advisory, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America in major end markets such as transportation, water, government, facilities, environmental, and energy. ● International : Planning, advisory, consulting, architectural and engineering design services and program management to public and private clients in Europe, the Middle East, India, Africa, and the Asia-Australia-Pacific regions in major end markets such as transportation, water, government, facilities, environmental, and energy. ● AECOM Capital (ACAP) : Primarily invests in and develops real estate projects.
For each of these services, our technical expertise includes civil engineering, structural engineering, process engineering, mechanical engineering, geotechnical systems and electrical engineering, architectural, landscape and interior design, urban and regional planning, project economics, cost consulting and environmental, health and safety work.
For each of these services, our technical expertise includes civil engineering, structural engineering, digital, process engineering, mechanical engineering, geotechnical systems and electrical engineering, architectural, landscape and interior design, urban and regional planning, project economics, cost consulting and environmental, health and safety work.
Our AECOM Capital Segment ACAP typically partners with investors and experienced developers as co-general partners. These partnerships may, but is not required to, enter into contracts with our other AECOM affiliates to provide design, owners engineer, construction management, development and operations and maintenance services for ACAP funded projects.
Our AECOM Capital Segment ACAP typically partners with investors and experienced developers as co-general partners. These partnerships may, but are not required to, enter into contracts with our other AECOM affiliates to provide design, owners engineer, construction management, development and operations and maintenance services for ACAP funded projects.
Restoring and remediating natural habitats, such as in response to industrial activity related to closed or abandoned mines. ● Permitting and Community Engagement. Advancing client projects through permitting processes, including implementation of innovative online engagement platforms, such as PlanEngage TM . New Energy. ● Demand Side Management.
Restoring and remediating natural habitats, such as in response to industrial activity related to closed or abandoned mines. ● Permitting and Community Engagement. Advancing client projects through permitting processes, including implementation of innovative online engagement platforms, such as PlanEngage TM . ● Demand Side Management.
First, our operating structure promotes greater connectivity and collaboration across our seven regions and five global business lines. We drive growth by prioritizing our core markets, leaning into our greatest strengths and ensuring our best talent and resources are focused on nurturing client relationships.
First, our operating structure promotes greater connectivity and collaboration across our seven regions and six global business lines. We drive growth by prioritizing our core markets, leaning into our greatest strengths and ensuring our best talent and resources are focused on nurturing client relationships.
We provide advisory, planning, consulting, architectural and engineering design, construction and program management services, and investment and development services to public- and private-sector clients worldwide in major end markets such as transportation, facilities, water, environmental, and new energy.
We provide advisory, planning, consulting, architectural and engineering design, construction and program management services, and investment and development services to public and private clients worldwide in major end markets such as transportation, facilities, water, environmental, and energy.
This is often done where the scale of the project dictates such an arrangement or when we want to strengthen either our market position or our technical skills. 12 Table of Contents ​ Backlog Backlog represents revenue we expect to realize for work completed by our consolidated subsidiaries and our proportionate share of work to be performed by unconsolidated joint ventures.
This is often done where the scale of the project dictates such an arrangement or when we want to strengthen either our market position or our technical skills. Backlog Backlog represents revenue we expect to realize for work completed by our consolidated subsidiaries and our proportionate share of work to be performed by unconsolidated joint ventures.
The following table sets forth our total revenue attributable to these categories of clients for each of the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, ​ ​ ($ in millions) ​ 2023 2022 2021 ​ U.S.
The following table sets forth our total revenue attributable to these categories of clients for each of the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, ​ ​ ($ in millions) ​ 2024 2023 2022 ​ U.S.
Employees and managers can evaluate work schedules and locations and align on an arrangement that prioritizes client and team responsibilities while 9 Table of Contents ​ supporting individual needs and includes three days a week in the office or at project sites as an expectation. Our Freedom to Grow program goes far beyond just when and where we work.
Employees and managers can evaluate work schedules and locations and align on an arrangement that prioritizes client and team responsibilities while supporting individual needs and includes three days a week in the office or at project sites as an expectation. Our Freedom to Grow program goes far beyond just when and where we work.
Backlog is expressed in terms of gross revenue and, therefore, may include significant estimated amounts of third party or pass-through costs to subcontractors and other parties. We report transaction price allocated to remaining unsatisfied performance obligations (RUPO) of $21.9 billion, as described in Note 4, Revenue Recognition, in the notes to our consolidated financial statements.
Backlog is expressed in terms of gross revenue and, therefore, may include significant estimated amounts of third party or pass-through costs to subcontractors and other parties. We report transaction price allocated to remaining unsatisfied performance obligations (RUPO) of $19.8 billion, as described in Note 4, Revenue Recognition, in the notes to our consolidated financial statements.
Approximately 5%, 6%, and 8% of our revenue was derived through direct contracts with agencies of the U.S. federal government in the years ended September 30, 2023, 2022, and 2021, respectively. Contracts The price provisions of the contracts we undertake can be grouped into several broad categories: cost-reimbursable contracts, guaranteed maximum price contracts, and fixed-price contracts.
Approximately 7%, 5%, and 6% of our revenue was derived through direct contracts with agencies of the U.S. federal government in the years ended September 30, 2024, 2023, and 2022, respectively. Contracts The price provisions of the contracts we undertake can be grouped into several broad categories: cost-reimbursable contracts, guaranteed maximum price contracts, and fixed-price contracts.
Accordingly, RUPO is $19.3 billion lower than backlog. For non-government contracts, our backlog includes future revenue at contract rates, excluding contract renewals or extensions that are at the discretion of the client. For contracts with a not-to-exceed maximum amount, we include revenue from such contracts in backlog to the extent of the remaining estimated amount.
Accordingly, RUPO is $17.6 billion lower than backlog. For non-government contracts, our backlog includes future revenue at contract rates, excluding contract renewals or extensions that are at the discretion of the client. For contracts with a not-to-exceed maximum amount, we include revenue from such contracts in backlog to the extent of the remaining estimated amount.
According to Engineering News-Record’s (ENR’s) 2023 Design Survey, we are the second largest general architectural and engineering design firm in the world, ranked by 2022 design revenue, and we are the number one ranked transportation design, facilities design, environmental engineering, environmental consulting and environmental science firm in the world.
According to Engineering News-Record’s (ENR’s) 2024 Design Survey, we are the second largest general architectural and engineering design firm in the world, ranked by 2023 design revenue, and we are the number one ranked water, transportation design, facilities design, environmental engineering, environmental consulting and environmental science firm in the world.
Industrial facilities for a variety of niche end markets such as manufacturing, distribution, aviation, aerospace, communications, media, pharmaceuticals, renewable energy, chemical, and food and beverage facilities. ● Urban Master Planning/Design.
Industrial facilities for a variety of niche end markets such as manufacturing, distribution, aviation, aerospace, communications, media, pharmaceuticals, renewable energy, chemical, and food and beverage facilities. 5 Table of Contents ​ ● Urban Master Planning/Design.
Copies of the information identified above may be obtained without charge from us by writing to AECOM, 13355 Noel Road, Suite 400, Dallas, Texas 75240, Attention: Corporate Secretary. ​ 15 Table of Contents ​
Copies of the information identified above may be obtained without charge from us by writing to AECOM, 13355 Noel Road, Suite 400, Dallas, Texas 75240, Attention: Corporate Secretary. ​
Regulations Our business is impacted by environmental, health and safety, government procurement, anti-bribery and other government regulations and requirements. Below is a summary of some of the significant regulations that impact our business. Environmental, Health and Safety.
Regulations Our business is impacted by environmental, health and safety, government procurement, anti-bribery and other government regulations and requirements. Below is a summary of some of the significant regulations that impact our business. 12 Table of Contents ​ Environmental, Health and Safety.
Sustainably-designed new build construction or refurbishment projects, such as office buildings, data centers and other facilities with high energy demands. ● Government. Emergency response services for the U.S.
Facilities. ● Energy Efficient Facilities. Designs for new build construction or refurbishment projects, such as office buildings, data centers and other facilities with high energy demands. ● Government. Emergency response services for the U.S.
Department of Homeland Security, including the Federal Emergency Management Agency and engineering and program management services for agencies of the Department of Defense and Department of Energy. 5 Table of Contents ​ ● Industrial.
Department of Homeland Security, including the Federal Emergency Management Agency and engineering and program management services for agencies of the Department of Defense and Department of Energy. ● Industrial.
At the end of our fiscal 2023, we employed approximately 52,000 persons, of whom approximately 18,000 were employed in the United States. Over 400 of our domestic employees are covered by collective bargaining agreements or by specific labor agreements, which expire upon completion of the relevant project.
At the end of our fiscal 2024, we employed approximately 51,000 persons, of whom approximately 18,000 were employed in the United States. Over 300 of our domestic employees are covered by collective bargaining agreements or by specific labor agreements, which expire upon completion of the relevant project.
Created by us for us, Academies deliver structured and self-directed technical training courses on key 10 Table of Contents ​ global topics, practices and markets that are relevant to our business. Our Technical Practice Network connects nearly 20,000 professionals every day in a global online community to enable networking, collaboration and problem solving.
Created by us for us, Academies deliver structured and self-directed technical training courses on key global topics, practices and markets that are relevant to our business. Our Technical Practice Network connects professionals every day in a global online community to enable networking, collaboration and problem solving.
The most significant differences between our backlog and RUPO are backlog contains revenue we expect to record in the future where we have been awarded the work, but the contractual agreement has not yet been signed, unconsolidated joint venture backlog where we expect to realize income through equity earnings rather than revenue, and revenue related to service contracts that extend beyond the termination provision of those contracts, where RUPO requires us to assume the contract will be terminated at its earliest convenience.
The most significant differences between our backlog and RUPO are backlog contains revenue we expect to record in the future where we have been awarded the work, but the contractual agreement has not yet been signed and revenue related to service contracts that extend beyond the termination provision of those contracts, where RUPO requires us to assume the contract will be terminated at its earliest convenience.
Critical to our continued success is our ability to offer a compelling employee value proposition that promises competitive pay and benefits, an inclusive environment that supports flexibility and well-being and encourages collaboration and innovation, and a shared commitment to technical excellence, continuous learning and career growth. This understanding informs our approach to managing our human capital resources.
Critical to our continued success is our ability to offer a compelling employee value proposition that promises competitive pay and benefits, an inclusive environment that supports flexibility and well-being and encourages collaboration and innovation, and a shared commitment to technical excellence, continuous learning and career growth.
Governments ​ 2,544.7 18 ​ 1,800.6 14 ​ 1,896.8 14 ​ Subtotal Governments ​ 6,254.2 43 ​ 5,445.9 41 ​ 5,721.3 43 ​ Private Entities (worldwide) ​ 8,124.3 57 ​ 7,702.3 59 ​ 7,619.6 57 ​ Total ​ $ 14,378.5 100 % $ 13,148.2 100 % $ 13,340.9 100 % ​ No single client accounted for 10% or more of our revenue in any of the past five fiscal years.
Governments ​ 2,610.0 ​ 16 ​ 2,544.7 18 ​ 1,800.6 ​ 14 ​ Subtotal Governments ​ 7,334.5 ​ 46 ​ 6,254.2 43 ​ 5,445.9 ​ 41 ​ Private Entities (worldwide) ​ 8,771.0 ​ 54 ​ 8,124.3 57 ​ 7,702.3 ​ 59 ​ Total ​ $ 16,105.5 ​ 100 % $ 14,378.5 100 % $ 13,148.2 ​ 100 % ​ No single client accounted for 10% or more of our revenue in any of the past five fiscal years.
For example, within our water service offerings, we provide water, wastewater, water supply and water resource services, which are necessary in response to climate adaptation and resilience, drought mitigation and other environmental and social impact factors as part of major capital/infrastructure projects.
For example, within our water service offerings, we provide water, wastewater, water supply and water resource services, which are necessary in response to climate adaptation and resilience, drought mitigation and other environmental and social impact factors as part of major capital/infrastructure projects. Our services may be sequenced over multiple phases or multiple projects in the form of a program.
Federal Government $ 790.6 5 % $ 821.3 6 % $ 1,026.6 8 % U.S. State and Local Governments ​ 2,918.9 20 ​ 2,824.0 21 ​ 2,797.9 21 ​ Non-U.S.
Federal Government $ 1,064.0 7 % $ 790.6 5 % $ 821.3 6 % U.S. State and Local Governments ​ 3,660.5 ​ 23 ​ 2,918.9 20 ​ 2,824.0 ​ 21 ​ Non-U.S.
Designing water re-use and similar systems to enhance resiliency of water supply. ● Hazardous Chemicals. Treating and addressing disposal of hazardous chemicals in water supplies and surrounding environments, such as per- and polyfluoroalkyl substances (PFAS). Environment. ● Environmental Management. Waste handling, testing and monitoring of environmental conditions, and environmental construction management. ● Remediation.
Treating and addressing disposal of hazardous chemicals in water supplies and surrounding environments, such as per- and polyfluoroalkyl substances (PFAS). Environment and Energy. ● Environmental Management. Waste handling, testing and monitoring of environmental conditions, and environmental construction management. ● Remediation.
AECOM Capital will continue to manage existing investment vehicles and investments in a manner consistent with their current obligations. Thinking and Acting Globally AECOM is at its best when we think and act globally. Our strategy is focused on setting a new standard of excellence in the professional services industry.
The team will continue to support AECOM Capital’s investment vehicles pursuant to certain advisory agreements in a manner consistent with their current obligations. 7 Table of Contents ​ Thinking and Acting Globally AECOM is at its best when we think and act globally. Our strategy is focused on setting a new standard of excellence in the professional services industry.
For clarity of presentation, we present all periods as if the year ended on September 30. We refer to the fiscal year ended September 30, 2022 as “fiscal 2022” and the fiscal year ended September 30, 2023 as “fiscal 2023.” Overview We are a leading global provider of professional infrastructure consulting services for governments, businesses and organizations throughout the world.
We refer to the fiscal year ended September 30, 2023 as “fiscal 2023” and the fiscal year ended September 30, 2024 as “fiscal 2024.” Overview We are a leading global provider of professional infrastructure consulting and advisory services for governments, businesses and organizations throughout the world.
With our technical, advisory and program management expertise, we are able to provide our clients a broad spectrum of services.
With our design and technical consulting, advisory and program management expertise, we are able to provide our clients a broad spectrum of services across the life cycle of their assets.
In addition, we may share award fees with subcontractors. We generally recognize revenue to the extent of costs actually incurred plus a proportionate amount of the fee expected to be earned.
We generally recognize revenue to the extent of costs actually incurred plus a proportionate amount of the fee expected to be earned.
Further, our construction management revenue typically increases during the high construction season of the summer months. Within the United States, as well as other parts of the world, our business generally benefits from milder weather conditions in our fiscal fourth quarter. Our construction and project management services also typically expand during the high construction season of the summer months.
Within the United States, as well as other parts of the world, our business generally benefits from milder weather conditions in our fiscal fourth quarter. Our construction and project management services also typically expand during the summer months when weather and daylight hours are more conducive to outdoor activities.
In addition, we are ranked by ENR as the leading firm in a number of design end markets, including several water infrastructure-related markets, as well as the number two green design firm and the number six green contractor in the world. We utilize our scale and the technical strength of our workforce to create innovative solutions for our clients.
In addition, we are ranked by ENR as the leading firm in a number of design end markets, including several water infrastructure-related markets. We utilize our scale and the technical strength of our workforce to create innovative solutions for our clients. Clients are increasingly seeking our technical expertise to solve the world’s most complex and large scale infrastructure related challenges.
These programs are based on our four pillars of Leadership Capabilities, which outline the behaviors we want our leaders to demonstrate and exemplify for the collective success as an organization. Purpose and impact .
These programs are based on our four pillars of Leadership Capabilities, which outline the behaviors we want our leaders to demonstrate and exemplify for the collective success as an organization. 9 Table of Contents ​ Purpose and impact . Our purpose of delivering a better world is at the core of all that we do.
In addition, as a result of our extensive national and international network, we are able to offer our clients localized knowledge and expertise, as well as the support of our worldwide professional staff.
In addition, as a result of our extensive national and international network, we are able to offer our clients localized knowledge and expertise, as well as the support of our worldwide professional staff. In addition, through investments in technology and innovation, we are able to bring advanced solutions to clients. Seasonality We experience seasonal trends in our business.
Wharf facilities and container port facilities for private and public port operators. ● Highways, Bridges and Tunnels. Interstate, primary and secondary urban and rural highway systems and bridge projects. ● Aviation. Landside terminal and airside facilities, runways, and taxiways. Facilities. ● Green Facilities.
Light rail, heavy rail (including highspeed, commuter and freight) and multimodal transit projects. ● Marine, Ports and Harbors. Wharf facilities and container port facilities for private and public port operators. ● Highways, Bridges and Tunnels. Interstate, primary and secondary urban and rural highway systems and bridge projects. ● Aviation. Landside terminal and airside facilities, runways, and taxiways.
We safeguard our people, projects and reputation by striving for zero employee injuries and illnesses, while operating and delivering our work responsibly and sustainably. We maintain our industry’s best-in-class lost workday case and recordable incident rates, and our safety performance is consistently recognized by key clients across the regions where we work as well as by recognized safety organizations.
We maintain our industry’s best-in-class lost workday case and recordable incident rates, and our safety performance is consistently recognized by key clients across the regions where we work as well as by recognized safety organizations.
Technical excellence is the foundation of our business—it’s how we harness the power of our teams’ technical skills and expertise to deliver high quality solutions for clients and communities we serve.
We consider our people’s holistic experience, respecting diversity in work, communication and thinking styles. Technical and professional development. Technical excellence is the foundation of our business—it’s how we harness the power of our teams’ technical skills and expertise to deliver high quality solutions for clients and communities we serve.
For example, in the area of program management and construction management services, our work for a client may begin with a small consulting or planning contract, and may later develop into an overall management role for the project or a series of projects, which we refer to as a program. 4 Table of Contents ​ Program and construction management contracts may employ small or large project teams and, in many cases, operate as an outsourcing arrangement with our staff located at the project site.
For example, in the area of program management and construction management services, our work for a client may begin with a small consulting or planning contract, and may later develop into a broader advisory, design or overall management role for the project or a series of projects, which we refer to as a program.
While we do not currently foresee the lack of availability of any particular raw materials in the near term, prolonged unavailability of raw materials necessary to our projects and services or significant price increases for those raw materials could have a material adverse effect on our business in the near term.
While we do not currently foresee the lack of availability of any particular raw materials in the near term, prolonged unavailability of raw materials necessary to our projects and services or significant price increases for those raw materials could have a material adverse effect on our business in the near term. 13 Table of Contents ​ Government Contracts Generally, our government contracts are subject to renegotiation or termination of contracts or subcontracts at the discretion of the U.S. federal, state or local governments, and national governments of other countries.
Program and construction management services for large scale building facility construction projects primarily in the Americas including: sports arenas, modern office and residential towers, hotels, meeting and exhibition spaces, performance venues, aviation, and other facilities. Water. ● Water and Wastewater.
Program and construction management services for large scale building facility construction projects primarily in the Americas including: sports arenas, modern office and residential towers, hotels, convention centers, performance venues, aviation, and other facilities. Water. ● Water and Wastewater. Treatment facilities as well as supply, distribution and collection systems, stormwater management, desalinization, and other water reuse technologies. ● Water Resources.
We have taken and will continue to take critical steps to keep our people, clients and communities safe, including any necessary actions in response to local and global health crises. Equity, diversity and inclusion . We are committed to advancing equity, diversity and inclusion in our organization and within our industry.
We have taken and will continue to take critical steps to keep our people, clients and communities safe, including any necessary actions in response to local and global health crises. 8 Table of Contents ​ Freedom to Grow .
These estimates are revised when necessary based upon additional information that becomes available as the contract progresses. Guaranteed Maximum Price Contracts Guaranteed maximum price (GMP) contracts share many of the same contract provisions as cost-plus and fixed-price contracts. As with cost-plus contracts, clients are provided a disclosure of all project costs, and a lump sum percentage fee is separately identified.
These estimates are revised when necessary based upon additional information that becomes available as the contract progresses. 10 Table of Contents ​ Guaranteed Maximum Price Contracts Guaranteed maximum price (GMP) contracts share many of the same contract provisions as cost-plus and fixed-price contracts.
Under cost-plus contracts, we charge clients for our costs, including both direct and indirect costs, plus a negotiated fee or rate. We recognize revenues based on actual direct costs incurred and the applicable fixed rate or portion of the fixed fee earned as of the balance sheet date.
We recognize revenues based on actual direct costs incurred and the applicable fixed rate or portion of the fixed fee earned as of the balance sheet date. Under time-and-materials price contracts, we negotiate hourly billing rates and charge clients based on the actual time we expend on the project.
Liabilities related to environmental contamination or human exposure to hazardous substances, comparable national and state laws or a failure to comply with applicable regulations could result in substantial costs to us, including cleanup costs, fines and civil or criminal sanctions, third-party claims for property damage or personal injury, or cessation of remediation activities. 14 Table of Contents ​ Some of our business operations are covered by Public Law 85-804, which provides for indemnification by the U.S. federal government against claims and damages arising out of unusually hazardous or nuclear activities performed at the request of the U.S. federal government.
Liabilities related to environmental contamination or human exposure to hazardous substances, comparable national and state laws or a failure to comply with applicable regulations could result in substantial costs to us, including cleanup costs, fines and civil or criminal sanctions, third-party claims for property damage or personal injury, or cessation of remediation activities.
As the world’s trusted infrastructure consulting firm and a leader in environmental, social and corporate governance (ESG), we are determined and well-positioned to deliver positive, impactful and Sustainable Legacies for our company, our communities and our planet.
As the world’s trusted infrastructure consulting firm, we are determined and well-positioned to deliver positive, impactful and Sustainable Legacies for our company, our communities and our planet. Through our projects and our operations, we have both a significant opportunity and a responsibility to protect, enhance and restore the world’s natural and social systems.
Time-and-material price contracts may also have a fixed-price element in the form of not-to-exceed or guaranteed maximum price provisions. Some cost-plus contracts provide for award fees or a penalty based on performance criteria in lieu of a fixed fee or fixed rate. Other contracts include a base fee component plus a performance-based award fee.
Some cost-plus contracts provide for award fees or a penalty based on performance criteria in lieu of a fixed fee or fixed rate. Other contracts include a base fee component plus a performance-based award fee. In addition, we may share award fees with subcontractors.
Treatment facilities as well as supply, distribution and collection systems, stormwater management, desalinization, and other water reuse technologies. ● Water Resources. Regional-scale floodplain mapping and analysis for public agencies, along with the analysis and development of protected groundwater resources for companies in the bottled water industry. ● Drought Response and Mitigation.
Regional-scale floodplain mapping and analysis for public agencies, along with the analysis and development of protected groundwater resources for companies in the bottled water industry. ● Drought Response and Mitigation. Designing water re-use and similar systems to enhance resiliency of water supply. ● Hazardous Chemicals.
For the year ended September 30, 2023, our revenue was comprised of 43%, 34%, and 23% cost-reimbursable, guaranteed maximum price, and fixed-price contracts, respectively. 11 Table of Contents ​ Cost-Reimbursable Contracts Cost-reimbursable contracts include cost-plus fixed fee, cost-plus fixed rate, and time-and-materials price contracts.
For the year ended September 30, 2024, our revenue was comprised of 40%, 37%, and 23% cost-reimbursable, guaranteed maximum price, and fixed-price contracts, respectively. Cost-Reimbursable Contracts Cost-reimbursable contracts include cost-plus fixed fee, cost-plus fixed rate, and time-and-materials price contracts. Under cost-plus contracts, we charge clients for our costs, including both direct and indirect costs, plus a negotiated fee or rate.
ACAP has focused on investing in co-general partner equity opportunities with high quality partners, primarily targeting “build-to-core” investments in the top U.S. markets across all property types. During fiscal 2023, we initiated a process to explore strategic options for the AECOM Capital business. This process is consistent with our focus on our professional services business.
ACAP has focused on investing in co-general partner equity opportunities with high quality partners, primarily targeting “build-to-core” investments in the top U.S. markets across all property types. We completed a transaction that transitioned the AECOM Capital team to a new third-party platform in the third quarter of fiscal 2024.
Under time-and-materials price contracts, we negotiate hourly billing rates and charge clients based on the actual time we expend on the project. In addition, clients reimburse us for materials and other direct incidental expenditures, including payments to subcontractors, incurred in connection with our performance under the contract.
In addition, clients reimburse us for materials and other direct incidental expenditures, including payments to subcontractors, incurred in connection with our performance under the contract. Time-and-material price contracts may also have a fixed-price element in the form of not-to-exceed or guaranteed maximum price provisions.
We find that the U.S. federal government tends to authorize more work during the period preceding the end of our fiscal year, September 30. In addition, many U.S. state governments with fiscal years ending on June 30 tend to accelerate spending during their first quarter, when new funding becomes available.
In addition, many U.S. state governments with fiscal years ending on June 30 tend to accelerate spending during their first quarter, when new funding becomes available. Further, our construction management revenue typically increases during the summer months when weather and daylight hours are more conducive to outdoor activities.
We provide clients with a guaranteed price for the overall project (adjusted for change orders issued by clients) and a schedule including the expected completion date. Cost overruns or costs associated with project delays in completion could generally be our responsibility.
As with cost-plus contracts, clients are provided a disclosure of all project costs, and a lump sum percentage fee is separately identified. We provide clients with a guaranteed price for the overall project (adjusted for change orders issued by clients) and a schedule including the expected completion date.
Government Contracts Generally, our government contracts are subject to renegotiation or termination of contracts or subcontracts at the discretion of the U.S. federal, state or local governments, and national governments of other countries. Trade Secrets and Other Intellectual Property We rely principally on trade secrets, confidentiality policies and other contractual arrangements to protect much of our intellectual property.
Trade Secrets and Other Intellectual Property We rely principally on trade secrets, confidentiality policies and other contractual arrangements to protect much of our intellectual property.
Our human capital objectives and initiatives are overseen by our Board as per our Corporate Governance Guidelines. Health and Safety . Core to our corporate values is safeguarding our people and fostering a culture of caring that promotes the wellbeing of our employees, contractors and business partners.
Health and Safety . Core to our corporate values is safeguarding our people and fostering a culture of caring that promotes the wellbeing of our employees, contractors and business partners. We safeguard our people, projects and reputation by striving for zero employee injuries and illnesses, while operating and delivering our work responsibly and sustainably.
The following summarizes backlog (in billions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2023 2022 Backlog: ​ ​ Americas segment ​ $ 34.9 ​ $ 35.1 International segment ​ 6.3 ​ 5.1 Total backlog ​ $ 41.2 ​ $ 40.2 ​ Competition The markets we serve are highly fragmented and we compete with a large number of regional, national and international companies.
Our backlog for the year ended September 30, 2024 decreased $2.2 billion, or 5.6%, to $37.4 billion as compared to $39.6 billion for the corresponding period last year, primarily due to a decrease in our Americas Construction Management design business. 11 Table of Contents ​ The following summarizes backlog (in billions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2024 2023 Backlog: ​ ​ Americas segment ​ $ 31.0 ​ $ 33.3 International segment ​ 6.4 ​ ​ 6.3 Total backlog ​ $ 37.4 ​ $ 39.6 ​ Competition The markets we serve are highly fragmented and we compete with a large number of regional, national and international companies.
As part of our pro-bono program, our technical experts partnered with nonprofit organizations in their local communities to provide critical design, engineering and infrastructure solutions. In addition, we have maintained our commitment to our enterprise strategic nonprofit partners – Engineers Without Borders and Water for People.
As part of our pro-bono program, our technical experts partnered with nonprofit organizations in their local communities to provide critical design, engineering and infrastructure solutions. We maintain an internal Global Sustainable Legacies Council focused on executing on our purpose and ensuring that our actions are as strong as our policies.
We provide the services in these segments both directly and through joint ventures or similar arrangements to the following end markets or business sectors: Transportation. ● Transit and Rail. Light rail, heavy rail (including highspeed, commuter and freight) and multimodal transit projects. ● Marine, Ports and Harbors.
These investments include capturing the value of our libraries of data to build more efficient design processes, and innovative and more advanced solutions for increasingly complex challenges. ​ 4 Table of Contents ​ We provide the services in these segments both directly and through joint ventures or similar arrangements to the following end markets or business sectors: Transportation. ● Transit and Rail.
Additional information regarding our ESG initiatives is located on the investor relations section of our website, at https://investors.aecom.com/esg. 8 Table of Contents ​ Human Capital Management Our principal asset is our employees and large percentages of our employees have technical and professional backgrounds and undergraduate and/or advanced degrees.
We are transforming the way we deliver work through technology and digital platforms improving the client experience and increasing efficiency. Human Capital Management Our principal asset is our employees and large percentages of our employees have technical and professional backgrounds and undergraduate and/or advanced degrees.
In addition, through investments in technology and innovation, we are able to bring advanced solutions to clients. 13 Table of Contents ​ Seasonality We experience seasonal trends in our business. Our revenue is typically higher in the last half of the fiscal year. The fourth quarter of our fiscal year (July 1 to September 30) is typically our strongest quarter.
Our revenue is typically higher in the last half of the fiscal year. The fourth quarter of our fiscal year (July 1 to September 30) is typically our strongest quarter. We find that the U.S. federal government tends to authorize more work during the period preceding the end of our fiscal year, September 30.
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We are accelerating investments to extend our capabilities, including the expansion of our digital capabilities to create innovative ways of delivering our work and solving the world’s most complex challenges.
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For clarity of presentation, we present all periods as if the year ended on September 30.
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Clients are turning to us to create solutions to achieve their Environmental, Social, and Governance (ESG) objectives with a focus on sustainability and resilience initiatives, which include supporting the advancement of more energy efficient and less-carbon-intensive infrastructure. With our market leading technical capabilities, we are uniquely well suited to address these challenges.
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Aging infrastructure, increasing urbanization, and growing energy demand create growth secular tailwinds for our markets. Our global network of technical experts, combined with our ability to advise, consult, design, and deliver program management services creates a competitive advantage. Our scale also creates the capacity for investment in digital capabilities that further enhance our delivery capabilities and value proposition.
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These investments include capturing the value of our libraries of data to build more efficient design processes, and innovative and more advanced solutions for increasingly complex challenges, where our digital suite of products are creating a more holistic approach to our work. Our services may be sequenced over multiple phases or multiple projects in the form of a program.
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Program and construction management contracts may employ small or large project teams and, in many cases, operate with our staff located at the project site.
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Production facilities such as ethanol plants, onshore and offshore wind farms and micro hydropower, and geothermal subsections of regional power grids. ● Hydropower/Dams. Hydroelectric power stations, dams, spillways, and flood control systems. 6 Table of Contents ​ ● Solar. Solar photovoltaic projects and environmental permitting services.
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Water and Environment Advisory – We provide expertise driven advisory services to infrastructure clients through the development of high-value strategies blending strategic direction with real-world expertise and deep collaboration, including: ● Digital Water Advisory and Consulting. ● Emerging Contaminants. ● Resource Management. ● Asset Management. ● Water Supply Optimization. ● Environmental Consulting.
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We are transforming the way we deliver work through technology 7 Table of Contents ​ and digital platforms improving the client experience and increasing efficiency. Lastly, we are building upon our position as a leading ESG company, unified by our purpose to deliver a better world.
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Through our Thrive with AECOM program, we are focused on fostering an inclusive environment within AECOM and beyond by building diverse talent, expanding understanding, enriching communities and thinking without limits. This understanding informs our approach to managing our human capital resources. Our human capital objectives and initiatives are overseen by our Board as per our Corporate Governance Guidelines.
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Environmental, Social and Governance Matters We are committed to being a leader in environmental sustainability, social responsibility, and corporate governance. We embrace sustainability by striving to make a positive, lasting impact on society and the environment.
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Cost overruns or costs associated with project delays in completion could generally be our responsibility.
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Sustainability is at the core of what we do and how we operate — focusing on the environmental, social and governance impact of our business. Through our projects and our operations, we have both a significant opportunity and a responsibility to protect, enhance and restore the world’s natural and social systems.
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Many of our contracts require us to provide services over more than one year.
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We are committed to addressing the effects of climate change as a key priority for our sustainability program by improving resilience and working to advance increasingly ambitious greenhouse gas emissions reduction targets.
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Some of our business operations are covered by Public Law 85-804, which provides for indemnification by the U.S. federal government against claims and damages arising out of unusually hazardous or nuclear activities performed at the request of the U.S. federal government.
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To this point, in fiscal 2022, we were among the first companies globally to have set net zero emissions reduction targets approved by the Science Based Targets Initiative (SBTi), which are designed to exceed the goals of the Paris Agreement on climate change.
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These net zero emissions reduction goals include a near-term target to reduce Scope 1, 2 and 3 emissions by 50% by 2030 and a long-term target to reduce total emissions by 90% by 2040. These commitments build upon our commitments as a signatory to the UN Global Compact. In addition, we continue to invest in proprietary innovations and digital solutions.
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This includes a solution to combat globally pervasive emerging contaminants, such as our proprietary DE-FLUORO TM water treatment solution to destroy per and polyfluoroalkyl substances (PFAS) on-site.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe U.S. and many international legislative and regulatory bodies continually propose and enact legislation that could significantly impact how U.S. multinational corporations are taxed. The Organization for Economic Co-operation and Development (OECD), a global coalition of member countries, has developed a two-pillar framework to reform international taxation.
Biggest changeAlthough we believe that our tax estimates and tax positions are reasonable, they could be materially affected by many factors including the final outcome of tax audits and related litigation, the introduction of new tax accounting standards, legislation, regulations and related interpretations. 27 Table of Contents ​ The Organization for Economic Co-operation and Development (OECD), a global coalition of member countries, has developed a two-pillar framework to reform international taxation.
Additional difficulties we may encounter as part of the integration process include the following: ● the consequences of a change in tax treatment and the possibility that the full benefits anticipated from the acquisition or disposition will not be realized; 24 Table of Contents ​ ● any delay in the integration or disposition of management teams, strategies, operations, products and services; ● differences in business backgrounds, corporate cultures and management philosophies that may delay successful integration; ● the ability to retain key employees; ● the ability to create and enforce uniform standards, controls, procedures, policies and information systems; ● the challenge of restructuring complex systems, technology, networks and other assets in a seamless manner that minimizes any adverse impact on customers, suppliers, employees and other constituencies; ● potential unknown liabilities and unforeseen increased expenses or delays associated with the acquisition, including costs to integrate beyond current estimates; ● the ability to deduct or claim tax attributes or benefits such as operating losses, business or foreign tax credits; and ● the disruption of, or the loss of momentum in, each company’s ongoing businesses or inconsistencies in standards, controls, procedures and policies.
Additional difficulties we may encounter as part of the integration process include the following: ● the consequences of a change in tax treatment and the possibility that the full benefits anticipated from the acquisition or disposition will not be realized; 22 Table of Contents ​ ● any delay in the integration or disposition of management teams, strategies, operations, products and services; ● differences in business backgrounds, corporate cultures and management philosophies that may delay successful integration; ● the ability to retain key employees; ● the ability to create and enforce uniform standards, controls, procedures, policies and information systems; ● the challenge of restructuring complex systems, technology, networks and other assets in a seamless manner that minimizes any adverse impact on customers, suppliers, employees and other constituencies; ● potential unknown liabilities and unforeseen increased expenses or delays associated with the acquisition, including costs to integrate beyond current estimates; ● the ability to deduct or claim tax attributes or benefits such as operating losses, business or foreign tax credits; and ● the disruption of, or the loss of momentum in, each company’s ongoing businesses or inconsistencies in standards, controls, procedures and policies.
We participate in joint ventures where we provide guarantees and may be adversely impacted by the failure of the joint venture or its participants to fulfill their obligations. We have investments in and commitments to joint ventures with unrelated parties, including in connection with construction services, government services, and the investment activities of ACAP.
We participate in joint ventures where we provide guarantees and may be adversely impacted by the failure of the joint venture or its participants to fulfill their obligations. We have investments in and commitments to joint ventures with unrelated parties, including in connection with government services, and the investment activities of ACAP.
These events or circumstances could include a significant change in the business climate, including a significant sustained decline in a reporting unit’s market value, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of our business, a significant sustained decline in our market capitalization and other factors. 25 Table of Contents ​ In addition, if we experience a decrease in our stock price and market capitalization over a sustained period, we would have to record an impairment charge in the future.
These events or circumstances could include a significant change in the business climate, including a significant sustained decline in a reporting unit’s market value, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of our business, a significant sustained decline in our market capitalization and other factors. 23 Table of Contents ​ In addition, if we experience a decrease in our stock price and market capitalization over a sustained period, we would have to record an impairment charge in the future.
While no one client accounted for over 10% of our revenue for fiscal 2023, we face collection risk as a normal part of our business where we perform services and subsequently bill our clients for such services, or when we make equity investments in majority or minority controlled large-scale client projects and other long-term capital projects before the project completes operational status or completes its project financing.
While no one client accounted for over 10% of our revenue for fiscal 2024, we face collection risk as a normal part of our business where we perform services and subsequently bill our clients for such services, or when we make equity investments in majority or minority controlled large-scale client projects and other long-term capital projects before the project completes operational status or completes its project financing.
If a government terminates a contract due to our default, we could be liable for excess costs incurred by the government in obtaining services from another source. 17 Table of Contents ​ Our contracts with governmental agencies are subject to audit, which could result in adjustments to reimbursable contract costs or, if we are charged with wrongdoing, possible temporary or permanent suspension from participating in government programs.
If a government terminates a contract due to our default, we could be liable for excess costs incurred by the government in obtaining services from another source. 15 Table of Contents ​ Our contracts with governmental agencies are subject to audit, which could result in adjustments to reimbursable contract costs or, if we are charged with wrongdoing, possible temporary or permanent suspension from participating in government programs.
Failure to adequately protect, maintain, or enforce our intellectual property rights may adversely limit our competitive position. 28 Table of Contents ​ Our revenue and growth prospects may be harmed if we or our employees are unable to obtain government granted eligibility or other qualifications we and they need to perform services for our customers.
Failure to adequately protect, maintain, or enforce our intellectual property rights may adversely limit our competitive position. 26 Table of Contents ​ Our revenue and growth prospects may be harmed if we or our employees are unable to obtain government granted eligibility or other qualifications we and they need to perform services for our customers.
In addition, in connection with the investment activities of ACAP, we provide guarantees of obligations, including guarantees for completion of projects, repayment of debt, environmental indemnity obligations and other lender required guarantees. 22 Table of Contents ​ AECOM Capital’s real estate development and investment activities are inherently risky and may result in a future loss.
In addition, in connection with the investment activities of ACAP, we provide guarantees of obligations, including guarantees for completion of projects, repayment of debt, environmental indemnity obligations and other lender required guarantees. 20 Table of Contents ​ AECOM Capital’s real estate development and investment activities are inherently risky and may result in a future loss.
Partially or completely uninsured claims, if successful and of significant magnitude, could have a material adverse effect on our business. 26 Table of Contents ​ Unavailability or cancellation of third-party insurance coverage would increase our overall risk exposure as well as disrupt the management of our business operations.
Partially or completely uninsured claims, if successful and of significant magnitude, could have a material adverse effect on our business. 24 Table of Contents ​ Unavailability or cancellation of third-party insurance coverage would increase our overall risk exposure as well as disrupt the management of our business operations.
However, we may not maintain interest rate swaps with respect to all of our variable rate indebtedness, and any swaps we enter into may not fully mitigate our interest rate risk and could be subject to credit risk themselves. If we are unable to continue to access credit on acceptable terms, our business may be adversely affected.
However, we may not maintain interest rate derivatives with respect to all of our variable rate indebtedness, and any derivatives we enter into may not fully mitigate our interest rate risk and could be subject to credit risk themselves. If we are unable to continue to access credit on acceptable terms, our business may be adversely affected.
We conduct a portion of our operations through joint venture entities, over which we may have limited control. Approximately 14% of our fiscal 2023 revenue was derived from our operations through joint ventures or similar partnership arrangements, where control may be shared with unaffiliated third parties.
We conduct a portion of our operations through joint venture entities, over which we may have limited control. Approximately 14% of our fiscal 2024 revenue was derived from our operations through joint ventures or similar partnership arrangements, where control may be shared with unaffiliated third parties.
Sales of our services provided to our unconsolidated joint ventures were approximately 2% of our fiscal 2023 revenue. We generally do not have control of these unconsolidated joint ventures. These joint ventures may not be subject to the same requirements regarding internal controls and internal control over financial reporting that we follow.
Sales of our services provided to our unconsolidated joint ventures were approximately 2% of our fiscal 2024 revenue. We generally do not have control of these unconsolidated joint ventures. These joint ventures may not be subject to the same requirements regarding internal controls and internal control over financial reporting that we follow.
We may experience errors, outages, or delays of service in our information technology systems, which could significantly disrupt our operations, impact our clients and employees, damage our reputation, and result in litigation and regulatory fines or penalties. 20 Table of Contents ​ Various privacy and securities laws pertaining to client and employee data usage require us to manage and protect sensitive and proprietary information.
We may experience errors, outages, or delays of service in our information technology systems, which could significantly disrupt our operations, impact our clients and employees, damage our reputation, and result in litigation and regulatory fines or penalties. Various privacy and securities laws pertaining to client and employee data usage require us to manage and protect sensitive and proprietary information.
As interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease.
If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease.
Although we devote significant resources to our cybersecurity programs and have implemented security measures to protect our systems and to prevent, detect and respond to cybersecurity incidents, there can be no assurance that our efforts will prevent these threats.
Although we devote considerable resources to our cybersecurity programs and have implemented security measures to protect our systems and to prevent, detect and respond to cybersecurity incidents, there can be no assurance that our efforts will prevent these threats.
If these claims are not approved, our revenue may be reduced in future periods. 27 Table of Contents ​ In conducting our business, we depend on other contractors, subcontractors and equipment and material providers.
If these claims are not approved, our revenue may be reduced in future periods. 25 Table of Contents ​ In conducting our business, we depend on other contractors, subcontractors and equipment and material providers.
There are risks inherent in doing business internationally, including: ● the ongoing conflict between Russia and Ukraine, which has resulted in the imposition by the U.S. and other nations of restrictive actions against Russia, Belarus and certain banks, companies and individuals; ● imposition of governmental controls and changes in laws, regulations or policies; ● political and economic instability, including in the Middle East; ● civil unrest, acts of terrorism, force majeure, war, or other armed conflict; ● changes in U.S. and other national government trade policies affecting the markets for our services, such as retaliatory tariffs between the United States and China; ● political unrest in Hong Kong where we have a significant presence; ● impact of the Covid-19 pandemic and its related economic impacts; ● increases in the consumer price index and interest rates; ● changes in regulatory practices, tariffs and taxes; ● potential non-compliance with a wide variety of laws and regulations, including anti-corruption, export control and anti-boycott laws and similar non-U.S. laws and regulations; ● changes in labor conditions; 19 Table of Contents ​ ● logistical and communication challenges; and ● currency exchange rate fluctuations, devaluations and other conversion restrictions.
There are risks inherent in doing business internationally, including: ● the ongoing conflict between Russia and Ukraine, which has resulted in the imposition by the U.S. and other nations of restrictive actions against Russia, Belarus and certain banks, companies and individuals; ● imposition of governmental controls and changes in laws, regulations or policies; ● political and economic instability, including in the Middle East; ● civil unrest, acts of terrorism, force majeure, war, or other armed conflict; ● changes in U.S. and other national government trade policies affecting the markets for our services, such as retaliatory tariffs between the United States and China; ● political unrest in Hong Kong where we have a significant presence; ● impact of health crises and their related economic impacts; ● increases in the consumer price index and interest rates; ● changes in regulatory practices, tariffs and taxes; ● potential non-compliance with a wide variety of laws and regulations, including anti-corruption, export control and anti-boycott laws and similar non-U.S. laws and regulations; ● changes in labor conditions; 17 Table of Contents ​ ● logistical and communication challenges; and ● currency exchange rate fluctuations, devaluations and other conversion restrictions.
In addition, public-supported financing such as state and local municipal bonds may be only partially raised to support existing infrastructure projects. As 16 Table of Contents ​ a result, at the beginning of a program, the related contract is only partially funded, and additional funding is normally committed only as appropriations are made in each fiscal year.
In addition, public-supported financing such as state and local municipal bonds may be only partially raised to support existing infrastructure projects. As a result, at the beginning of a program, the related contract is only partially funded, and additional funding is normally committed only as appropriations are made in each fiscal year.
Despite our training and compliance programs, we cannot assure that our internal control policies and procedures always will protect us from reckless or criminal acts committed by our employees or agents. In addition, from time to time, government investigations of corruption in construction-related industries affect us and our peers.
Despite our training and compliance programs, we cannot assure that our internal control policies and procedures always will protect us from reckless or criminal acts committed by our employees or agents. In addition, from time to time, government investigations of corruption affect us and our peers.
During fiscal 2023 and 2022, approximately 43% and 41%, respectively, of our revenue was derived from contracts with government entities. Most government contracts are subject to such government’s budgetary approval process. Legislatures typically appropriate funds for a given program on an annual basis, even though contract performance may take more than one year.
During fiscal 2024 and 2023, approximately 46% and 43%, respectively, of our revenue was derived from contracts with government entities. Most government contracts are subject to such government’s budgetary approval process. Legislatures typically appropriate funds for a given program on an annual basis, even though contract performance may take more than one year.
We may, from time to time, enter into additional interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility.
We may, from time to time, enter into additional interest rate derivatives that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility.
As a result, our failure to maintain adequate safety standards and equipment could result in reduced profitability or the loss of projects or clients, and could have a material adverse impact on our business, financial condition, and results of operations. Cybersecurity threats, information technology systems outages and data privacy incidents could adversely harm our business.
As a result, our failure to maintain adequate safety standards and equipment could result in reduced profitability, harm to our reputation, or the loss of projects or clients, and could have a material adverse impact on our business, financial condition, and results of operations. 18 Table of Contents ​ Cybersecurity threats, information technology systems outages and data privacy incidents could adversely harm our business.
If an event of default occurs, our creditors could elect to: ● declare all borrowings outstanding, together with accrued and unpaid interest, to be immediately due and payable; ● require us to apply all of our available cash to repay the borrowings; or ● prevent us from making debt service payments on our borrowings. 18 Table of Contents ​ If we were unable to repay or otherwise refinance these borrowings when due, the applicable creditors could sell the collateral securing some of our debt instruments, which constitutes substantially all of our domestic and foreign, wholly owned subsidiaries’ assets.
If an event of default occurs, our creditors could elect to: ● declare all borrowings outstanding, together with accrued and unpaid interest, to be immediately due and payable; ● require us to apply all of our available cash to repay the borrowings; or ● prevent us from making debt service payments on our borrowings. 16 Table of Contents ​ If we were unable to repay or otherwise refinance these borrowings when due, the applicable creditors could sell the collateral securing some of our debt instruments, which constitutes substantially all of the Company’s and certain of its domestic wholly-owned subsidiaries’ assets.
Accordingly, RUPO is $19.3 billion lower than backlog. We cannot guarantee that future revenue will be realized from either category of backlog or, if realized, will result in profits. Many projects may remain in our backlog for an extended period of time because of the size or long-term nature of the contract.
Accordingly, RUPO is $17.6 billion lower than backlog. We cannot guarantee that future revenue will be realized from either category of backlog or, if realized, will result in profits. Many projects may remain in our backlog for an extended period of time because of the size or long-term nature of the contract.
A 1.00% increase in such interest rates would increase total interest expense under our Credit Agreement for the year ended September 30, 2023 by $8.6 million, including the effect of our interest rate swap and interest rate cap agreements.
A 1.00% increase in such interest rates would increase total interest expense under our Credit Agreement for the year ended September 30, 2024 by $9.6 million, including the effect of our interest rate swap and interest rate cap agreements.
A failure to adequately meet stakeholders’ expectations may result in loss of business, and an inability to attract and retain customers and talented personnel, which could have a negative impact on our business, results of operations and financial condition, and potentially on the price of our common stock and cost of capital.
A failure to adequately meet stakeholders’ expectations, including failing to meet client commitments and targets, may result in loss of business, and an inability to attract and retain customers and talented personnel, which could have a negative impact on our business, results of operations and financial condition, and potentially on the price of our common stock and cost of capital.
The new legislation may result in new risk, regulatory and cost challenges for our United Kingdom and global operations. Any of these events could adversely affect our United Kingdom, European operations and overall business and financial results.
The new legislation has resulted in new risk, regulatory and cost challenges for our United Kingdom and global operations. Any of these events could adversely affect our United Kingdom, European operations and overall business and financial results.
As these security threats continue to evolve, we may be required to devote additional resources to protect, prevent, detect and respond against system disruptions and security breaches. We also rely in part on third-party software and information technology vendors to run our critical accounting, project management and financial information systems.
As these security threats continue to evolve, we may be required to devote additional resources to help prevent, detect and respond to system disruptions and cybersecurity incidents. We also rely in part on third-party software and information technology vendors to run our critical accounting, project management and financial information systems.
We reported transaction price allocated to remaining unsatisfied performance obligations (RUPO) of $21.9 billion, as described in Note 4, Revenue Recognition, in the notes to our consolidated financial statements.
We reported transaction price allocated to remaining unsatisfied performance obligations (RUPO) of $19.8 billion, as described in Note 4, Revenue Recognition, in the notes to our consolidated financial statements.
Some of the Fund’s limited partners may be permitted to make additional equity co-investments in certain Real Estate Joint Ventures for which AECOM will provide support payments on behalf of the limited partner co-investor in the event of a cost overrun of the Real Estate Joint Ventures after additional specific reserves have been depleted.
Some of the Fund’s limited partners have made additional equity co-investments in certain Real Estate Joint Ventures for which AECOM will provide support payments on behalf of the limited partner co-investor in the event of a cost overrun of the Real Estate Joint Ventures after additional specific reserves have been depleted.
The most significant differences between our backlog and RUPO are backlog contains revenue we expect to record in the future where we have been awarded the work, but the contractual agreement has not yet been signed, unconsolidated joint venture backlog where we expect to realize income through equity earnings rather than revenue, and revenue related to service contracts that extend beyond the termination provisions of those contracts, where guidance for the calculation of RUPO requires us to assume the contract will be terminated at its earliest convenience.
The most significant differences between our backlog and RUPO are backlog contains revenue we expect to record in the future where we have been awarded the work, but the contractual agreement has not yet been signed and revenue related to service contracts that extend beyond the termination provisions of those contracts, where guidance for the calculation of RUPO requires us to assume the contract will be terminated at its earliest convenience.
In addition, we may enter guaranteed maximum price contracts where we guarantee a price or delivery date. For the year ended September 30, 2023, our revenue was comprised of 43%, 34%, and 23% cost-reimbursable, guaranteed maximum price, and fixed-price contracts, respectively.
In addition, we may enter guaranteed maximum price contracts where we guarantee a price or delivery date. For the year ended September 30, 2024, our revenue was comprised of 40%, 37%, and 23% cost-reimbursable, guaranteed maximum price, and fixed-price contracts, respectively.
During fiscal 2023, revenue attributable to our services provided outside of the United States to non-U.S. clients was approximately 29% of our total revenue.
During fiscal 2024, revenue attributable to our services provided outside of the United States to non-U.S. clients was approximately 27% of our total revenue.
Our collective bargaining agreements with unions require us to contribute to various multiemployer pension plans; however, we do not control or manage these plans. For the year ended September 30, 2023, we contributed $3.0 million to multiemployer pension plans.
Our collective bargaining agreements with unions require us to contribute to various multiemployer pension plans; however, we do not control or manage these plans. For the year ended September 30, 2024, we contributed $2.5 million to multiemployer pension plans.
Indemnification provisions under the Price-Anderson Act available to nuclear energy plant operators and contractors do not apply to all liabilities that we might incur while performing services as a radioactive materials cleanup contractor for the nuclear energy industry.
We provide services to the nuclear energy industry primarily related to decontamination and decommissioning of nuclear energy plants. Indemnification provisions under the Price-Anderson Act available to nuclear energy plant operators and contractors do not apply to all liabilities that we might incur while performing services as a radioactive materials cleanup contractor for the nuclear energy industry.
Any of these events could damage our reputation and have a material adverse effect on our business, financial condition, results of operations and cash flows. Furthermore, while we maintain insurance that specifically covers these attacks, our coverage may not sufficiently cover all types of losses or claims that may arise.
Any of these events could damage our reputation and have a material adverse effect on our business, financial condition, results of operations and cash flows. Furthermore, while we maintain insurance designed to cover these events, our coverage may not sufficiently cover all types of losses or claims that may arise or be subject to exclusions.
Our backlog of uncompleted projects under contract is subject to unexpected adjustments and cancellations and, thus may not accurately reflect future revenue and profits. At September 30, 2023, backlog was approximately $41.2 billion.
Our backlog of uncompleted projects under contract is subject to unexpected adjustments and cancellations and, thus may not accurately reflect future revenue and profits. At September 30, 2024, backlog was approximately $37.4 billion.
As of September 30, 2023 and September 30, 2022, we were contingently liable for $4.6 billion and $4.4 billion, respectively, in issued surety bonds primarily to support project execution and we had outstanding letters of credit totaling $883.3 million and $644.7 million, respectively.
As of September 30, 2024 and September 30, 2023, we were contingently liable for $5.1 billion and $4.6 billion, respectively, in issued surety bonds primarily to support project execution and we had outstanding letters of credit totaling $938.9 million and $883.3 million, respectively.
At September 30, 2023, our defined benefit pension plans had an aggregate deficit (the excess of projected benefit obligations over the fair value of plan assets) of approximately $165.3 million.
At September 30, 2024, our defined benefit pension plans had an aggregate deficit (the excess of projected benefit obligations over the fair value of plan assets) of approximately $134.0 million.
Due to the large scale of our U.S. and international business activities, many of these proposed changes, if enacted into law, could have an adverse impact on our worldwide effective tax rate, income tax expense and cash flows. ​ 29 Table of Contents ​
Due to the large scale of our U.S. and international business activities, many of these proposed changes, if enacted into law, could have an adverse impact on our worldwide effective tax rate, income tax expense and cash flows. ​ ITEM 1B. UNRESOLVED STAFF COMMENTS None.
In addition, our Credit Agreement requires us to comply with a consolidated interest coverage ratio and consolidated leverage ratio. Our ability to comply with these ratios may be affected by events beyond our control.
In addition, our Credit Agreement requires us to comply with a consolidated leverage ratio. Our ability to comply with this ratio may be affected by events beyond our control.
Demand for our services is cyclical and may be vulnerable to sudden economic downturns, interest rate fluctuations and reductions in government and private industry spending that result in clients delaying, curtailing or canceling proposed and existing projects.
If economic conditions remain uncertain and/or weaken, our revenue and profitability could be adversely affected. Demand for our services is cyclical and may be vulnerable to sudden economic downturns, interest rate fluctuations and reductions in government and private industry spending that result in clients delaying, curtailing or canceling proposed and existing projects.
Losses under fixed-price or guaranteed contracts could be substantial and adversely impact our results of operations. 21 Table of Contents ​ Our failure to meet contractual schedule or performance requirements that we have guaranteed could adversely affect our operating results.
United States and foreign trade policy actions in the United States could affect the profitability of our fixed-price projects. Losses under fixed-price or guaranteed contracts could be substantial and adversely impact our results of operations. 19 Table of Contents ​ Our failure to meet contractual schedule or performance requirements that we have guaranteed could adversely affect our operating results.
We face threats to our information technology systems, including unauthorized access, computer hackers, computer viruses, malicious code, cyber-attacks, phishing and other cybersecurity problems and system disruptions, including possible unauthorized access to our and our clients’ proprietary information. We rely on industry-accepted security measures and technology to securely maintain all proprietary information on our information technology systems.
We face threats to our information technology systems, including unauthorized access, computer hackers, computer viruses, malicious code, cyber-attacks, ransomware, data extortion, phishing and other cybersecurity problems and system disruptions, including possible unauthorized access to our and our clients’ proprietary information.
Past business practices at companies that we have acquired may also expose us to future unknown environmental liabilities. 23 Table of Contents ​ Significant fines, penalties and other sanctions may be imposed for non-compliance with environmental laws and regulations, and some environmental laws provide for joint and several strict liabilities for remediation of releases of hazardous substances, rendering a person liable for environmental damage, without regard to negligence or fault on the part of such person.
These activities may require us to manage, handle, remove, treat, transport and dispose of toxic or hazardous substances. 21 Table of Contents ​ Significant fines, penalties and other sanctions may be imposed for non-compliance with environmental laws and regulations, and some environmental laws provide for joint and several strict liabilities for remediation of releases of hazardous substances, rendering a person liable for environmental damage, without regard to negligence or fault on the part of such person.
In the ordinary course of business, we have been targeted by malicious cyber-attacks. Anyone who circumvents our security measures could misappropriate proprietary information, including information regarding us, our employees and/or our clients, or cause interruptions in our operations.
Anyone who circumvents our security measures could misappropriate proprietary information, including information regarding us, our employees and/or our clients, or cause interruptions in our operations.
For example, the European’s Union General Data Protection Regulation extends the scope of the European Union data protection laws to all companies processing data of European Union residents, regardless of the company’s location. In addition, the California Consumer Privacy Act increased the penalties for data privacy incidents.
For example, the European’s Union General Data Protection Regulation may apply to companies processing data of European Union residents, even if the company is not located in the European Union. In addition, the California Consumer Privacy Act increased the penalties for data privacy incidents.
Because we have grown in part through acquisitions, goodwill and intangible assets-net represent a substantial portion of our assets, and were $3.4 billion and $17.8 million, respectively as of September 30, 2023.
Because we have grown in part through acquisitions, goodwill represents a substantial portion of our assets, and was $3.5 billion as of September 30, 2024.
Also, some of our personnel hold government granted eligibility that may be required to obtain government projects. Loss of the services of, or failure to recruit, senior management or key technical personnel could impact the long-term performance of the Company and limit our ability to successfully complete existing projects and compete for new projects.
Loss of the services of, or failure to recruit, senior management or key technical personnel could impact the long-term performance of the Company and limit our ability to successfully complete existing projects and compete for new projects. 14 Table of Contents ​ Demand for our services is cyclical and vulnerable to sudden economic downturns and reductions in government and private industry spending.
Violations of these laws, or allegations of such violations, could disrupt our business and result in a material adverse effect on our results of operations or financial condition.
Violations of these laws, or allegations of such violations, could disrupt our business and result in a material adverse effect on our results of operations or financial condition. The Building Safety Act (the “Act”), the primary legislation which introduces a new framework for the regulation of the UK construction industry, became law on April 28, 2022.
In addition, we have contracts in support of U.S. federal government entities to destroy hazardous materials, including chemical agents and weapons stockpiles, as well as to decontaminate and decommission nuclear facilities. These activities may require us to manage, handle, remove, treat, transport and dispose of toxic or hazardous substances.
In addition, we have contracts in support of U.S. federal government entities to decontaminate and decommission nuclear facilities.
The proposal aims to ensure that multinationals pay a minimum rate of tax on their foreign profits through the introduction of a global minimum tax among other provisions. As this framework is subject to further negotiation and implementation by each member country, the timing and ultimate impact of any such changes on our tax obligations are uncertain.
The proposal aims to ensure that multinationals pay a minimum rate of tax on their foreign profits through the introduction of a global minimum tax among other provisions. The minimum tax will affect our financial statements beginning October 1, 2024 for those operations that are doing business in countries that have enacted the framework.
Removed
Demand for our services is cyclical and vulnerable to sudden economic downturns and reductions in government and private industry spending. If economic conditions remain uncertain and/or weaken, our revenue and profitability could be adversely affected.
Added
Also, some of our personnel hold government granted eligibility that may be required to obtain government projects.
Removed
In March 2022, the Federal Reserve began and it has continued, and is expected to continue, to raise interest rates in an effort to curb inflation.
Added
While limited parts of the Act have not yet been enacted, and further secondary legislation is expected, most of the provisions are now in force.
Removed
The Building Safety Act, the primary legislation which introduces a new framework for the regulation of the UK construction industry, became law on April 28, 2022 with certain provisions coming into force on June 28, 2022 and remaining provisions and secondary legislation to follow.
Added
Our cybersecurity program is designed to use industry-accepted security measures and technology to securely maintain all proprietary information on our information technology systems. In the ordinary course of business, we have been targeted by malicious cyber-attacks.
Removed
United States and foreign trade policy actions and tariffs such as the 2018 tariffs on steel and aluminum imports in the United States could affect the profitability of our fixed-price construction projects.
Added
During fiscal 2024, the Company completed a transaction pursuant to which members of the AECOM Capital team transitioned to a new third – party platform and will provide investment advisory services relating to the AECOM Capital business pursuant to certain advisory agreements.
Removed
AECOM’s provision of lender guarantees is contingent upon the Real Estate Joint Ventures meeting AECOM’s underwriting criteria, which include an affiliate of AECOM acting as either the construction manager at risk or the owner’s representative for the project.
Added
The Company has implemented comprehensive policies and procedures to oversee the provisions of these advisory services; however, these changes will impact the Company’s ability to supervise the investment team’s activities.
Removed
We also own and operate several properties in the U.S. and Canada that have been used for the storage and maintenance of construction equipment.
Added
The U.S. and many international legislative and regulatory bodies continually propose and enact legislation that could significantly impact how U.S. multinational corporations are taxed. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain, and we are regularly subject to audit by tax authorities.
Removed
In the conduct of operations on these properties, and despite precautions having been taken, it is possible that there have been accidental releases of individually relatively small amounts of fuel, oils, hydraulic fluids and other fluids while storing or servicing this equipment. Such accidental releases though individually relatively small may have accumulated over time.
Added
The continued enactment by all OECD countries or by individual countries could result in additional income tax liability, but the timing and ultimate impact on our tax obligations are uncertain.
Removed
We provide services to the nuclear energy industry in the ongoing maintenance and modification, as well as the decontamination and decommissioning, of nuclear energy plants.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PROPERTIES 30 ITEM 3. LEGAL PROCEEDINGS 30 ITEM 4. MINE SAFETY DISCLOSURE 30 ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 31 ITEM 6. [RESERVED] 32 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 33 ITEM 7A.
Biggest changeITEM 2. PROPERTIES 29 ITEM 3. LEGAL PROCEEDINGS 29 ITEM 4. MINE SAFETY DISCLOSURE 29 ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 30 ITEM 6. [RESERVED] 32 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 33 ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 53 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 54
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 54 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 55

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+0 added−1 removed1 unchanged
Biggest change(1) This section is not “soliciting material,” is not deemed “filed” with the SEC and is not incorporated by reference in any of our filings under the Securities Act or Exchange Act whether made before or after the date hereof and irrespective of any general incorporation language in any such filing. ​ 31 Table of Contents ​ ​ Stock Repurchase Program On September 22, 2021, the Company’s Board of Directors approved an increase in the Company’s repurchase authorization of AECOM common stock to $1.0 billion.
Biggest changeDuring fiscal 2024, we determined that the S&P Mid Cap 400 Commercial & Professional Services Index is a more appropriate comparison than the prior S&P Composite 1500 Construction & Engineering Index due to the composition of the included companies given their size, comparable services, and lines of business. ​ ​ (1) This section is not “soliciting material,” is not deemed “filed” with the SEC and is not incorporated by reference in any of our filings under the Securities Act or Exchange Act whether made before or after the date hereof and irrespective of any general incorporation language in any such filing. ​ 31 Table of Contents ​ Stock Repurchase Program The following table shows the repurchase activity for each of the three months ended September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number ​ ​ ​ Total Number of Shares Maximum Approximate Dollar ​ ​ of Shares ​ Average Price ​ Purchased as Part of Publicly ​ Value that May Yet Be Purchased Fiscal Period Purchased Paid Per Share Announced Plans or Programs Under the Plans or Programs (1) July 1 – 31, 2024 ​ 1,353,371 ​ $ 89.48 ​ 1,353,371 ​ $ 757,500,000 August 1 – 31, 2024 335,141 ​ $ 91.15 ​ 335,141 ​ $ 727,000,000 September 1 – 30, 2024 1,647,996 ​ $ 101.04 ​ 1,647,996 ​ $ 560,500,000 Total 3,336,508 ​ ​ ​ ​ 3,336,508 ​ ​ ​ (1) On November 14, 2024, the Board approved an increase in the Company’s repurchase authorization up to an aggregate amount of $1.0 billion with no expiration date.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange (NYSE) under the symbol “ACM.” According to the records of our transfer agent, there were 1,467 stockholders of record as of November 10, 2023. Unregistered Sales of Equity Securities None.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange (NYSE) under the symbol “ACM.” According to the records of our transfer agent, there were 1,369 stockholders of record as of November 15, 2024. Unregistered Sales of Equity Securities None.
Equity Compensation Plans The following table presents certain information about shares of AECOM common stock that may be issued under our equity compensation plans as of September 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Column A ​ Column B Column C ​ ​ ​ ​ Number of securities ​ ​ ​ ​ ​ ​ ​ remaining available ​ ​ Number of securities ​ Weighted ‑ average ​ for future ​ ​ to be issued ​ exercise price of ​ issuance under ​ ​ upon exercise ​ Outstanding ​ equity compensation ​ ​ of outstanding ​ options, ​ plans (excluding ​ ​ options, warrants, ​ warrants, and ​ securities reflected Plan Category and rights (1) Rights in Column A) Equity compensation plans not approved by stockholders N/A ​ N/A ​ N/A Equity compensation plans approved by stockholders: ​ ​ AECOM Stock Incentive Plans 1,576,417 (1) ​ ​ 38.72 (2) ​ 10,239,810 AECOM Employee Stock Purchase Plan (3) N/A ​ N/A ​ 8,440,301 Total 1,576,417 ​ $ 38.72 ​ 18,680,111 (1) Includes 106,194 shares issuable upon the exercise of stock options, 772,818 shares issuable upon the vesting of Restricted Stock Units, and 697,405 shares issuable if specified performance targets are met under Performance Earnings Program Awards (PEP).
Equity Compensation Plans The following table presents certain information about shares of AECOM common stock that may be issued under our equity compensation plans as of September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Column A ​ Column B Column C ​ ​ ​ ​ Number of securities ​ ​ ​ ​ ​ ​ ​ remaining available ​ ​ Number of securities ​ Weighted ‑ average ​ for future ​ ​ to be issued ​ exercise price of ​ issuance under ​ ​ upon exercise ​ Outstanding ​ equity compensation ​ ​ of outstanding ​ options, ​ plans (excluding ​ ​ options, warrants, ​ warrants, and ​ securities reflected Plan Category and rights (1) Rights in Column A) Equity compensation plans not approved by stockholders N/A ​ N/A ​ N/A Equity compensation plans approved by stockholders: ​ ​ AECOM Stock Incentive Plans 1,466,288 (1) ​ ​ 38.72 (2) ​ 11,707,195 AECOM Employee Stock Purchase Plan (3) N/A ​ ​ N/A ​ 7,957,533 Total 1,466,288 ​ $ 38.72 ​ 19,664,728 (1) Includes 53,097 shares issuable upon the exercise of stock options, 753,848 shares issuable upon the vesting of Restricted Stock Units, and 659,343 shares issuable if specified performance targets are met under Performance Earnings Program Awards (PEP).
We believe the S&P 400 MidCap is an appropriate independent broad market index, since it measures the performance of similar mid-sized companies in numerous sectors. In addition, we believe the S&P Composite 1500 Construction & Engineering index is an appropriate third party published industry index since it measures the performance of engineering and construction companies.
In addition, we believe the S&P Mid Cap 400 Commercial & Professional Services Index is an appropriate third party published industry index since it measures the performance of professional services companies.
Stock repurchases can be made through open market purchases or other methods, including pursuant to a Rule 10b5-1 plan. On November 9, 2023, the Board approved another increase in the Company’s repurchase authorization back up to $1.0 billion.
Stock repurchase can be made through open market purchases or other methods, including pursuant to a Rule 10b5-1 plan. ​
Performance Measurement Comparison (1) The following chart compares the cumulative total stockholder return of AECOM stock (ACM) with the cumulative total return of the S&P MidCap 400, and the S&P Composite 1500 Construction & Engineering, from September 28, 2018 to September 29, 2023.
Performance Measurement Comparison (1) The following chart compares the cumulative total stockholder return of AECOM stock (ACM) with the cumulative total return of the S&P MidCap 400, and the S&P Mid Cap 400 Commercial & Professional Services Index, from September 27, 2019 to September 27, 2024. 30 Table of Contents ​ We believe the S&P 400 MidCap is an appropriate independent broad market index, since it measures the performance of similar mid-sized companies in numerous sectors.
Removed
A summary of the repurchase activity for the three months ended September 30, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number ​ ​ ​ Total Number of Shares Maximum Approximate Dollar ​ ​ of Shares ​ Average Price ​ Purchased as Part of Publicly ​ Value that May Yet Be Purchased Period Purchased Paid Per Share Announced Plans or Programs Under the Plans or Programs July 1 – 31, 2023 ​ — ​ $ — ​ — ​ $ 452,000,000 August 1 – 31, 2023 1,138,926 ​ 87.82 ​ 1,138,926 ​ 352,000,000 September 1 – 30, 2023 1,551,753 ​ 83.79 ​ 1,551,753 ​ 220,200,000 Total 2,690,679 ​ $ 85.50 ​ 2,690,679 ​ ​ ​ ​ ​

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

97 edited+42 added−33 removed97 unchanged
Biggest changeIt is possible that our estimate of loss may be revised based on the actual or revised estimate of liability of the claims. 39 Table of Contents ​ Fiscal year ended September 30, 2023 compared to the fiscal year ended September 30, 2022 Consolidated Results ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ Change ​ ​ ​ September 30, ​ September 30, ​ ​ ​ ​ ​ ​ ​ 2023 2022 $ % ​ ​ ​ ($ in millions) ​ Revenue $ 14,378.5 ​ $ 13,148.2 ​ $ 1,230.3 ​ 9.4 % Cost of revenue ​ 13,433.0 ​ 12,300.2 ​ 1,132.8 ​ 9.2 Gross profit ​ 945.5 ​ 848.0 ​ 97.5 ​ 11.5 Equity in (losses) earnings of joint ventures ​ (279.4) ​ 53.6 ​ (333.0) ​ (621.3) General and administrative expenses ​ (153.6) ​ (147.3) ​ (6.3) ​ 4.3 Restructuring cost ​ (188.4) ​ (107.5) ​ (80.9) ​ 75.3 ​ Income from operations ​ 324.1 ​ 646.8 ​ (322.7) ​ (49.9) Other income ​ 8.3 ​ 5.9 ​ 2.4 ​ 40.7 Interest income ​ 40.3 ​ ​ 8.2 ​ ​ 32.1 ​ 391.5 ​ Interest expense ​ (159.3) ​ (110.2) ​ (49.1) ​ 44.6 Income from continuing operations before taxes ​ 213.4 ​ 550.7 ​ (337.3) ​ (61.2) Income tax expense from continuing operations ​ 56.1 ​ 136.1 ​ (80.0) ​ (58.8) Net income from continuing operations ​ 157.3 ​ 414.6 ​ (257.3) ​ (62.1) Net loss from discontinued operations ​ ​ (57.2) ​ (79.9) ​ 22.7 ​ (28.4) Net income ​ ​ 100.1 ​ ​ 334.7 ​ ​ (234.6) ​ (70.1) ​ Net income attributable to noncontrolling interests from continuing operations ​ ​ (43.2) ​ ​ (25.5) ​ ​ (17.7) ​ 69.4 ​ Net (loss) income attributable to noncontrolling interests from discontinued operations ​ ​ (1.6) ​ ​ 1.4 ​ ​ (3.0) ​ (214.3) ​ Net income attributable to noncontrolling interests ​ ​ (44.8) ​ ​ (24.1) ​ ​ (20.7) ​ 85.9 ​ Net income attributable to AECOM from continuing operations ​ ​ 114.1 ​ ​ 389.1 ​ ​ (275.0) ​ (70.7) ​ Net loss attributable to AECOM from discontinued operations ​ ​ (58.8) ​ ​ (78.5) ​ ​ 19.7 ​ (25.1) ​ Net income attributable to AECOM ​ $ 55.3 ​ $ 310.6 ​ $ (255.3) ​ (82.2) % ​ 40 Table of Contents ​ The following table presents the percentage relationship of statement of operations items to revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ September 30, ​ September 30, ​ ​ 2023 2022 ​ Revenue 100.0 % 100.0 % Cost of revenue 93.4 93.6 ​ Gross profit 6.6 6.4 ​ Equity in (losses) earnings of joint ventures (1.9) 0.4 ​ General and administrative expenses (1.1) (1.1) ​ Restructuring costs (1.3) (0.8) ​ Income from operations 2.3 4.9 ​ Other income 0.1 0.0 ​ Interest income ​ 0.3 ​ 0.1 ​ Interest expense (1.2) (0.8) ​ Income from continuing operations before taxes ​ 1.5 4.2 ​ Income tax expense from continuing operations ​ 0.4 1.0 ​ Net income from continuing operations ​ 1.1 3.2 ​ Net loss from discontinued operations ​ (0.4) (0.7) ​ Net income ​ 0.7 ​ 2.5 ​ Net income attributable to noncontrolling interests from continuing operations ​ (0.3) ​ (0.2) ​ Net (loss) income attributable to noncontrolling interests from discontinued operations ​ 0.0 ​ 0.0 ​ Net income attributable to noncontrolling interests ​ (0.3) ​ (0.2) ​ Net income attributable to AECOM from continuing operations ​ 0.8 ​ 3.0 ​ Net loss attributable to AECOM from discontinued operations ​ (0.4) ​ (0.7) ​ Net income attributable to AECOM ​ 0.4 % 2.3 % ​ Revenue Our revenue for the year ended September 30, 2023 increased $1,230.3 million, or 9.4%, to $14,378.5 million as compared to $13,148.2 million for the corresponding period last year.
Biggest changeIt is possible that our estimate of loss may be revised based on the actual or revised estimate of liability of the claims. 39 Table of Contents ​ Fiscal year ended September 30, 2024 compared to the fiscal year ended September 30, 2023 Consolidated Results ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ Change ​ ​ ​ September 30, ​ September 30, ​ ​ ​ ​ ​ ​ ​ 2024 2023 $ % ​ ​ ​ ($ in millions) ​ Revenue $ 16,105.5 ​ $ 14,378.5 ​ $ 1,727.0 ​ 12.0 % Cost of revenue ​ 15,021.2 ​ ​ 13,433.0 ​ ​ 1,588.2 ​ 11.8 Gross profit ​ 1,084.3 ​ ​ 945.5 ​ ​ 138.8 ​ 14.7 Equity in earnings (losses) of joint ventures ​ 2.1 ​ ​ (279.4) ​ ​ 281.5 ​ (100.8) General and administrative expenses ​ (160.1) ​ ​ (153.6) ​ ​ (6.5) ​ 4.2 Restructuring cost ​ (98.9) ​ ​ (188.4) ​ ​ 89.5 ​ (47.5) ​ Income from operations ​ 827.4 ​ ​ 324.1 ​ ​ 503.3 ​ 155.3 Other income ​ 17.6 ​ ​ 8.3 ​ ​ 9.3 ​ 112.0 Interest income ​ 58.6 ​ ​ 40.3 ​ ​ 18.3 ​ 45.4 ​ Interest expense ​ (185.4) ​ ​ (159.3) ​ ​ (26.1) ​ 16.4 Income from continuing operations before taxes ​ 718.2 ​ ​ 213.4 ​ ​ 504.8 ​ 236.6 Income tax expense from continuing operations ​ 153.0 ​ ​ 56.1 ​ ​ 96.9 ​ 172.7 Net income from continuing operations ​ 565.2 ​ ​ 157.3 ​ ​ 407.9 ​ 259.3 Net loss from discontinued operations ​ ​ (105.0) ​ ​ (57.2) ​ ​ (47.8) ​ 83.6 Net income ​ ​ 460.2 ​ ​ 100.1 ​ ​ 360.1 ​ 359.7 ​ Net income attributable to noncontrolling interests from continuing operations ​ ​ (59.3) ​ ​ (43.2) ​ ​ (16.1) ​ 37.3 ​ Net (loss) income attributable to noncontrolling interests from discontinued operations ​ ​ 1.4 ​ ​ (1.6) ​ ​ 3.0 ​ (187.5) ​ Net income attributable to noncontrolling interests ​ ​ (57.9) ​ ​ (44.8) ​ ​ (13.1) ​ 29.2 ​ Net income attributable to AECOM from continuing operations ​ ​ 505.9 ​ ​ 114.1 ​ ​ 391.8 ​ 343.4 ​ Net loss attributable to AECOM from discontinued operations ​ ​ (103.6) ​ ​ (58.8) ​ ​ (44.8) ​ 76.2 ​ Net income attributable to AECOM ​ $ 402.3 ​ $ 55.3 ​ $ 347.0 ​ 627.5 % ​ 40 Table of Contents ​ The following table presents the percentage relationship of statement of operations items to revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ September 30, ​ September 30, ​ ​ 2024 2023 ​ Revenue 100.0 % 100.0 % Cost of revenue 93.3 ​ 93.4 ​ Gross profit 6.7 ​ 6.6 ​ Equity in earnings (losses) of joint ventures 0.0 ​ (1.9) ​ General and administrative expenses (1.0) ​ (1.1) ​ Restructuring costs (0.6) ​ (1.3) ​ Income from operations 5.1 ​ 2.3 ​ Other income 0.1 ​ 0.1 ​ Interest income ​ 0.4 ​ 0.3 ​ Interest expense (1.1) ​ (1.2) ​ Income from continuing operations before taxes ​ 4.5 ​ 1.5 ​ Income tax expense from continuing operations ​ 1.0 ​ 0.4 ​ Net income from continuing operations ​ 3.5 ​ 1.1 ​ Net loss from discontinued operations ​ (0.6) ​ (0.4) ​ Net income ​ 2.9 ​ 0.7 ​ Net income attributable to noncontrolling interests from continuing operations ​ (0.4) ​ (0.3) ​ Net (loss) income attributable to noncontrolling interests from discontinued operations ​ 0.0 ​ 0.0 ​ Net income attributable to noncontrolling interests ​ (0.4) ​ (0.3) ​ Net income attributable to AECOM from continuing operations ​ 3.1 ​ 0.8 ​ Net loss attributable to AECOM from discontinued operations ​ (0.6) ​ (0.4) ​ Net income attributable to AECOM ​ 2.5 % 0.4 % ​ Revenue Our revenue for the year ended September 30, 2024 increased $1,727.0 million, or 12.0%, to $16,105.5 million as compared to $14,378.5 million for the corresponding period last year.
Refinery Turnaround Project A Former Affiliate of the Company entered into an agreement to perform turnaround maintenance services during a planned shutdown at a refinery in Montana in December 2017. The turnaround project was completed in February 2019.
Refinery Turnaround Project The Former Affiliate of the Company entered into an agreement to perform turnaround maintenance services during a planned shutdown at a refinery in Montana in December 2017. The turnaround project was completed in February 2019.
The ownership percentage of these joint ventures is typically representative of the work to be performed or the amount of risk assumed by each joint venture partner. Some of these joint ventures are considered variable interest entities. We have consolidated all joint ventures for which we have control.
The ownership percentage of these joint ventures is typically representative of the work to be performed or the amount of risk assumed by each joint venture partner. Some of these joint ventures are considered variable interest entities. We have consolidated all joint ventures for which we have control.
We have aggregated various operating segments into our reportable segments based on their similar characteristics, including similar long-term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers. ● Americas: Planning, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America in major end markets such as transportation, water, government, facilities, environmental, and energy. ● International: Planning, consulting, architectural and engineering design services and program management to public and private clients in Europe, the Middle East, India, Africa and the Asia-Australia-Pacific regions in major end markets such as transportation, water, government, facilities, environmental, and energy. ● AECOM Capital (ACAP): Primarily invests in and develops real estate projects.
We have aggregated various operating segments into our reportable segments based on their similar characteristics, including similar long-term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers. ● Americas: Planning, advisory, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America in major end markets such as transportation, water, government, facilities, environmental, and energy. ● International: Planning, advisory, consulting, architectural and engineering design services and program management to public and private clients in Europe, the Middle East, India, Africa and the Asia-Australia-Pacific regions in major end markets such as transportation, water, government, facilities, environmental, and energy. ● AECOM Capital (ACAP): Primarily invests in and develops real estate projects.
Although management believes that the assumptions underlying the forward-looking statements are reasonable, these assumptions and the forward-looking statements are subject to various factors, risks and uncertainties, many of which are beyond our control, including, but not limited to, our business is cyclical and vulnerable to economic downturns and client spending reductions; government shutdowns; long-term government contracts and subject to uncertainties related to government contract appropriations; governmental agencies may modify, curtail or terminate our contracts; government contracts are subject to audits and adjustments of contractual terms; losses under fixed-price contracts; limited control over operations 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; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and inadequate 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’s real estate development; 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 construction businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and 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 discussed in this Annual Report on Form 10-K and any subsequent reports we file with the SEC.
Although management believes that the assumptions underlying the forward-looking statements are reasonable, these assumptions and the forward-looking statements are subject to various factors, risks and uncertainties, many of which are beyond our control, including, but not limited to, our business is cyclical and vulnerable to economic downturns and client spending reductions; government shutdowns; long-term government contracts and subject to uncertainties related to government contract appropriations; governmental agencies may modify, curtail or terminate our contracts; government contracts are subject to audits and adjustments of contractual terms; losses under fixed-price contracts; limited control over operations 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 inadequate 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’s real estate development; 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 construction businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and 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 discussed in this Annual Report on Form 10-K and any subsequent reports we file with the SEC.
Some of our material subsidiaries (the “Guarantors”) have guaranteed the obligations of the borrowers under the Credit Agreement, subject to certain exceptions. The borrowers’ obligations under the Credit Agreement are secured by a lien on substantially all of our assets and the Guarantors’ assets, subject to certain exceptions.
Certain of our material subsidiaries (the “Guarantors”) have guaranteed our obligations of the borrowers under the Credit Agreement, subject to certain exceptions. The borrowers’ obligations under the Credit Agreement are secured by a lien on substantially all of our assets and the Guarantors’ assets, subject to certain exceptions.
No deferred taxes have been provided on the undistributed gross book-tax basis differences of our non-U.S. operations of approximately $1.3 billion because we have the ability to and intend to permanently reinvest these basis differences overseas. If we were to repatriate these basis differences, additional taxes could be due at that time.
No deferred taxes have been provided on the undistributed gross book-tax basis differences of our non-U.S. operations of approximately $1.2 billion because we have the ability to and intend to permanently reinvest these basis differences overseas. If we were to repatriate these basis differences, additional taxes could be due at that time.
During fiscal year ended September 30, 2023, we incurred total restructuring expenses of $188.4 million primarily related to actions taken to align our real estate portfolio with our employee flexibility initiatives and costs incurred in preparation for the exit of certain countries in Southeast Asia.
During fiscal year ended September 30, 2023, we incurred total restructuring expenses of $188.4 million, primarily related to actions taken to align our real estate portfolio with our employee flexibility initiatives and costs incurred in preparation for the exit of specific countries in Southeast Asia.
The indenture pursuant to which the 2027 Senior Notes were issued contains customary events of default, including, among other things, payment default, exchange default, failure to provide notices thereunder and provisions related to bankruptcy events. The indenture also contains customary negative covenants. We were in compliance with the covenants relating to the 2027 Senior Notes as of September 30, 2023.
The indenture pursuant to which the 2027 Senior Notes were issued contains customary events of default, including, among other things, payment default, exchange default, failure to provide notices thereunder and provisions related to bankruptcy events. The indenture also contains customary negative covenants. We were in compliance with the covenants relating to the 2027 Senior Notes as of September 30, 2024.
At September 30, 2023, we have determined that we will continue to indefinitely reinvest the earnings of some foreign subsidiaries and, therefore, we will continue to account for these undistributed earnings based on our existing accounting under ASC 740 and not accrue additional tax.
At September 30, 2024, we have determined that we will continue to indefinitely reinvest the earnings of some foreign subsidiaries and, therefore, we will continue to account for these undistributed earnings based on our existing accounting under ASC 740 and not accrue additional tax.
The fair value of the 2027 Senior Notes as of September 30, 2023 was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary bond market and multiplying it by the outstanding balance of the 2027 Senior Notes.
The fair value of the 2027 Senior Notes as of September 30, 2024 was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary bond market and multiplying it by the outstanding balance of the 2027 Senior Notes.
We do not believe that we have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that would be material to investors. ​
We do not believe that we have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that would be material to investors. ​ 53 Table of Contents ​
In the ordinary course of business, we may not be aware that we or our affiliates are under investigation and may not be aware of whether or not a known investigation has been concluded. 50 Table of Contents ​ In the ordinary course of business, we may enter into various arrangements providing financial or performance assurance to clients, lenders, or partners.
In the ordinary course of business, we may not be aware that we or our affiliates are under investigation and may not be aware of whether or not a known investigation has been concluded. In the ordinary course of business, we may enter into various arrangements providing financial or performance assurance to clients, lenders, or partners.
There can be no assurance that audits by the DCAA or other governmental agencies will not result in material cost disallowances in the future. 36 Table of Contents ​ Allowance for Doubtful Accounts and Expected Credit Losses We record accounts receivable net of an allowance for doubtful accounts.
There can be no assurance that audits by the DCAA or other governmental agencies will not result in material cost disallowances in the future. Allowance for Doubtful Accounts and Expected Credit Losses We record accounts receivable net of an allowance for doubtful accounts.
Geographic Information For geographic financial information, please refer to Note 4 and Note 19 in the notes to our consolidated financial statements found elsewhere in the Form 10-K. Critical Accounting Estimates Our accounting policies, including those described below, often require management to make significant estimates and assumptions using information available at the time the estimates are made.
Geographic Information For geographic financial information, please refer to Note 4 and Note 19 in the notes to our consolidated financial statements found elsewhere in the Form 10-K. 35 Table of Contents ​ Critical Accounting Estimates Our accounting policies, including those described below, often require management to make significant estimates and assumptions using information available at the time the estimates are made.
We provide advisory, planning, consulting, architectural and engineering design, construction and 33 Table of Contents ​ program management services, and investment and development services to public and private clients worldwide in major end markets such as transportation, facilities, water, environmental, and energy. Our business focuses primarily on providing fee-based knowledge-based services.
We provide advisory, planning, consulting, architectural and engineering design, construction and program management services, and investment and development services to public and private clients worldwide in major end markets such as transportation, facilities, water, environmental, and energy. Our business focuses primarily on providing fee-based knowledge-based services.
We evaluate the funded status of each of our retirement plans using these current assumptions and determine the appropriate funding level considering applicable regulatory requirements, tax deductibility, reporting considerations and other factors. Based upon current assumptions, we expect to contribute $22.2 million to our international plans in fiscal 2024.
We evaluate the funded status of each of our retirement plans using these current assumptions and determine the appropriate funding level considering applicable regulatory requirements, tax deductibility, reporting considerations and other factors. Based upon current assumptions, we expect to contribute $24.2 million to our international plans in fiscal 2025.
In this section, we discuss the results of our operations for the year ended September 30, 2023 compared to the year ended September 30, 2022.
In this section, we discuss the results of our operations for the year ended September 30, 2024 compared to the year ended September 30, 2023.
As of September 30, 2023 and September 30, 2022, we had $1,145.6 million and $1,145.6 million, respectively, available under our revolving credit facility. 2027 Senior Notes On February 21, 2017, we completed a private placement offering of $1,000,000,000 aggregate principal amount of our unsecured 5.125% Senior Notes due 2027 (the “2027 Senior Notes”).
As of September 30, 2024 and September 30, 2023, we had $1,495.6 million and $1,145.6 million, respectively, available under our New Revolving Credit Facility and Original Revolving Credit Facility, respectively. 2027 Senior Notes On February 21, 2017, we completed a private placement offering of $1,000,000,000 aggregate principal amount of our unsecured 5.125% Senior Notes due 2027 (the “2027 Senior Notes”).
If inflation increased by 25 basis points, plan liabilities in the United Kingdom would increase by approximately $17.1 million and plan expense would increase by approximately $2.0 million. At each measurement date, all assumptions are reviewed and adjusted as appropriate.
If inflation increased by 25 basis points, plan liabilities in the United Kingdom would increase by approximately $15.1 million and plan expense would increase by approximately $0.9 million. At each measurement date, all assumptions are reviewed and adjusted as appropriate.
Interest expense in the consolidated statements of operations included amortization of deferred debt issuance costs for the years ended September 30, 2023, 2022 and 2021 of $4.9 million, $4.9 million and $10.2 million, respectively. Other Commitments We enter into various joint venture arrangements to provide architectural, engineering, program management, construction management and operations and maintenance services.
Interest expense in the consolidated statements of operations included amortization of deferred debt issuance costs for the years ended September 30, 2024, 2023 and 2022 of $7.6 million, $4.9 million and $4.9 million, respectively. Other Commitments We enter into various joint venture arrangements to provide architectural, engineering, program management, construction management and operations and maintenance services.
The Credit Agreement contains customary negative covenants that include, among other things, limitations on our and certain of our subsidiaries’ ability, subject to certain exceptions, to incur liens and debt, make investments, dispositions, and restricted payments, change the nature of our business, consummate mergers, consolidations and the sale of all or substantially all of our respective assets, taken as a whole, and transact with affiliates.
The Credit Agreement contains customary negative covenants that include, among other things, limitations on our ability and certain of our subsidiaries, subject to certain exceptions, to incur liens and debt, make investments, dispositions, and restricted payments, change the nature of their business, consummate mergers, consolidations and the sale of all or substantially all of our respective assets and transact with affiliates.
We recognized on our balance sheet the funded status of our pension benefit plans, measured as the difference between the fair value of plan assets and the projected benefit obligation. At September 30, 2023, our defined benefit pension plans had an aggregate deficit (the excess of projected benefit obligations over the fair value of plan assets) of approximately $165.3 million.
We recognized on our balance sheet the funded status of our pension benefit plans, measured as the difference between the fair value of plan assets and the projected benefit obligation. At September 30, 2024, our defined benefit pension plans had an aggregate deficit (the excess of projected benefit obligations over the fair value of plan assets) of approximately $134.0 million.
In addition, we have collective bargaining agreements with unions that require us to contribute to various third-party multiemployer plans that we do not control or manage. For the year ended September 30, 2023, we contributed $3.0 million to multiemployer pension plans.
In addition, we have collective bargaining agreements with unions that require us to contribute to various third-party multiemployer plans that we do not control or manage. For the year ended September 30, 2024, we contributed $2.5 million to multiemployer pension plans.
Our required minimum contributions for our U.S. qualified plans are not significant. In addition, we may make additional discretionary contributions. We currently expect to contribute $12.9 million to our U.S. plans (including benefit payments to nonqualified plans and postretirement medical plans) in fiscal 2024.
Our required minimum contributions for our U.S. qualified plans are not significant. In addition, we may make additional discretionary contributions. We currently expect to contribute $11.2 million to our U.S. plans (including benefit payments to nonqualified plans and postretirement medical plans) in fiscal 2025.
(the “Fund”), in which we indirectly hold an equity interest and have an ongoing capital commitment to fund investments. At September 30, 2023, we have capital commitments of $8.3 million to the Fund over the next 5 years.
(the “Fund”), in which we indirectly hold an equity interest and have an ongoing capital commitment to fund investments. At September 30, 2024, we have capital commitments of $5.9 million to the Fund over the next 4 years.
Net Income Attributable to AECOM The factors described above resulted in the net income attributable to AECOM of $55.3 million for the year ended September 30, 2023, as compared to the net income attributable to AECOM of $310.6 million for the year ended September 30, 2022.
Net Income Attributable to AECOM The factors described above resulted in the net income attributable to AECOM of $402.3 million for the year ended September 30, 2024, as compared to the net income attributable to AECOM of $55.3 million for the year ended September 30, 2023.
The total amounts of employer contributions paid for the year ended September 30, 2023 were $8.2 million for U.S. plans and $24.8 million for non-U.S. plans. Funding requirements for each plan are determined based on the local laws of the country where such plan resides. In some countries, the funding requirements are mandatory while in other countries, they are discretionary.
The total amounts of employer contributions paid for the year ended September 30, 2024 were $11.9 million for U.S. plans and $25.1 million for non-U.S. plans. Funding requirements for each plan are determined based on the local laws of the country where such plan resides. In some countries, the funding requirements are mandatory while in other countries, they are discretionary.
At September 30, 2023 and September 30, 2022, letters of credit totaled $4.4 million and $4.4 million, respectively, under our Revolving Credit Facility.
At September 30, 2024 and September 30, 2023, letters of credit totaled $4.4 million and $4.4 million, respectively, under our New Revolving Credit Facility and Original Revolving Credit Facility, respectively.
If the discount rate was reduced by 25 basis points, plan liabilities would increase by approximately $26.6 million. If the discount rate and return on plan assets were reduced by 25 basis points, plan expense would increase by approximately $0.3 million and increase by approximately $2.7 million, respectively.
If the discount rate was reduced by 25 basis points, plan liabilities would increase by approximately $30.7 million. If the discount rate and return on plan assets were reduced by 25 basis points, plan expense would decrease by approximately $0.4 million and increase by approximately $2.8 million, respectively.
The change was primarily attributable to a decrease in cash provided by working capital of approximately $84.2 million, offset by an increase in adjustments for non-cash items of approximately $301.1 million and a decrease in net income of approximately $234.6 million.
The change was primarily attributable to an increase in net income of approximately $360.1 million, offset by a decrease in cash provided by working capital of approximately $200.4 million and a decrease in adjustments for non-cash items of approximately $28.2 million.
We may also guarantee that a project, when complete, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, we may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards.
If the project subsequently fails to meet guaranteed performance standards, we may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards.
Contract assets related to claims are recorded only if it is probable that the claim will result in additional contract revenue and only to the extent that a significant reversal would not be probable. In such cases, revenue is recorded only to the extent that contract costs relating to the claim have been incurred.
Contract assets related to claims are recorded only if it is probable that the claim will result in additional contract revenue and if the amount can be reliably estimated. In such cases, revenue is recorded only to the extent that contract costs relating to the claim have been incurred.
We refer to the fiscal year ended September 30, 2022 as “fiscal 2022” and the fiscal year ended September 30, 2023 as “fiscal 2023.” Fiscal years 2023, 2022, and 2021 each contained 52, 52, and 52 weeks, respectively, and ended on September 29, September 30, and October 1, respectively.
We refer to the fiscal year ended September 30, 2023 as “fiscal 2023” and the fiscal year ended September 30, 2024 as “fiscal 2024.” Fiscal years 2024, 2023, and 2022 each contained 52, 52, and 52 weeks, respectively, and ended on September 27, September 29, and September 30, respectively.
Interest Income Our interest income for the year ended September 30, 2023 increased to $40.3 million from $8.2 million for the corresponding period last year. The increase in interest income for the year ended September 30, 2023 was primarily due to an increase in interest rates on our interest-bearing assets.
Interest Income Our interest income for the year ended September 30, 2024 increased to $58.6 million from $40.3 million for the corresponding period last year. The increase in interest income for the year ended September 30, 2024 was primarily due to an increase in our interest-bearing assets.
On June 30, 2017, we completed an exchange offer to exchange the unregistered 2027 Senior Notes for registered notes, as well as related guarantees. As of September 30, 2023, the estimated fair value of the 2027 Senior Notes was approximately $939.9 million.
On June 30, 2017, we completed an exchange offer to exchange the unregistered 2027 Senior Notes for registered notes, as well as related guarantees. 48 Table of Contents ​ As of September 30, 2024, the estimated fair value of the 2027 Senior Notes was approximately $997.3 million.
Interest Expense Our interest expense for the year ended September 30, 2023 was $159.3 million as compared to $110.2 million for the corresponding period last year.
Interest Expense Our interest expense for the year ended September 30, 2024 was $185.4 million as compared to $159.3 million for the corresponding period last year.
Net accounts receivable and contract assets, net of contract liabilities, increased to $2,880.8 million at September 30, 2023 from $2,671.9 million at September 30, 2022. Days Sales Outstanding (DSO), which includes net accounts receivable and contract assets, net of contract liabilities, was 65 days at September 30, 2023 compared to 68 days at September 30, 2022.
Net accounts receivable and contract assets, net of contract liabilities, increased to $3,301.4 million at September 30, 2024 from $2,880.8 million at September 30, 2023. Days Sales Outstanding (DSO), which includes net accounts receivable and contract assets, net of contract liabilities, was 70 days at September 30, 2024 compared to 65 days at September 30, 2023.
In September 2021, the Board approved an increase in our stock repurchase authorization to $1.0 billion. At September 30, 2023, we have approximately $220 million remaining of the Board’s repurchase authorization. We intend to deploy future available cash towards dividends and stock repurchases consistent with our return driven capital allocation policy.
At September 30, 2024, we had approximately $560.5 million remaining of the Board’s repurchase authorization. On November 13, 2024, the Board approved an increase in our stock repurchase authorization to $1.0 billion. We intend to deploy future available cash towards dividends and stock repurchases consistent with our returns driven capital allocation policy.
We are also required to maintain a consolidated interest coverage ratio of at least 3.00 to 1.00 and a consolidated leverage ratio of less than or equal to 4.00 to 1.00 (subject to certain adjustments in connection with permitted acquisitions), tested on a quarterly basis (the “Financial Covenants”). The Financial Covenants do not apply to the Term B Facility.
We are also required to maintain a consolidated leverage ratio of less than or equal to 4.00 to 1.00 (subject to certain adjustments in connection with permitted acquisitions), tested on a quarterly basis (the “Financial Covenant”). The Financial Covenant does not apply to the New Term B Facility.
Results of Operations by Reportable Segment Americas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ September 30, September 30, Change ​ 2023 2022 $ % ​ ( in millions) ​ Revenue $ 10,975.7 ​ $ 9,939.3 ​ $ 1,036.4 10.4 % Cost of revenue ​ 10,276.0 ​ 9,299.4 ​ 976.6 10.5 ​ Gross profit ​ $ 699.7 ​ $ 639.9 ​ $ 59.8 9.3 % ​ The following table presents the percentage relationship of statement of operations items to revenue: 43 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ September 30, September 30, ​ ​ 2023 ​ 2022 Revenue 100.0 % 100.0 % Cost of revenue 93.6 93.6 ​ Gross profit 6.4 % 6.4 % ​ Revenue Revenue for our Americas segment for the year ended September 30, 2023 increased $1,036.4 million, or 10.4%, to $10,975.7 million as compared to $9,939.3 million for the corresponding period last year.
Results of Operations by Reportable Segment Americas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ September 30, September 30, Change ​ 2024 2023 $ % ​ ( in millions) ​ Revenue $ 12,485.7 ​ $ 10,975.7 ​ $ 1,510.0 ​ 13.8 % Cost of revenue ​ 11,726.6 ​ ​ 10,276.0 ​ ​ 1,450.6 ​ 14.1 ​ Gross profit ​ $ 759.1 ​ $ 699.7 ​ $ 59.4 ​ 8.5 % ​ The following table presents the percentage relationship of statement of operations items to revenue: ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ September 30, September 30, ​ ​ 2024 ​ 2023 Revenue 100.0 % 100.0 % Cost of revenue 93.9 ​ 93.6 ​ Gross profit 6.1 % 6.4 % ​ Revenue Revenue for our Americas segment for the year ended September 30, 2024 increased $1,510.0 million, or 13.8%, to $12,485.7 million as compared to $10,975.7 million for the corresponding period last year.
Our consolidated leverage ratio was 2.00 to 1.00 at September 30, 2023. As of September 30, 2023, we were in compliance with the covenants of the Credit Agreement. The Credit Agreement contains customary affirmative covenants, including, among other things, compliance with applicable law, preservation of existence, maintenance of properties and of insurance, and keeping proper books and records.
As of September 30, 2024, we were in compliance with the covenants of the Credit Agreement. The Credit Agreement contains customary affirmative covenants, including, among other things, compliance with applicable law, preservation of existence, maintenance of properties and of insurance, and keeping proper books and records.
International ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ September 30, September 30, Change ​ 2023 2022 $ % ​ (in millions) ​ Revenue $ 3,402.1 ​ $ 3,206.7 ​ $ 195.4 6.1 % Cost of revenue ​ 3,157.0 ​ 3,000.8 ​ 156.2 5.2 ​ Gross profit ​ $ 245.1 ​ $ 205.9 ​ $ 39.2 19.0 % ​ The following table presents the percentage relationship of statement of operations items to revenue: ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ September 30, September 30, ​ ​ ​ 2023 ​ 2022 ​ Revenue 100.0 % 100.0 % Cost of revenue 92.8 93.6 ​ Gross profit 7.2 % 6.4 % ​ Revenue Revenue for our International segment for the year ended September 30, 2023 increased $195.4 million, or 6.1%, to $3,402.1 million as compared to $3,206.7 million for the corresponding period last year.
International ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ September 30, September 30, Change ​ 2024 2023 $ % ​ (in millions) ​ Revenue $ 3,618.4 ​ $ 3,402.1 ​ $ 216.3 ​ 6.4 % Cost of revenue ​ 3,294.6 ​ ​ 3,157.0 ​ ​ 137.6 ​ 4.4 ​ Gross profit ​ $ 323.8 ​ $ 245.1 ​ $ 78.7 ​ 32.1 % ​ The following table presents the percentage relationship of statement of operations items to revenue: ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ September 30, September 30, ​ ​ ​ 2024 ​ 2023 ​ Revenue 100.0 % 100.0 % Cost of revenue 91.1 ​ 92.8 ​ Gross profit 8.9 % 7.2 % ​ Revenue Revenue for our International segment for the year ended September 30, 2024 increased $216.3 million, or 6.4%, to $3,618.4 million as compared to $3,402.1 million for the corresponding period last year.
At September 30, 2023, we were contingently liable in the amount of approximately $883.3 million in issued standby letters of credit and $4.6 billion in issued surety bonds primarily to support project execution.
At September 30, 2024, we were contingently liable in the amount of approximately $938.9 million in issued standby letters of credit and $5.1 billion in issued surety bonds primarily to support project execution.
The factors we consider in our contract evaluations include, but are not limited to: ● Client type—federal or state and local government or commercial client; ● Historical contract performance; ● Historical collection and delinquency trends; ● Client credit worthiness; and ● General economic conditions.
The factors we consider in our contract evaluations include, but are not limited to: ● Client type—federal or state and local government or commercial client; ● Historical contract performance; ● Historical collection and delinquency trends; ● Client credit worthiness; and ● General economic conditions. 36 Table of Contents ​ Contract Assets and Contract Liabilities Contract assets represent the contract revenue recognized but not yet billed pursuant to contract terms.
The Company intends to vigorously prosecute and defend this matter; however, the Company cannot provide assurance that the Company will be successful in these efforts. The resolution of this matter and any potential range of loss cannot be reasonably determined or estimated at this time, primarily because the matter raises complex legal issues that Company is continuing to assess.
The resolution of this matter and any potential range of loss cannot be reasonably determined or estimated at this time, primarily because the matter raises complex legal issues that Company is continuing to assess.
Deconstruction, decommissioning and site restoration activities are complete. 51 Table of Contents ​ On January 31, 2020, the Company completed the sale of its Management Services business, including the Former Affiliate who worked on the DOE project, to Maverick Purchaser Sub LLC (MS Purchaser), an affiliate of American Securities LLC and Lindsay Goldberg LLC.
On January 31, 2020, the Company completed the sale of its Management Services business, including the Former Affiliate who worked on the DOE project, to Maverick Purchaser Sub LLC (“MS Purchaser”), an affiliate of American Securities LLC and Lindsay Goldberg LLC.
General and Administrative Expenses General and administrative expenses include corporate expenses, including personnel, occupancy, and administrative expenses. 35 Table of Contents ​ Restructuring Expenses Restructuring expenses are comprised of personnel and other costs, real estate costs, and costs associated with the exit of our Russia-related businesses primarily related to actions that are expected to deliver continued margin improvements and efficiencies.
General and Administrative Expenses General and administrative expenses include corporate expenses, including personnel, occupancy, and administrative expenses. Restructuring Costs Restructuring costs are comprised of personnel and other costs, real estate costs, and costs associated with business exits primarily related to actions that are expected to deliver continued margin expansion and operating efficiencies.
Total borrowings under our Credit Agreement may vary during the period as we regularly draw and repay amounts to fund working capital. Working Capital Working capital, or current assets less current liabilities, decreased $99.4 million, or 23.7%, to $319.2 million at September 30, 2023 from $418.6 million at September 30, 2022.
Total borrowings under our Credit Agreement may vary during the period as we regularly draw and repay amounts to fund working capital. Working Capital Working capital, or current assets less current liabilities, increased $482.8 million, or 151.3%, to $802.0 million at September 30, 2024 from $319.2 million at September 30, 2023.
Between September 30, 2022 and September 30, 2023, the aggregate worldwide pension deficit decreased from $204.4 million to $165.3 million due to increased discount rates. If the various plans do not experience future investment gains to reduce this shortfall, the deficit will be reduced by additional contributions.
Between September 30, 2023 and September 30, 2024, the aggregate worldwide pension deficit decreased from $165.3 million to $134.0 million due to an increase in the actual return on plan assets partially offset by decreased discount rates. If the various plans do not experience future investment gains to reduce this shortfall, the deficit will be reduced by additional contributions.
At September 30, 2023, cash and cash equivalents, including cash and cash equivalents included in current assets held for sale, were $1,262.2 million, an increase of $85.4 million, or 7.3%, from $1,176.8 million at September 30, 2022.
At September 30, 2024, cash and cash equivalents, including cash and cash equivalents included in current assets held for sale, were $1,584.9 million, an increase of $322.7 million, or 25.6%, from $1,262.2 million at September 30, 2023.
The decrease in earnings of joint ventures for the year ended September 30, 2023 compared to the same period in the prior year was primarily due to impairment losses recorded in our AECOM Capital segment during the third quarter of fiscal 2023.
The increase in equity in earnings of joint ventures for the year ended September 30, 2024 compared to the same period in the prior year was primarily due to impairment losses recorded by our AECOM Capital segment in fiscal 2023 that did not repeat to the same extent in fiscal 2024.
We expect to spend approximately $110 million in restructuring costs in fiscal 2024 associated with ongoing restructuring actions that are expected to deliver continued margin improvement and efficiencies.
We expect to spend approximately $45 million for restructuring in fiscal 2025 associated with restructuring actions taken in prior periods that are expected to deliver continued margin improvement and efficiencies.
The Company filed an appeal of these decisions on December 20, 2020 in the Court of Federal Claims.
The Company filed an appeal of these decisions on December 20, 2020 in the Court of Federal Claims. Deconstruction, decommissioning and site restoration activities are complete.
Amounts provided do not represent our total consolidated amounts as of September 30, 2023 and for the twelve months then ended. 49 Table of Contents ​ Condensed Combined Balance Sheets Parent and Subsidiary Guarantors (unaudited - in millions) ​ ​ ​ ​ ​ ​ September 30, 2023 Current assets ​ $ 2,617.7 Non-current assets ​ ​ 3,230.7 Total assets ​ $ 5,848.4 ​ ​ ​ ​ Current liabilities ​ $ 2,414.4 Non-current liabilities ​ ​ 2,601.6 Total liabilities ​ ​ 5,016.0 ​ ​ ​ ​ Total stockholders’ equity ​ ​ 832.4 Total liabilities and stockholders’ equity ​ $ 5,848.4 ​ Condensed Combined Statement of Operations Parent and Subsidiary Guarantors (unaudited - in millions) ​ ​ ​ ​ ​ ​ ​ For the twelve months ended ​ September 30, 2023 Revenue ​ $ 7,077.5 Cost of revenue ​ 6,582.5 Gross profit ​ ​ 495.0 ​ ​ ​ ​ Net income from continuing operations ​ 3.2 Net loss from discontinued operations ​ — Net income ​ $ 3.2 ​ ​ ​ ​ Net income attributable to AECOM ​ $ 3.2 ​ Commitments and Contingencies We record amounts representing our probable estimated liabilities relating to claims, guarantees, litigation, audits and investigations.
Condensed Combined Balance Sheets Parent and Subsidiary Guarantors (unaudited - in millions) ​ ​ ​ ​ ​ ​ September 30, 2024 Current assets ​ $ 3,405.2 Non-current assets ​ ​ 3,033.6 Total assets ​ $ 6,438.8 ​ ​ ​ ​ Current liabilities ​ $ 2,918.1 Non-current liabilities ​ ​ 2,913.0 Total liabilities ​ ​ 5,831.1 ​ ​ ​ ​ Total stockholders’ equity ​ ​ 607.7 Total liabilities and stockholders’ equity ​ $ 6,438.8 ​ 50 Table of Contents ​ Condensed Combined Statement of Operations Parent and Subsidiary Guarantors (unaudited - in millions) ​ ​ ​ ​ ​ ​ ​ For the twelve months ended ​ September 30, 2024 Revenue ​ $ 8,395.4 Cost of revenue ​ 7,831.1 Gross profit ​ ​ 564.3 ​ ​ ​ ​ Net income from continuing operations ​ 128.3 Net loss from discontinued operations ​ — Net income ​ $ 128.3 ​ ​ ​ ​ Net income attributable to AECOM ​ $ 128.3 ​ Commitments and Contingencies We record amounts representing our probable estimated liabilities relating to claims, guarantees, litigation, audits and investigations.
Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and tax rates on the date of enactment of such changes to laws and tax rates. 37 Table of Contents ​ Deferred tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred tax assets may not be realized.
Deferred tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred tax assets may not be realized.
Components of Income and Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, ​ 2023 2022 2021 2020 2019 ​ ​ (in millions) Other Financial Data: ​ Revenue ​ $ 14,378 ​ $ 13,148 ​ $ 13,341 ​ $ 13,240 ​ $ 13,642 Cost of revenue ​ 13,433 ​ 12,300 ​ 12,543 ​ 12,530 ​ 13,030 Gross profit ​ 945 ​ 848 ​ 798 ​ 710 ​ 612 Equity in earnings of joint ventures ​ (279) ​ 54 ​ 35 ​ 49 ​ 49 General and administrative expenses ​ (154) ​ (147) ​ (155) ​ (190) ​ (148) Restructuring cost ​ (188) ​ (108) ​ (48) ​ (188) ​ (95) Gain on disposal activities ​ — ​ — ​ — ​ — ​ 3 Impairment of long-lived assets ​ — ​ — ​ — ​ — ​ (25) Income from operations ​ $ 324 ​ $ 647 ​ $ 630 ​ $ 381 ​ $ 396 ​ Revenue We generate revenue primarily by providing planning, consulting, architectural and engineering design, construction and program management services to public and private clients around the world.
All of our business acquisitions have been accounted for as business combinations and the results of operations of the acquired companies have been included in our consolidated results since the dates of the acquisitions. 34 Table of Contents ​ Components of Income and Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, ​ 2024 2023 2022 2021 2020 ​ ​ (in millions) Other Financial Data: ​ Revenue ​ $ 16,105 ​ $ 14,378 ​ $ 13,148 ​ $ 13,341 ​ $ 13,240 Cost of revenue ​ 15,021 ​ ​ 13,433 ​ ​ 12,300 ​ ​ 12,543 ​ ​ 12,530 Gross profit ​ 1,084 ​ ​ 945 ​ ​ 848 ​ ​ 798 ​ ​ 710 Equity in earnings (losses) of joint ventures ​ 2 ​ ​ (279) ​ ​ 54 ​ ​ 35 ​ ​ 49 General and administrative expenses ​ (160) ​ ​ (154) ​ ​ (147) ​ ​ (155) ​ ​ (190) Restructuring costs ​ (99) ​ ​ (188) ​ ​ (108) ​ ​ (48) ​ ​ (188) Income from operations ​ $ 827 ​ $ 324 ​ $ 647 ​ $ 630 ​ $ 381 ​ Revenue We generate revenue primarily by providing planning, consulting, advisory, architectural and engineering design, construction management and program management services to public and private clients around the world.
Our principal uses of cash are operating expenses, capital expenditures, working capital requirements, acquisitions, repurchases of common stock, dividend payments, and refinancing or repayment of debt.
Liquidity and Capital Resources Cash Flows Our principal sources of liquidity are cash flows from operations, borrowings under our credit facilities, and access to financial markets. Our principal uses of cash are operating expenses, capital expenditures, working capital requirements, acquisitions, repurchases of common stock, dividend payments, and refinancing or repayment of debt.
Under our secured revolving credit facility and other facilities discussed in Other Debt and Other Items above, as of September 30, 2023, there was approximately $883.3 million including both continuing and discontinued operations, outstanding under standby letters of credit primarily issued in connection with general and professional liability insurance programs and for contract performance guarantees.
However, if we acquire additional businesses in the future or if we embark on other capital-intensive initiatives, additional working capital may be required. 49 Table of Contents ​ Under our secured revolving credit facility and other facilities discussed in Other Debt and Other Items above, as of September 30, 2024, there was approximately $938.9 million including both continuing and discontinued operations, outstanding under standby letters of credit primarily issued in connection with general and professional liability insurance programs and for contract performance guarantees.
For a discussion on the year ended September 30, 2022 compared to the year ended September 30, 2021, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended September 30, 2022.
For a discussion on the year ended September 30, 2023 compared to the year ended September 30, 2022, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended September 30, 2023. 33 Table of Contents ​ Overview We are a leading global provider of professional infrastructure consulting and advisory services for governments, businesses and organizations throughout the world.
Loans under the Revolving Credit Facility may be borrowed, and letters of credit thereunder may be issued, in U.S. dollars or in certain foreign currencies. The proceeds of the Revolving Credit Facility may be used from time to time for ongoing working capital and for other general corporate purposes.
Loans under the New Revolving Credit Facility may be borrowed, and letters of credit thereunder may be issued, in U.S. dollars or in certain foreign currencies.
If future changes in judgment regarding the realizability of our deferred tax assets lead us to determine that it is more likely than not that we will not realize all or part of our deferred tax asset in the future, we will record an additional valuation allowance.
Whether a deferred tax asset will ultimately be realized is also dependent on varying factors, including, but not limited to, changes in tax laws and audits by tax jurisdictions in which we operate. 37 Table of Contents ​ If future changes in judgment regarding the realizability of our deferred tax assets lead us to determine that it is more likely than not that we will not realize all or part of our deferred tax asset in the future, we will record an additional valuation allowance.
Contractual Obligations and Commitments The following summarizes our contractual obligations and commercial commitments as of September 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than One to Three to More than Contractual Obligations and Commitments ​ Total ​ One Year ​ Three Years ​ Five Years ​ Five Years ​ ​ (in millions) Debt ​ $ 2,217.3 ​ $ 89.5 ​ $ 462.2 ​ $ 1,665.6 ​ $ — Interest on debt ​ 483.2 ​ 147.2 ​ 251.0 ​ 85.0 ​ — Operating leases ​ 794.3 ​ 164.4 ​ 255.1 ​ 161.7 ​ 213.1 Pension funding obligations (1) ​ 35.1 ​ 35.1 ​ — ​ — ​ — Total contractual obligations and commitments ​ $ 3,529.9 ​ $ 436.2 ​ $ 968.3 ​ $ 1,912.3 ​ $ 213.1 (1) Represents expected fiscal 2024 contributions to fund our defined benefit pension and other postretirement plans.
Contractual Obligations and Commitments The following summarizes our contractual obligations and commercial commitments as of September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than One to Three to More than Contractual Obligations and Commitments ​ Total ​ One Year ​ Three Years ​ Five Years ​ Five Years ​ ​ (in millions) Debt ​ $ 2,539.8 ​ $ 66.9 ​ $ 1,043.6 ​ $ 766.4 ​ $ 662.9 Interest on debt ​ 801.3 ​ ​ 169.5 ​ ​ 336.6 ​ ​ 223.2 ​ ​ 72.0 Operating leases ​ 756.2 ​ ​ 164.4 ​ ​ 239.3 ​ ​ 165.4 ​ ​ 187.1 Pension funding obligations (1) ​ 35.4 ​ ​ 35.4 ​ ​ — ​ ​ — ​ ​ — Total contractual obligations and commitments ​ $ 4,132.7 ​ $ 436.2 ​ $ 1,619.5 ​ $ 1,155.0 ​ $ 922.0 (1) Represents expected fiscal 2025 contributions to fund our defined benefit pension and other postretirement plans.
The decrease in net loss from discontinued operations for the year ended September 30, 2023 was primarily due to losses related to revisions of estimates for our working capital obligations to be paid and contingent consideration receivable related to the civil infrastructure business recorded in the first half of fiscal 2022 that did not recur to the same extent in fiscal 2023.
The increase in net loss from discontinued operations for the year ended September 30, 2024 was primarily due to revisions of estimated contingent consideration related to the sale of our civil infrastructure construction business that did not occur to the same extent in fiscal 2023.
General and Administrative Expenses Our general and administrative expenses for the year ended September 30, 2023 increased $6.3 million, or 4.3%, to $153.6 million as compared to $147.3 million for the corresponding period last year. For the years ended September 30, 2023 and 2022, general and administrative expenses as a percentage of revenue remained unchanged at 1.1%.
General and Administrative Expenses Our general and administrative expenses for the year ended September 30, 2024 increased $6.5 million, or 4.2%, to $160.1 million as compared to $153.6 million for the corresponding period last year.
As of September 30, 2023, we had $416.7 million available under these unsecured credit facilities. 48 Table of Contents ​ Effective Interest Rate Our average effective interest rate on our total debt, including the effects of the interest rate swap and interest rate cap agreements during the years ended September 30, 2023, 2022 and 2021 was 5.3%, 3.8% and 4.4%, respectively.
Effective Interest Rate Our average effective interest rate on our total debt, including the effects of the interest rate swap and interest rate cap agreements during the years ended September 30, 2024, 2023 and 2022 was 5.6%, 5.3% and 3.8%, respectively.
For the year ended September 30, 2023, gross profit, as a percentage of revenue, increased to 6.6% from 6.4% in the year ended September 30, 2022.
As a percentage of revenue, gross profit increased to 8.9% of revenue for the year ended September 30, 2024 from 7.2% in the corresponding period last year.
As a result of these strategic actions, the self-perform at-risk construction businesses were classified as discontinued operations. That classification was applied retrospectively for all periods presented. Net loss from discontinued operations was $57.2 million for the year ended September 30, 2023 and net loss was $79.9 million for the year ended September 30, 2022, a decrease of $22.7 million.
As a result of these strategic actions, the self-perform at-risk construction businesses were classified as discontinued operations. 43 Table of Contents ​ Net loss from discontinued operations was $105.0 million for the year ended September 30, 2024 and net loss was $57.2 million for the year ended September 30, 2023, an increase of $47.8 million.
Gross Profit Gross profit for our Americas segment for the year ended September 30, 2023 increased $59.8 million, or 9.3%, to $699.7 million as compared to $639.9 million for the corresponding period last year. Gross profit, as a percentage of revenue, remained unchanged at 6.4% for the years ended September 30, 2023 and 2022.
Gross Profit Gross profit for our Americas segment for the year ended September 30, 2024 increased $59.4 million, or 8.5%, to $759.1 million as compared to $699.7 million for the corresponding period last year.
Contract Assets and Contract Liabilities Contract assets represent the contract revenue recognized but not yet billed pursuant to contract terms. Contract liabilities represent the billings to date, as allowed under the terms of a contract, but not yet recognized as contract revenue using our revenue recognition policy.
Contract liabilities represent the billings to date, as allowed under the terms of a contract, but not yet recognized as contract revenue using our revenue recognition policy. Investments in Unconsolidated Joint Ventures We have noncontrolling interests in joint ventures accounted for under the equity method.
The sale of trade receivables to financial institutions included in operating cash flows increased $50.0 million during the year ended September 30, 2023 compared to the year ended September 30, 2022.
The sale of trade receivables to financial institutions included in operating cash flows increased $32.7 million during the year ended September 30, 2024 compared to the year ended September 30, 2023. We expect to continue to sell trade receivables in the future as long as the terms continue to remain favorable to us.
We have exited substantially all of our self-perform at-risk construction businesses and divested our remaining non-core oil and gas businesses in January 2022. As part of our ongoing plan to improve profitability and maintain a reduced risk profile, we continuously evaluate our geographic exposure.
We have exited substantially all of our former self-perform at-risk construction businesses. As part of our ongoing plan to improve profitability and maintain a reduced risk profile, we continuously evaluate our geographic exposure. We completed a transaction that transitioned the AECOM Capital team to a new third-party platform in the third quarter of fiscal 2024.
The increase in gross profit for the year ended September 30, 2023 was primarily due to revenue growth and execution efficiency. In addition, underlying revenue, excluding pass-through revenues, increased.
In addition, underlying revenue, excluding pass-through revenues, increased as noted above. The decrease in gross profit as a percentage of revenue was due to an increase in pass-through revenues for the year ended September 30, 2024 as compared to last year.
The increase in interest expense for the year ended September 30, 2023 was primarily due to an increase in interest rates on the variable component of our debt. 42 Table of Contents ​ Income Tax Expense Our income tax expense for the year ended September 30, 2023 was $56.1 million compared to $136.1 million for the year ended September 30, 2022.
The increase in interest expense for the year ended September 30, 2024 was primarily due to an increase in our debt as well as $7.6 million in financing charges recorded in fiscal 2024 related to the New Credit Facilities, defined below. 42 Table of Contents ​ Income Tax Expense Our income tax expense for the year ended September 30, 2024 was $152.9 million compared to $56.1 million for the year ended September 30, 2023.
As a percentage of revenue, gross profit increased to 7.2% of revenue for the year ended September 30, 2023 from 6.4% in the corresponding period last year. 44 Table of Contents ​ The increase in gross profit and gross profit as a percentage of revenue for the year ended September 30, 2023 was primarily due to an increase in revenue and reduced costs resulting from country exits, ongoing investments in enterprise capability centers, shared service centers, and delivery efficiency.
As a percentage of revenue, gross profit decreased to 6.1% of revenue for the year ended September 30, 2024 from 6.4% in the corresponding period last year. 44 Table of Contents ​ The increase in gross profit for the year ended September 30, 2024 was primarily due to revenue growth and delivery efficiencies realized from cost reductions.
Debt Debt consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ 2023 2022 ​ ​ (in millions) Credit Agreement ​ $ 1,119.8 ​ $ 1,143.3 2027 Senior Notes ​ 997.3 ​ ​ 997.3 Other debt ​ 100.2 ​ ​ 84.0 Total debt ​ 2,217.3 ​ ​ 2,224.6 Less: Current portion of debt and short-term borrowings ​ (89.5) ​ ​ (48.6) Less: Unamortized debt issuance costs ​ (14.4) ​ ​ (19.3) Long-term debt ​ $ 2,113.4 ​ $ 2,156.7 ​ 46 Table of Contents ​ The following table presents, in millions, scheduled maturities of our debt as of September 30, 2023: ​ ​ ​ ​ ​ Fiscal Year ​ 2024 ​ $ 89.5 2025 ​ 49.6 2026 ​ 412.6 2027 ​ ​ 1,009.2 2028 ​ ​ 656.4 Thereafter ​ — Total ​ $ 2,217.3 ​ Credit Agreement On February 8, 2021, we entered into the 2021 Refinancing Amendment to the Credit Agreement (as amended, modified or otherwise supplemented, the “Credit Agreement”), pursuant to which we amended and restated our Syndicated Credit Facility Agreement, dated as of October 17, 2014 (as amended prior to February 8, 2021, the “Original Credit Agreement”), between the Company, as borrower, Bank of America, N.A., as administrative agent, and other parties thereto.
Debt Debt consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ 2024 2023 ​ ​ (in millions) Credit Agreement ​ $ 1,446.6 ​ $ 1,119.8 2027 Senior Notes ​ 997.3 ​ ​ 997.3 Other debt ​ 95.9 ​ ​ 100.2 Total debt ​ 2,539.8 ​ ​ 2,217.3 Less: Current portion of debt and short-term borrowings ​ (66.9) ​ ​ (89.5) Less: Unamortized debt issuance costs ​ (22.6) ​ ​ (14.4) Long-term debt ​ $ 2,450.3 ​ $ 2,113.4 ​ The following table presents, in millions, scheduled maturities of our debt as of September 30, 2024: ​ ​ ​ ​ ​ Fiscal Year ​ 2025 ​ $ 66.9 2026 ​ 27.1 2027 ​ 1,016.5 2028 ​ ​ 9.6 2029 ​ ​ 756.8 Thereafter ​ 662.9 Total ​ $ 2,539.8 ​ 47 Table of Contents ​ Credit Agreement On April 19, 2024, we entered into Amendment No. 14 to Syndicated Facility Agreement (as amended, modified or otherwise supplemented, the “Credit Agreement”), pursuant to which we obtained a new $1,500,000,000 revolving credit facility (the “New Revolving Credit Facility”), a new $750,000,000 term loan A facility (the “New Term A Facility” and, together with the New Revolving Credit Facility, the “New Pro Rata Facilities”) and a new $700,000,000 term loan B facility (the “New Term B Facility” and, together with the New Pro Rata Facilities, the “New Credit Facilities”).
Net cash provided by operating activities was $696.0 million for the year ended September 30, 2023 as compared to $713.6 million for the year ended September 30, 2022.
Net cash used in investing activities was $210.6 million for the year ended September 30, 2024, as compared to $138.2 million for the year ended September 30, 2023.
We regularly integrate and consolidate our business operations and legal entity structure, and such internal initiatives could impact the assessment of uncertain tax positions, indefinite reinvestment assertions and the realizability of deferred tax assets. Net Loss From Discontinued Operations During the first quarter of fiscal 2020, management approved a plan to dispose of via sale our self-perform at-risk construction businesses.
Net Loss From Discontinued Operations During the first quarter of fiscal 2020, management approved a plan to dispose of via sale our self-perform at-risk construction businesses.
Such arrangements include standby letters of credit, surety bonds, and corporate guarantees to support the creditworthiness or the project execution commitments of our affiliates, partnerships and joint ventures. Performance arrangements typically have various expiration dates ranging from the completion of the project contract and extending beyond contract completion in some circumstances such as for warranties.
Such arrangements include standby letters of credit, surety bonds, and corporate guarantees to support the creditworthiness or the project execution commitments of our affiliates, partnerships and joint ventures. The Company’s unsecured credit arrangements are used for standby letters of credit issued in connection with general and professional liability insurance programs and for contract performance guarantees.
The Credit Agreement permits us to designate certain of our subsidiaries as additional co-borrowers from time to time. Currently, there are no co-borrowers under the Credit Facilities.
The Credit Agreement permits us to designate certain of our subsidiaries as additional co-borrowers from time to time. Currently, there are no co-borrowers under the New Credit Facilities. On October 29, 2024, we entered into Amendment No. 15 to Syndicated Facility Agreement, pursuant to which we reduced the interest rate spread applicable to our New Term B Facility.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeInterest on amounts borrowed under these agreements is subject to adjustment based on specified levels of financial performance. The applicable margin that is added to the borrowing in the base rate can range from 0.25% to 1.00% and the applicable margin that is added to borrowings in the eurocurrency rate can range from 1.25% to 2.00%.
Biggest changeInterest on amounts borrowed under these agreements is subject to adjustment based on specified levels of financial performance. The applicable margin that is added to the borrowing’s base rate can range from 0.125% to 1.00% and the applicable margin that is added to borrowings in the Term SOFR rate can range from 1.125% to 2.00%.
We invest our cash in a variety of financial instruments, consisting principally of money market securities or other highly liquid, short-term securities that are subject to minimal credit and market risk. ​ 53 Table of Contents ​
We invest our cash in a variety of financial instruments, consisting principally of money market securities or other highly liquid, short-term securities that are subject to minimal credit and market risk. ​ 54 Table of Contents ​
Interest Rates Our Credit Agreement and other debt obligations are subject to variable rate interest which could be adversely affected by an increase in interest rates. As of September 30, 2023 and 2022, we had $1,119.8 million and $1,143.3 million, respectively, in outstanding borrowings under our term credit agreements and our revolving credit facility.
Interest Rates Our Credit Agreement and other debt obligations are subject to variable rate interest which could be adversely affected by an increase in interest rates. As of September 30, 2024 and 2023, we had $1,446.6 million and $1,119.8 million, respectively, in outstanding borrowings under our term credit agreements and our revolving credit facility.
If short-term floating interest rates had increased by 1.00%, our interest expense for the year ended September 30, 2023 would have increased by $8.6 million.
If short-term floating interest rates had increased by 1.00%, our interest expense for the year ended September 30, 2024 would have increased by $9.6 million.
For the year ended September 30, 2023, our weighted average floating rate borrowings were $1,485.8 million, or $846.3 million excluding borrowings with effective fixed interest rates due to interest rate swap and interest rate cap agreements.
For the year ended September 30, 2024, our weighted average floating rate borrowings were $1,662.9 million, or $962.9 million excluding borrowings with effective fixed interest rates due to interest rate swap and interest rate cap agreements.

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