AECOM raises guidance amid higher profits, lower revenue

Abstract

AECOM CEO Troy Rudd characterized a 10% increase in the firm's design business backlog, which comes at the front end of the construction process, as evidence the firm can capitalize further on increased infrastructure funding, according to a press release. "The three long-term mega-trends of a global infrastructure renaissance, ESG investments and client investments to adapt to a post-pandemic world are fully intact, which underpins our confidence in the future," Rudd said. During a conference call with Wall Street analysts, Rudd emphasized that the firm's results thus far didn't reflect any material impact from the $1.2 trillion Infrastructure Investment and Jobs Act, but that its public entity clients were starting to see those funds. "There's been $114 billion in IIJA funding announced as available, and notices of funding opportunities are accelerating," Rudd said. Recession resistant While economists have pointed to the possibility of recession ahead, Rudd said infrastructure investment in the U.S. and abroad should counteract those trends. "In mainland China, the ongoing uncertainties created by COVID policies continue to impact us, though we are managing through this," Rudd said. Rudd said the wins show how the firm's "Ev-readi" digital tool helps clients integrate electrification of transit systems into existing infrastructure.