Financial Highlights

• Adjusted EPS¹ of $0.87, an increase of 50%.
• Positive organic growth in DCS Americas and Building Construction.
• Free cash flow² of $83 million.
• Reduced term debt by $76 million.
• On track with full-year free cash flow target of $600 million to $800 million for fiscal years 2016 and 2017.
• Wins of $2.7 billion; total construction value of wins $3.8 billion.
• Company reiterates fiscal year 2016 adjusted EPS¹ guidance of $3.00 to $3.40.

LOS ANGELES — (BUSINESS WIRE) — May 10, 2016 — AECOM (NYSE: ACM), a premier, fully integrated global infrastructure firm, today reported second-quarter revenue of $4.4 billion. Net income³ and earnings per share³ were $41.8 million and $0.27 in the second quarter, respectively. On an adjusted basis, diluted earnings per share¹ was $0.87.

Note: All comparisons are year over year unless otherwise noted.

“We made steady progress against our key strategic and financial objectives, most notably the return to growth in the Americas, continued strong cash generation, and additional debt reduction,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “We have a vastly diverse business and remain confident in our ability to capitalize on the momentum we see building across our end markets.”

“Our performance in the second quarter reflects the benefits of our diverse mix of geographies and end markets,” said Stephen M. Kadenacy, AECOM’s president. “From this diversity we are able to generate consistent results and deliver value for our shareholders.”

Wins and Backlog

Wins in the quarter of $2.7 billion were driven primarily by the Americas business within the Design & Consulting Services segment. The book-to-burn ratio⁴ was 0.6. Additionally, the Company won projects with a total construction value of $1.1 billion, primarily in Building Construction within the Construction Services segment. However, due to the accounting for unconsolidated joint ventures and projects executed on an agency basis, these projects are not reflected in backlog. The Company’s total backlog of $38.6 billion decreased 4% from the prior quarter. Including the $1.1 billion of construction value not reflected in our backlog, wins were $3.8 billion and backlog would have been $39.7 billion.

Business Segments

In addition to providing consolidated financial results, AECOM reports separate financial information for its three segments: Design & Consulting Services, Construction Services and Management Services.

Design & Consulting Services (DCS)

The DCS segment delivers planning, consulting, architectural and engineering design services to commercial and government clients worldwide in markets such as transportation, facilities, environmental, energy, water and government.

Revenue in the second quarter was $2.0 billion. Constant-currency⁵ organic revenue was down 0.6%, with growth returning in the Americas. Adjusted operating income⁶ increased to $140 million compared to $108 million in the year ago period, primarily due to operating efficiencies achieved through synergy savings and improving trends in the Americas.

Construction Services (CS)

The CS segment provides construction services for energy, commercial, industrial, and public and private infrastructure clients.

Revenue in the second quarter was $1.5 billion. Constant-currency⁵ organic revenue decreased 1.3%, as strong growth in the Building Construction business was offset by ongoing pressure in the oil and gas market. Adjusted operating income⁷ was $19 million compared to $26 million in the year ago period. The decline was driven by pressure in the oil and gas market, which was partially offset by a strong contribution from the stadium construction business.

Management Services (MS)

The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems-integration services and information technology services, primarily for agencies of the U.S. government, national governments around the world and commercial customers.

Revenue in the second quarter was $869 million. Organic revenue increased 5%. Adjusted operating income⁷ was $138 million compared to $105 million in the year ago period. Revenue and adjusted operating income⁷ include a significant positive impact from the accelerated recovery of a government pension entitlement resulting from the harmonization of our benefit programs. The impact to earnings per share from this item is $0.14 in fiscal 2016, with the anticipated cash benefit likely in fiscal 2017.

Tax Rate

The effective tax rate in the second quarter was 26% and was arrived at by recomputing the annual effective tax by excluding the tax impacts on the effective tax rate of the adjustments⁸ made to GAAP net (loss) income, which was then applied to the adjusted net (loss) income. The adjusted tax expense differs from the GAAP tax expense based on the deductibility and tax rate applied to each of the adjustments.

Cash Flow

Free cash flow² for the second quarter was $83 million; on track with annual free cash flow target of $600 million to $800 million for fiscal years 2016 and 2017.

Balance Sheet

As of March 31, 2016, AECOM had $670 million of cash and cash equivalents, $4.5 billion of debt and $910 million in unused capacity under its $1.05 billion revolving credit facility.

Financial Outlook