Aecom boosts stock buyback to $1B, raises quarterly dividend 18%

Aecom (ACM) affirmed the priorities of its returns-based capital allocation policy. Accordingly, the company announced that its Board of Directors has approved an increase to its share repurchase authorization to $1B and an increase to its quarterly dividend by 18% to 26c per share. “The increases to our share repurchase authorization and quarterly dividend payment reflect our confidence in delivering strong earnings and cash flow growth, as well as the strength of our balance sheet,” said Troy Rudd, AECOM’s chief executive officer. “Through this announcement, we are affirming our returns-driven capital allocation policy focused on high-returning investments in accelerating organic growth and margin expansion, as well as capital returns to shareholders. This includes returning $2.5 billion to shareholders since 2020, primarily through share repurchases.” Consistent with these priorities, the Company has bought back $2.2B of stock since the initiation of its repurchase program in September 2020, which has reduced its shares outstanding by 21%. In addition, the Company remains committed to increasing the per share value of its dividend by double-digits annually, as reflected in the 20% average annual increase it has delivered over the last three years.