ACM stock rose 0.6% on December 13, 2021, when the rest of the market closed -0.7% (SPY) lower. This excellent relative strength appears to be from the company initiating a new dividend program for share holders.
AECOM announces the initiation of a dividend program, extending its commitment to consistently return substantially all available cash flow to stockholders
DALLAS–(BUSINESS WIRE)– AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, announced today that its Board of Directors has declared a quarterly cash dividend as part of the initiation of a recurring quarterly dividend program. The initial quarterly dividend of $0.15 per share will be paid on January 21, 2022 to stockholders of record as of January 5, 2022. The Company intends to increase its dividend per share by a double-digit percentage annually.
AECOM’s capital allocation policy is built on a commitment to return substantially all available cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... to stockholders. The initiation of a quarterly dividend program is consistent with the Company’s capital allocation policy and complements the Company’s expected ongoing share repurchase program.
“The initiation of a quarterly dividend payment with the intent to increase it by double digits annually is a significant milestone in our history that affirms our ongoing intention to consistently return capital to our stockholders,” said Troy Rudd, AECOM’s chief executive officer. “Today’s announcement reflects the confidence we have in our operating performance and outlook for organic growth, the strength of our balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity., and our expectation for continued compounding of earnings at a high rate and strong free cash flow. We intend to continue to repurchase stock as part of our capital allocation program, with dividends complementing repurchases as we seek to enhance total shareholder return and attract the broadest investor base possible.”
AECOM also reiterated its financial guidance for fiscal 2022, which includes its expectation for adjusted1 EPS of between $3.20 and $3.40 and adjusted1 EBITDA2 of between $880 and $920 million, as well as another year of strong free cash flow3 between $450 million and $650 million. In addition, the Company reiterated its long-term financial targets, including its expectation for adjusted1 EPS of at least $4.75 in fiscal 2024, which reflects the raised guidance provided on the Company’s fourth quarter earnings announcement. This guidance also includes an expectation for a 15% segment adjusted1 operating margin4 by fiscal 2024, and continued high conviction in delivering on its 17% longer-term margin goal.
AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical expertise and innovation, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... of $13.3 billion in fiscal year 2021.
AECOM to develop first phase of innovative Humber Zero carbon capture project
AECOM will be working with VPI and Phillips 66 Limited to gain consents for the Humber Zero carbon capture and storage project.
On December 7, 2021, AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, announced it is leading the effort to obtain the consents and permits for the Humber Zero project, which will contribute to the decarbonization of critical industry in the Humber region of Northern England, United Kingdom.
The Humber Zero project will integrate carbon capture and storage (CCS) technology into units at the Phillips 66 Humber Refinery and VPI Immingham combined heat and power plant. By 2030, the project is expected to capture up to eight million tons of carbon dioxide (CO2) annually at source before it is transported via pipeline to permanent storage sites under the North Sea. Carbon capture will integrate specialist technology into the existing processing units and plants, including absorption techniques to capture and recover the CO2.
“The Humber Zero project reflects the importance of advancing key sustainability initiatives that create a positive impact on the communities where we operate, which is a key component of our Sustainable Legacies strategy,” said Lara Poloni, AECOM’s president. “By integrating world-class carbon capture and storage technology, we are demonstrating how we can help take important steps towards reaching net zero emissions and creating positive social value.”
AECOM, supported by planning consultants DWD, will oversee the Humber Zero project through the permitting phase, preparing planning and permit applications and supporting the environmental impact assessment. This work will include a detailed review of the impact the Humber Zero project may have on the local environment and community.
Jonathan Briggs, VPI project director for Humber Zero said: “Humber Zero will secure critical industry in the Humber region, which is home to more than 25 percent of the UK’s refining capacity. Decarbonizing industry will ensure its competitiveness and help secure tens of thousands of jobs in the region and beyond.”
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ACM Stock Technical Analysis
Both the short-term and long-term trends are positive. This is a very positive sign. ACM is one of the better-performing stocks in the Construction & Engineering industry, it outperforms 77% of 44 stocks in the same industry. ACM is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market. There is resistance at 75.12 from a horizontal line in the daily time frame. There is a support zone ranging from 68.83 to 69.78. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. ACM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 69.78, a stop order could be placed below this zone. We notice that large players showed an interest for ACM in the last couple of days, which is a good sign. Click here to sign up for email alerts on when ACM stock is a good sell.