AECOM Technology (NYSE: ACM) reported Q2 EPS of $0.55, $0.05 better than the analyst estimate of $0.50. Revenue for the quarter came in at $3.25 billion versus the consensus estimate of $3.29 billion.

Updated Fiscal 2020 Financial Guidance:

• Adjusted EBITDA1 is expected to be between $700 million and $740 million, which would mark 10% year-over-year growth at the mid-point of the range and a second consecutive year of double-digit adjusted EBITDA growth.
• – This guidance assumes that economic activity bottoms in the fiscal third quarter and that there are no material project delays or deferrals from the pandemic in the fiscal fourth quarter.
• – This guidance also includes an expected negative $15 million full year impact due to changes in foreign exchange rates.
• The Company reiterated its full year free cash flow8 guidance of between $100 million and $300 million.
• – This guidance includes the expected recovery of an approximately $130 million timing-related negative impact to fiscal second quarter cash flow related to MS cash flow in January that was below estimates at the closing of the MS sale.
• – The Company expects to recover this amount in the fiscal third quarter through an expected favorable net working capital purchase price adjustment, the collection of which will be reported in the investing section of the cash flow statement, in accordance with GAAP.

“I am proud of AECOM’s strong second quarter and first half financial performance, which was highlighted by our sixth-consecutive quarter of substantial margin improvement in our Professional Services business, continued double-digit adjusted EBITDA growth, a record $9 billion of wins in the quarter and a new all-time high backlog level,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “Our organization has responded well to the challenges posed by COVID-19 and I am thankful for our entire workforce’s devotion to our business and focus on delivering for our clients. As we look to the future, there are many uncertainties about the duration and long-term impacts from COVID-19. Importantly, with respect to what is within our control, the business has never been stronger or more resilient. In the near-term, our focus is on the health and safety of our people, on protecting jobs and on delivering for our clients. This is apparent in our industry-leading share of federal spending on COVID-19 related work thus far. Longer-term, we are engaging with our clients to help prepare for substantial planned stimulus, including an emphasis on infrastructure in our largest markets.”

“Our results over the past six quarters and, in particular the first half of this year, reinforce the value of our transformation to a higher-margin and lower-risk Professional Services business model,” said W. Troy Rudd, AECOM’s chief financial officer. “Our financial position is solid. We deployed the proceeds from the MS sale to repay all of our secured debt, resulting in substantially reduced net leverage of 1.2x. Today, we have a record level of liquidity and no substantial debt maturities for several years. We expect strong cash flow in the second half of the year to further enhance liquidity, providing us with additional flexibility as we navigate unprecedented market uncertainty with confidence.”

For earnings history and earnings-related data on AECOM Technology (ACM) click here.