Q4 2023 AECOM Earnings Call
Good morning, and welcome to the E Com fourth quarter 2023 conference call I would like to inform all participants that this call is being recorded at the request of AE com.
This broadcast is copyrighted property of AE com.
Any rebroadcast of this information in whole or part without the prior written permission of economy is prohibited.
As a reminder, AE com is also simulcast during this presentation with slides at the investors section at Www Dot E Com dotcom.
Later, we will conduct a question and answer session. If you have a question. Please press Star then the number one on your Touchtone phone if you wish to be removed from the queue again prestige star one.
I would like to turn the call over to Wil Gabriella <unk> Senior Vice President Finance Treasury and Investor Relations.
Thank you operator, I would like to direct your attention to the Safe Harbor statement on page one of today's presentation. Today's discussion contains forward looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward looking statements due to various risks and uncertainties, including those described in our periodic reports filed with the SEC except.
As law requires we undertake no obligation to update our forward looking statements, we use certain non-GAAP financial measures in our presentation. The appropriate GAAP reconciliations are incorporated into raw materials, which are posted to our website growth rates are presented on a year over year basis, unless otherwise noted any references the segment margins or segment adjusted operating margins will reflect the performance for the Americas and international.
All segments when discussing revenue and revenue growth, we will refer to net service revenue or MSR, which is defined as revenue excluding pass through revenue and SRM backlog growth rates are presented on a constant currency basis, unless otherwise noted today's discussion of key performance indicators, we will focus on our continuing core operations of the company on today's call Troy radar.
Executive Officer will review, our key accomplishments, our strategy and outlook for the business longer Polonia, our president will discuss key operational successes and priorities and guard Kapoor, Chief Financial Officer will review, our financial performance and outlook in greater detail. We will conclude the question and answer session with that I will turn the call over to Troy.
Thank you will and thank you all for joining us today.
I want to begin by thanking our 52000 professionals, who are the most talented in our industry through their technical expertise and global collaboration we've extended our competitive advantage. This includes building a record design backlog that is supported by long term projects with stable funding sources.
I also want to highlight our record safety performance during the year, ensuring the safety of our teams as essential or.
Our total recordable incident rate remains well ahead of industry benchmarks and our internal targets, which is a testament to our culture.
Turning to our results we outperformed on every key financial metric in both the fourth quarter and full year organic N. A saar growth in the design business was 10% in the fourth quarter and 9% for the full year. This was highlighted by the strength of our water transportation and environment businesses, which are benefiting from strong.
Secular growth trends and organic market share gains.
Our margins also exceeded guidance and set a new annual high.
Our profitability continues to lead our industry, which enhances the value of our record design backlog.
As a result full.
Full year, adjusted EBITDA, and EPS increased by 10% and 12% on a constant currency basis.
Both metrics exceeded our initial and increased guidance mid points despite headwinds from the strengthening U S dollar.
Consistent with our track record of strong cash performance free cash flow was in the upper half of our guidance range, which enable the execution of our returns focused capital allocation policy.
This included approximately $475 million allocated to share repurchases and dividends during the year.
Based on our strong cash flow profile and the strength of our balance sheet. We also affirmed our capital allocation policy, which is led by investments in high returning organic growth.
Followed by share repurchases and dividends.
Since 2020, we have returned $2 billion to our stockholders.
We announced an increase in our share repurchase authorization to $1 billion and an increase to our quarterly dividend by 22%.
This marks the second consecutive year of at least 20% increase in our dividend and is consistent with our long term plan for annual double digit percentage increases.
Please turn to the next slide.
Across our results three key themes were apparent.
We are winning key pursuits at a record rate both total and contracted backlog in the design business reached all time highs led by 21% growth in contracted backlog in the Americas design business.
In addition, the profile of our wins continues to shift to higher value longer duration projects and programs for our largest clients, which adds to our visibility.
In fact wins valued at greater than $50 million during the year increased by 70% from just a few years ago, which has the effect of expanding our long term earnings power.
Second <unk>.
Investments in infrastructure sustainability, and resilience and the energy transition are converging into a power first cycle that plays to our strengths.
Funding from the IHA is beginning to flow into our markets and commitments towards achieving ambitious net zero targets are driving our clients' investment decisions.
Finally, our.
Our competitive advantages is expanding as evidenced by our industry, leading organic designed backlog growth.
Record high win rates and our industry leading margins the.
The combination of our technical leadership collaborative culture, and our day, one advisory data program management and dates redesign capabilities has us positioned as the partner of choice across the full likes lifecycle of our clients most critical investments.
Against a constantly evolving economic and geopolitical landscape, we are in a leading position to deliver.
Nearly 90% of our income is generated in the Americas, The U K and Australian markets. These economies are amongst the most resilient in the world and feature a record funding commitments in our markets.
We have diversified our private sector exposure and the majority of our private sector business is linked to markets and clients that are accelerating their investments.
This includes our water and environment practices, where we are primarily delivering for our clients operating budgets and not capital budgets and where regulatory requirements driving substantial portion of client spend.
This is also true for our facilities business, where 75% of our work in the Americas design business is for public sector clients, where funding is more predictable.
Importantly, our exposure to the private U S commercial real estate market is less than 3% of total MSR.
And while there remains uncertainty around the U S. Federal budgeting process the impacts of a typical shutdown are immaterial to us and we estimate that less than 1% of our business would be impacted.
Our contracts are well funded and all indications at most of our work we continue through a shutdown.
In addition, our state and local clients are benefiting from historically strong tax revenues accelerating IHA related grant activity and direct funding from the Federal Highway Trust fund, which is funded through a separate and already completed authorization process.
Please turn to the next slide.
From a position of strength, we're investing in key initiatives to extend our competitive advantage for example, as digital becomes ubiquitous in our industry over time, our commitment to make investments that enhance our long term growth combined with our scale and collaborative culture creates a substantial advantage or <unk>.
<unk> of data, which represent the collective knowledge and experience of our professionals enable us to write and deploy scripting code that automate elements of the design.
Through this we are substantially reducing the time to complete certain work packages, while further enhancing quality.
These productivity gains create time for our professionals to dedicate to even higher value work.
We're also continuing to expand our enterprise capability centers, which is a critical enabler of expanding our capacity and deploying best practices.
Hours delivered through these centers increased by 50% for the year and we see substantial opportunity for further increases overtime.
In addition, we are continuing to grow our World Class program management and advisory expertise, which is highly synergistic with our design leadership.
This creates a competitive advantage when pursuing and delivering the most complex projects and programs.
We replace in a specific emphasis on growing our energy advisory and digital practices as our clients are estimated to require four trillion per year to achieve global net zero targets and our accelerated digital investments.
Taking into consideration our accomplishments in fiscal 2023, our expanded competitive advantage and accelerating growth in our core markets and geographies, we have initiated strong financial guidance for fiscal 2024.
We expect organic MSR growth of between 8% and 10%.
We also expect to deliver another year of record profitability, including a 90 basis point increase in the segment adjusted operating margin to 15, 6%.
This is well ahead of our prior 2024 target and reflects our commitment to continuous improvement and realizing our long term 17% margin ambition.
At the midpoint adjusted EBITDA is expected to increase by 13% and adjusted EPS is expected to increase by 20% to $4 35 to.
Two $4 55.
We also.
Expect another year of strong cash flow, which will enable continued opportunities to allocate capital to growth and shareholder returns.
We are exceptionally well positioned for the year ahead and are excited by the continued growth and value creation opportunity at <unk> com.
Which we will discuss in greater detail at our upcoming Investor day in December.
With that I will turn the call over to Laura.
Thanks, Troy, Please turn to the next slide.
Fiscal 2023 was a milestone year in many respects our teams are energized by our record high design win rate in the year and backlog position, which validates the competitive advantage, we have built through our technical excellence.
Our strategy, we are ideally suited to de lever as the global infrastructure Mega trends accelerate we are consistently winning a high priority proceeds at a record rate and on 90% of that wins at technical score is essential to our success. In addition, as projects become larger and more complex clients are increasingly asking for.
More from the consulting partners and through our World Class program management and advisory capabilities, we are distinguished from our competition.
In addition, we continue to maintain leadership positions in the market sectors benefiting from these trends.
In water, which represents 26% of our design MSR investments to address persistent drought flooding and drinking water scarcity are increasing and play to our strength as evidenced by our transformational wins throughout the year.
We won a resiliency contract to help the city of New York delivered a new conveyance channel that will improve the reliability of its water supply.
This way and drew on our global auto sector expertise and experience working on projects of this scale and complexity.
Also we were selected for a large hydroelectric project in Canada that was the result of our leading hydroelectric engineering capabilities.
This win is representative of a growing set of similar opportunities across our markets.
What are the trends are equally strong in the international market for instance, in the U K spending across the Amp eight water infrastructure programs is expected to increase by 75% over the next five years as compared to the prior five year cycle.
Our exposure to these clients is expanding just as the total addressable spend is increasing.
Turning to transportation, where we hold the number one rankings in both transit and transportation engineering, our largest state and local clients at projecting double digit spending growth in fiscal 2020 full largely in such as that selection to be the lead design and for the JA funded <unk> breached cargo project in the U S at the beginning.
No materially contribute to our results.
Similarly, our latest shipping transit was assumed in our selection of two substantial Canadian light rail transit projects building on our global successes in this market over the past few years.
These wins further demonstrate the value of combining our design and program management capabilities.
And in the environment sector backlog increased by double digits and included a sizable we anticipate San Diego gas and electric strategic underground in program.
Using wildfire risk by meeting or they had power lines underground.
We will also selected to advise on delivering a carbon neutral cop 28.
Leading form uniting the world on the most ambitious sustainability installations at that time, which is a reflection of our strong leadership position in the market.
In addition, given continued regulatory clarity P. Fast remediation work is gaining momentum and we won some of our largest project to date. During the year. This includes a program management lean to conduct pre first investigation and remediation for the U S Army National guard facilities nationwide.
We bring an unrivaled slate of PFS services and technical expertise to address the critical environmental challenge.
These successes reflect the strength of our zinc and act globally strategy and our competitive advantages as projects increased in size and complexity.
Technical excellence remains the key distinguishing characteristics with nearly all of our significant wins and we have several initiatives underway to fortify. The strength. These include continued growth in our technical academies and technical practice groups, such as a new expense led to ESG and climate change program.
As we look to 2024 and beyond we are setting the bar in terms of technical advantage high returning organic growth and profitability and are confident that through continued disciplined execution of our strategy. We will further extend our advantage with that I will turn the call over to Guy.
Thanks, Laura Please turn to the next slide.
We exceeded the midpoint of both our initial and increased guidance ranges in 2023 years as we continue to build on our track record of delivering on our commitments and generating long term shareholder value.
This performance included 10% organic MSR growth in the design business in the fourth quarter industry, leading margin performance and continued strong cash flow.
As we turn to 2024, we are encouraged by a strong end market backdrop building from our record design backlog and 20% growth in our design pipeline. We are poised to deliver another year of strong MSR growth record margins and 20% adjusted EPS growth at the midpoint of our guidance range.
Im also pleased to report that we announced an increase in our share repurchase authorization to $1 billion and a 22% increase in our dividend.
These actions reflect our confidence in the long term cash flow profile of the business and the continued opportunity to enhance value creation through our operating performance.
Please turn to the next slide.
In the Americas, we delivered 9% MSR growth in the design business in the fourth quarter, we are benefiting from our high win rate along with strong client funding.
As a result, we achieved a record design backlog of which was driven by our water transportation and environment businesses, which all delivered a one two or greater book to burn ratio for the year.
The adjusted operating margin was 19% in the fourth quarter and reached a record high for the full year.
This strength reflects the benefit of our strategy, which is focused on delivering the highest value elements of a project or program and the emphasis we place on return on Prime and capital.
Please turn to the next slide.
Turning to the international segment.
Fourth quarter and full year MSR increased by 11% and we delivered on our 10% adjusted operating margin target in the fourth quarter, which increases our conviction towards delivering on our best in class margin target over time.
<unk> was strong across market sectors and included double digit growth in transportation and strong growth in water.
Both sectors are benefiting from increased investment in our largest markets, including the UK and Australia.
Even with our strong revenue growth in 2023 backlog increased by 20%, which underpins our expectations for continued MSR growth and margin expansion in 2024.
Please turn to the next slide.
We delivered $591 million of free cash flow in the year, which was in the upper half of our guidance range and marks our ninth consecutive year of delivering on our cash flow guidance.
This strong performance enabled the allocation of approximately $475 million of capital to shareholders through repurchases and dividends.
We have now reduced our shares outstanding by 19% since we began repurchasing stock in 2020, and we have increased our dividend by at least 20% in each of the past two years.
Our capital allocation policy are centered on generating shareholder value and are supported consistently by strong cash flow that we allocate to highest returning opportunities.
Our priorities with our capital have not changed our focus is on investing in organic growth, which is primarily through our margins and form of business development talent and digital innovation.
This is followed by repurchases given our confidence in delivering strong long term earnings growth and then dividends.
Our ability to invest in high returning opportunities and create value for our shareholders is also supported by our strong balance sheet.
Against the backdrop of rising rates and Steepening yield curve, we have created certainty approx.
Approximately 80% of our debt is fixed or capped at highly attractive rates and we do not have bond maturities until 2027.
In 2024, we expect another strong year of cash flow with free cash flow guide at least 100% of adjusted net income further, enabling our growth and efficiency initiatives and continued return of capital to shareholders.
Please turn to the next slide.
Our 2024 guidance reflects the conviction we have in our strategy our strong track record of execution.
Favorable demand drivers in our markets and our record design backlog coming into the year.
We have initiated fiscal 2024 guidance for adjusted EPS growth of 20% and adjusted EBITDA growth of 13% at the midpoint of their respective ranges.
This guidance reflects our expectation for organic MSR growth of 8% to 10% and 90 basis points of margin expansion to 15, 6%, which is well in excess of the 15% target. We have previously set for fiscal 2024 and keeps us on track towards our long term, 17% margin target.
Approximately two third of the expected margin increases as a result of highly profitable organic growth. The remaining amount reflects the benefit from actions. We are taking to accelerate our margin potential which are primarily focused on the next phase of our real estate transformation, where the payback is expected over the next several years.
We have a culture built on continuous improvement and the actions we are taking to produce a high ROI and compounding benefits to the organization.
I also want to note that consistent with our historical phasing of earnings we expect adjusted EBITDA in the first half of the year to approximate 45% to 48% of our full year earnings.
Taken together, we remain confident in further growth and our ability to continue creating substantial value for our stakeholders with that operator, we are ready for questions.
At this time.
I'd like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
And your first question today comes from the line of Michael Feniger from Bank of America. Your line is open.
Hi, everyone. Thanks for taking my questions just cant get all Troy Youre forecasting growth to remain stable to actually slightly accelerate in 2024, just what gives you that confidence today to see MSR growth go to that 8% to 10% is that even through.
The yields would start lower and pick up in the second half is there anything you want to flag about the moving pieces for us to think about that that growth staying stable growth rates being stable to slightly tick up in 2024.
Yes. Thanks for the question good morning so.
I would I mean.
Our confidence in our growth is attributable to a number of different things first.
Yes.
We go through the same process every year, who do through when we build up our plan we start by looking at our backlog.
And when you look at our backlog this year.
Our design business, which represents about 90, 492%, 94% of our business is actually our contracted backlog is actually up.
<unk>, 15% this year and so that gives us tremendous confidence and then in our <unk> business, which represents about 6% of our business. We have about four years of work.
But sort of sits in that business. So that's the starting point is that our backlog gives us great confidence that we can continue to grow frankly at the same rate we did.
In the second half of this year and then the other important element of this is just the overall markets that we play in.
No.
Our longer term confidence even beyond the year is based on the fact that we are exposed to some long term investment cycles and infrastructure.
The resiliency of our sustainability to think about that as sort of things like supply chain shifts or investments in coastal resiliency and then there is an energy transition.
And so that also gives us confidence and then beyond that 90% of our revenue is actually coming from foreign geographies.
It's Canada U S, Australia, and the UK. So all of those things taken together give us confidence and the one thing in the past that has sort of been a headwind to growth was actually.
The ability to add people fast enough to the business and I think we've got to position our turnover in certain by voluntary turnover is at a much lower rate and we're adding people to the business at a rate that supports that growth. So all of that leads to confidence around our forecast for this next year.
Thanks, Chuck and just to follow up Theres, just a lot of focus right now on how higher rates are weighing on on construction, mostly on the private side you touched in your comments about your exposure to commercial real estate you do have certain exposure to private customer base can you just unpack that private side, how much of that.
<unk> is vulnerable to higher rates economic uncertainty what are you seeing in that portfolio outside of maybe commercial real estate and just lastly, Troy like are you in 2024 are you forecasting.
Further weakness.
<unk> what have you been kind of seeing in that in that construction management segment that people kind of focus on what are you kind of a batting for 2024 there. Thank you.
Im going to take us a number of different ways. So first of all if I look at across the business.
Overall.
Our exposure to commercial real estate is less than 3% of the entire business, whether that's construction management or the design business.
And frankly, we continue to move towards the broader opportunities that exist and infrastructure and so the people in our business or again have been focusing perhaps some commercial real estate have the skills to participate in other types of infrastructure design program management and even.
Construction management, so again across the entire business less less than 3% as our exposure to commercial real estate, but.
You sort of take a different cut at the business.
Our exposure in the businesses to about 24% of our revenues from water.
35% from transportation.
Just to say a little more than 10% is from environment and frankly energy.
And then the rest is our facilities business in construction management and within our design business.
70% of that design business is actually public sector focused.
So within that.
Private sector exposure within facilities is very small, but again when you look at that.
That facility's exposure is sporadic cost or a whole number of clients that again, it's not in the commercial real estate.
It's in private sector in data centers, and transportation and de carbonization activities.
So it's fairly well diversified so again.
Our confidence is.
Fairly well spread across the business and.
Last four years.
Our guidance takes into account our exposures due to all of the businesses that we see globally.
Thank you.
And your next year. Thank you.
And your next question comes from the line of Andy Kaplowitz from Citigroup. Your line is open.
Hey, good morning, everyone.
Good morning, good morning.
I know you probably want to save this for the Investor day, but since you're growing 90 basis points in margin FY 'twenty four and a third of that is related to your restructuring costs could we see that kind of impact as we move forward into 2005 and 2006. So you can see that margin growth after 2004, and assuming somewhat similar growth to what you're going to do.
<unk> 24, maybe you can hit your 17% longer term target by FY 'twenty six or earlier I know you want to keep them long term, but how do we think about that.
I would tell you what Andy we're going to give we will give more detail at the Investor day. So this is a plug for you to show up.
We're focused on are actually continuing to expand margins in the business and we set a 70% target.
That's where that's where we are we are headed over a longer period of time and the things that we've done this year will contribute to that but maybe for a little more detail I'll turn it over to Gar.
Hey, Andy Thanks for that question of course, there is plenty of opportunity from here and I think FY 'twenty. Four is an example of that where we added 90 bps of margin well ahead of our own expectations, we had coming into the year and the long term target we have put forth almost three years ago to already an industry leading margin. So.
That clearly demonstrates the point with almost two thirds of that 90 bps increase coming from expansion is from our growth.
Clearly indicates that we're operating from a position of strength practically on every facet of the business. We operate from capitalizing on market opportunities taken market share, including having 80 plus percent win rate on our enterprise critical pursuits, and having the best technical professionals delivering solutions for our clients and communities. This is all really important.
Because it's allowing us to have plenty of opportunity to expand on that 17% target and as Troy mentioned will lay out in more detail during our investor day, So look forward to that.
Yes, that's helpful guys and Troy, maybe just a little more color on chip markets would you say the biggest drivers of growth are.
Increasing iga IAG related funding or is it sort of a larger program management jobs as you talked about in places like the middle East and have you intended to disaggregate. Your markets. For example, how much into market growing as Datacom is growing 8% 10 are you growing.
70% greater than market like how do you think about that do you think you can continue to grow your backlog at current rates that youre doing it.
Yes.
So first of all just to.
Just a little bit of background on our growth as I said earlier in the call.
About 94% of our businesses and our design business and that includes program management, but 6% relates to construction management and so on.
Our backlog in design has been growing rapidly.
I used to staff that our contracted backlog and ended up 15%.
Again, our total backlog is up by a similar amount.
And so.
When we look at that breakdown, we do see the strength across our markets because we're seeing the pipeline of opportunities grow.
I'm not certain that the pipeline of opportunities is necessarily German market. As you pointed out I think it's frankly us increasing our exposure to our clients and Thats through program management. So we've been we've been growing program management are disproportionately fast rate and those projects are actually large and chunky and so.
I would say that we are contributing to actually taking more of their clients and as our clients continue to invest so we're probably doing a combination too which has low market share and.
And actually participated in our growth, which sort of puts us beyond where I would say the industry average would be.
But try to be clear are you still seeing good visibility designed backlog continuing to grow from here in 2004, Oh absolutely.
No we absolutely do.
You sort of look at where we are in terms of I'll just use the <unk> example.
And it's one example, because across the world we have our customer base actually continuing to invest strongly in announced an even stronger investments in infrastructure. What are the IHA, we started to see that come into the business and so we're seeing that come into <unk>.
Funding projects across the business, including design and we actually see that pace picking up as we go through the next few years. So I don't want to if I did want to give the impression that designs that can be growing at just a fast as faster rate, but I think it's again I think we're accelerating beyond what the market growth is because we.
Are exposed to more of the client spend and then frankly, we are winning work at a disproportionately high rate our.
Our capture rate.
The entire business.
It has been over 50% for the last eight quarters and catches by definition capture rate is for every dollar we bid we win.
So we're winning out of every $2 <unk> and $1 work, which is an extraordinary rate an opposite stance from where it had been in.
In prior years.
I appreciate all the color.
Yes, Thanks Ed.
Your next question comes from the line of Steven Fisher from UBS. Your line is open.
Hey, Thanks. Good morning, just wanted to follow up on the program management discussion.
How different does your program management pipeline look today versus versus a year ago.
So Steve are our program management pipeline is actually up year over year.
Again.
I don't have the exact stat, but approximately up about 20%.
And so and frankly, thats consistent with our overall pipeline being up 20% compared to the prior year.
No.
Sort of thinking about it. This way is the overall investment spend has gone up consistently and program management is just a part of the client spend a part of our clients' budget. So we're seeing again, we're starting to see that similar improvement in pipeline across the board.
And then what is different for US, though is we obviously.
Now spend.
More time in the marketplace focused on delivering program management and that is that is growing at a much faster rate than the rest of our business.
Okay. That's helpful and Troy you mentioned Youre trying to grow your energy advisory and digital practices. What would you say your specific ambitions for the energy advisory and digital order for 2024.
Well so.
Digital advisory.
As a.
It's a little bit different part of our business. So we do have people that it provide you provided what I might call digital solutions directly for clients.
That the people that do that.
400 people to do that across the business.
And that business grew almost 40% this year and we see a growing at a double digit pace soon is a smaller business.
But what that means is <unk>.
As part of our traditional projects.
Those skills, they actually become part of the traditional projects and then.
<unk> may improve how we deliver projects or programs and actually have a margin impact.
So.
Wouldn't focus on again additional consulting as an important growth opportunity for us, but it's not incrementally going to stand out in our results. However, as a result of what we're doing we're continuing the progress of transforming how we deliver the work and that is contributing to our margins today.
Not in a way that is meaningful yet, but we see that eventually contributing to our margins in a very meaningful way.
And in terms of the advisory business.
We do have a reasonably healthy advisory business today.
But we see that there is a market opportunity in energy transition there are certainly a lot of organizations our customers private and public.
Our setting ambitions.
But they need the help to get there and they need to help not from a traditional management consultant.
Someone that actually brings a real breadth of technical expertise and actually experience in delivery.
And understanding of the technology that exists today and the technology that will be available in the future to develop a long term energy transition plan and obviously, that's all supported by infrastructure development.
And so we're in the process of building that group, we already have it up and running and operating but we would have similar ambition. So we do program management to see that actually be a very significant business that we would call out in the future.
Thank you very much.
Yes.
And again it is star one to ask a question. Your next question comes from the line of Michael Dudas from vertical Research partners. Your line is open.
Good morning, gentlemen.
Good morning, good morning.
Troy.
Theres been some visible project delays and some uncertainty amongst renewable energy new energy markets and maybe even some of the re shoring, though theres certainly been enormous amount of investment plans put forth.
Maybe you could share a little bit on like are you seeing any.
Laser.
Some pushout of concerns given those some of those announcements is the IRI and normal stimulus really going to can you support that and what is the.
Across your practice exposure for <unk>.
And the new energy energy transition and is that one of the areas that you'd be looking to focus on and to win more projects as we move forward.
Mike. Thank you you know what I'm going to pass that question over to Laura.
Thanks, Mike.
Across the World I mean, we're saying long term price opportunities across all of our core markets the Americas.
UK and Australia, and despite some setbacks in part of this yogurt geographies longer term for example, even in the U K, We think 40 billion pounds now allocated to projects in the north and we're well positioned.
So some of that to see it.
Dublin Metro, we're saying the anti <unk> program with significant opportunities 75% growth over the next five years and then as you mentioned I mean in the U S between the.
JA IRI the chip that we're now seeing a real ramp up in infrastructure.
<unk> substantial ongoing investment in public transport and also in Australia and was that an unprecedented via pipeline of $155 billion worth of projects and we've had a number of significant wins over the last 12 months and well positioned for that feature and with respect to new energy projects. We don't do any what the developers in that sector at all.
So our focus is predominantly on the energy advisory and the pull through of other sort of design services.
That's helpful Ed.
You mentioned, our large might've mentioned P fast in your prepared remarks.
Is that are you seeing some much more acceleration in the opportunities there or is that a.
Above market or above average growth driver for you given.
It seems like yours and technology execution leadership in that area is certainly seeing more visibility on announcements from you.
U S government and others to attack this issue.
Yes, obviously there are now the regulatory environment is providing a significant catalyst for <unk> and that's not just an opportunity for remediation business that significantly.
Water business as well and we think strong growth opportunities across the board for that.
Paypal is one of the victims.
Which we envisage cracking in the water business because some of that took the chemicals are present in all elements of the order cycle.
Between environment and.
And water and even program management will play well positioned long term to capitalize on the <unk>.
Hey, first opportunities and some of the recent wins that we've had navy claim and a number of other very significant federal.
Projects have.
It's well positioned and as Youll recall. This is not just a new play for us with our technical expertise goes back to 2025 years ahead of US is a very significant opportunity for shell.
Thank you Laura.
John.
And we have reached the end of our question and answer session. I will now turn the call back over to CEO Troy right for some final closing remarks.
Thank you operator.
Again, I would just like to thank our teams for their hard work this past year and the tremendous results they produced.
We have created as I said earlier in the call a certainty and consistency among <unk>.
And ever evolving economic backdrop.
So I. Thank you all for joining today and I look forward to providing a more detailed update on our progress.
And some more some more information on our long term guidance at our upcoming Investor day in December. Thank you.
This concludes today's conference call. Thank you for your participation you may now disconnect.
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