Aecom announces capital allocation policy and $1B stock repurchase authorization
Aecom announced a formalized capital allocation policy that provides specificity on intended future uses of capital, including the authorization by the company's board of a new $1B stock repurchase program. Aecom will be allocating substantially all free cash flow to debt reduction until achieving net debt-to-EBITDA of 2.5x, which is expected to occur by the end of FY18. Upon achievement of 2.5x net leverage, the company intends to return substantially all free cash flow to investors through the new $1B stock repurchase authorization as part of the longer-term capital allocation framework. Acquisitions are expected to be limited to strategic, niche targets that will not adversely impact the company's 2.5x net leverage target. Additional details of the company's capital allocation policy will be provided on its Q4 earnings conference call and at its annual Investor Day in December.