Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the visibility of NSR growth throughout the year and how recent funding freezes might impact your pipeline? A: Despite recent headlines about funding freezes, we see no material impact on our business. Our backlog and pipeline continue to grow, reflecting strong alignment with global infrastructure objectives. We expect NSR growth to ramp up in the second half of the year, driven by opportunities in our pipeline and backlog. (W. Troy Rudd, CEO)
Q: What factors are driving growth in the Americas, and how is it balanced across sectors like water, transportation, and facilities? A: Growth in the Americas is broad-based across transportation, water, environment, energy, and buildings. We have built a balanced business aligned with long-term infrastructure investments, allowing us to capitalize on diverse market opportunities. (W. Troy Rudd, CEO)
Q: Can you elaborate on the investments being made in the water and environment advisory business and their impact on growth? A: We are ahead of key milestones in our Water & Environment Advisory business, with strong talent acquisition and a growing pipeline. This sector presents significant white space and adjacencies, and we expect it to be a high-margin growth accelerator. (Lara Poloni, President)
Q: How do you view the growth potential of your program management business, and what are the key drivers? A: Our program management business is growing at a double-digit rate, now accounting for 16% of our NSR. We aim for a 50-50 split between design and program management/advisory, exposing us to more client budgets and driving high win rates. (W. Troy Rudd, CEO)
Q: How are you approaching digital transformation and AI investments, and what impact do you expect on margins? A: We are investing significantly in digital transformation and AI, which we expect to reduce effort in delivering work by 5% to 15%. These investments are crucial for enhancing our design and engineering delivery, ultimately improving margins. (W. Troy Rudd, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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