Good morning, and welcome to the AECOM Third Quarter 2022 Conference Call. I would like to inform all participants this call is being recorded at the request of AECOM. This broadcast is the copyrighted property of AECOM. Any rebroadcast of this information in whole or part without the prior written permission of AECOM is prohibited. As a reminder, AECOM is also simulcasting this presentation with slides at the Investors section at www.aecom.com. Later, we will conduct a question and answer session. If you would like to ask a question during the presentation, please press star one on your telephone keypad. While preparing to ask your question, please ensure that your line is unmuted locally. I would like to turn the call over to Will Gabrielski, 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 the risks described in our periodic reports filed with the SEC. Except as required by law, 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 our materials, which are posted to our website. Any references to segment margins or segment adjusted operating margins will reflect the performance of the Americas and International segments. When discussing revenue and revenue growth, we will refer to net service revenue or NSR, which is defined as revenue excluding pass-through revenue. NSR and backlog growth rates are presented on a constant currency basis unless otherwise noted. Today's remarks will focus on continuing operations. Financial impacts from the previously announced exit of our operations in Russia are excluded from today's discussion. On today's call, Troy Rudd, our Chief Executive Officer, will review our key accomplishments, our strategy, and our outlook for the business. Lara Poloni, our President, will discuss key operational successes and priorities. Gaurav Kapoor, our Chief Financial Officer, will review our financial performance and outlook in greater detail. We will conclude with a question and answer session. With that, I will turn the call over to Troy Rudd. Thank you, Will. Thank you all for joining us today. I want to begin by acknowledging the unwavering commitment of our professionals to our clients and to our shared purpose of delivering a better world. We take great pride in what we do. To that point, we are proud to have once again been ranked as the number one company in our industry on Fortune's World's Most Admired Companies list, and to have recently been recognized as one of the world's most ethical companies by Ethisphere. I'm also pleased to report that this month, Engineering News-Record affirmed our ranking as the number one environmental engineering services firm, placing us well ahead of our professional services peers. Our teams are the best in the industry. A great example of this is the nomination of Shailen Bhatt by President Biden to lead the Federal Highway Administration. Shailen is a great industry talent and reflects the caliber of professionals that reside at AECOM. The proof point of how the strength of our professionals translates to value creation is in our EPS growth. We grew adjusted EPS 31% last year and 28% year to date through the third quarter. Turning to the business, five key themes underpin our confidence. First, we are consistently delivering on our financial and strategic priorities. These include accelerating organic NSR and backlog growth, gaining market share, expanding margins, and delivering strong per share earnings and free cash flow growth. I'm proud of the discipline our leaders have exhibited in balancing organic growth with margin expansion and profit growth, while we continue to invest in the business. When you look around the industry, you can see these characteristics make us quite distinct. Second, our Think and Act Globally strategy has transformed how we operate and how we deliver by prioritizing collaboration and innovation and emphasizing return on time and on capital. This has translated into a record high win rate, design backlog, and pipeline of opportunities. Third, our investments in digital advisory and program management have expanded our addressable market, deepened client engagement, and enhanced the value of our technical capabilities. As a result, we are supporting clients more broadly across the lifecycle of their investments and enhancing value for both us and our clients. Fourth, the markets in which we operate remain strong despite recessionary pressures. A global infrastructure investment renaissance, investments in environmental, sustainability, and resilience, and adaptation to a post-COVID new normal are secular mega trends that will continue to create growth opportunities for several years to come. Finally, our balance sheet is in great shape. This is a competitive advantage that creates certainty and allows us to deploy capital to drive value creation. Please turn to the next slide and a review of our financial performance. Organic NSR growth accelerated to 6% and was driven by a strong backlog, accelerating funding in our markets, and strong execution. I should note that our growth does not yet reflect any material impact from IIJA funding, which I will discuss shortly. Importantly, we are driving increased profitability as revenue growth accelerates. Our adjusted operating margin was 14.6%, an increase of 50 basis points over the prior year. We are investing at a high rate to expand our capabilities and prepare for increased funding. Our margins remain the highest amongst our peers, which in turn maximizes the value of revenue growth. Adjusted EBITDA and adjusted EPS increased by 7% and 18%, which were both a little ahead of our expectations. Free cash flow was also strong at $183 million. On a year-to-date basis, our free cash flow increased by 15% and on a per-share basis, increased by more than 20%. In addition to the investments in organic growth, we've returned more than $400 million to shareholders so far this year. Over the past four quarters, we have returned cash equivalent to 6% of our market capitalization. As our results demonstrate, we have created competitive advantages that are differentiating our performance. Despite an unexpected market headwind from unprecedented US dollar appreciation, we have raised the midpoint of our fiscal 2022 adjusted EPS guidance for the second time this year, and we have reiterated our fiscal 2024 financial targets. As we have consistently proven, our teams are agile, and the inherent attributes of our business model and strategy result in a more predictable and resilient business. Please turn to the next slide. Now turning to our backlog, key wins and pipeline. Our backlog in the design business, which accounts for 90% of our NSR and profit, increased by 10%. Total backlog is now more than $41 billion, a 5% increase. This performance reflects our high win rate and our focus on pursuing and winning high-quality backlog. Our book-to-burn ratio in the quarter was 1.2 x, led by 1.5x in the Americas design business. With this performance, there are a few key wins and trends that demonstrate the success of our strategy. To that point, we were recently selected for a nine-figure program management contract for one of the largest greenfield transportation projects in the United States. Our bid emphasized collaboration across the business. In addition, we embedded key digital elements into our proposal, including the program management digital toolkit we announced last quarter to create a differentiated offering for the client. We also had several wins that showcase our sustainability and decarbonization initiatives in the transportation sector. We were selected by the Arizona Department of Transportation to develop a statewide plan to deploy EV charging stations. In addition, we were selected by NJ TRANSIT to provide design and engineering services to advance the agency's zero emission strategy. Electrification and vehicle automation are key growth markets for AECOM, and we are leading with innovation. We have developed proprietary digital tools to accelerate growth. For example, EV Ready is a tool to help clients integrate electrification of transit systems into existing infrastructure. These tools are in the market today helping clients advance their strategies, which is furthering our reputation as a partner of choice. I'm also pleased to report that we were selected for a substantial water reuse project in California. Persistent droughts have pressured water supply, and this is a signature win that showcased our leadership in the water reuse market ahead of a substantial expected spend in the coming years. Finally, our leadership in the growing PFAS remediation market was reflected in a win to design a PFAS treatment system for the city of Madison, Wisconsin. We will be tailoring the design to match IIJA requirements and best position the project for future IIJA funding. This project is emblematic of a number of wins and opportunities we are pursuing, with smaller upfront work being awarded as our clients position for the greater IIJA funding now becoming available. Please turn to the next slide. Turning to trends across our markets. In the U.S., there has been $114 billion of IIJA funding announced as available and notices of funding opportunities are accelerating. Consistent with our prior forecast, we expect funding will most meaningfully benefit our markets in fiscal 2023 and beyond. Today, clients are beginning to mobilize for this expected growth. We can see this momentum in our pipeline, where identified opportunities have increased by nearly 40%, and we expect bid submissions to accelerate in coming months as a result. The strength in federal spending is coming in an opportune time. Our state and local clients, which represent 23% of our NSR, are also in a strong position. Budgets are at record levels, which creates a backdrop of predictable market growth for us against the broader market volatility. Turning to our international markets. In the U.K., we are benefiting from the key framework positions we have secured over the past several years, supporting strong growth in the quarter and confidence as we look ahead. In the Middle East, work is progressing on our large multi-year program management and design contracts for the substantial investments being made in NEOM and AlUla. We also grew in Australia and Hong Kong, where demand for large-scale transportation projects remained strong. However, in mainland China, the ongoing uncertainties created by COVID policies continued to impact us. Though we are managing through this with the performance of other parts of international business. Broadly across the business, we are delivering high-value organic growth in a highly disciplined way despite the ongoing fierce competition for talent in our industry. Our disciplined approach is resulting in profitable growth. Please turn to the next slide. As our results demonstrate, we are operating from a position of strength with great momentum in both our business and across our markets. Our investments in digital advisory and program management have created new opportunities, differentiated us from peers, and expanded our addressable market. Our deliberate capital allocation policy has resulted in strong shareholder value creation. We have not been distracted by risky and expensive M&A. Instead, our focus is squarely on executing our profitable growth strategy, as well as returning cash to shareholders through stock repurchases at a discount to peer and M&A valuations. Our quarterly dividend program. Underpinning all of this is our strong balance sheet, which is a competitive advantage. Taken together, we are well-positioned for sustained growth and success, which supports our financial guidance for this year and through 2024. With that, I will turn the call over to Lara. Thanks, Troy. Please turn to the next slide. To echo your comments, our Think and Act Globally strategy has transformed how we operate and go to market in several ways. First, we've created a culture that inspires and demands collaboration. As a result, we are collaborating like never before. When we pursue a must-win opportunity that can transform our position in the marketplace, we bring the totality of our global capabilities and experience to bear, which has resulted in a record win rate, market share gains, and created a positive client feedback loop that is reinforcing this approach. Second, we are investing at high levels in the professional and technical development of our nearly 50,000 people. This includes regular technical academies where our experts share best practices and technical know-how to our teams. The result is even greater alignment on our vision and greater collaboration across disciplines. We are ensuring our clients get the best of AECOM's capabilities every single time. Third, we are attracting and retaining the best talent in the industry. We emphasize the superior career opportunities at AECOM to meaningfully benefit clients and communities. In addition, we have enhanced our benefits, and we are supporting our employees' desire for increased flexibility through our Freedom to Grow initiative. I'm pleased to report that our efforts are paying off. In a recent company-wide survey, 75% of our employees said they would recommend AECOM as a great place to work. Fourth, we are building our capabilities to address growing demand for environmental, sustainability, and resilience priorities. We are winning projects that reflect our multidisciplinary leadership in this area. A great example of this was our selection to provide environmental master planning services for the Greater Toronto Airports Authority. Our client is pursuing ambitious sustainability targets, and we are best suited to help them deliver. Across all pursuits, our focus on environmental improvements, positive social impacts, energy savings, productivity enhancements, digital solutions, and overall efficiency are becoming instrumental in our success. I am pleased that our leadership position in this area remains very strong. In fact, last week, our number one position in the environmental engineering and science markets were reaffirmed by Engineering News-Record, and we improved to the number two environmental firm overall, eclipsing all of our professional services peers. Finally, our growing suite of digital AECOM products and tools have deepened our engagements with our clients. For instance, our proprietary IIJA digital tool is helping clients best position for specific funding programs and is also allowing us to engage with clients earlier and more meaningfully in their programs. Importantly, our headcount of digital experts and data scientists is over 2,500 strong and growing. Few firms can bring innovative solutions at this scale to their clients globally so quickly, which creates enduring competitive advantages. With a strong foundation in place and further progress on our strategic priorities, we are confident that AECOM will continue to lead the industry with our expectation of delivering growth over the long term. With that, I will now turn the call over to Gaurav. Thanks, Lara. Please turn to the next slide. We delivered another strong quarter demonstrating the strength of our professionals and benefit of our Think and Act Globally strategy. Organic NSR increased by 6%, year-to-date adjusted EBITDA increased by 9%, and year-to-date adjusted EPS increased by 28%. Our margins were also strong and continue to lead our industry, reflecting our focus on high returning organic growth opportunities and our culture of continuous improvement. Year to date, our operating margin has increased by 60 basis points to 14%, and we are on track to deliver an at least 14.1% margin for the full year, consistent with our guidance. The underlying outperformance of the business gives us confidence to consistently deliver on our commitments. This performance and outlook further supports our expectation for approximately 6% NSR growth in fiscal 2022 across the company. Please turn to the next slide. NSR growth in the Americas was 4% with strength across the business. We also had 1.5 book-to-burn ratio in the design business and contracted backlog increased by 19% in the Americas. Our wins and pipeline were strong, and when combined with the expected increase on IIJA-funded projects and strong state and local budgets, we continue to expect NSR growth to accelerate into fiscal 2023 and beyond. With respect to profitability, the adjusted operating margin was 18.5%, which reflects strong execution and the high quality of our backlog. Please turn to the next slide. The international segment delivered 8% NSR growth, which included growth in all of our largest geographies. Backlog increased by double digits, highlighted by Europe, Middle East, and Australia. Contracted backlog also increased and is near a record high, which is a great leading indicator of growth. Margins expanded to 8.8%, up 150 basis points from the prior year. This was the eighth consecutive quarter of sequential margin improvement, reflecting tremendous progress on our goal of achieving a double-digit margin in this business. Please turn to the next slide. Turning to cash flow, liquidity, and capital allocation. Our capital allocation policy is unchanged. We are investing at a high level in key initiatives to drive growth, expand margins, and competitively differentiate ourselves. We are continuing to deploy substantially all available cash flow to share repurchases and dividends. During the quarter, we bought back $105 million of stock, and through the first three quarters, we have bought back nearly $400 million of stock. In total, we have now bought back approximately 25 million of shares over the past two years or more than 15% of our outstanding shares. Including our July payment, we have also paid more than $60 million of dividends this year. As a reminder, it is our intent to grow our per share dividend by a double-digit% annually for the foreseeable future. Our ability to deploy capital is supported by strong cash flow and balance sheet certainty. Operating cash flow was $205 million in the quarter, and free cash flow was $183 million. Our business has inherent attributes that lend to consistently strong cash flows through cycles. These include a highly variable cost model, strong backlog visibility, a high quality and diverse client base, and a highly agile culture. As such, we expect to achieve free cash flow within our guidance range for an eighth consecutive year. We also have a strong balance sheet, which creates certainty for us as debt markets and rates have been more volatile of late. We have a high degree of certainty on cost of 80% of our debt over the next several years, and we have no bond maturities until 2027. We believe our balance sheet is a competitive advantage. Please turn to the next slide. Turning to our financial outlook. Despite unanticipated external headwinds, we are delivering. As a result, we are increasing our adjusted EPS guidance for 2022 for a second time this year, and we now expect to deliver between $3.35 and $3.50, which would reflect 21% growth at the midpoint. We have also narrowed our adjusted EBITDA guidance to between $890 million and $910 million or 8% growth at the midpoint. While we could point to foreign exchange or other factors that are impacting the market, the business is outperforming our initial expectations. I should note that for modeling purposes, our NSR guidance is on a constant currency basis, but you should factor in approximately 300 basis points to your revenue forecast for the fourth quarter to reflect the impact of foreign exchange translation. The impacts to margin and profitability are already captured in our guidance. We continue to deploy our strong cash flow to buy back our stock, though I will note that our guidance does not incorporate any benefit from incremental share repurchases we expect to execute in the balance of the year. Our accomplishments to date and favorable long-term market trends support our confidence in our long-term 2024 financial targets, including our expectations for at least 19% adjusted EPS CAGR from fiscal 2021 to 2024. With that operator, we are ready for questions. Thank you. We will now start our Q&A session. If you'd like to ask a question, please press star one on your telephone keypad. When preparing to ask your question, please ensure that your line is unmuted locally. Our first question comes from Sean Eastman at KeyBanc Capital Markets. Please go ahead. Hi, everyone. Thanks for taking my questions and nice quarter. I wanted to hone in on the win rates, which, you know, have been hovering around all-time highs all through this year. I mean, obviously from a headline perspective, that sounds positive, but I wondered if this elevated win rate is optimal. I mean, particularly with end market activity levels continuing to accelerate, I wondered if perhaps the returns targets embedded in bids actually need to be raised as we go into next year. Yeah. Sean, thanks for the question, and good morning. You know, there's certainly a balance to be struck in terms of what your expectations are and what you're focusing on. I mean, no doubt, a high win rate is an important thing because it allows us to maintain that balance for investing in the business and investing in the future, and also finding that balance of improving our margins. That's number one. Number two is we're very deliberate in terms of what we're focused on. You know, while our win rate is very high, a really important element to that is the quality of the backlog that we're winning. You know, we are winning projects that are complex. They're long in duration, they're for key clients. You know, differentiating ourselves by the level of importance in the communities that we're working in. Ultimately, those wins are momentum changing for the business. Again, not all wins are equal. When we talk about that high win rate, we believe that's important because it talks to our thinking about disciplined investing. Also, again, the quality of the backlog is important because the things that we win change the momentum of the business, and they have this flywheel effect that you know want more people to join, clients are more interested in what you're doing, and it attracts larger and better opportunities. We're focused on two of those elements, and that second element of quality of backlog doesn't typically come through in the numbers we discuss, but it's an important element of what we're doing. Thanks for that, Troy. I wondered, just relative to the tight hiring environment, would you say this is becoming more or less of a concern as it relates to, you know, that being a governor on growth over the next one to two years versus, say, you know, the start of the year? Yeah. Again, we think of it as a governor on growth. There's no question about that because, you know, while we're doing things to improve the way that we deliver and how we deliver so that we can create, again, more capacity in our people's days to do work, there's no doubt that in our industry, there certainly is constraint on, you know, experienced and seasoned professionals to deliver the work that we do. You know, we think about this in a couple of different ways. One is we're entirely focused on investing in our people and creating the greatest opportunities for them, and we think about that as the employee value proposition to, you know, attract the best to the firm. The other things we've been doing is, again, investing in digital to extend the capacity of what our people do. We're working to invest in capability centers so we can become better at distributing the work around the network and become more efficient. Those are the three things we're focused on to try to address that constraint. Certainly in the short term, it is a constraint. You know, as we go forward, you know, we expect that it will still be a constraint, but you know, in the world where people are saying we're in a recession or projecting a recession, you know, that those conditions could change. Okay. Thanks for that, and I'll just sneak one more in. I mean, Sure. Obviously, there's you know, a lot of tailwinds in the business exiting fiscal 2022. I feel like we probably need to calibrate the model around the moves in FX rates so far this year. This is maybe one more for Gar. You know, what are the known kind of bridge items there going into fiscal 2023? You know, we have this 300 basis point drag on NSR from FX in the fourth quarter. You know, how does that roll into next year, and are there any margin nuances associated with that that you know, we should be aware of? Hey, Sean. Thanks for the question. This is Gar. I will respond to that one. You're right. FX has been a headwind for us in the third quarter, and we expect it to continue in the fourth quarter. Put it into perspective, for six months, FX is a headwind of approximately $15 million. But as we said in our prepared comments, our operational outperformance during the year is allowing us to overcome it. If it weren't for the FX headwind, we would be at the top end of our range we have provided and committed to. If you look forward and say these spot rates will hold, there's no doubt it will be an impact to FY 2023. But currently, we're going through our planning process. Can't really comment on what FY 2023 bridge will look like. In the coming quarter, we will definitely provide more clarity to it. Okay. Thanks, guys. I'll turn it over there. Appreciate it. Thanks, Sean. Thank you for your question. Our next question comes from Michael Feniger at Bank of America. Please go ahead. Your line is open. Hey, guys. Thanks for taking my question. Just with you guys reaffirming the 2024 EPS target for 75, I know this just got touched on earlier, but just for the moving pieces for us to think about with next year and to get to 2024, you know, is it smooth and linear for us to kinda get to that 2024 number? You know, obviously, you mentioned FX. Do we have to invest a little bit more, hire more people, invest in the growth that we could see even more in 2024 and get that operating leverage? I guess I'm just trying to think about where we are exiting this year and to that 2024 number, how we should kinda be thinking about the step up over the next, you know, two years there. Sure. Hey, Michael. This is Gaurav Kapoor. I'll take that question as well. So we just reconfirmed our 2024 long-term targets. No additional comments specific to that, but, you know, consistent with what Troy Rudd said earlier in his comments, we've really created a platform here that's providing us a competitive edge. Let me explain what I mean by that. Not only are we winning better than our share in the market, we're winning what we want in the market. We're operating at the top of our peer group in terms of execution of projects, delivering on margins, and making strategic decisions on various other matters. A great example that is capitalization of our balance sheet, where we have created certainty on interest costs and a capacity to use. All these things are driving to that competitive edge that we want, and it's all backed by the investments we're making in the business to allow for sustained value creation. Makes sense. I think my next question kinda touches on that. Troy, you mentioned it a little bit earlier. You know, we are seeing a very big step up in M&A across the engineering space. Even last night, another one of your peers made another acquisition announcement. I mean, how does AECOM view just the pickup in the sector broadly in acquisitions? Is AECOM, you know, missing out, or do you feel you have enough of an investment and breadth to compete? Basically, are there any indirect benefits for AECOM as all this M&A is occurring for you just to go and deliver your strategy? Anything we should kinda be thinking about as we see all these acquisitions happening around you, over the last, you know, 12-24 months? Yeah. That's a great question. Thank you. First of all, we have confidence in the strategy that we've adopted. I think that we've been showing, again, discipline in what we're doing, and it's coming through in our results. I'll describe it a couple of different ways. First of all is that we think that investing in organic growth, and ultimately, that means investing in our people and our markets and our clients, and doing things that create a long-term competitive advantage for us are the right things to do. And it's coming through in our results. When you think about what we're trying to accomplish in the long term is, we're trying to, again, to get the highest return that we can in the capital we invest. We're trying to do it with the least risk possible. We believe that in this environment, investing in organic growth and returning to shareholders is the right way to go about doing that. Again, I'll just make a simple comment, which is, I think our job is to create long-term competitive advantage. When you create long-term competitive advantage, no matter how people are allocating capital, it pays off. To create that long-term competitive advantage, we believe the right way to be doing this is investing in our own business, and we believe that's the least risky way to do that. At the end of the day, how it pays off is it pays off in your EPS or your cash EPS CAGR. When we compare ourselves to our peers that are doing M&A, we see ourselves as having the highest cash per share EPS or EPS CAGR. Ultimately, you know, it gets confusing when you look at companies doing M&A and how they're growing, and you compare it to how we're doing it organically. At the end of the day, we end up having a higher cash EPS CAGR. You know, another really important point is you said, you know, does it impact your ability to compete? Well, heck no. We're already number one in the markets that we're in, and even with our competitors doing M&A, we reaffirmed our position, for example, as the number one engineering, environmental engineering firm, and we increased that gap, surprisingly. Again, in terms of our ability, our need to do M&A to compete, we don't need to because we're number one. Thank you for your question. Our next question comes from Andrew Kaplowitz at Citigroup. Please go ahead. Good morning, everyone. Hey, good morning. Can you update us on what's going on in your international business in terms of margin? You obviously recorded your highest margin in the segment this quarter, but it was on NSR that was the lowest so far this year. We know you've been taking restructuring, I think, for real estate consolidation. Is that the biggest reason the higher margin? If so, where are you in that progression or is it, you know, more mix related? Yeah. Hey, Andy, this is Gaurav Kapoor. I'll take that question. Excuse me. The restructuring that we took, just to clarify, it's predominantly for our global business center, where it's our captive center and we provide support services globally. It impacts all of our businesses. There are some duplicate real estate IT costs as we renew leases that come through that are also going through it, but it's duplicate costs that are going through. Specific to the international margin question that you asked, it that has been a focus of ours. We are being very tactical by investing in the business, PM and advisory opportunities, digital and focused execution, where again, you know, probably going back to the last question that was asked, we're not interested in building scale just for the purpose of having scale. We're interested in driving sustained shareholder value. This is again a continuing result of what you're seeing, our commitment not only to get to double-digit margins in International, but just like we are in the Americas, be the leader of the pack in margins as well. Gaurav, maybe I could ask you about free cash flow. Obviously, almost $330 million through Q3. I know you've said in the past that you're trying to smooth out cash over the quarters. Given just the usual seasonality, wouldn't you be at the high end of, you know, the $450 million-$650 million if you deliver a normal Q4? Then just maybe a clarification on capital deployment. You know, if this Inflation Reduction Act does pass, do you think there's a 1% excise tax on share repurchases? Does that impact your behavior at all around repurchases? Sure. I'll take both of those questions on cash flow and on the tax repurchase tax. First on the cash target, you know, we've delivered on our cash commitments seven years in a row, and this year will be no different. We will deliver on it. Our priority is not only on delivering on that annual commitment, but making sure we have the best phasing possible, so we can take advantage of our capital allocation strategy as efficiently as possible. You know, Andy, yes, our cash flow, if you look year to date, is up 15% year-over-year because of that phasing. But we have 40,000-50,000 projects at any given point in time. It's not 10 or 20 that can really pull through and give us the confidence that we will be in a certain place. What we do have confidence in, like I said, we've delivered seven years in a row on our commitments, either at or above our commitment, and this year will be no different. Now, specific to the tax, repurchase tax, we're always gonna be committed in investing in what provides the best shareholder value creation opportunity. For us, that's looking at ROIC, it's looking at EPS growth to deliver the best TSR. Our stock continues to be undervalued even though we have consistently outperformed our commitments. We see no change in that. The plan put forth, no doubt is unfortunate. It impacts individual investors who own AECOM shares through investments with institutions. It's a triple taxation, and let's see where it goes. Appreciate the color, Gaurav Kapoor. Absolutely. Perfect. Thank you for your question. Our next question comes from Steven Fisher at UBS. Please go ahead. Thanks. Good morning. Your contracted backlog was up double digits year-over-year, but it was down sequentially. I think some of that was FX and maybe some of the building construction business. I guess, what's your take on the trajectory of the contracted backlog from here? Like, I know you've highlighted that as an important leading indicator for the business. So just curious what you're expecting going forward on that. Yeah, Steve. Thanks for the question. Again, I think you actually made the important point for us, which is that contracted backlog is a leading indicator of the future. Again, we look forward, and we think that that certainly is gonna be helpful, as we exit the year and head into next year. But there's a couple other things that I think are important as well to indicate the future trajectory of the business. One of those that we haven't spoken about is pipeline. You know, we're constantly looking at how our pipeline is doing. It's giving us an indication of what the longer term future looks like. Certainly we're seeing our pipeline that's been increasing mid-single digits consistently over the last three quarters. What's really interesting in that is that when we look at what we refer to as the part of our pipeline that we believe is moving to later stages, we see sort of a significant increase in that pipeline and what's moving to later stages that we're going to bid on in the relatively near future. That is increasing at a faster rate. When you take that combination together, an increase in pipeline and an increase in the things that we're gonna be bidding on in the relatively near future and our contracted backlog, all of those things point to good long-term trends for our business. Okay, that's helpful. I guess maybe to follow up there, to what extent does that pipeline commentary include the construction, the building construction business? I guess I'm curious if that is maybe kind of bottomed from here. Have you kind of stress tested what that business could mean? I know it's only like 9%-10% of overall revenues, but do you think it's now, you know, kind of maybe stable from here in the backlog or do you see things in the pipeline that'll actually get that to grow again going forward as well over the next handful of quarters? Yeah. Steve, good question. Look, when I made my comments, I was referring to the entire business, but I'll address CM separately. The fact is that the backlog is a little lumpy as it grows. Nevertheless, in the quarter, our book-to-burn was 1x. That backlog has been growing consistently, you take out the lumpiness. To your point about, you know, what do we see in the future, our pipeline in the construction management business is at an all-time high. You know, it's been increasing as well, consistent with what we see in the design, the global design business. That's, you know, again, that's also good news across our entire portfolio. Just a couple of comments around why we see that at all-time high. I think it's the nature of our diverse portfolio that we have. You know, that business, if I look at, you know, 80% or 85% of the work they do, it falls in the categories of aviation, office and residential buildings, sports venues. Within that, there's actually a large investment being made here in the U.S. in convention centers, which is, you know, something that I don't think was being invested in certainly during the pandemic. Now we're seeing a fairly significant and broad opportunity in investments cities are making in convention centers to attract people to their cities, and promote hospitality. When we look at, again, our construction management business, that pipeline is at an all-time high, so we feel, you know, we feel good about that. The other thing about our construction management business is we have been winning, and right now we sit with, I think, a little more than three years of work in our backlog. Well, almost four years of work. Okay. Thanks, Troy. Very helpful. Yeah. Thank you for your question. Our next question comes from Sabahat Khan at RBC Capital Markets. Please go ahead. Great. Thanks and good morning. I guess a question on the international segment. I know you've been working as an organization towards improving those margins for some time. I guess, you know, given where they are today, how much of that is kind of the restructuring and the reorganizing work you've done? I'm assuming there's some contribution from these bigger projects like Neom there. Just thinking, you know, over the long run as kind of some of those projects cycle out, you know, is there further reorganization or just kind of fixing up that business? How much is just, you know, how much of the margin today do you think are more structural that'll kind of stick through for the next two, three, four years? Okay, good morning. Again, our international business, the work that we've been doing over the last few years to strengthen that business has paid off. First of all, that business is very strong. Our international business is very strong, and it's winning large transformative projects at a very high win rate. You know, I don't see the trajectory of that business changing. There are great long-term opportunities around the world for that business to be pursuing with our customer base and the business is very healthy. But like, again, all businesses, our entire business, we're always looking for opportunities to make sure that we continue to drive efficiency and improve the overall business. But that's not gonna be a, you know, massive changes, but we're always looking to make incremental changes. I look at our international business and it's an incredibly healthy and strong business for the long term. Okay. Just some of your commentary earlier around the pipeline. Can you maybe give a little bit of color on, you know, how's the feedback or the mix of the business you're building across public versus private? You know, is it more tilted toward one side? You know, have you seen any change in tone at all, based on where kind of the macro is headed at all? Sure. I guess first that's an easy question to answer is we really don't see a significant change in the mix between private and public customers. Our government customers represent about 60% of the work that we do, and it's fairly consistent in our backlog. In terms of the overall mix, think about it this way, is our mix of business is really driven by the longer term mega trends that we've been talking about. I mean, there just clearly is a significant investment that's coming across the globe in infrastructure, and that's feeding our transportation, our water, our environment business, and our buildings and places business. It's a very diverse investment infrastructure, and we're well positioned for that. There's nothing unusual in the trends that we're seeing, but those trends are broad and they benefit the entire business. Great. Thanks so much for the color. Thank you. Our next question comes from Michael Dudas at Vertical Research Partners. Please go ahead. Good morning, gentlemen, Lara. Hi. Morning. Just in your prepared remarks, I think, Troy, you mentioned about NSR growth in Americas design was, I guess, 6% this quarter, and you said it's accelerating into 2023. I assume we've similar numbers fourth quarter. Can that growth, I guess, given the backdrop that you've positioned, accelerate from that 6% just early look into 2023? Hey, Michael, this is Gaurav Kapoor. I was the one who commented. Americas growth was 4- Oh, I'm sorry. No, no problem. Americas' organic growth was 4% in Q3, and we did reconfirm that we will approximately have 6% NSR growth company-wide, consistent with our commitments. That's at constant currency. No comments on FY 2023, but you know, a couple of things you could take a look at is what Troy alluded to earlier. Our contracted backlog is up significantly, specifically in the Americas. It's up 8% year-over-year. That provides us a lot of confidence going into Q4 and into Q3 on accelerating growth before the IIJA funding hits the ground. Got it. All right. I understand that. Thank you. Second question. Can you remind us what you do for your clients and your exposure to clean energy and certainly all the buzz and noise coming out of Washington with all the excess funding that's going forth? How does AECOM fit in that mix, and is that an area that can support maybe some differentiated growth for you guys over the next several years? Yeah, Michael, it's Lara here. I'm happy to take that question. We are investing significantly in our technical capability, and a great example of that is a new global leader for offshore wind. We see significant wind opportunities across all of our operations. There's obviously so much activity in the EV space as well, and that's another great example of where we're applying some of our digital tools in particular. The combination of continuing to invest in technical capability in some of these rapidly growing areas in conjunction with the application of the digital tools, I think gives us a lot of confidence about growth in that segment of our business. Is it gonna be a better growth in some of the other areas because it's from maybe a different base or just the fact that you're gonna be adding some more skill sets and tools to be able to penetrate those, some market share there? Yeah. Michael, this is Gaurav. Sorry, I'll take that. We don't break our growth targets into that level of detail, but we do provide our long-term guidance. No doubt to Lara's point, based on the investments we're making, we do expect to receive some significant return on our investments as we move forward based on our pipeline. Great. Thanks. Thanks, everyone. Thanks, Mike. Thanks. Thank you. Our next question comes from Adam Thalhimer at Thompson Davis. Please go ahead. Hey, good morning, guys. Nice quarter. Thank you. Hey, Troy, I think you said something, it might've been a transportation comment that the pipeline of identified programs is up 40%. Is that right? I don't think I said the transportation pipeline was up 40%. What I mentioned is within our pipeline. We have different categories of pipeline. Think about it as the initial prospect all the way through to placing the bid, you know, kind of in the middle of that, we have a clear line of sight that projects are coming to market. I'm gonna use our own terminology, which is, again, it's our own terminology. We view that as the place where that work is in the capture phase. We know that it's coming to market, and we're gonna bid it. Our pipeline, when we look at it's not linear in terms of its growth. We see lumpiness in that phase, and that piece of our pipeline is up 40% year over year, which means that there's a big lump of stuff that's going to come to market, and we expect that to come to market in 2023. Again, that bodes well for the long-term health of the business. How do we think about that in terms of your win rate? It's a big number, +40%. I would be very positive. I think you look forward, and you think, "Wow, that." With the win rate and the things that we're doing to create long-term momentum in the business and create competitive advantage, you know, that certainly bodes well for the long-term health of our backlog of the business and the business itself. Stay tuned. Okay. Just quickly, the Arizona charging award. I was just curious, what's your scope on something like that? Are you looking at the resiliency of the grid in addition to just the, you know, charging infrastructure? Yeah. Again, it's a broader advisory engagement. I'm not gonna talk about the specific scope of a client engagement, but it certainly is an advisory engagement to help build a plan for the state to figure out how they build towards their defined EV goals in the future. Think about that. You know, that really is a really important part of what we do. We look around the world, and we see people defining these large, long-term ambitions. As we've seen over the last year or over the last number of quarters, a lot of people have yet to define the solid path to get to the end state. Think about this as there's an important goal that the state of Arizona has set and we're working with them to build a long-term plan for them to get there. It's fairly broad in its ultimate approach. Got it. Okay. Thank you, Troy. Yeah. Thanks. Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next question comes from Jamie Cook at Credit Suisse. Please go ahead. Hi. Good morning. Nice quarter. Most of my questions- Thanks, Jamie. have been asked. I guess, Troy, just your portfolio today, obviously, and your focus is very different, you know, relative to the, you know, prior AECOM. Just wondering, you know, if we are to go into a recession or in a recession, which parts of the business do you think would be most impacted, and how resilient would AECOM's earnings be just given some of the secular growth tailwinds and maybe internal levers you have to structurally improve margins? Thanks. Okay. Thanks, Jamie. Again, first of all, say that when there is a recession, everybody's impacted by the recession. I would describe us as you know, not being as impacted as others, and for a couple of different reasons. One is, I think even within a recession or a recessionary trend that you know, we see a lot of funding that is coming in to infrastructure, and it's coming in to continue to transform the world in terms of environmental and social improvement. Frankly, you know, there are some longer term trends post-COVID. Even if there is a broad recession, we look at this and say, "Well, with inside that recession, the things that we do are going to receive funding and funding for the long term." That bodes well for the long-term health of the business, even in a recession. I look at, as you described, right? There's some attributes to the business that put us in a very good position to work our way through that. One is our backlog. We have long lived backlog in the business. We also have an asset-light business and a business that can be, you know, agile to react to shorter term market volatility. The other thing that happens is, again, just sort of being where we are in the number one position in our industry, is customers typically coalesce around the number one company in terms of a recession. The recession usually hits the smaller organizations or, you know, organizations that don't sort of sit at the top of a particular industry. I'll just point out that we certainly have had experience with this in the past. If you go back to 2008, you know, there was a recession, and it was fairly dramatic. The AECOM business at that time was a consulting business and a design business, and we grew 2009 through 2012. I think that's a proof point to the resiliency of the business through a recession. Thank you. Thanks, Jamie. Thank you. Our next question is a follow-up question from Sabahat Khan. Please go ahead. Great. Thanks. I guess there was a bit of commentary earlier on the call around the labor situation. I guess, how are you planning for that, just given some of the potential recession concerns but also with the IIJA ramping up next year? How are you balancing the two and making sure you have enough people in the seats when the demand flows through? Good question. It's Lara. I'm happy to take that one. I think we're pretty optimistic. We just, in this last quarter, design headcount increased by over 4% year-over-year. We have. It's certainly one of our focus areas at the moment. Not only have we really ramped up in terms of talent acquisition capability, but another key part of our strategy is the enterprise capability centers, where we are building long-term capability and centers of technical expertise. A great example of that, you know, we see continuing trend for transit, for example, all the pent-up demand and congestion in all of the world's major cities. We have our number one position in transit. We have quite deliberately built up capability centers in Madrid and the U.K., for example, to have that capability for the longer term. It's a combination of, obviously of short-term hiring and local markets supplemented by our enterprise capability center strategy, which gives us a lot of confidence. Thank you. Thank you. Thank you for your question. At this time, there are no further questions, and I would like to pass over to Troy Rudd, CEO, for any final remarks. Great. Well, thanks everyone for joining us today. Again, I'm just gonna finish the call by complimenting the people here at AECOM that they've done a fantastic job in finding the right balance between pursuing profitable growth today and for the long term, while continuing to recognize that we can continue to improve by expanding margins and while doing all of that, continuing to make investments in the business to drive a long-term competitive advantage. I thank them all for their dedication to our mission. Everybody have a nice day. Thank you, everybody, for joining today's conference call. You may now disconnect.