US engineering giant Aecom has announced plans to buy back $1bn shares as part of a long-term "capital allocation framework".
The firm plans to reduce its debt to no more than two-and-a-half times its turnover. Future acquisitions will be limited to strategic, niche targets that will not affect the company’s net leverage target.
Michael Burke, Aecom chairman (pictured), said: "We’ve made substantial progress, with $1.4bn of debt reduction over the past several years.
"We will continue to focus on debt reduction towards our net leverage target, at which point we expect to return substantially all free cash flow to our investors under our new stock repurchase programme.
"Returning capital through stock repurchases is a core tenet of our long-term capital allocation policy, which remains focused on maximising stockholder value."
Image: Michael Burke (Aecom)