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Mar 31
AECOM Q2 2025 Earnings Report
AECOM reported strong results with increased profitability, record backlog, and raised guidance.
Key Takeaways
AECOM delivered a solid second quarter in fiscal 2025, with increased net income and adjusted EPS, improved margins, and a record-high backlog, prompting an upward revision to its financial outlook.
Adjusted EPS rose to $1.25, reflecting 20% growth.
Total backlog reached $24.27 billion, setting a new record.
Operating income increased by 28% to $257.6 million.
Free cash flow surged 141% to $178.4 million.
AECOM
AECOM
AECOM Revenue by Segment
AECOM Revenue by Geographic Location
Forward Guidance
AECOM raised its FY2025 guidance, reflecting higher expectations for EBITDA and EPS, while maintaining strong margin expansion targets.
Positive Outlook
- Raised adjusted EPS guidance to $5.10–$5.20.
- Raised adjusted EBITDA guidance to $1.18–$1.21 billion.
- Expecting 5–8% organic NSR growth.
- Forecasting record profitability and margin levels.
- Free cash flow conversion expected to exceed 100%.
Challenges Ahead
- 100 basis point headwind from fewer workdays in Q2.
- Continued political and economic uncertainty globally.
- Exposure to foreign currency fluctuations.
- Pressure from reduced pass-through revenue impacting total revenue.
- Segment growth outside the U.S. moderated by mixed performance in Australia.
Revenue & Expenses
Visualization of income flow from segment revenue to net income