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Jun 30, 2025
AECOM Q3 2025 Earnings Report
AECOM reported strong third quarter fiscal 2025 results, with accelerated net service revenue growth, record adjusted EBITDA and EPS, and significant margin expansion.
Key Takeaways
AECOM delivered an outstanding third quarter in fiscal 2025, exceeding expectations across key financial metrics. The company achieved record adjusted EBITDA and EPS, driven by accelerated net service revenue growth in both segments and a significant expansion in segment adjusted operating margin, reaching 17.1% well ahead of target. Backlog and pipeline are at all-time highs, providing unprecedented visibility for future growth.
Revenue increased slightly to $4.178 billion, with net service revenue growing by 6% to $1.938 billion, driven by strong performance in the Americas segment.
Operating income surged by 29% to $294 million, and adjusted EPS increased by 16% to $1.34, both setting new quarterly records.
The company achieved a milestone segment adjusted operating margin of 17.1%, exceeding its long-term 17% target more than a year ahead of schedule.
Total backlog reached a record high of $24.588 billion, reflecting strong win rates and a book-to-burn ratio of 1.0x in both Americas and International design businesses.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
AECOM increased its fiscal 2025 guidance for adjusted EBITDA, adjusted EPS, segment adjusted operating margin, and adjusted EBITDA margin, reflecting strong confidence in continued growth.
Positive Outlook
- Organic Net Service Revenue (NSR) growth expected to be 5% to 8%.
- Adjusted EBITDA projected between $1.19 billion and $1.21 billion, a 10% increase at the mid-point.
- Adjusted EPS expected between $5.20 and $5.30, a 16% increase at the mid-point.
- Segment adjusted operating margin and adjusted EBITDA margin expansion of 70 basis points each, to 16.5% and 16.7% respectively.
- 100%+ free cash flow conversion anticipated for the full fiscal year.
Challenges Ahead
- No specific negative forward guidance points were highlighted in the provided text.
- The company's business is cyclical and vulnerable to economic downturns and client spending reductions.
- Potential government shutdowns, changes in administration, or other funding directives may cause governmental agencies to modify, curtail, or terminate contracts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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