AECOM
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.11%.
Did ACM Beat Earnings? Q4 2025 Results
AECOM closed out fiscal 2025 with a mixed but broadly encouraging quarter, delivering Q4 adjusted EPS of $1.36 against a consensus estimate of $1.34, a 1.49% beat, even as revenue of $4.18 billion came in 3.23% below the $4.31 billion analysts had expected, rising just 1.6% year over year. The headline earnings strength was particularly notable given that a notably elevated Q4 adjusted tax rate of 29.0% weighed on results; management indicated that, absent the higher tax burden, quarterly adjusted EPS growth would have been 18%. The real story, however, was the margin and backlog momentum: full-year segment adjusted operating margins hit a record 16.5%, and total backlog climbed to an all-time high of $24.83 billion. AECOM also announced a review of its Construction Management business for a potential sale, pivoting toward higher-margin design and AI-driven advisory services, with analysts anticipating a sustained infrastructure construction cycle ahead. For fiscal 2026, the company guided adjusted EPS of $5.65 to $5.85, representing roughly 9% growth at the midpoint.
- NSR growth accelerated to 8% in Q4, driven by 9% growth in Americas design business
- Record full year segment adjusted operating margin of 16.5%, up 70 basis points
- Americas adjusted operating margin on NSR reached record 19.8% for full year, up 90 basis points
- Design book-to-burn ratio of 1.1x in Q4, marking 20th consecutive quarter above 1.0x
- Total backlog reached all-time high of $24.8 billion, fifth consecutive quarter of sequential growth
- Design pipeline increased 13% year-over-year to sixth consecutive all-time high
“We exited fiscal 2025 with numerous financial and strategic accomplishments including a record backlog and pipeline, which underpins our confidence in fiscal 2026 and beyond.”
AECOM CEO, on the earnings call
Forward Guidance & Outlook
AECOM initiated fiscal 2026 enterprise-wide guidance of adjusted EPS of $5.65-$5.85 (9% increase at mid-point) and adjusted EBITDA of $1,265-$1,305 million (7% increase at mid-point), with free cash flow of approximately $400 million including significant AI restructuring investments. Excluding Construction Management (expected held for sale), FY2026 guidance includes organic NSR growth of 6-8%, NSR of $7.2-$7.4 billion, adjusted EBITDA of $1,180-$1,220 million, segment adjusted operating margin of 16.6%, and adjusted EPS of $5.15-$5.35. Long-term targets through FY2029 were raised to include a 20%+ margin exit rate by FY2028, 15%+ adjusted EPS CAGR, 5-8% organic NSR CAGR, 100%+ cumulative free cash flow conversion, and double-digit annual per share dividend growth. The company expects to achieve these targets through proprietary AECOM AI deployment and doubling its Advisory business NSR to $400 million over three years.
ACM YoY Financials
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Figures from SEC filings and company reports. Not investment advice.