Examining AECOM's EPS Growth and Financial Performance

AECOM (NYSE:ACM) has reported 25% EPS growth over three years, with flat revenue and EBIT margins over the last year. The company's profitability is a key component to success in business, and investors should consider its future EPS estimates. AECOM has a market capitalization of $17b, and insiders hold $68m worth of stock, aligning their actions with shareholders' interests.

AECOM (NYSE:ACM) has shown notable progress in its earnings per share (EPS) growth over the past three years, with a significant 25% increase. Despite this, the company's revenue and earnings before interest and taxes (EBIT) margins have remained relatively flat over the last year. This article delves into AECOM's profitability trends, the significance of its future EPS estimates, and the alignment of insider actions with shareholder interests.

Profitability Trends
Over the past three years, AECOM has demonstrated robust EPS growth, reaching $1.34 EPS in the most recent quarter, which exceeded analyst expectations by $0.09 [1]. However, revenue and EBIT margins have shown little change, with revenue increasing by just 6.2% year-over-year and EBIT margins remaining stable [1]. This indicates that while the company has been successful in improving its profitability per share, its overall revenue growth and operational efficiency have been relatively stagnant.

Future EPS Estimates
Analysts anticipate that AECOM will post 5.1 earnings per share for the current fiscal year, aligning with the company's FY 2025 guidance of $5.200-5.300 EPS [1]. This suggests a continued focus on improving profitability and maintaining shareholder value. However, the stability in revenue and EBIT margins over the past year raises questions about the company's ability to sustain this growth trajectory.

Insider Actions
AECOM's insiders have shown strong alignment with shareholders' interests, with CEO Troy Rudd selling 53,097 shares at an average price of $119.56, totaling $6,348,277.32 [1]. This sale occurred after the company's earnings report, indicating that insiders are confident in the company's future prospects. Additionally, institutional investors have increased their holdings in AECOM, with several major funds boosting their stakes in the company [1]. This collective action underscores confidence in AECOM's long-term potential.

Market Capitalization and Valuation
AECOM has a market capitalization of $17 billion, with insiders holding $68 million worth of stock [1]. The company's valuation is supported by its strong financial health metrics, including a debt-to-equity ratio of 0.91 and a quick ratio of 1.17 [1]. However, the stock's price-to-earnings (P/E) ratio of 27.60 indicates that investors are paying a premium for the company's earnings growth.

Conclusion
AECOM's EPS growth over the past three years is a positive indicator of the company's profitability. However, the flat revenue and EBIT margins over the last year suggest that the company may need to focus on driving revenue growth and operational efficiency to sustain this growth trajectory. Investors should closely monitor AECOM's future EPS estimates and the company's ability to execute on its strategic initiatives to maintain shareholder value.

References
[1] https://www.marketbeat.com/instant-alerts/aecom-nyseacm-lowered-to-hold-rating-by-wall-street-zen-2025-09-06/
[2] https://www.investing.com/news/company-news/aecom-technology-stock-hits-alltime-high-at-12646-usd-93CH-4226920