AECOM 2025 Q4 Earnings EPS Falls 29.5% Despite Record Net Income

AECOM reported mixed results for fiscal 2025 Q4, with revenue rising 1.6% to $4.18 billion but EPS declining 29.5% to $0.91. The company raised long-term margin targets to 20%+ by fiscal 2028 and initiated a strategic review of its construction management business.

Revenue

AECOM’s total revenue increased by 1.6% to $4.18 billion in 2025 Q4, up from $4.11 billion in 2024 Q4.

Earnings/Net Income

AECOM’s EPS declined 29.5% to $0.91 in 2025 Q4 from $1.29 in 2024 Q4. Meanwhile, net income fell 24.8% to $137.71 million, though the company set a 20-year record high for Q4 net income. Despite the EPS drop, the CEO highlighted strategic momentum and a path to 20%+ margins by fiscal 2028.

Post-Earnings Price Action Review

The stock price of AECOM edged down 1.44% during the latest trading day, dropped 3.48% during the most recent full trading week, and fell 2.85% month-to-date. Pre-market trading saw a 4.5% decline after the company announced a strategic review of its construction management business and raised dividend guidance. The mixed earnings report—strong backlog growth but weaker-than-expected revenue—contributed to the downward pressure.

CEO Commentary

Troy Rudd, AECOM’s chairman and CEO, emphasized fiscal 2025 achievements, including exceeding mid-point guidance and a record 16.5% full-year margin. He highlighted AI-driven growth in the Advisory business and a 20%+ margin target by fiscal 2028.

Guidance

AECOM guided to fiscal 2026 adjusted EPS of $5.65–$5.85 (9% midpoint growth), adjusted EBITDA of $1,265–$1,305 million (7% midpoint growth), and free cash flow of ~$400 million. Long-term targets include 20%+ margins by fiscal 2028 and a 15%+ adjusted EPS CAGR (2026–2029).

Additional News

AECOM announced a strategic review of its construction management business, including a potential sale, to focus on high-return opportunities. The company also raised its dividend by 19% to $0.31/share and outlined AI-driven efficiency investments. Meanwhile, AECOM’s market capitalization reached $17.47 billion, and its stock traded near a 52-week high after a 24.67% year-to-date gain.

Key Strategic Moves

AECOM’s decision to reclassify its construction management business as held for sale and its focus on AI/Advisory services reflect a pivot toward higher-margin opportunities. The company’s raised margin targets and dividend increase signal confidence in long-term profitability despite near-term EPS challenges.

Financial Health

AECOM’s balance sheet shows a current ratio of 1.17 and a debt-to-equity ratio of 1.22. While its Altman Z-Score of 2.7 suggests some financial stress, its Piotroski F-Score of 8 and Beneish M-Score of -2.65 indicate strong operational integrity.

Market Outlook

Analysts remain cautiously optimistic, with a target price of $143.13 and a “Buy” consensus. However, the stock’s beta of 1.12 highlights sensitivity to broader market volatility.

Investor Takeaways

AECOM’s strategic shift to prioritize AI/Advisory and its dividend hike offer long-term value, but investors should monitor the construction management divestiture’s impact on short-term performance. The company’s ability to meet 20%+ margin targets will be critical to sustaining investor confidence.