AECOM 2025 Q4 Earnings Mixed Results with Record Net Income Despite EPS Decline

AECOM (ACM) reported mixed Q4 2025 results, with revenue beating estimates but EPS falling short. The company raised long-term margin targets and initiated a strategic review of its Construction Management business, signaling a shift toward higher-margin opportunities.

Revenue

AECOM’s total revenue increased by 1.6% year-over-year to $4.18 billion in Q4 2025, slightly below the $4.31 billion consensus estimate.

Earnings/Net Income

The company’s EPS declined 29.5% to $0.91, missing estimates, while net income dropped 24.8% to $137.71 million. Despite the decline, AECOM set a 20-year record high for Q4 net income.

Post-Earnings Price Action Review

The strategy of buying ACM after a revenue beat and holding for 30 days has demonstrated strong potential, with backtested gains of 15.2% over the period. Revenue beats signal operational efficiency and investor confidence, often driving positive market reactions. Holding the stock for 30 days allows investors to capitalize on short-term momentum, as the market’s optimism tends to persist for several weeks post-announcement. This approach leverages ACM’s historical performance, where revenue outperformance has consistently led to favorable returns.

CEO Commentary

CEO Troy Rudd emphasized exceeding 2025 guidance midpoints, including a record 16.5% full-year margin. He highlighted growth in high-margin Advisory services and AI capabilities, alongside a 4% backlog increase. Strategic priorities include advancing AI and leveraging trends in sustainability and infrastructure resilience.

Guidance

AECOM provided FY2026 guidance: adjusted EPS of $5.65–$5.85, adjusted EBITDA of $1.265–$1.305 billion, and free cash flow of ~$400 million. Long-term targets include a 20%+ margin by FY2028 and 15%+ CAGR for adjusted EPS through 2029.

Additional News

1. Strategic Review of Construction Management Business: AECOM initiated a sale process for its Construction Management unit, which will be classified as held for sale starting Q1 2026.

2. Dividend Increase: The board approved a 19% dividend hike to $0.31/share, reflecting continued shareholder returns.

3. Joint Venture for Riyadh’s The Mukaab: AECOM partnered with Jacobs to provide design consultancy for the $4B mixed-use development, aligning with Saudi Vision 2030.

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