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

AECOM (ACM) reported fiscal 2025 Q4 earnings on Nov 18, 2025, with revenue narrowly missing estimates but exceeding adjusted EPS guidance. The company raised its FY2026 financial targets, including a 20%+ margin goal by 2028, and announced a 19% dividend increase.

Revenue

The total revenue of AECOM 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, the company's net income declined to $137.71 million in 2025 Q4, down 24.8% from $183.12 million reported in 2024 Q4. Remarkably, in 2025 Q4, the company set a new record high for fiscal Q4 net income, the highest in 20 years. Despite the EPS decline, the record net income highlights resilience in cost management.

Post-Earnings Price Action Review

Following the earnings report, AECOM's stock price edged down 1.44% during the latest trading day, dropped 3.48% during the most recent full trading week, and declined 2.85% month-to-date. The premarket session saw a sharper decline of 4.5%, reflecting investor caution over mixed results and strategic shifts, including the potential sale of its Construction Management business.

CEO Commentary

Troy Rudd, AECOM’s chairman and CEO, highlighted exceeding fiscal 2025 guidance with record margins, including a 17.1% margin in Q4, and a 16.5% full-year margin. He emphasized confidence in fiscal 2026, driven by a 4% total backlog growth, strategic AI and Advisory investments, and a target of 20%+ margin by fiscal 2028. Rudd noted accelerating global infrastructure demand and AECOM’s competitive advantages, including technical expertise and client relationships, as key growth drivers. The tone was optimistic, underscoring the organization’s strength in capitalizing on market opportunities.

Guidance

AECOM provided fiscal 2026 guidance: adjusted EPS of $5.65–$5.85 (9% increase at mid-point), adjusted EBITDA of $1.265B–$1.305B (7% growth at mid-point), and free cash flow of ~$400M. Long-term targets include a 20%+ margin exit rate by fiscal 2028, 15%+ CAGR for adjusted EPS (2026–2029), and 5–8% organic NSR CAGR. The Company also expects to convert 100%+ of adjusted net income to free cash flow cumulatively and maintain double-digit dividend growth annually. Guidance excludes the Construction Management business, classified as held for sale.

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 segment-adjusted operating margin target to 20%+ by fiscal 2028 and increased its dividend by 19% to $0.31 per share, reflecting confidence in long-term growth. These moves follow a $24.83 billion backlog increase and investments in AI and Advisory services to drive margin expansion.