AECOM 2025 Q4 Earnings Record Net Income Amid EPS Decline

AECOM (ACM) reported fiscal 2025 Q4 earnings on Nov 18, 2025, with mixed results. While revenue rose 1.6% to $4.18 billion, EPS fell 29.5% to $0.91. The company exceeded full-year guidance and raised long-term margin targets to 20%+ by 2028, driven by AI and advisory growth.

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, the company’s net income dropped to $137.71 million in 2025 Q4, down 24.8% from $183.12 million in 2024 Q4. Despite the decline, the company set a new record high for fiscal Q4 net income, the highest in 20 years. The EPS performance highlights a cautionary trend amid record net income.

Price Action

Post-Earnings Price Action Review

AECOM’s stock price declined 1.44% during the latest trading day, 3.48% for the week, and 2.85% month-to-date. The post-earnings reaction reflects market skepticism toward the EPS decline, despite the company’s guidance upgrades and AI-driven margin expansion plans.

CEO Commentary

Troy Rudd, AECOM’s chairman and CEO, emphasized exceeding 2025 guidance with record Q4 margins of 17.1% and a robust backlog. He highlighted strategic advantages in AI and advisory growth, projecting a 20%+ margin run-rate by 2028. CFO Gaurav Kapoor underscored confidence in long-term targets, citing AI-driven efficiency and margin expansion.

Guidance

AECOM provided fiscal 2026 guidance: adjusted EPS of $5.65–$5.85 (9% increase at mid-point), adjusted EBITDA of $1.265–$1.305 billion (7% increase), and free cash flow of ~$400 million. Long-term targets include 20%+ margin by 2028 and 15%+ adjusted EPS CAGR (2026–2029).

Additional News

AECOM initiated a strategic review of its Construction Management business, including a potential sale, to focus on high-growth AI and advisory segments. The company also raised its quarterly dividend by 19% to $0.31 per share, reflecting its commitment to shareholder returns. Additionally, AECOM announced a $400 million investment in AI initiatives to accelerate margin expansion, aligning with its 2028 margin target of 20%+.

Recent Developments

AECOM’s stock fell 4.5% premarket after announcing the construction management review. The company’s 2025 restructuring is now complete, with fiscal 2026 guidance reflecting a focus on core design and consulting operations. Analysts remain optimistic about long-term AI-driven growth, though near-term volatility persists.