AECOM 2025 Q4 Earnings Record Net Income Amid EPS Decline

AECOM (ACM) reported mixed fiscal 2025 Q4 results on Nov 18, 2025, with revenue slightly exceeding 2024 levels but EPS falling short of expectations. The company raised 2026 financial guidance and initiated a strategic review of its Construction Management business, signaling confidence in long-term growth despite near-term challenges.

Revenue

AECOM’s total revenue rose 1.6% year-over-year to $4.18 billion in Q4 2025, reflecting resilience in its core operations. While the figure narrowly surpassed the prior year’s $4.11 billion, it fell short of the $4.31 billion consensus estimate, underscoring mixed market reception to the company’s performance.

Earnings/Net Income

The company’s EPS dropped 29.5% to $0.91 in Q4 2025 from $1.29 in Q4 2024, driven by cost pressures and strategic shifts. However, net income reached $137.71 million, marking a 24.8% decline but setting a new 20-year record for Q4 net income. The EPS decline contrasts with the record net income, highlighting divergent performance drivers.

Post-Earnings Price Action Review

AECOM’s stock price experienced a downward trend post-earnings, with a 1.44% decline in the latest trading day and a 3.48% drop over the preceding week. Month-to-date, the shares fell 2.85%, reflecting investor caution amid the EPS shortfall and strategic uncertainty around the Construction Management review. Despite the EPS miss, the record net income and raised guidance provided some optimism, though market volatility persisted.

CEO Commentary

CEO Troy Rudd emphasized fiscal 2025 achievements, including a 17.1% Q4 margin and a record backlog, positioning AECOM for strong fiscal 2026 performance. Strategic focus on AI and Advisory services, alongside global infrastructure demand, was highlighted as key growth drivers. CFO Gaurav Kapoor reiterated confidence in long-term targets, citing AI-driven margin expansion.

Guidance

AECOM outlined fiscal 2026 guidance with adjusted EPS of $5.65–$5.85 (9% increase at mid-point) and adjusted EBITDA of $1,265–$1,305 million (7% increase). Free cash flow is projected at ~$400 million, with long-term targets including a 20%+ margin exit rate by FY2028 and 15%+ adjusted EPS CAGR through 2029.

Additional News

AECOM announced a strategic review of its Construction Management business, including a potential sale, to reallocate resources to higher-margin AI and Advisory segments. The board also approved a 19% dividend increase to $0.31 per share, continuing its commitment to shareholder returns. Additionally, the company secured a joint venture with Jacobs for a landmark Riyadh development, aligning with Saudi Vision 2030 goals.