AECOM Posts Record Q3 2025 Earnings, Raises Guidance Amid Strong Growth

AECOM reported record financial results in Q3 2025, with a 17.1% segment adjusted operating margin, a new record. The company raised its annual financial guidance for the third consecutive time this year, driven by high-returning organic growth investments. AECOM's backlog increased both sequentially and year-over-year to a new all-time high, with a 19th consecutive quarter of a book-to-burn ratio in excess of 1. The company has a strong cash flow performance, with a 27% increase in free cash flow year-to-date and nearly $240 million returned to shareholders this year.

AECOM (NYSE: ACM), a leading global infrastructure company, reported strong financial results for the third quarter of fiscal 2025, marking another record-breaking performance for the firm. The company achieved a segment adjusted operating margin of 17.1%, setting a new quarterly record. This impressive margin was driven by high-returning organic growth investments and a robust pipeline of projects [1].

AECOM's revenue increased slightly, with net service revenue growing by 6% in the quarter, largely due to an 8% growth in its Americas segment. The company's adjusted EBITDA margin also set a new record at 17.6%, while adjusted EPS increased by 16%. The firm's operating income and adjusted operating margin in the Americas segment improved by 16% and 120 basis points, respectively, highlighting strong execution and high-returning investments [1].

The company's backlog increased both sequentially and year-over-year to a new all-time high, with a 19th consecutive quarter of a book-to-burn ratio in excess of 1.0x. This strong performance was driven by double-digit growth in the earliest stages of the pipeline, indicating a long-term investment cycle. AECOM's free cash flow increased by 27% year-to-date, reaching a new all-time high of $551 million. The company has also returned nearly $240 million to shareholders through repurchases and dividends in the year [1].

AECOM raised its annual financial guidance for the third consecutive time in 2025, expecting organic net service revenue (NSR) growth of 5% to 8%, adjusted EBITDA of between $1,190 million and $1,210 million, and adjusted EPS of between $5.20 and $5.30. The company's segment adjusted operating margin and adjusted EBITDA margin are expected to expand by 70 basis points each to 16.5% and 16.7%, respectively [1].

AECOM's strong performance is driven by secular investment megatrends in infrastructure, sustainability, resilience, and energy, as well as its market-leading position in various segments. The company's ability to provide advisory, program management, and design expertise creates an unrivaled value proposition for clients, further validating its market position [1].

References:

[1] https://finance.yahoo.com/news/aecom-reports-third-quarter-fiscal-200500749.html