AECOM’s fiscal 2025 fourth‑quarter revenue reached $4.175 billion, a 2% year‑over‑year increase from $4.110 billion in the same period last year. Full‑year revenue was $16.140 billion, essentially flat against $16.110 billion reported for FY2024. The modest top‑line growth reflects strong demand in the company’s advisory and program‑management segments, which offset weaker performance in legacy construction projects that have seen slower growth in the Americas and Middle East.
Net service revenue (NSR), the core high‑margin part of the business, rose 8% to $1.967 billion in the quarter and 6% to $7.573 billion for the year. The NSR gains were driven by a higher mix of high‑margin consulting contracts in the Americas and the continued rollout of AI‑driven productivity tools that have reduced labor intensity and improved project delivery times.
Operating income held steady at $237 million, unchanged from the prior year, while segment adjusted operating margin climbed to 17.1%, a 40‑basis‑point improvement. The margin expansion was largely a result of disciplined cost management, pricing power in the advisory business, and the productivity gains from AI initiatives. The Americas segment posted a 20.4% adjusted operating margin, up 70 basis points, driven by robust transportation and water projects, whereas the International segment’s margin fell to 12.1%, a 50‑basis‑point decline, reflecting lower profitability in Middle East projects.
Net income for the quarter was $132 million, down 22% year‑over‑year, and diluted earnings per share fell to $0.99, a 21% decline. However, adjusted EPS reached $1.36, beating analyst consensus of $1.35 by $0.01 (0.7%). The EPS beat was enabled by higher margin mix and cost controls that offset the lower net income, while one‑time charges and higher interest expense weighed on the bottom line.
Management raised full‑year guidance, projecting revenue of $4.396 billion to $4.400 billion, up from the previous $4.140 billion to $4.150 billion range. Adjusted operating income guidance was increased to $2.151 billion to $2.155 billion from $1.975 billion to $1.980 billion, and adjusted EPS guidance was lifted to $5.26 to $5.30 from $4.80 to $4.85. The upgrades reflect confidence in sustained demand for advisory services, the continued impact of AI productivity tools, and a strategic focus on higher‑margin design and consulting work. A 19% dividend increase to $0.31 per share underscores the company’s commitment to returning cash to shareholders.
Analysts noted the revenue miss relative to consensus estimates of $4.36 billion but welcomed the EPS beat and margin expansion. The market reaction was muted, with investors focusing on the company’s ability to maintain profitability amid a flat top line and its strategic review of the construction‑management business, which is expected to sharpen the portfolio toward higher‑margin activities.
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