AECOM Announces Fiscal Q2 2025 Financial Results
AECOM , the globally trusted leader in infrastructure consulting and design, today announced its financial results for the second quarter of fiscal year 2025. Despite ongoing geopolitical uncertainties and a shifting global economic environment, the company demonstrated consistent operational strength, delivering solid earnings growth and record-level backlog. This continued momentum led AECOM to raise its financial guidance for the second consecutive quarter.
Key Financial Results (from Continuing Operations, in millions, except per-share data)
| Metric | As Reported | Adjusted (Non-GAAP) | YoY % Change (As Reported) | YoY % Change (Adjusted) |
|---|---|---|---|---|
| Revenue | $3,772 | — | -4% | — |
| Net Service Revenue (NSR) | — | $1,867 | — | +4% |
| Operating Income | $258 | $263 | +28% | +9% |
| Segment Operating Margin | — | 16.1% | — | +90 bps |
| Net Income | $154 | $167 | +38% | +18% |
| EPS (Diluted) | $1.16 | $1.25 | +43% | +20% |
| EBITDA | — | $290 | — | +8% |
| EBITDA Margin | — | 16.3% | — | +90 bps |
| Operating Cash Flow | $191 | — | +102% | — |
| Free Cash Flow | — | $178 | — | +141% |
| Total Backlog | $24,269 | — | +3% | — |
Strategic Commentary from Leadership
AECOM Chairman and CEO Troy Rudd emphasized the company’s ability to deliver consistent results despite external headwinds. “Even with impacts stemming from evolving political dynamics around the world, we continue to achieve our financial and strategic goals. For the second quarter in a row, this performance has enabled us to raise our financial outlook,” said Rudd.
He added that ongoing investments to expand AECOM’s capabilities and extend its market reach are yielding tangible competitive advantages. One prominent example is the company’s selection as the Official Venue Infrastructure Partner for the LA28 Olympic and Paralympic Games—an award that reflects AECOM’s strength across architecture, engineering, planning, construction management, and program management services.
Rudd further expressed confidence in the long-term infrastructure market, pointing to sustained demand in energy, sustainability, and climate resilience. “These secular drivers continue to support a multi-decade growth trajectory, enabling us to navigate and outperform even amid short-term volatility,” he said.
President Lara Poloni highlighted the company’s consistent ability to win high-value contracts and its recognition as a top-tier firm in key sectors. “We are securing work at an unprecedented pace, resulting in record-breaking backlog levels and strong visibility into the second half of 2025 and beyond,” she stated.
Poloni also referenced AECOM’s recent rise to the top spot in Engineering News-Record’s (ENR) annual design firm rankings. “We are now the #1 overall design firm and have maintained our leadership positions in the transportation, water, and facilities markets. This recognition is a testament to the technical expertise we bring to every project,” she said.
Gaurav Kapoor, Chief Financial and Operations Officer, noted that the company’s performance has outpaced expectations. “As reflected in our raised guidance, we have exceeded expectations in the first half of the year and have a strong pipeline that supports continued growth,” Kapoor said.
He further detailed margin expansion and cash flow growth, pointing to AECOM’s strong operating discipline. “Our segment operating and EBITDA margins improved by 90 basis points year-over-year, and our free cash flow increased 141% in the quarter. This reflects the high quality of our earnings and our continued focus on generating and returning value to shareholders,” Kapoor concluded.
Second Quarter Operational Highlights
Despite a 4% decline in total revenue, primarily due to fewer workdays during the quarter, AECOM achieved a 4% year-over-year increase in net service revenue (NSR). The Americas region—AECOM’s largest and most profitable—led the growth with a 6% increase in NSR.
Other highlights from the quarter include:
- Operating income surged by 28% on a reported basis and 9% on an adjusted basis, setting a new second-quarter record.
- Adjusted segment operating margin expanded 90 basis points to 16.1%.
- EBITDA margin also improved 90 basis points, reaching 16.3%.
- Adjusted net income rose 18% to $167 million.
- Adjusted EPS increased 20% year-over-year to $1.25.
- Free cash flow reached $178 million, a 141% increase, and operating cash flow more than doubled to $191 million.
Backlog and Bookings
AECOM reported a total backlog of $24.3 billion, up 3% year-over-year, supported by continued robust demand across both its Americas and International segments.
- Enterprise-wide book-to-burn ratio remained above 1.0 for the 18th consecutive quarter, underscoring the consistency of new business wins.
- Design backlog grew 4%, including a 5% increase in contracted design backlog in the U.S. and a 1.2x book-to-burn ratio.
- Pipeline of opportunities expanded to a new record, reflecting growth across both business segments.
Segment Performance
Americas
- Revenue: $2.9 billion (down 5% YoY)
- Net Service Revenue: $1.1 billion (up 6% YoY)
- Adjusted Operating Income: $218 million (up 13% YoY)
- Adjusted Operating Margin: 19.4% (up 130 basis points YoY)
- Book-to-burn ratio: 1.2x
- Highlights: Strong design business growth in both the U.S. and Canada, with robust margin expansion driven by high-return organic investments and operational efficiencies.
International
- Revenue: $875 million (down 3% YoY)
- Net Service Revenue: $742 million (up 1% YoY)
- Adjusted Operating Income: $82 million (up 1% YoY)
- Adjusted Operating Margin: 11.1% (up 10 basis points YoY)
- Book-to-burn ratio: 1.1x
- Highlights: Solid performance in the U.K. and Hong Kong helped offset softness in Australia. Execution and discipline in high-margin regions supported margin growth.
Financial Guidance Update for Fiscal 2025
Based on first-half performance and strong backlog visibility, AECOM has revised its fiscal 2025 guidance upward:
- Organic NSR Growth: 5% to 8%
- Adjusted EBITDA: $1.18 billion to $1.21 billion (up 9% at midpoint)
- Adjusted EPS: $5.10 to $5.20 (up 14% at midpoint)
- Adjusted Operating and EBITDA Margins: Expansion of 30 basis points each, reaching 16.1% and 16.3% respectively
- Free Cash Flow Conversion: Expected to exceed 100%
Other assumptions include an adjusted tax rate of approximately 24% and a fully diluted share count of 134 million, reflecting repurchases completed to date.
Capital Allocation and Balance Sheet
AECOM ended the second quarter with a net leverage ratio of 0.7x, reinforcing its strong financial position. During the quarter, the company returned more than $110 million to shareholders through dividends and share repurchases. Since launching its repurchase program in 2020, AECOM has bought back more than $2.3 billion in shares—approximately one-third of its market cap at the time.
Tax Rate
The second quarter effective tax rate was 23.2% on a GAAP basis and 25.0% on an adjusted basis. AECOM maintains its full-year adjusted tax rate projection at approximately 24%.