
AECOM Announces Q1 Fiscal 2025 Financial Results
AECOM (NYSE: ACM), a global leader in infrastructure solutions, has announced its financial results for the first quarter of fiscal year 2025. The company reported strong performance across all key financial metrics, demonstrating continued growth and operational excellence. Notably, AECOM has increased its fiscal 2025 guidance, reinforcing confidence in its strategic direction and financial health.
Financial Performance Highlights
- Revenue Growth: The company achieved a 3% year-over-year (YoY) increase in revenue, amounting to $4.014 billion.
- Net Service Revenue (NSR): NSR grew by 5.5% to reach $1.801 billion, with the Americas design business contributing 9% growth.
- Operating Income: Operating income saw a substantial increase of 46%, reaching $237 million. Adjusted operating income rose by 7% to $240 million.
- Profitability and Margins:
- Segment operating margin reached 15.4%, a 40 basis point increase.
- EBITDA increased by 8% to $271 million, with an EBITDA margin of 15.6% (a 20 basis point rise).
- Net Income and EPS:
- Net income surged by 83% to $177 million.
- Adjusted earnings per share (EPS) rose by 25% to $1.31.
- Cash Flow and Shareholder Returns:
- Free cash flow increased by 28% to $111 million.
- The company returned $55 million to shareholders through repurchases and dividends.
Strategic Commentary
Troy Rudd, CEO of AECOM, expressed confidence in the company’s strong start to the fiscal year, citing robust market trends, record-high backlog, and strategic investments in growth areas. “We are investing to extend our competitive advantages, particularly in our Water & Environment Advisory business, to expand our reach in higher-value infrastructure services,” Rudd stated.
Lara Poloni, AECOM’s President, reinforced the success of the company’s Think and Act Globally strategy, highlighting high win rates and substantial backlog growth. “Our leadership in water, environment, facilities, and transportation is driving us towards our goal of doubling net service revenue in this segment within three years,” Poloni said.

Gaurav Kapoor, CFO, emphasized the company’s ability to exceed expectations, citing accelerating NSR growth, record first-quarter margins, and strong cash flow. He also reiterated AECOM’s long-term goal of achieving a 17% margin by fiscal 2026.
Business Segment Performance
Americas Segment
- Revenue increased by 2% to $3.1 billion, while NSR climbed 8% to $1.1 billion.
- The design business saw a 9% increase, driven by investments in infrastructure, sustainability, and energy.
- Operating income rose 12% to $196 million (adjusted operating income up 10% to $197 million).
- Segment operating margin reached a new high of 18.7%.
- Backlog hit a record high, with a 1.2x book-to-burn ratio.
International Segment
- Revenue increased by 5% to $902 million, while NSR grew 2% to $750 million.
- Growth was primarily driven by strong performance in the U.K. and Middle East, partially offset by a decline in Australia.
- Operating income and adjusted operating income both increased by 5% to $81 million.
- The adjusted operating margin increased by 20 basis points to 10.8%.
- Backlog remains near an all-time high, with a 1.2x book-to-burn ratio.
Fiscal 2025 Guidance Update
AECOM has raised its financial guidance for fiscal 2025, emphasizing continued revenue growth, profitability expansion, and strong cash flow conversion. Key expectations include:
- Organic NSR Growth: 5% to 8%
- Adjusted EBITDA: Between $1.175 billion and $1.210 billion (mid-point growth of 9%)
- Adjusted EPS: Between $5.05 and $5.20 (mid-point growth of 13%)
- Margin Expansion:
- Segment operating margin to increase by 30 basis points to 16.1%
- Adjusted EBITDA margin to expand to 16.3%
- Free Cash Flow Conversion: Expected to exceed 100%
Other key assumptions:
- An average fully diluted share count of 134 million (reflecting only repurchases to date)
- An adjusted effective tax rate of approximately 24%
Balance Sheet and Capital Allocation
AECOM maintains a strong balance sheet, with a net leverage ratio of 0.8x. The company continues its commitment to returning capital to shareholders, having repurchased more than $2.2 billion in stock since launching its repurchase program in 2020.
Tax Rate Overview
The effective tax rate for the first quarter was 13.4%, with an adjusted effective tax rate of 14.3%. The lower tax rate primarily reflects the timing of deferred tax asset realization. The company expects a full-year adjusted tax rate of approximately 24%.
AECOM’s first-quarter fiscal 2025 results demonstrate strong financial performance, operational discipline, and strategic execution. With a robust backlog, continued investment in growth sectors, and increasing margins, the company remains well-positioned to achieve its long-term financial and operational goals. AECOM’s leadership team remains optimistic about sustaining growth and delivering continued value to shareholders.