Overview

AECOM is a leading global provider of professional infrastructure consulting and advisory services for governments, businesses and organizations throughout the world. The company provides advisory, planning, consulting, architectural and engineering design, construction and program management services, and investment and development services to public and private clients worldwide in major end markets such as transportation, facilities, water, environmental, and energy.

AECOM’s business focuses primarily on providing fee-based knowledge-based services. The company primarily derives income from its ability to generate revenue and collect cash from its clients through the billing of its employees’ time spent on client projects and its ability to manage its costs. AECOM Capital primarily derives its income from real estate development sales and management fees.

AECOM reports its continuing business through three segments: Americas, International, and AECOM Capital (ACAP). These segments are organized by the differing specialized needs of the respective clients, and how the company manages the business.

Revenue and Profit Trends

Revenue

AECOM’s revenue for the year ended September 30, 2025 increased $34.1 million, or 0.2%, to $16,139.6 million compared to $16,105.5 million for the corresponding period last year. The increase was primarily driven by growth across most of the company’s end markets, including transportation, water, environment, and facilities, which benefited from increased investment in large, publicly financed, global infrastructure programs.

Pass-through revenues, which are costs that AECOM incurs on behalf of clients and are included in both revenue and cost of revenue, decreased as a percentage of total revenue from 56% in fiscal 2024 to 53% in fiscal 2025.

Gross Profit

AECOM’s gross profit for the year ended September 30, 2025 increased $132.4 million, or 12.2%, to $1,216.7 million compared to $1,084.3 million for the corresponding period last year. Gross profit as a percentage of revenue increased from 6.7% in fiscal 2024 to 7.5% in fiscal 2025. The increase in gross profit was driven by benefits from restructuring actions, growth in higher-margin advisory services, and ongoing continuous improvement initiatives.

Equity in Earnings of Joint Ventures

AECOM’s equity in earnings of joint ventures increased from $2.1 million in fiscal 2024 to $27.0 million in fiscal 2025. This was primarily due to impairment losses recorded by the AECOM Capital segment in fiscal 2024 that did not repeat in fiscal 2025.

Net Income Attributable to AECOM

AECOM’s net income attributable to the company increased from $402.3 million in fiscal 2024 to $561.8 million in fiscal 2025, an increase of 39.6%. This was driven by the improvements in revenue, gross profit, and equity in earnings of joint ventures discussed above.

Strengths and Weaknesses

Strengths

• Diversified end markets and global footprint provide stability and growth opportunities
• Strong position in large, publicly financed infrastructure programs globally
• Continuous improvement initiatives and restructuring actions driving margin expansion
• Solid cash flow generation and balance sheet

Weaknesses

• Exposure to currency rate fluctuations due to global operations
• Reliance on ability to attract and retain qualified employees
• Vulnerability to economic downturns and reductions in government/private spending

Outlook

AECOM expects to continue benefiting from increased investment in large infrastructure programs globally, particularly in its transportation, water, environment, and facilities end markets. The company is focused on driving further margin expansion through ongoing restructuring actions and continuous improvement initiatives.

AECOM plans to deploy future available cash towards dividends and stock repurchases consistent with its returns-driven capital allocation policy. The company has also exited substantially all of its self-perform at-risk construction businesses to maintain a reduced risk profile.

Overall, AECOM is well-positioned to capitalize on favorable industry trends and continue delivering strong financial performance. The company’s diversified business model, global reach, and focus on operational excellence position it for continued success.