Executive Summary

Q4 FY2025 delivered record profitability on key non‑GAAP metrics (Adjusted EPS $1.36, +7% YoY; Adjusted EBITDA $328.7MM, +13% YoY) and a record full‑year segment margin, while GAAP EPS fell on a higher tax rate and restructuring charges .
Versus S&P Global consensus, ACM posted an EPS and EBITDA beat but a revenue miss in Q4; Street revenue models likely remain less comparable as management and investors focus on NSR (net service revenue) and NSR‑based margins (details below)*.
FY2026 guidance (with and without Construction Management) points to continued strength: Adjusted EPS $5.65–$5.85 (enterprise) and $5.15–$5.35 (continuing ops), Adjusted EBITDA $1.265–$1.305B (enterprise) and $1.18–$1.22B (continuing ops); long‑term targets raised to 20%+ exit margin by FY2028 and 15%+ Adjusted EPS CAGR FY26–FY29 .
Strategic catalysts: 19% dividend hike to $0.31, record backlog ($24.83B), and a review of strategic alternatives for the Construction Management business (expected to be treated as discontinued ops beginning Q1 FY2026) .

What Went Well and What Went Wrong

What Went Well
- Record profitability and margins: Q4 Adjusted EPS $1.36 and Adjusted EBITDA $328.7MM; full‑year segment adjusted operating margin reached 16.5% and Q4 segment margin hit 17.1% on NSR .
- Demand/backlog strength: Total backlog rose to a record $24.83B (+4% YoY); design book‑to‑burn was 1.1x, marking the 20th consecutive quarter >1.0x; pipeline +13% YoY to a record high .
- Strategic/tone: Raised long‑term exit margin target to 20%+ by FY2028 and Adjusted EPS CAGR to 15%+ on AECOM AI leverage and Advisory growth. CEO: “expectation to achieve a 20%+ margin run‑rate by the end of fiscal 2028 as we advance our proprietary AECOM AI capabilities and growth accelerates in our higher‑margin Advisory business” -.
What Went Wrong
- GAAP optics: GAAP diluted EPS fell to $0.99 (‑20.8% YoY), with higher tax rate (28.1% GAAP; 29% adjusted) and restructuring costs impacting reported results .
- Revenue headline vs Street: Q4 revenue of $4.175B grew 1.6% YoY but was below S&P Global consensus; ACM continues to manage and guide on NSR, which rose 8% YoY in Q4, creating a perception gap versus revenue headlines* .
- International mix: International adjusted operating margin on NSR declined 50 bps YoY to 12.1% on lower revenue in certain end markets, partially offsetting Americas strength .

Financial Results

Q2–Q4 FY2025 progression and YoY comps (GAAP unless noted; $ in millions except per‑share; margins on NSR where noted)

Metric	Q2 FY2025	Q3 FY2025	Q4 FY2024	Q4 FY2025
Revenue ($MM)	$3,771.6	$4,178.4	$4,110.5	$4,175.4
Diluted EPS (GAAP)	$1.16	$1.31	$1.25	$0.99
Adjusted EPS (Non‑GAAP)	$1.25	$1.34	$1.27	$1.36
Adjusted EBITDA ($MM)	$289.7	$312.8	$289.9	$328.7
Adjusted EBITDA Margin % (on NSR)	16.3%	17.6%	—	17.5%
NSR ($MM)	$1,867.1	$1,937.5	$1,812.1	$1,966.8

Q4 FY2025 vs S&P Global consensus (Street)*

Metric	Actual	Consensus*	Surprise
Revenue ($MM)	$4,175.4	$4,314.7*	-3.2%
Adjusted EPS	$1.36	$1.338*	+1.6%
EBITDA ($MM)	$336.0 (Adj. EBITDA with NCI $344.6; Adj. EBITDA $328.7)	$324.9*	+3.4%

Values retrieved from S&P Global.*

Segment performance (Q4 FY2025; NSR and margins on NSR)

Segment	Revenue ($MM)	NSR ($MM)	YoY NSR	Adj. Op Margin on NSR
Americas	$3,240.0	$1,197.7	+13%	20.4%
International	$935.3	$769.0	~Flat	12.1% (‑50 bps YoY)

KPIs and balance sheet

KPI	Q4 FY2025
Total Backlog	$24,829.98MM; +4% YoY; record high
Design Book‑to‑Burn	1.1x; 20th consecutive quarter >1.0x
Pipeline (Design)	+13% YoY; record high
Operating Cash Flow	$196.1MM (Q4); $821.6MM (FY)
Free Cash Flow	$134.1MM (Q4); $685.2MM (FY)
Net Debt	$1,158.0MM; net leverage 0.8x
Dividend	Raised 19% to $0.31/share (payable Jan 23, 2026)

Guidance Changes

Metric	Period/Basis	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY2026 (Enterprise incl. Construction Mgmt.)	—	$5.65–$5.85	New
Adjusted EBITDA ($MM)	FY2026 (Enterprise incl. Construction Mgmt.)	—	$1,265–$1,305	New
Free Cash Flow ($MM)	FY2026 (Enterprise incl. Construction Mgmt.)	—	≈$400 (incl. AI/restructuring investments)	New
Organic NSR Growth	FY2026 (Continuing ops; excl. Construction Mgmt.)	—	6–8% (≈$7.2–$7.4B NSR)	New
Adjusted EBITDA ($MM)	FY2026 (Continuing ops)	—	$1,180–$1,220	New
Segment Adj. Op Margin (NSR)	FY2026 (Continuing ops)	—	16.6%	New
Adjusted EBITDA Margin (NSR)	FY2026 (Continuing ops)	—	16.8%	New
Adjusted EPS	FY2026 (Continuing ops)	—	$5.15–$5.35	New
Adjusted ETR	FY2026 (Continuing ops)	—	~22–23%	New
Adjusted Net Interest Expense	FY2026 (Continuing ops)	—	~$140MM	New
Share Count	FY2026 (Enterprise)	—	~133MM diluted	New
Long‑Term Segment/EBITDA Margin	Exit FY2028	17%+ prior target	20%+ exit rate	Raised
Adjusted EPS CAGR	FY2026–FY2029	“Double‑digit” prior LT target	15%+	Raised
Dividend	FY2026	$0.26 per quarter	$0.31 per quarter (+19%)	Raised
Construction Management	Starting Q1 FY2026	n/a	Reviewing strategic alternatives; to be classified as held for sale and in discontinued ops	Reclassification planned

Earnings Call Themes & Trends

Note: A Q4 FY2025 earnings call transcript was not posted on the investor site at the time of analysis; themes below reflect Q2–Q3 call commentary and Q4 press releases/Investor Day.

Topic	Previous Mentions (Q2–Q3 FY2025)	Current Period (Q4 FY2025)	Trend
AI/Technology	Management highlighted AI deployment; expected material impact on margins in 2–3 years .	“Proprietary AECOM AI” cited as a key driver of operating leverage and 20%+ margin exit by FY2028; >200 AI/ML/data scientists on staff -.	Accelerating adoption and impact
Advisory growth	Q3: Advisory up double‑digits; goal to double to $400MM NSR in ~3 years .	Plan to double Advisory to $400MM NSR over next three years; positioned as next $1B platform .	Scaling faster, higher‑margin mix
Backlog/Book‑to‑Burn	18th–19th consecutive quarters >1.0x; record backlog and pipeline .	Record backlog $24.83B; design book‑to‑burn 1.1x; 20th consecutive >1.0x .	Sustained, improving visibility
Margins	Q3 segment margin reached 17.1%, ahead of plan; continued investment alongside expansion .	Q4 segment margin 17.1%; full‑year 16.5%; LT exit 20%+ by FY2028 .	Structural expansion
Regional trends	Q2/Q3: Americas NSR +6–8%; Intl growth led by UK/Middle East; Australia softer .	Q4: Americas design +9% NSR; Intl margin -50 bps on lower revenue in some end markets .	Americas outperformance; mixed Intl
Capital allocation	Net leverage 0.6–0.7x; stepped‑up buybacks and dividends YTD .	~$500MM returned in FY2025; dividend +19% to $0.31; $645MM repurchase capacity remains .	Ongoing returns; higher dividend
Regulatory/Macro	Discussed permitting reforms and policy support in U.S., UK, Canada .	Secular drivers (infrastructure, sustainability, energy) remain robust; supports pipeline growth .	Supportive
Portfolio actions	—	Strategic review of Construction Management; move to discontinued ops in FY2026 .	Portfolio focus intensifies

Management Commentary

CEO Troy Rudd: “We exceeded the midpoints of our previously‑increased financial guidance… Looking ahead… our expectation to achieve a 20%+ margin run‑rate by the end of fiscal 2028 as we advance our proprietary AECOM AI capabilities and growth accelerates in our higher‑margin Advisory business.”
President Lara Poloni: “The secular megatrends of global investments in infrastructure, in sustainability and resilience, and in meeting growing energy demand have accelerated… our… AECOM AI and Advisory capabilities separate us from the competition.”
CFO/COO Gaurav Kapoor: “AI is creating new opportunities… expanding our operating leverage… we are confident in delivering on our new long‑term financial targets.”
On long‑term targets: “Increased the segment adjusted operating margin and adjusted EBITDA margin targets to a 20%+ exit rate by fiscal 2028… Increased adjusted EPS CAGR to 15%+.”

Q&A Highlights

A Q4 FY2025 transcript was not available on the investor site; management held an Investor Day concurrent with results, emphasizing raised long‑term targets, AI leverage, Advisory growth, and Construction Management portfolio actions -.
Guidance color included FY2026 assumptions: ~22–23% adjusted tax rate, ~133MM diluted shares, ~$140MM adjusted net interest expense, and ongoing AI/advisory investments embedded in margin outlook .
We will update with Q&A specifics when a transcript is posted by the company or third‑party providers.

Estimates Context

Q4 FY2025: Adjusted EPS $1.36 vs $1.338 S&P Global consensus (beat); Adjusted EBITDA $336.0MM vs $324.9MM (beat); Revenue $4,175.4MM vs $4,314.7MM (miss)* .
Trend: Similar pattern in prior quarters—EPS/EBITDA beats alongside revenue below consensus in Q2–Q3—consistent with AECOM’s emphasis on NSR and NSR‑based margins versus GAAP revenue* .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Margin story is intact and strengthening: record NSR‑based margins, raised long‑term exit target to 20%+ by FY2028, and FY2026 guidance embeds continued expansion while funding AI and Advisory—supportive of multiple expansion .
Quality of earnings: Repeated EPS/EBITDA beats vs Street underscore execution; GAAP variability (tax, restructuring) should be viewed in context of underlying NSR/margin trajectory .
Demand durability: Record backlog ($24.83B), 20th straight quarter >1.0x book‑to‑burn, and a record pipeline (+13% YoY) give multi‑year visibility across end markets .
Capital returns rising: Dividend up 19% to $0.31 and capacity for buybacks ($645MM remaining authorization) provide downside support and capital‑allocation optionality .
Portfolio catalyst: Strategic review of Construction Management (and reclassification to discontinued ops) sharpens the higher‑margin professional services focus and could unlock value .
Watch items: International margin pressure in select end markets; Q4 GAAP tax rate elevated; FY2026 FCF impacted by upfront AI/restructuring investments but expected to underpin higher long‑term margins .
Near‑term trading setup: Expect focus on FY2026 Adjusted EPS guide vs long‑term 20%+ margin path and any updates on the Construction Management review; revenue headline misses vs Street are less relevant given NSR focus but can create short‑term volatility* .

References: AECOM Q4 FY2025 8‑K and press releases -; Q3 FY2025 8‑K -; Q2 FY2025 8‑K -. Additional investor materials and news: Quarterly Results page (links to Q4 presentation) , Q4 earnings release (web) .