Adjusted Net Revenue Growth

FY 2025

Expected to grow mid- to high single digits year-over-year " "

Approximately 5.5% year over year "

lowered

Adjusted EBITDA Margin

FY 2025

13.8% to 14% " "

Approximately 13.9% " "

no change

Adjusted EPS

FY 2025

$5.85 to $6.20 " "

$6.00 to $6.10 "

no change

Reported Free Cash Flow Conversion

FY 2025

Expected to be more than 100% "

Expected to be more than 100% "

no change

Net Revenue Growth

Q3 2025

Expected to grow 5% to 7% year-on-year " "

no current guidance [N/A]

no current guidance

Adjusted EBITDA Margin

Q3 2025

Approach 14% adjusted EBITDA margin " "

no current guidance [N/A]

no current guidance

Financial Performance and Margin Trends

In Q1 and Q2, financial performance was characterized by revenue and EBITDA growth with margin improvements driven by disciplined cost management and operational efficiencies. " " " " " " "

In Q3, the company reported record revenue growth, improved EBITDA margins (14.1% in Q3 and 13.9% full‐year guidance), and strong cost management initiatives. " " " "

Consistent strong performance, with an improvement in margins and profitability metrics, reinforcing a stable, upward trend.

Backlog Growth and Revenue Pipeline

Q1 and Q2 discussions highlighted strong backlog growth with near record levels (e.g. 19% and 20% growth) and a robust revenue pipeline driven by diverse sectors such as water, infrastructure, and advanced facilities. " " " " " " "

Q3 showcased a record backlog of $22.7 billion with 14% growth and a robust pipeline across multiple sectors including data centers and critical infrastructure. " " " " " " "

Sustained positive momentum, with consistently high backlog growth and expanding pipeline across key sectors.

Global Geographic Diversification and International Growth

In Q1 and Q2, the company emphasized growth in regions such as the Middle East, Europe, India, and Australia, with strong pipeline visibility and investments in critical infrastructure and energy transition projects. " " "

Q3 highlighted improvements in Europe and the Middle East (transportation and cities & places) and significant wins in Australia, reinforcing international diversification. " " "

Continued international expansion, with slight shifts toward stronger wins in select regions such as Australia and enhanced performance in Europe and the Middle East.

Innovative Market Expansion

Q1 and Q2 emphasized growth in water and life sciences along with moderate mentions of data centers and digital initiatives; early signs of focus on innovative solutions were noted, though less detail on digital twin/AI. " " " " " "

Q3 placed a stronger emphasis on digital twin and AI (e.g. partnering with NVIDIA for AI factory simulations), while continuing strong performance in water, data centers, and life sciences. " " "

Increased focus on advanced digital solutions, with an emerging emphasis on digital twin and AI-driven projects, built on consistent growth in water, data centers, and life sciences.

PA Consulting Integration and Revenue Challenges

Q1 noted revenue ramp challenges in the UK due to slow government procurement, whereas Q2 showed strong revenue performance with increased backlog and better integration in key regions. " " " " "

Q3 reported solid revenue growth (15% increase), improved backlog (16% growth), and continued integration yielding synergies across public and private sectors. " " " " "

Improving integration and revenue performance, overcoming earlier procurement delays with strengthening backlog and positive momentum in both the U.S. and U.K. markets.

Environmental Sector Dynamics and Regulatory Impacts

Q1 reflected positive outlooks for water and environmental growth driven by urbanization and aging infrastructure, while Q2 emphasized strong underlying demand along with proactive regulatory measures (e.g., addressing PFAS). " " "

Q3 mentioned a near-term slowdown in environmental projects due to regulatory changes and U.S. government actions, though long-term growth targets remain intact. "

Mixed sentiment – Previously positive growth expectations are now tempered by near-term regulatory challenges, with a recovery anticipated in upcoming quarters.

Currency Volatility and FX Headwinds

Q1 provided a cautious view on FX with potential adverse effects if the dollar strengthens, and Q2 noted that FX headwinds reduced revenue growth by about 80 basis points, though potential for tailwinds was mentioned for Q3 if rates remain stable. " " "

Q3 referenced FX tailwinds contributing to positive performance, with a generally improved FX environment noted. " "

Shifting from headwinds to tailwinds, indicating an improved FX environment compared to earlier periods.

Procurement Cycle Delays and Project Execution Concerns

Q1 mentioned slower revenue ramp for PA Consulting due to UK government procurement delays, and Q2 discussed slightly extended procurement cycles driven by rising costs and supply chain challenges, although project execution was largely on track. " " "

No discussion of procurement cycle delays or project execution concerns was noted in Q3.

Topic no longer mentioned in Q3, suggesting that earlier procurement concerns may have been resolved or have become less material.

Legal Reserve Impact and Restructuring Costs

Q1 guidance mentioned steady restructuring costs ($75M–$95M) while Q2 detailed a meaningful legal reserve impact from a joint venture project in water/environment, affecting revenue and profit but partly absorbed through noncontrolling interest. " " " " " "

Q3 did not mention any legal reserve impact and noted a significant reduction in one-time restructuring costs compared to prior fiscal year levels. "

Stabilization – The legal reserve impact is no longer mentioned and restructuring costs are decreasing, indicating a return to a normalized cost profile and reduced risk.