- AECOM (ACM, Financial) reported an 8% rise in adjusted EBITDA and a 20% increase in adjusted EPS for Q2 fiscal 2025.
- The company achieved a record-high backlog of $24.27 billion, with a 1.1x book-to-burn ratio.
- Fiscal 2025 guidance was increased, projecting adjusted EBITDA between $1,180 million and $1,210 million.
AECOM (ACM), a leader in global infrastructure, announced robust second-quarter fiscal 2025 results, highlighted by significant financial growth and expansion in backlog. The company reported an 8% increase in adjusted EBITDA, reaching $290 million, and a 20% rise in adjusted earnings per share (EPS) to $1.25. Despite a 4% decline in overall revenue to $3,772 million, net service revenue improved by 4%, driven by a 6% growth in its most profitable region, the Americas.
The company achieved a new record in backlog, which increased by 3% to $24.27 billion, supported by a 1.1x book-to-burn ratio, indicating robust demand and strong project acquisitions across its business segments. AECOM continues to excel in the Americas, with an adjusted operating margin increase of 130 basis points to 19.4%, highlighting the benefits from high-return organic growth initiatives and strategic market focus.
In light of recent successes and market visibility, AECOM raised its fiscal 2025 financial guidance for the second time this year. The company now expects adjusted EBITDA to range from $1,180 million to $1,210 million, reflecting a 9% increase at the midpoint, and adjusted EPS to be between $5.10 and $5.20, marking a 14% uptick. The strong performance in cash flow, with a 141% increase in free cash flow to $178 million, further underscores financial stability and shareholder value enhancement through $165 million returned via shares repurchases and dividends.
AECOM's strategy continues to capitalize on growing demands in global infrastructure, energy, and sustainability sectors, reinforcing its competitive advantage through ongoing investments and strategic partnerships, such as its role as the Official Venue Infrastructure Partner for the LA28 Olympic and Paralympic Games.
