Q2 2025 AECOM Earnings Call Transcript
Key Points
- AECOM (ACM) achieved record second quarter net service revenue (NSR), margins, and earnings per share (EPS), with significant growth in the Americas region.
- The company was ranked as the number one overall design firm by ENR, affirming its leadership position in key markets such as Transportation, Water, and Facilities.
- AECOM (ACM) was appointed as the sole venue infrastructure partner for the LA28 Olympic and Paralympic Games, showcasing its expertise in managing large, complex projects.
- The company's backlog reached a new record high, driven by a 1.1x book-to-burn ratio, indicating strong future growth potential.
- AECOM (ACM) reported a 141% increase in free cash flow for the quarter, allowing for significant shareholder returns through share repurchases and dividends.
- AECOM (ACM) experienced isolated delays and deferred decisions on certain projects, impacting top-line growth.
- The company faced fewer workdays in the quarter due to holiday timing, reducing NSR growth by approximately 100 basis points.
- There were changes in a small number of government contracts following US Federal agency reviews, resulting in the removal of approximately $100 million from the backlog.
- Near-term trends in the International segment remain mixed, with larger transportation projects in the UK facing delays due to budgetary challenges.
- The transportation market in Australia experienced a pause following a decade of robust investment, impacting growth in that region.
Good morning and welcome to the AECOM second-quarter 2025 conference call. I would like to inform all participants, this call is being recorded at the request of AECOM. This broadcast is a copyrighted property of AECOM. Any rebroadcast of this information in whole or part without the prior written permission of AECOM is prohibited. As a reminder, AECOM is also simulcasting this presentation with slides at the investors section at www.aecom.com. Later, we will conduct a question-and-answer session. (Operator Instructions)
I would like to turn the call over to Will Gabrielski, Senior Vice President, Finance, Treasury, and Investor Relations.
Thank you, operator. I would like to direct your attention to the Safe Harbor statement on page 1 of today's presentation. Today's discussion contains forward-looking statements about future business and financial expectations. Actual
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