AECOM Reports Q2 Fiscal 2025 Results with $3.77 Billion Revenue, Net Income Increase to $159.5 Million

AECOM reported its financial results for the second quarter of fiscal 2025, revealing a revenue of $3.77 billion, a decrease of 4.4% from $3.94 billion in the same period last year. For the first half of the fiscal year, revenue totaled $7.79 billion, down slightly by 0.7% from $7.84 billion. The decline in revenue was attributed primarily to a reduction in pass-through revenues, which are costs incurred on behalf of clients that are billed back to them. Despite the overall revenue drop, the company noted an increase in gross profit, which rose to $290.8 million for the quarter, up 11.4% from $261.1 million a year earlier, reflecting improved operational efficiency.

The company’s net income for the quarter was $159.5 million, a significant increase from $16 million in the prior year, driven by a notable reduction in losses from discontinued operations, which fell to $10.3 million from $109.4 million. AECOM's income from continuing operations before taxes also rose to $221.1 million, compared to $170.8 million in the previous year. The effective tax rate for the quarter was 18.3%, down from 23.4% a year earlier, influenced by various tax benefits and adjustments.

In terms of strategic developments, AECOM has continued to focus on its core infrastructure consulting services while exiting its self-perform at-risk construction businesses. The company has also transitioned its AECOM Capital team to a new third-party platform, which is expected to enhance its investment capabilities. As of March 31, 2025, AECOM had approximately $899.2 million remaining under its stock repurchase authorization, reflecting its commitment to returning value to shareholders.

Operationally, AECOM reported a total cash and cash equivalents balance of $1.6 billion, a slight increase from $1.58 billion at the end of the previous fiscal year. The company’s working capital increased by 14.2% to $915.6 million, indicating improved liquidity. AECOM's Days Sales Outstanding (DSO) increased to 73 days from 70 days, suggesting a slight delay in collections. The company continues to monitor its accounts receivable closely, with no single client accounting for more than 10% of its outstanding receivables.

Looking ahead, AECOM remains optimistic about its growth prospects, particularly in the context of increased public sector investment in infrastructure, driven by initiatives such as the Infrastructure Investment and Jobs Act in the U.S. The company anticipates that its focus on high-margin advisory services and continuous improvement initiatives will further enhance profitability in the coming quarters.