AECOM Reports Q3 Fiscal 2025 Results with Revenue Increase and Profitability Improvements

AECOM reported its financial results for the third quarter of fiscal 2025, revealing a slight increase in revenue and significant improvements in profitability compared to the same period last year. For the three months ended June 30, 2025, the company generated revenue of $4.18 billion, a 0.7% increase from $4.15 billion in the prior year. Gross profit rose to $327 million, up 14.7% from $285 million, while net income attributable to AECOM was $131 million, a decrease of 2.5% from $134 million. The company’s net income from continuing operations increased by 38.8% to $204 million, reflecting improved operational efficiency and cost management.

In the nine-month period ending June 30, 2025, AECOM's revenue decreased slightly to $11.96 billion from $11.99 billion in the previous year. However, gross profit for the same period increased by 12.1% to $886 million, indicating a stronger margin performance. The company attributed these changes to increased investment in infrastructure projects, particularly in the Water and Transportation sectors, driven by public funding initiatives such as the Infrastructure Investment and Jobs Act in the U.S.

Operationally, AECOM has made strategic adjustments, including the exit from its self-perform at-risk construction businesses, which have been classified as discontinued operations. The net loss from these discontinued operations was $44 million for the quarter, compared to a profit of $6 million in the same quarter last year. This shift is part of AECOM's broader strategy to reduce risk and focus on higher-margin advisory and consulting services. The company also reported a significant increase in its stockholders' equity, which rose to $2.49 billion from $2.18 billion year-over-year, reflecting improved financial health.

The company’s cash and cash equivalents increased to $1.79 billion as of June 30, 2025, up from $1.58 billion at the end of the previous fiscal year. AECOM's working capital also improved, rising by 29.6% to $1.04 billion. The company reported net cash provided by operating activities of $625 million for the nine months ended June 30, 2025, compared to $529 million in the prior year, indicating strong cash flow generation. Looking ahead, AECOM anticipates continued growth driven by infrastructure investments and plans to utilize its cash reserves for stock repurchases and dividends, with approximately $894 million remaining under its stock repurchase authorization.