AECOM Reports 2.9% Revenue Increase to $4.014 Billion in Q1 Fiscal 2025

AECOM reported a revenue increase of 2.9% for the first quarter of fiscal 2025, reaching $4.014 billion compared to $3.900 billion in the same period last year. The company's gross profit also rose by 10.0% to $268.4 million, with a gross profit margin improving to 6.7% from 6.3%. Net income attributable to AECOM was $167.0 million, a significant increase from $94.4 million in the prior year, driven by higher operational efficiency and increased project activity across various sectors, particularly in transportation and water.

The financial performance reflects a notable recovery from the previous fiscal period, where AECOM faced restructuring costs of $16.2 million. In the latest quarter, the company reported no new restructuring costs, contributing to a 45.6% increase in income from operations, which totaled $237.5 million. Additionally, AECOM's equity in earnings from joint ventures improved significantly, moving from a loss of $29.0 million to a profit of $9.6 million, primarily due to the absence of prior impairment losses.

Operationally, AECOM's Americas segment generated $3.112 billion in revenue, up 2.4% year-over-year, while the International segment saw a 4.8% increase to $902.0 million. The growth in the Americas was largely attributed to increased investments in infrastructure, particularly in transportation and water management projects. The company also reported a slight decrease in its Facilities end market, which was offset by gains in other sectors. AECOM's total cash and cash equivalents stood at $1.585 billion, reflecting a stable liquidity position.

Looking ahead, AECOM remains focused on strategic initiatives to enhance profitability and reduce risk exposure, having exited most of its self-perform at-risk construction businesses. The company has also increased its stock repurchase authorization to $1 billion, indicating confidence in its financial health and commitment to returning value to shareholders. AECOM anticipates continued growth driven by ongoing investments in infrastructure and favorable market conditions, although it remains vigilant regarding potential economic downturns and client spending reductions.