AECOM(US:ACM)2025-08-04 20:16Revenue and Income - Revenue for Q3 fiscal 2025 was $4.178 billion, a 1% increase year-over-year, with net service revenue (NSR) at $1.938 billion, reflecting a 6% growth[2] - Net income increased by 35% to $175 million, with adjusted EPS rising by 16% to $1.34[2] - Revenue for the three months ended June 30, 2025, was $4,178,440, a slight increase of 0.7% compared to $4,151,251 in the same period of 2024[25] - Gross profit for the three months ended June 30, 2025, increased by 14.7% to $326,950, up from $285,044 in the prior year[25] - Income from operations rose by 29.3% to $294,077 for the three months ended June 30, 2025, compared to $227,457 in 2024[25] - Net income from continuing operations for the three months ended June 30, 2025, was $203,617, reflecting a 38.7% increase from $146,832 in the same period of 2024[25] - Basic earnings per share for continuing operations increased by 38.9% to $1.32 for the three months ended June 30, 2025, compared to $0.95 in 2024[25] - AECOM's total net income attributable to AECOM from continuing operations for Q3 2025 was $174.8 million, up from $154.1 million in Q2 2025[41] Cash Flow and Capital Management - Free cash flow for the quarter was $262 million, contributing to a year-to-date increase of 27% to a new all-time high of $551 million[11] - Total cash and cash equivalents as of June 30, 2025, were $1,794,077, up from $1,580,877 as of September 30, 2024[27] - Total debt as of June 30, 2025, was $2,548.2 million, with net debt standing at $754.1 million after accounting for cash and cash equivalents of $1,794.1 million[34] - The company has repurchased over $2.3 billion of stock since September 2020, returning more than $2.7 billion of capital to shareholders[12] Backlog and Segment Performance - Total backlog increased by 5% to a record high of $24.588 billion, supported by a 1.0x book-to-burn ratio[11] - The Americas segment reported revenue of $3.3 billion, an increase of 1%, with net service revenue growing by 8% to $1.2 billion[6] - The International segment's revenue was $901 million, a slight decline, but net service revenue increased by 3% to $759 million[9] - Contracted backlog reached $8,836,509 for the nine months ended June 30, 2025, compared to $8,883,852 in the same period of 2024[30] - Total backlog as of June 30, 2025, was $17,973,153, significantly higher than $17,352,250 reported in the previous year[30] - Revenue for the Americas segment reached $3,277.1 million for the three months ended June 30, 2025, an increase from $2,896.7 million in the previous quarter[33] Adjusted Metrics and Guidance - AECOM raised its fiscal 2025 guidance for adjusted EBITDA to between $1.190 billion and $1.210 billion, a 10% increase at the mid-point[11] - AECOM's GAAP net income from continuing operations guidance for FY2025 is projected to be between $675 million and $688 million, with adjusted net income expected to range from $692 million to $705 million[46] - The company anticipates FY2025 adjusted EBITDA guidance to be between $1,190 million and $1,210 million, indicating a strong operational performance outlook[46] - AECOM's GAAP EPS guidance for FY2025 is set between $5.08 and $5.18, while adjusted EPS guidance is projected to be between $5.20 and $5.30[45] Operational Efficiency - Operating income rose by 29% to $294 million, with adjusted operating income also increasing by 13% to $296 million[2] - The adjusted operating margin on net service revenue reached 17.1%, exceeding the long-term target of 17% more than a year ahead of schedule[2] - The company reported capital expenditures of $22.0 million for the three months ended June 30, 2025, compared to $12.3 million in the previous quarter, indicating an increase in investment[35] - AECOM's interest expense for Q3 2025 was $40.2 million, slightly down from $42.2 million in Q2 2025, indicating effective cost management[41] Adjusted Income and Performance Metrics - Adjusted net income attributable to AECOM from continuing operations for the three months ended June 30, 2025, was $178.0 million, an increase from $166.7 million in the previous quarter, reflecting a growth of about 7.8%[39] - AECOM's adjusted EBITDA for Q3 2025 was $312.8 million, compared to $289.7 million in Q2 2025 and $285.5 million in Q3 2024, reflecting a year-over-year increase of 9.5%[41] - The Americas segment's net service revenue was $1,178.8 million for the three months ended June 30, 2025, reflecting a 4.8% increase from $1,124.7 million in the previous quarter[33] - The international segment's net service revenue was $758.6 million for the three months ended June 30, 2025, compared to $742.3 million in the previous quarter, showing a growth of approximately 2.9%[33] - The international segment's adjusted income from operations remained stable at $90.2 million for Q3 2025, consistent with Q2 2025[43]