AECOM(US:ACM)2025-11-18 23:30Revenue and Profitability - Revenue for the year ended September 30, 2025, was $16,140 million, a slight increase from $16,105 million in 2024, and significantly higher than $14,378 million in 2023, reflecting a growth trend [206] - Gross profit for the year ended September 30, 2025, was $1,217 million, compared to $1,084 million in 2024, indicating a gross margin improvement [206] - The cost of revenue for the year ended September 30, 2025, was $14,923 million, slightly lower than $15,021 million in 2024, contributing to improved profitability [206] - Income from operations for the year ended September 30, 2025, was $1,027 million, up from $827 million in 2024, showcasing operational efficiency [206] - Net income attributable to AECOM for the fiscal year ended September 30, 2025, was $561.8 million, an increase of $159.5 million, or 39.6% compared to $402.3 million for the previous year [229] - Income from continuing operations before taxes for the fiscal year ended September 30, 2025, was $915.6 million, an increase of $197.4 million, or 27.5% compared to $718.2 million for the previous year [229] Business Acquisitions and Restructuring - Two business acquisitions were completed during the year ended September 30, 2025, following one acquisition in 2024, while no acquisitions occurred in 2023 [203] - The company has exited substantially all of its self-perform at-risk construction businesses to improve profitability and reduce risk exposure [201] - Restructuring and acquisition costs for the fiscal year ended September 30, 2025, were $59.4 million, down from $98.9 million in the previous year [241] - The company expects to spend approximately $45 million for restructuring in fiscal 2026 associated with prior restructuring actions [274] Financial Position and Debt - Total debt as of September 30, 2025, was $2,743.7 million, an increase from $2,539.8 million in 2024, with long-term debt at $2,647.2 million [286] - The company entered into a new $1,500 million revolving credit facility and a $750 million term loan A facility on April 19, 2024, maturing in 2029 [287] - The average effective interest rate on total debt was 5.1% for the year ended September 30, 2025, down from 5.6% in 2024 [300] - Scheduled maturities of debt include $66.3 million in 2026 and $761.3 million in 2029 [286] - The company had $1,439.9 million in outstanding borrowings under its term credit agreements and revolving credit facility as of September 30, 2025 [330] Cash Flow and Working Capital - Net cash provided by operating activities was $821.6 million for the year ended September 30, 2025, compared to $827.5 million for the previous year [278] - Net cash used in investing activities increased to $413.2 million for the year ended September 30, 2025, compared to $210.6 million for the previous year, primarily due to cash payments for business acquisitions [279] - Working capital decreased by $119.7 million, or 17.6%, to $801.4 million at September 30, 2025, from $921.1 million at September 30, 2024 [281] - Days Sales Outstanding (DSO) increased to 74 days at September 30, 2025, compared to 70 days at September 30, 2024 [282] Segment Performance - Revenue for the Americas segment increased by $40.2 million, or 0.3%, to $12,525.9 million for the year ended September 30, 2025, compared to $12,485.7 million for the previous year [261] - Gross profit for the Americas segment increased by $123.0 million, or 16.2%, to $882.1 million, with gross profit as a percentage of revenue rising to 7.0% from 6.1% [264] - Revenue for the International segment decreased by $5.2 million, or 0.1%, to $3,613.2 million for the year ended September 30, 2025, compared to $3,618.4 million for the previous year [267] - Gross profit for the International segment increased by $10.3 million, or 3.2%, to $334.1 million, with gross profit as a percentage of revenue increasing to 9.2% from 8.9% [270] Tax and Pension Obligations - The company recorded a reserve of $47.0 million related to uncertain tax positions during fiscal 2025 [246] - Deferred tax assets of $20.1 million were recognized during fiscal 2025 due to legal entity restructuring [247] - The company had an aggregate pension plan deficit of approximately $89.4 million as of September 30, 2025 [304] - The company contributed $2.7 million to multiemployer pension plans for the year ended September 30, 2025 [305] Risk Management and Commitments - The company actively monitors foreign currency exchange rates and interest rate exposure, using derivative financial instruments as necessary to manage these risks [328] - The company has capital commitments of $5.1 million to the AECOM-Canyon Equity Fund over the next three years [316] - As of September 30, 2025, the company was contingently liable for approximately $903.8 million in issued standby letters of credit and $5.6 billion in issued surety bonds [314] - The company had $903.8 million outstanding under standby letters of credit as of September 30, 2025 [303]