AECOM(US:ACM) ZACKS·2025-11-19 18:16Core Insights - AECOM (ACM) reported better-than-expected results for Q4 fiscal 2025, with both earnings and revenues surpassing estimates and showing year-over-year growth [1][8] - The company achieved its highest-ever annual margin and ended the year with a record backlog and pipeline, marking five consecutive quarters of backlog growth [2][8] - AECOM expects to reach a 20%+ margin run rate by fiscal 2028, driven by advancements in AI capabilities and growth in its Advisory business [2] Financial Performance - Adjusted EPS for Q4 was $1.36, exceeding the consensus estimate of $1.34 by 1.5% and increasing 7.1% year-over-year [3] - Revenues for the quarter were $4.11 billion, a 1.6% year-over-year increase, while net service revenues (NSR) were $1.97 billion, surpassing the consensus of $1.95 billion with an 8.5% year-over-year growth [3] - Total backlog at the end of Q4 was $24.83 billion, up 4% from the previous year, with a design backlog increase of 3% [4] Segment Performance - Americas' revenues were $3.2 billion, up 2% year-over-year, with NSR increasing 13% to $1.2 billion [5] - Adjusted operating income in the Americas segment rose 17% year-over-year to $244 million, with an adjusted operating margin of 20.4% [5] - International revenues decreased 1% year-over-year to $935 million, while NSR remained unchanged at $769 million [6] Guidance and Future Outlook - AECOM's fiscal 2026 guidance projects adjusted EPS in the range of $5.65-$5.85, indicating a 9% improvement from fiscal 2024 levels [11] - Expected adjusted EBITDA for fiscal 2026 is between $1.265 billion and $1.305 billion, reflecting 7% year-over-year growth [12] - The company anticipates NSR in the range of $7.2-$7.4 billion, indicating 5% year-over-year growth at the midpoint [13]