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AECOM topped Q4 earnings and revenue estimates with year-over-year growth across key metrics.
Backlog and pipeline hit record highs, with 20 straight quarters of book-to-burn above 1.0.
ACM issued FY26 guidance projecting higher EPS and EBITDA and continued strong NSR performance.
AECOM (ACM - Free Report) reported better-than-expected results for fourth-quarter fiscal 2025, where both earnings and revenues surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. However, net service revenues (NSR) increased from the prior-year quarter.
AECOM delivered a strong fourth-quarter performance, surpassing its raised earnings guidance and achieving its highest-ever annual margin. The company ended the year with a record backlog and pipeline, marking the fifth consecutive quarter of sequential backlog growth. It now expects to reach a 20%+ margin run rate by fiscal 2028, supported by advancements in its proprietary AI capabilities and continued growth in its higher-margin Advisory business. AECOM also issued fiscal 2026 guidance that reflects sustained strength across all key financial metrics.
Delving Deeper Into ACM’s Q4 Results
The company reported adjusted earnings per share (EPS) of $1.36, which topped the consensus mark of $1.34 by 1.5% and increased 7.1% from the prior-year quarter.
Revenues of $4.11 billion grew 1.6% year over year to $4.18 billion. NSR of $1.97 billion surpassed the consensus mark of $1.95 billion and increased 8.5% year over year.
Total backlog at the fiscal fourth-quarter end was $24.83 billion, up 4% from the year-ago period. AECOM’s design backlog rose 3% to a new record high and a solid 1.1x book-to-burn ratio in its U.S. design business. This marks the 20th consecutive quarter with a book-to-burn ratio above 1.0, reflecting sustained demand. Additionally, the company’s pipeline of opportunities reached an all-time high, which increased by 13%. This growth is being driven by strong funding across the company’s major markets, which is creating more project opportunities.
ACM’s Segment Details
Americas’ revenues were $3.2 billion during the reported quarter, up 2% from the prior-year quarter’s levels. And NSR of $1.2 billion moved up 13% year over year.
Adjusted operating income of $244 million was up 17% year over year. Adjusted operating margin (on an NSR basis) expanded 70 basis points (bps) year over year to a new high of 20.4%. This growth was driven by ongoing execution of initiatives to deliver expanding operating leverage, as well as strong execution and growth.
The total backlog at the end of the fiscal fourth quarter was $17.96 billion compared with $17.44 billion a year ago.
International revenues were down 1% year over year to $935 million. Nonetheless, NSR remained unchanged year over year at $769 million.
Adjusted operating income in the segment rose 2% year over year to $93 million. Adjusted operating margin (on an NSR basis) also moved down 50 bps year over year to 12.1%. This decline was caused by lower revenues in certain end markets.
The total backlog at the end of the fiscal fourth quarter was $6.87 billion, up from $6.43 billion a year ago.
AECOM Capital's quarterly revenues were $0.1 million.
Operating Highlights of ACM
Adjusted segment operating profit amounted to $299 million, up 14% from the year-ago quarter. The segment’s adjusted operating margin improved 40 bps to 17.1%.
Adjusted EBITDA rose 13% year over year to $329 million. Adjusted EBITDA margin of 17.5% also rose 80 bps year over year.
Liquidity & Cash Flow of ACM
At the end of the fiscal fourth quarter, AECOM’s cash and cash equivalents totaled $1.59 billion, up from $1.58 billion at fiscal 2024-end. The total debt (excluding unamortized debt issuance costs) as of Sept. 30, 2025, was $2.74 billion, up from $2.54 billion at fiscal 2024-end.
At the fiscal fourth-quarter end, operating cash flow decreased 34% year over year to $196 million. Adjusted free cash flow also declined 51% to $134 million year over year.
ACM’s FY26 Guidance
AECOM’s fiscal 2026 guidance for adjusted EBITDA and EPS reaffirms its outlook for record net service revenues, robust profitability and margins, and sustained strong cash flow conversion throughout the year.
It is now expecting adjusted EPS in the range of $5.65-$5.85. This indicates a 9% improvement from fiscal 2024 levels on a constant-currency basis, considering the midpoint of the guidance.
AECOM expects adjusted EBITDA in the range of $1.265-$1.305. This indicates 7% year-over-year growth at the midpoint.
Free cash flow is expected to be approximately $400 million, which also includes planned investments related to the company’s announced restructuring to support key AI initiatives and the efficiency improvements outlined at today’s 2025 Investor Day.
ACM’s Guidance for FY26 Excluding the Construction Management Business
AECOM expects NSR in the range of $7.2-$7.4 billion. This indicates 5% year-over-year growth at the midpoint.
It expects adjusted EBITDA in the range of $1,180-$1,220 million, an adjusted operating margin of 16.6% and an adjusted EBITDA margin of 16.8%. ACM is now expecting adjusted EPS in the range of $5.15-$5.35. The company anticipates generating 6-8% organic NSR growth in fiscal 2026.
Vulcan Materials Company (VMC - Free Report) reported impressive third-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
The quarterly performance of Vulcan was driven by solid contributions from its aggregates-led business, alongside effective commercial and operational execution. The market’s public infrastructure spending trends are favoring its business prospects, despite tariff-related uncertainties circling the economy. Vulcan now expects adjusted EBITDA for 2025 to be between $2.35 billion and $2.45 billion, up from $2.06 billion reported in 2024.
Masco Corporation (MAS - Free Report) posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year. The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment.
The ongoing uncertainties in the global economy and tariff-related risks are restricting Masco’s near-term prospects. Masco expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024). Adjusted EPS is now expected to be between $3.90 and $3.95 compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.
United Rentals, Inc.’s (URI - Free Report) third-quarter 2025 EPS missed the Zacks Consensus Estimate, while revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.
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AECOM Q4 Earnings Surpass Estimates, Backlog Increases Y/Y
Key Takeaways
AECOM (ACM - Free Report) reported better-than-expected results for fourth-quarter fiscal 2025, where both earnings and revenues surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. However, net service revenues (NSR) increased from the prior-year quarter.
AECOM delivered a strong fourth-quarter performance, surpassing its raised earnings guidance and achieving its highest-ever annual margin. The company ended the year with a record backlog and pipeline, marking the fifth consecutive quarter of sequential backlog growth. It now expects to reach a 20%+ margin run rate by fiscal 2028, supported by advancements in its proprietary AI capabilities and continued growth in its higher-margin Advisory business. AECOM also issued fiscal 2026 guidance that reflects sustained strength across all key financial metrics.
Delving Deeper Into ACM’s Q4 Results
The company reported adjusted earnings per share (EPS) of $1.36, which topped the consensus mark of $1.34 by 1.5% and increased 7.1% from the prior-year quarter.
AECOM Price, Consensus and EPS Surprise
AECOM price-consensus-eps-surprise-chart | AECOM Quote
Revenues of $4.11 billion grew 1.6% year over year to $4.18 billion. NSR of $1.97 billion surpassed the consensus mark of $1.95 billion and increased 8.5% year over year.
Total backlog at the fiscal fourth-quarter end was $24.83 billion, up 4% from the year-ago period. AECOM’s design backlog rose 3% to a new record high and a solid 1.1x book-to-burn ratio in its U.S. design business. This marks the 20th consecutive quarter with a book-to-burn ratio above 1.0, reflecting sustained demand. Additionally, the company’s pipeline of opportunities reached an all-time high, which increased by 13%. This growth is being driven by strong funding across the company’s major markets, which is creating more project opportunities.
ACM’s Segment Details
Americas’ revenues were $3.2 billion during the reported quarter, up 2% from the prior-year quarter’s levels. And NSR of $1.2 billion moved up 13% year over year.
Adjusted operating income of $244 million was up 17% year over year. Adjusted operating margin (on an NSR basis) expanded 70 basis points (bps) year over year to a new high of 20.4%. This growth was driven by ongoing execution of initiatives to deliver expanding operating leverage, as well as strong execution and growth.
The total backlog at the end of the fiscal fourth quarter was $17.96 billion compared with $17.44 billion a year ago.
International revenues were down 1% year over year to $935 million. Nonetheless, NSR remained unchanged year over year at $769 million.
Adjusted operating income in the segment rose 2% year over year to $93 million. Adjusted operating margin (on an NSR basis) also moved down 50 bps year over year to 12.1%. This decline was caused by lower revenues in certain end markets.
The total backlog at the end of the fiscal fourth quarter was $6.87 billion, up from $6.43 billion a year ago.
AECOM Capital's quarterly revenues were $0.1 million.
Operating Highlights of ACM
Adjusted segment operating profit amounted to $299 million, up 14% from the year-ago quarter. The segment’s adjusted operating margin improved 40 bps to 17.1%.
Adjusted EBITDA rose 13% year over year to $329 million. Adjusted EBITDA margin of 17.5% also rose 80 bps year over year.
Liquidity & Cash Flow of ACM
At the end of the fiscal fourth quarter, AECOM’s cash and cash equivalents totaled $1.59 billion, up from $1.58 billion at fiscal 2024-end. The total debt (excluding unamortized debt issuance costs) as of Sept. 30, 2025, was $2.74 billion, up from $2.54 billion at fiscal 2024-end.
At the fiscal fourth-quarter end, operating cash flow decreased 34% year over year to $196 million. Adjusted free cash flow also declined 51% to $134 million year over year.
ACM’s FY26 Guidance
AECOM’s fiscal 2026 guidance for adjusted EBITDA and EPS reaffirms its outlook for record net service revenues, robust profitability and margins, and sustained strong cash flow conversion throughout the year.
It is now expecting adjusted EPS in the range of $5.65-$5.85. This indicates a 9% improvement from fiscal 2024 levels on a constant-currency basis, considering the midpoint of the guidance.
AECOM expects adjusted EBITDA in the range of $1.265-$1.305. This indicates 7% year-over-year growth at the midpoint.
Free cash flow is expected to be approximately $400 million, which also includes planned investments related to the company’s announced restructuring to support key AI initiatives and the efficiency improvements outlined at today’s 2025 Investor Day.
ACM’s Guidance for FY26 Excluding the Construction Management Business
AECOM expects NSR in the range of $7.2-$7.4 billion. This indicates 5% year-over-year growth at the midpoint.
It expects adjusted EBITDA in the range of $1,180-$1,220 million, an adjusted operating margin of 16.6% and an adjusted EBITDA margin of 16.8%.
ACM is now expecting adjusted EPS in the range of $5.15-$5.35. The company anticipates generating 6-8% organic NSR growth in fiscal 2026.
ACM’s Zacks Rank & Recent Construction Releases
AECOM currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vulcan Materials Company (VMC - Free Report) reported impressive third-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
The quarterly performance of Vulcan was driven by solid contributions from its aggregates-led business, alongside effective commercial and operational execution. The market’s public infrastructure spending trends are favoring its business prospects, despite tariff-related uncertainties circling the economy. Vulcan now expects adjusted EBITDA for 2025 to be between $2.35 billion and $2.45 billion, up from $2.06 billion reported in 2024.
Masco Corporation (MAS - Free Report) posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year. The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment.
The ongoing uncertainties in the global economy and tariff-related risks are restricting Masco’s near-term prospects. Masco expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024). Adjusted EPS is now expected to be between $3.90 and $3.95 compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.
United Rentals, Inc.’s (URI - Free Report) third-quarter 2025 EPS missed the Zacks Consensus Estimate, while revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.