AECOM (ACM) delivered a mixed bag of results for its fourth-quarter fiscal 2025 on Tuesday, beating earnings expectations while falling short on revenue. The company also threw a curveball by launching a strategic review of its Construction Management business.
Here's how the numbers shook out: Revenue climbed 2% year over year to $4.175 billion, but that still came in below the Street's expectation of $4.315 billion. On the bright side, adjusted earnings per share hit $1.36, up 7% from last year and edging past the consensus estimate of $1.34.
AECOM President Lara Poloni struck an optimistic tone despite the mixed results. "The secular megatrends of global investments in infrastructure, in sustainability and resilience, and in meeting growing energy demand have accelerated," she said. "Amid this backdrop, our advantages of deep technical expertise, trusted client relationships, and a capacity and willingness to invest to advance our proprietary AECOM AI and Advisory capabilities separate us from the competition – both in our core industry and beyond."
Looking ahead, AECOM projected fiscal 2026 adjusted EPS between $5.65 and $5.85, which is substantially higher than the consensus estimate of $5.24. The company also expects adjusted EBITDA of $1.265 billion to $1.305 billion and free cash flow around $400 million.
The market wasn't entirely convinced, though. AECOM shares tumbled 8.6% to $116.21 on Wednesday following the announcement.
Wall Street analysts responded to the results with updated price targets, though most maintained their bullish stance on the stock:
- Baird analyst Andrew Wittmann kept an Outperform rating and trimmed his price target slightly from $144 to $143.
- UBS analyst Steven Fisher maintained his Buy rating while lowering his target from $153 to $148.
- Citigroup analyst Andrew Kaplowitz held his Buy rating and actually raised his price target from $150 to $152.
Despite the stock's Wednesday selloff, the analyst community seems to believe AECOM's long-term positioning in infrastructure and sustainability trends remains intact.
