"We are strategically positioning ourselves to capitalize on an increasing demand for sustainable infrastructure."
— CEO
03Detailed Report
0H9N.L
Aecom
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
In the first quarter of 2025, Aecom (0H9N.L) recorded a notable increase in net income, surging by 76.88% year-over-year to $167.04 million, driven by strong operational efficiency and a strategic focus on cost management. However, revenue decreased by 2.34% quarter-over-quarter to $4.01 billion, highlighting a potential slowing in demand for engineering and construction services. Management acknowledged that while the earnings growth reflects sustained profitability, the revenue pullback raises concerns about broader market conditions.
Despite the decrease in revenue, Aecom's operating income increased by over 45%, reflecting effective management of operating expenses and an emphasis on high-margin projects. Investors are advised to watch for developments in demand trends in upcoming quarters, which could influence performance moving forward. The balance sheet remains robust with a total cash position of $1.58 billion, providing the company the liquidity necessary to navigate uncertain economic conditions.
Aecom's operational adjustments focused on optimizing labor costs and increasing the share of professional service billing in total revenue, which contributed to a significant operating income rise (45.59% YoY). Conversely, the slight revenue decline offers insights into competitive pressures and project pipeline visibility.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.01B
2.93%
-2.34%
Gross Profit
268.40M
10.02%
-8.75%
Operating Income
237.50M
45.59%
0.47%
Net Income
167.04M
76.88%
-3.19%
EPS
1.26
82.61%
-2.33%
Key Financial Ratios
Gross Profit Margin
Weak
6.69%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
5.68%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
4.16%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.41%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
7.58%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.14
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.43
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
21.39x
P/E ratio in line with market averages
Price to Book
High Premium
6.49x
Very high premium suggests asset-light business model or lofty expectations
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