Record backlog and a dramatic profit rebound headline Q3 FY2025 — but the details matter#
AECOM reported a record backlog of $24.588 billion as of Q3 FY2025, a figure management highlighted on the August 4, 2025 results release and in subsequent press coverage. At the same time, FY2024 financials show a dramatic earnings recovery: net income rose to $402.27 million from $55.33 million a year earlier, a YoY increase of +627.16%, driven by higher revenue and improved operating performance. Those two facts — a long-dated, geographically diversified backlog and a pronounced rebound in profitability — create a compelling combination of revenue visibility and earnings leverage, but they also demand scrutiny on execution, cash conversion and balance-sheet dynamics.AECOM Reports Third Quarter Fiscal 2025 Results
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The headline metrics are attention-grabbing because they point to two connected strengths: (1) a pipeline of awarded work large enough to cover roughly 1.53 years of FY2024 revenue (backlog/revenue = 24.588 / 16.11 = 1.53x), and (2) a return to materially positive net margins (FY2024 net margin 2.50%) after a depressed prior year. Yet the governance of conversion — how efficiently AECOM turns backlog into profitable revenue and cash — is the practical question investors must evaluate next.
Financial performance: growth, margins, and cash — a reconciled view#
Using AECOM’s audited FY figures for the last four fiscal years (FY2021–FY2024), the simplest picture is one of accelerating top-line growth and improving margins coupled with continued cash generation and shareholder capital returns. Revenue grew from $14.38B in FY2023 to $16.11B in FY2024, a YoY increase of +12.03%, primarily driven by higher fee income across consulting, design and program management. Gross profit and EBITDA expanded in absolute terms as well, with FY2024 EBITDA reported at $1.08B, implying an EBITDA margin of ~6.71% (1.08 / 16.11 = 6.71%).AECOM FY2024 filings
Net income in the income statement series is $402.27MM for FY2024, which yields a net margin of 2.50% (402.27 / 16.11). Operating cash flow in FY2024 was $827.49MM, and free cash flow was $707.89MM, reflecting disciplined capex (capital expenditures: $119.6MM) and active working-capital management as reported in the company cash flow statement.AECOM FY2024 cash flow data
There are some data inconsistencies within the materials that require explicit acknowledgement. The income statement lists FY2024 net income at $402.27MM, while the cash flow statement lists a net income of $460.25MM for the same period. For profitability metrics and margin calculations this analysis uses the income-statement net income as the primary source (the consolidated statement of operations), and uses the cash-flow line items for cash generation metrics (operating cash flow, free cash flow). The divergence is not uncommon in aggregations prepared from multiple feeds (timing of adjustments, discontinued operations or noncontrolling interests can create differences), but it is material enough to flag and monitor in later filings and in the FY2025 audited statements.AECOM FY2024 filings
Table: Income statement snapshot (FY2021–FY2024)#
| Fiscal Year | Revenue (USD) | Gross Profit (USD) | EBITDA (USD) | Net Income (USD) | Net Margin |
|---|---|---|---|---|---|
| 2024 | 16,110,000,000 | 1,080,000,000 | 1,080,000,000 | 402,270,000 | 2.50% |
| 2023 | 14,380,000,000 | 945,470,000 | 548,470,000 | 55,330,000 | 0.38% |
| 2022 | 13,150,000,000 | 847,970,000 | 871,750,000 | 310,610,000 | 2.36% |
| 2021 | 13,340,000,000 | 798,420,000 | 813,360,000 | 173,190,000 | 1.30% |
(Values per company filings; margins calculated as net income / revenue.)
That table shows the arithmetic behind the YoY swings: revenue expansion helped lift gross profit dollars, and while FY2023 was an outlier with compressed net income, FY2024’s return to higher absolute EBITDA and disciplined SG&A drove the large percentage gain in net income. The FY2024 EBITDA figure equal to gross profit in the data set appears to be an artifact of reported fields; the practical takeaway is that operating profitability recovered meaningfully in FY2024 compared with FY2023.
Cash generation and capital allocation: buybacks, dividends, and leverage#
Cash flow metrics show consistent cash generation. Operating cash flow for FY2024 of $827.49MM produced free cash flow of $707.89MM, a free-cash-flow margin of approximately 4.40% (707.89 / 16.11). The firm returned capital to shareholders through dividends of $115.24MM and common stock repurchases of $478.5MM in FY2024, while net cash at the end of period stood at $1.58B.AECOM FY2024 cash flow data
Balance-sheet metrics require careful reconciliation. As of FY2024 year-end, total assets were reported at $12.06B, total liabilities at $9.69B, and total stockholders’ equity at $2.18B. Total debt was $3.03B with net debt (total debt less cash) of $1.45B. Using the FY2024 numbers, debt-to-equity (total debt / total equity) computes to ~1.39x or 138.99%, and net-debt-to-EBITDA (1.45 / 1.08) computes to ~1.34x. These leverage metrics indicate moderate leverage relative to the firm’s cash-generation profile, leaving headroom for buybacks and dividend payouts but also creating sensitivity to execution risk if margins compress.AECOM FY2024 balance sheet
Table: Balance sheet & cash flow summary (FY2023 vs FY2024)#
| Metric | FY2023 | FY2024 | Change |
|---|---|---|---|
| Cash & equivalents | 1,260,000,000 | 1,580,000,000 | +25.4% |
| Total assets | 11,230,000,000 | 12,060,000,000 | +7.4% |
| Total liabilities | 8,850,000,000 | 9,690,000,000 | +9.5% |
| Total equity | 2,210,000,000 | 2,180,000,000 | -1.4% |
| Total debt | 2,750,000,000 | 3,030,000,000 | +10.2% |
| Net debt | 1,490,000,000 | 1,450,000,000 | -2.7% |
| Operating cash flow | 695,980,000 | 827,490,000 | +18.9% |
| Free cash flow | 590,380,000 | 707,890,000 | +19.9% |
(Company-reported figures; changes calculated year over year.)
The combination of rising operating cash flow and modestly lower net debt year-over-year (driven by cash generation and buybacks) shows that the firm is converting operating improvements into cash while still returning capital to shareholders.
Backlog composition and the strategic revenue runway#
Management reported a $24.588B backlog at Q3 FY2025, up roughly +5% YoY, with both the Americas and International design businesses at record backlog levels and a book-to-burn ratio above 1.0x for the 19th consecutive quarter.AECOM Q3 FY2025 results That backlog is concentrated in programmatic frameworks, infrastructure frameworks and large project wins in transportation, water and energy transition programs — areas where AECOM claims competitive strength.
Backlog-to-revenue of ~1.53x implies roughly 18 months of revenue at FY2024 revenue levels, giving multi-quarter revenue visibility. This coverage is particularly valuable in the context of public infrastructure spending cycles and multiyear programs such as the U.S. IIJA and comparable overseas stimulus initiatives. However, backlog alone is not a guarantee of margin accretion; the quality of awards (fee vs. risk-based contracts, scope of PM‑C vs. design-build) will determine realized margins as backlog converts.
The company’s reported recent awards include a place on the UK National Highways SPaTS3 framework (up to £495 million over six years), the Changi Water Reclamation Plant Phase 3 assignment (AECOM–Binnies JV) in Singapore, and a project management/engineering role on The Avenues — Riyadh Phase II (reported program value > $4 billion). These wins are consistent with the backlog composition and indicate both geographic diversification and exposure to higher-value programmatic work that can produce steady fee income over several years.AECOM press releases and coverage
Execution risks and the margin story#
AECOM’s operating margin profile improved in FY2024 (operating income of $827.44MM, operating income ratio 5.14%), but the firm remains exposed to execution risks that can erode margins: labor cost inflation, subcontractor pricing volatility, schedule slippage and the typical scope-change exposure on long-cycle projects. The sustained book-to-burn >1.0x implies a steady flow of awards, but converting that flow into profitable revenue depends on resource utilization, program controls and digital project-delivery effectiveness.
The company is emphasizing higher-margin program management and recurring framework work as a deliberate margin-management strategy. Programmatic frameworks tend to reduce overhead intensity per dollar of revenue and increase predictability, but they also require scale investments in regional teams and digital delivery capabilities that must be managed to preserve margin expansion.
Competitive positioning: scale, depth and global reach#
AECOM competes with other global engineering and professional services firms in a crowded market. Its scale, cross-sector capabilities and global delivery model are competitive advantages in winning frameworks and megaproject roles; recent wins in the UK, Singapore and Saudi Arabia demonstrate the firm’s ability to secure programmatic assignments and large PM‑C engagements in priority markets. That said, competition for frameworks is fierce, and margins can be pressured by pricing competition, particularly on large public tenders.
What differentiates AECOM is a mix of diversified sector exposure and global delivery capabilities that position it to capture IIJA-related spending in the U.S. while also participating in international resilience, water and energy transition programs. The strategic pivot to digital project-delivery and AI-enabled engineering has been cited by management as a differentiator, but execution outcomes and measurable efficiency gains should be tracked in future quarterly reporting.
What this means for stakeholders#
For clients and project partners, the enlarged backlog and programmatic wins provide assurance of continuity and scale. For creditors, moderate leverage and consistent free cash flow generation support ongoing liquidity, although the firm’s capital returns program (large buybacks in recent years) slightly reduces cushion. For equity holders, the interplay of backlog visibility, improving operating profitability and active capital returns creates a clearer cash-flow profile, but market valuation will remain sensitive to execution on recently awarded frameworks and to margin sustainability.
Forward-looking considerations grounded in the numbers#
Three near-term dynamics will likely determine whether the current momentum translates into durable financial improvement. First, the pace of backlog conversion into recognized revenue will determine near-term revenue growth and margin realization; at FY2024 revenue, the backlog represents ~1.53 years of work, which provides coverage but implies that only a portion will convert each fiscal year. Second, operational discipline on program delivery — measured by utilization, subcontractor cost control and resistance to scope-creep — will determine whether margins expand beyond FY2024 levels. Third, capital allocation choices (share repurchases vs. reinvestment in digital capabilities and regional capacity) will shape longer-term ROI and competitive positioning.
From a leverage standpoint, FY2024 net debt of $1.45B and EBITDA of $1.08B yield a net-debt-to-EBITDA ratio of ~1.34x on FY figures. That level of leverage is modest for a company with stable public-and-programmatic revenue streams, but it would be pressured in a scenario where margins compress materially and free cash flow falls. Investors should watch leverage trends, buyback pacing and any material changes in working capital tied to large project starts.AECOM FY2024 balance sheet & cash flow
Key takeaways#
AECOM has converted recent market wins into a record $24.588B backlog and posted a sizable rebound in reported net income for FY2024 ($402.27MM, +627.16% YoY). The company generated $827.49MM of operating cash flow and $707.89MM of free cash flow in FY2024 while returning capital through dividends and $478.5MM of buybacks. Backlog coverage (~1.53x FY2024 revenue) provides multi-quarter revenue visibility and aligns with demand trends in transportation, water and energy transition programs.
At the same time, a few cautionary points are clear from the numbers: there are data discrepancies in reported net income across datasets that warrant monitoring; margins remain modest in absolute terms (FY2024 net margin 2.50%, EBITDA margin ~6.71%); and leverage metrics computed from FY2024 show net-debt-to-EBITDA of ~1.34x and debt-to-equity of ~1.39x, which means the company has limited but not excessive balance-sheet flexibility. Execution on high-value frameworks and continued free-cash-flow generation will determine whether the backlog converts into sustainably higher returns on capital.AECOM FY2024 filings
Frequently asked fiscal questions (featured snippet style)#
What is AECOM’s backlog and how long will it fund revenue? AECOM reported a $24.588B backlog at Q3 FY2025, which equals about 1.53x FY2024 revenue and therefore provides roughly 18 months of revenue coverage at FY2024 run-rate, though actual conversion is phased by contract schedule and scope.AECOM Q3 FY2025 results
How much cash flow did AECOM generate in FY2024? AECOM generated $827.49MM of operating cash flow and $707.89MM of free cash flow in FY2024, after $119.6MM of capital expenditure.AECOM FY2024 cash flow data
Conclusion: growth visibility is stronger; execution will determine whether value follows#
The combination of a record backlog and a sizable earnings rebound gives AECOM a clearer multi-quarter revenue runway and improved cash-generation dynamics. The financials show real progress: revenue acceleration (+12.03% YoY in FY2024), meaningful improvements in operating income, and robust free cash flow. However, margins remain modest in absolute terms and leverage is nontrivial when measured on an FY basis. The next phase of investor focus should be on back‑to‑burn conversion rates, margin durability on the large framework wins, and whether the company’s investments in regional delivery and digital project controls translate into sustainable operating leverage.
For specificity in market notation, AECOM trades under the ticker [ACM], with a market capitalization roughly $16.35B and a last-quoted price of $123.45 in the provided snapshot; reported EPS inputs in the data feeds differ slightly by source, which explains the variance between a reported PE of 24.49x in one feed and a computed TTM PE of ~26.60x using TTM EPS of 4.64 — differences driven by differing EPS definitions used across data vendors. Those data-feed variances reinforce the need to follow company filings and the audited FY2025 statements for the definitive figures.ACM quote & fundamentals
Overall, AECOM’s current story is one of strengthened revenue visibility and improving profitability, anchored by a diversified, programmatic backlog. The investment case (not a recommendation) will pivot on management’s ability to translate that backlog into consistent margin expansion and free-cash-flow growth while maintaining prudent capital allocation and monitoring leverage.