Aecom bets on AI to boost margin target to 20%

Aecom office in Markham, Ontario, Canada (Image: Raysonho @ Open Grid Scheduler / Grid Engine, CC0, via Wikimedia Commons)

Revenue was flat at €16.1 billion for the full year while adjusted net profit increased 14% to $702 million.

The company’s order backlog reached a record level, climbing 4% to $24.8 billion. Backlog increased in both the Americas and the international design business.

Full-year revenue in both the Americas and international segments were unchanged from the prior year.

Troy Rudd, Aecom’s chairman and chief executive officer said that its high-margin advisory business and its proprietary AI would help propel the company towards the increased margin target of 20%.

He said, “We exceeded the midpoints of our previously-increased financial guidance in fiscal 2025, including delivering a record full year margin and highlighted by a 17.1% margin in the second half of the fiscal year. Looking ahead, we made several announcements today that underscore our commitment to extending our competitive advantage and expanding our long-term earnings power. This includes our expectation to achieve a 20%+ margin run-rate by the end of fiscal 2028 as we advance our proprietary AECOM AI capabilities and growth accelerates in our higher-margin Advisory business.”

Lara Poloni, Aecom’s president, said, “As demand for critical infrastructure across our markets continues to grow, project size and complexity are also increasing, which creates new opportunities for our rapidly growing advisory practice.

“The secular megatrends of global investments in infrastructure in sustainability and resilience, and in meeting growing energy demand have accelerated. 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.”