AECOM Bets on Next-Gen AI to Drive Profit Margin to 20%

AECOM has set out an ambitious plan to lift its profit margin to 20 per cent by 2028, banking on AI-driven efficiencies that lower operating costs and enable higher-value services.

The global infrastructure and engineering group, undertaking major projects in Saudi Arabia, South Africa, and elsewhere, reported flat full-year 2025 revenue of $18.7 billion.

However, adjusted net profit rose 14 per cent to $702 million amid a record order backlog that increased 4 per cent to $24.8 billion.

The backlog grew in both the Americas and the international design business, even though annual revenue in these segments remained flat year-on-year.

Chairman and Chief Executive Troy Rudd said the company’s momentum placed it in a strong position. He noted, “We exceeded the midpoints of our previously increased financial guidance in fiscal 2025, including delivering a record full-year margin, highlighted by a 17.1 per cent margin in the second half of the fiscal year.”

He added that AECOM had laid out plans that “underscore our commitment to extending our competitive advantage and expanding our long-term earnings power.”

Rudd said this included the expectation of achieving “a 20 per cent+ 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.”

AECOM’s President, Lara Poloni, said the changing demands of infrastructure projects were creating opportunities for the company’s advisory specialists.

“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,” she said.

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Poloni pointed to wider global forces shaping investment decisions. 

“The secular megatrends of global investment in infrastructure, sustainability, and resilience, as well as meeting growing energy demand, have accelerated,” she said.

She argued that AECOM’s blend of technical expertise, established client relationships, and investment in its own AI and advisory capabilities “separate us from the competition, both in our core industry and beyond.”

The company said it expects these factors to support long-term growth while helping it raise profitability over the next three years.

AECOM recently acquired Norwegian AI start-up Consigli in a $390 million deal, following several joint projects between the two companies.

Following the acquisition, Consigli founder and CEO Janne Aas-Jakobsen will assume the role of Head of AI Engineering at AECOM.

The move highlights AECOM’s view of Consigli’s technology and talent as a strategic differentiator, advancing its AI-driven efficiencies and higher-margin advisory business.

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