News
February 7, 2025

AECOM CEO: Deregulation Outweighs Agency Cuts

Caroline Raffetto

The benefits of permitting reform outweigh the risks posed by potential federal agency cuts, according to AECOM CEO Troy Rudd. Speaking on the company’s latest earnings call on February 4, Rudd addressed industry concerns regarding the Trump administration’s aggressive approach toward federal bureaucracy and its impact on infrastructure funding.

A Resilient Business Model

During AECOM’s fiscal first-quarter earnings report, Rudd responded to concerns about President Donald Trump’s efforts to dissolve or significantly scale back agencies such as the U.S. Agency for International Development (USAID) and the Environmental Protection Agency (EPA)—both of which are AECOM clients.

AECOM CEO says Trump's permitting ...
“Our business is highly diverse, eliminating reliance on any single market or client,” Rudd said. “The EPA and USAID together account for only 50 basis points of our trailing 12 months revenue and reflect a similar proportion in our pipeline and backlog.”

Instead, Rudd emphasized that the majority of AECOM’s government work comes from the Department of Defense, which he expects to see strong funding growth under the new administration.

Infrastructure Investment Remains Strong

Rudd also spoke about Trump’s recent moves to pause funding for the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). Court rulings have temporarily blocked these executive orders, maintaining funding for federal grants—at least for now.

He noted that IRA-funded clean energy initiatives, a key focus of former President Joe Biden’s administration, were not a material part of AECOM’s business. Despite uncertainty surrounding continued funding for IIJA projects, Rudd remained optimistic about the sector’s future under Trump’s leadership, particularly given the administration’s commitment to streamlining permitting processes.

“Over the last two weeks, there certainly has been a lot to digest,” Rudd said. “But… there still are investments being made in infrastructure in the U.S.”

He encouraged investors to look at the bigger picture:

“If you look at the current administration’s goals, they’re looking at economic development in the United States,” Rudd said. “And if your agenda is economic development in the long term in the United States, that means that it’s going to be supported by infrastructure, whether that’s energy infrastructure, water infrastructure [or] transportation infrastructure.”

Rudd argued that Trump’s plans to cut regulatory red tape would not only incentivize more projects but also accelerate their progress.

“If there is environmental permitting reform, there certainly is going to be more work to be done because that should accelerate projects,” Rudd said. “So, we look broadly in the U.S., and we see that we’re aligned with the objectives around infrastructure.”

Strong Financial Performance

AECOM’s confidence in infrastructure investment was reflected in its latest financial results. The company reported $167 million in profits for the three months ending December 31, representing a 77% increase year-over-year. Revenue climbed to $4.01 billion, up 3% from the same period in 2023, while the company’s backlog grew 2.3% to $23.9 billion.

“Looking ahead, we anticipate opportunities arising from the new administration’s commitments to our robust economy supported by a prudent deregulation and push for energy independence that positions the U.S. as an attractive destination for capital investment and growth,” Rudd said. “World-class infrastructure is at the heart of these objectives.”

Disaster Recovery and Future Growth

Analysts on the earnings call inquired about AECOM’s involvement in disaster recovery efforts, particularly following the Palisades and Eaton wildfires in Los Angeles. While AECOM has a strong track record in disaster recovery, Rudd remained tight-lipped on specific projects.

“We don’t call out individual projects … and certainly not without discussion with our customers,” Rudd said. “But … over the last decade, we’ve participated in the recovery from over 700 climate disasters. So, this is really kind of part of our business, which is continuing to support communities as they recover.”

Despite potential challenges posed by shifts in federal funding priorities, Rudd remains confident in AECOM’s ability to capitalize on infrastructure opportunities under the current administration. As permitting reform moves forward, the company expects to see increased project activity across multiple sectors, reinforcing its position as a leading player in the U.S. infrastructure landscape.

News
February 7, 2025

AECOM CEO: Deregulation Outweighs Agency Cuts

Caroline Raffetto
Construction Industry
United States

The benefits of permitting reform outweigh the risks posed by potential federal agency cuts, according to AECOM CEO Troy Rudd. Speaking on the company’s latest earnings call on February 4, Rudd addressed industry concerns regarding the Trump administration’s aggressive approach toward federal bureaucracy and its impact on infrastructure funding.

A Resilient Business Model

During AECOM’s fiscal first-quarter earnings report, Rudd responded to concerns about President Donald Trump’s efforts to dissolve or significantly scale back agencies such as the U.S. Agency for International Development (USAID) and the Environmental Protection Agency (EPA)—both of which are AECOM clients.

AECOM CEO says Trump's permitting ...
“Our business is highly diverse, eliminating reliance on any single market or client,” Rudd said. “The EPA and USAID together account for only 50 basis points of our trailing 12 months revenue and reflect a similar proportion in our pipeline and backlog.”

Instead, Rudd emphasized that the majority of AECOM’s government work comes from the Department of Defense, which he expects to see strong funding growth under the new administration.

Infrastructure Investment Remains Strong

Rudd also spoke about Trump’s recent moves to pause funding for the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). Court rulings have temporarily blocked these executive orders, maintaining funding for federal grants—at least for now.

He noted that IRA-funded clean energy initiatives, a key focus of former President Joe Biden’s administration, were not a material part of AECOM’s business. Despite uncertainty surrounding continued funding for IIJA projects, Rudd remained optimistic about the sector’s future under Trump’s leadership, particularly given the administration’s commitment to streamlining permitting processes.

“Over the last two weeks, there certainly has been a lot to digest,” Rudd said. “But… there still are investments being made in infrastructure in the U.S.”

He encouraged investors to look at the bigger picture:

“If you look at the current administration’s goals, they’re looking at economic development in the United States,” Rudd said. “And if your agenda is economic development in the long term in the United States, that means that it’s going to be supported by infrastructure, whether that’s energy infrastructure, water infrastructure [or] transportation infrastructure.”

Rudd argued that Trump’s plans to cut regulatory red tape would not only incentivize more projects but also accelerate their progress.

“If there is environmental permitting reform, there certainly is going to be more work to be done because that should accelerate projects,” Rudd said. “So, we look broadly in the U.S., and we see that we’re aligned with the objectives around infrastructure.”

Strong Financial Performance

AECOM’s confidence in infrastructure investment was reflected in its latest financial results. The company reported $167 million in profits for the three months ending December 31, representing a 77% increase year-over-year. Revenue climbed to $4.01 billion, up 3% from the same period in 2023, while the company’s backlog grew 2.3% to $23.9 billion.

“Looking ahead, we anticipate opportunities arising from the new administration’s commitments to our robust economy supported by a prudent deregulation and push for energy independence that positions the U.S. as an attractive destination for capital investment and growth,” Rudd said. “World-class infrastructure is at the heart of these objectives.”

Disaster Recovery and Future Growth

Analysts on the earnings call inquired about AECOM’s involvement in disaster recovery efforts, particularly following the Palisades and Eaton wildfires in Los Angeles. While AECOM has a strong track record in disaster recovery, Rudd remained tight-lipped on specific projects.

“We don’t call out individual projects … and certainly not without discussion with our customers,” Rudd said. “But … over the last decade, we’ve participated in the recovery from over 700 climate disasters. So, this is really kind of part of our business, which is continuing to support communities as they recover.”

Despite potential challenges posed by shifts in federal funding priorities, Rudd remains confident in AECOM’s ability to capitalize on infrastructure opportunities under the current administration. As permitting reform moves forward, the company expects to see increased project activity across multiple sectors, reinforcing its position as a leading player in the U.S. infrastructure landscape.