AECOM executives see a powerful, long-term growth cycle taking shape across the global infrastructure sector. During its fiscal Q4 earnings call, the Dallas-headquartered firm emphasized that public agencies and private clients are pushing substantial civil and utility projects into the pipeline, especially in markets tied to transportation, water and emerging AI infrastructure.
CEO Troy Rudd highlighted that federal legislation, particularly the Infrastructure Investment and Jobs Act (IIJA), is providing enduring momentum. State transportation budgets remain elevated, and agency confidence is translating into a surge of new project planning.
According to Rudd, AECOM has deliberately positioned itself to lead within sectors that will remain essential for decades. “We built an organization that’s going to play in markets where, in the long run, our opportunities are going to be to grow greater than the GDP of a typical economy,” he told investors. He stressed that heavy investment must continue across core infrastructure systems. “There is no question that over the next few decades, there needs to be a significant continued investment in traditional infrastructure, whether it’s water infrastructure or transportation infrastructure or social infrastructure.”
AECOM leaders noted that infrastructure demand now extends far beyond traditional public works. The rise of artificial intelligence is reshaping utility needs at an unprecedented pace. Data centers require vast electricity and cooling water supplies, driving large-scale grid upgrades, energy storage systems and new power facilities.
“There’s an insatiable need for energy, in particular electricity,” Rudd said. He added that AI-driven projects will require more support infrastructure than most industries have ever seen. “An amazing investment is going to take place in AI and data centers, and all the power and the water you need to make that a reality.”
In a significant move, AECOM announced plans to explore a sale of its construction management unit to refocus on its core expertise in higher-margin design, planning and engineering. The CM division will be moved to discontinued operations next quarter, signaling that a transaction is anticipated.
Despite being a high-performing unit, Rudd said the company believes the business will thrive under a different owner. “We have reached that point in time where we think there’s a better place, a better home, eventually for our construction management team,” he said. “It’s a fantastic business.”
This shift comes as mergers and acquisitions accelerate within the industry. Firms such as Zachry Construction and Cumming Group have been expanding through specialty acquisitions, while industry giants like WSP and Jacobs are exploring major deals.
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AECOM executives also spotlighted a major breakthrough: an internal AI platform designed to assist engineers with generative design work. The technology uses mathematics-based models that can optimize infrastructure layouts, potentially reducing both materials and project cost.
“It gives us the ability to materially reduce cost,” Rudd said. With the assistance of AI “teammates,” AECOM has found savings during design development. “As we’ve gone through the design process, we have found that we’re able to take 10% to 20% of the materials, and thus potentially the cost, out of a design. That’s the client outcome.”
Even as profits declined year over year, AECOM’s backlog surged to a record $24.8 billion, up 4%. Q4 revenue rose 2% to $4.18 billion, while net income dropped 30.2% to $120.4 million, impacted partly by strategic investments in AI and restructuring.
Analysts responded positively, noting the firm’s long-term position in essential markets and its decision to double down on higher-margin engineering and digital capabilities. “Results slightly topped expectations across the board,” wrote Andrew Wittmann of Baird, pointing to the company’s refreshed outlook through 2028.
Originally reported by Sebastian Obando in Construction Dive.
