AECOM Reports Profit Growth Driven by Data Centers and Defense Spending

Infrastructure firm AECOM reported a significant profit boost in its fiscal second quarter, driven by strong demand in data center construction and increased defense spending. The company highlighted the successful integration of proprietary artificial intelligence tools, which helped secure two major contracts worth nearly $1 billion. CEO Troy Rudd noted that these AI solutions provided a competitive edge, particularly in winning a substantial recompete for a major energy client, leading to improved win rates and margins. The high-tech sector has emerged as one of AECOM's fastest-growing areas in the U.S., with President Lara Poloni citing rising power demands and emerging opportunities in nuclear fusion. Additionally, the firm's pipeline with the U.S. Department of Defense, its largest client, increased by 50% due to global military investment trends. However, geopolitical instability in the Middle East created a temporary headwind, reducing net service revenue growth by approximately 100 basis points and delaying some payments, though collections recovered early in the third quarter. Unspent funds from the Infrastructure Investment and Jobs Act also remain a potential resource for future growth.