Disney Stock Before Q3 Earnings: Buy Now or Wait for Results?
The Zacks Consensus Estimate for revenues is pegged at $23.67 billion, suggesting modest growth of 2.23% from the year-ago quarter's reported figure.
The consensus mark for earnings has moved south by a penny to $1.47 per share over the past 30 days, indicating growth of 5.76% year over year.
In the last reported quarter, Disney delivered an earnings surprise of 22.88%. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.38%.
The Walt Disney Company Price and EPS Surprise
The Walt Disney Company price-eps-surprise | The Walt Disney Company Quote
Earnings Whispers for DIS
Our proven model does not predict an earnings beat for Disney this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
DIS has an Earnings ESP of -0.61% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Factors Shaping Upcoming Results
As Disney approaches its third-quarter fiscal 2025 earnings report, several compelling positive factors suggest that investors should anticipate strong results that build on the company's exceptional momentum from recent quarters, creating a buy opportunity ahead of results.
Disney's Entertainment segment demonstrated remarkable resilience in the fiscal second quarter, with the segment generating $1.3 billion in operating income, representing a substantial 61% increase year over year. This momentum is expected to have carried forward into the fiscal third quarter as Disney+ launched its always-on perks program in May 2025, providing exclusive offers designed for subscribers and enhancing the customer value proposition.
The company's direct-to-consumer segment generated $336 million in operating income in the fiscal second quarter, up dramatically from $47 million a year earlier, with this profitability trend expected to accelerate through the quarter under review as integration efforts between Hulu and Disney+ delivered enhanced user engagement and reduced churn rates.
Our model estimates for Entertainment revenues (which include Linear Networks, Direct-to-Consumer and Content Sales/Licensing and Other Revenues) are pegged at $10.84 billion, indicating an increase of 2.5% year over year, driven by continued streaming subscriber growth and improved monetization strategies. Disney+ gained 1.4 million subscribers in the fiscal second quarter while Hulu added 1.3 million subscribers, establishing positive momentum that carried into the to-be-reported quarter amid successful content releases and enhanced user experiences.
The Sports segment benefited from ESPN's domestic advertising revenues growing 29% year over year in the fiscal second quarter, with preparations for the ESPN direct-to-consumer flagship service launch creating additional revenue opportunities. ESPN's SportsCenter launched its ambitious 50 States in 50 Days initiative, driving viewership and advertiser engagement that is expected to have enhanced fiscal third-quarter performance.
The Experiences segment positioned itself for exceptional third-quarter results following Disney's groundbreaking announcement in May 2025 of its seventh theme park resort in Abu Dhabi, United Arab Emirates, representing the company's first Middle East expansion. This waterfront resort on Yas Island will combine Disney's iconic stories with Abu Dhabi's vibrant culture, accessing one-third of the world's population within a four-hour flight radius. Disney Parks generated nearly $67 billion for the U.S. economy while supporting more than 400,000 U.S. jobs, demonstrating the segment's robust economic impact and growth potential.
Our model estimate for the Experiences segment (renamed from Disney Parks, Experiences and Products) revenues is $8.4 billion, indicating marginal growth of 0.3% year over year.
Disney delivered strong consolidated second-quarter fiscal 2025 results with 20% growth in adjusted earnings per share and 7% growth in revenues to $23.6 billion. Management's optimistic guidance for high-single digit adjusted EPS growth for fiscal 2025 appears increasingly achievable given the multiple positive catalysts converging in the fiscal third quarter, positioning DIS for another quarter of robust financial performance across all business segments.
Price Performance & Stock Valuation
Shares of Disney have returned 4.7% in the year-to-date period compared with the Zacks Consumer Discretionary sector's growth of 6.3%. Disney operates in a fiercely competitive streaming market dominated by the likes of Amazon AMZN -owned Amazon Prime Video and Netflix NFLX, as well as the growing prominence of services from Apple AAPL, Peacock and HBO Max. While Apple and Amazon has lost 19.2% and 2.1% year to date, respectively, shares of Netflix have returned 30%.
Disney's Year-to-Date Performance
Valuation-wise, Disney trades at a forward P/E of approximately 18.61x despite achieving streaming profitability and executing massive expansion plans, notably below the Zacks Media Conglomerates industry average of 20.25x.
DIS' P/E F12M Ratio Depicts Discounted Valuation
Investment Considerations Ahead of Q3 Results
Disney presents a compelling buy opportunity ahead of third-quarter fiscal 2025 earnings, trading at an attractive discount despite multiple catalysts driving growth acceleration. The company's streaming profitability surged to $336 million in operating income, a groundbreaking Abu Dhabi theme park expansion, and access to one-third of the global population, and $63 billion licensing dominance positioning Disney advantageously against the competition. While rivals struggle with streaming losses, Disney's integrated ecosystem of Disney+, Hulu, and ESPN creates sustainable competitive moats. Strong second-quarter momentum with 20% adjusted EPS growth, robust theme park performance, and ESPN's advertising revenues surging 29% establishes powerful fundamentals supporting significant upside potential at current valuations.
Final Thought
Disney's convergence of streaming profitability, international expansion, and robust operational momentum creates an exceptional investment opportunity at current valuations. With multiple growth catalysts accelerating and fiscal third-quarter results positioned to exceed expectations, investors should capitalize on this discounted entry point before markets fully recognize Disney's transformed business fundamentals and earnings potential.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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Article content Conference Call Article content AECOM is hosting a conference call tomorrow at 8 a.m. Eastern Time, during which management will make a brief presentation focusing on the Company's results, strategy and operating trends, and outlook. Interested parties can listen to the conference call and view accompanying slides via webcast at The webcast will be available for replay following the call. Article content 1 Excludes the impact of certain items, such as restructuring costs, amortization of intangible assets, non-core AECOM Capital and other items. See Regulation G Information for a reconciliation of non-GAAP measures to the comparable GAAP measures. 2 Revenue, less pass-through revenue; growth rates are presented on a constant-currency basis. 3 Reflects segment operating performance, excluding AECOM Capital and G&A, and margins are presented on a net service revenue basis. 4 Net income before interest expense, tax expense, depreciation and amortization. 5 Adjusted EBITDA margin includes non-controlling interests in EBITDA and is on a net service revenue basis. 6 Free cash flow is defined as cash flow from operations less capital expenditures, net of proceeds from disposals of property and equipment; free cash flow conversion is defined as free cash flow divided by adjusted net income attributable to AECOM. 7 Backlog represents the total value of work for which AECOM has been selected that is expected to be completed by consolidated subsidiaries; growth rates are presented on a constant-currency basis. 8 Book-to-burn ratio is defined as the dollar amount of wins divided by revenue recognized during the period. 9 Net leverage is comprised of EBITDA as defined in the Company's credit agreement dated October 17, 2014, as amended, and total debt on the Company's financial statements, net of total cash and cash equivalents. 10 Inclusive of non-controlling interest deduction and adjusted for financing charges in interest expense, the amortization of intangible assets and is based on continuing operations. The adjusted tax rate was derived by re-computing the quarterly effective tax rate on adjusted net income. The adjusted tax expense differs from the GAAP tax expense based on the taxability or deductibility and tax rate applied to each of the adjustments. Article content About AECOM Article content AECOM (NYSE: ACM) is the global infrastructure leader, committed to delivering a better world. As a trusted professional services firm powered by deep technical abilities, we solve our clients' complex challenges in water, environment, energy, transportation and buildings. Our teams partner with public- and private-sector clients to create innovative, sustainable and resilient solutions throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. AECOM is a Fortune 500 firm that had revenue of $16.1 billion in fiscal year 2024. Learn more at Article content Forward-Looking Statements Article content All statements in this communication other than statements of historical fact are 'forward-looking statements' for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, capital allocation strategy including stock repurchases, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; potential government shutdowns, changes in administration or other funding directives and circumstances that may cause governmental agencies to modify, curtail or terminate our contracts; losses under fixed-price contracts; limited control over operations that run through our joint venture entities; liability for misconduct by our employees or consultants; changes in government laws, regulations and policies, including failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs and trade policies, geopolitical events, and conflicts; inflation, currency exchange rates and interest rate fluctuations; changes in capital markets and stock market volatility; retaining and recruiting key technical and management personnel; legal claims and litigation; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; managing pension costs; AECOM Capital real estate development projects; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement. Article content This communication contains financial information calculated other than in accordance with U.S. generally accepted accounting principles ('GAAP'). The Company believes that non-GAAP financial measures such as adjusted EPS, adjusted EBITDA, adjusted net/operating income, segment adjusted operating margin, adjusted tax rate, net service revenue and free cash flow provide a meaningful perspective on its business results as the Company utilizes this information to evaluate and manage the business. We use adjusted operating income, adjusted net income, adjusted EBITDA and adjusted EPS to exclude the impact of certain items, such as amortization expense and taxes to aid investors in better understanding our core performance results. We use free cash flow to present the cash generated from operations after capital expenditures to maintain our business. We present net service revenue (NSR) to exclude pass-through subcontractor costs from revenue to provide investors with a better understanding of our operational performance. We present segment adjusted operating margin to reflect segment operating performance of our Americas and International segments, excluding AECOM Capital. We present adjusted tax rate to reflect the tax rate on adjusted earnings. We also use constant-currency growth rates where appropriate, which are calculated by conforming the current period results to the comparable period exchange rates. Article content Our non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of these non-GAAP measures is found in the Regulation G Information tables at the back of this communication. The Company is unable to reconcile certain of its non-GAAP financial guidance and long-term financial targets due to uncertainties in these non-operating items as well as other adjustments to net income. The Company is unable to provide a reconciliation of its guidance for NSR to GAAP revenue because it is unable to predict with reasonable certainty its pass-through revenue. Article content AECOM Consolidated Statements of Income (unaudited – in thousands, except per share data) Three Months Ended Nine Months Ended June 30, 2025 June 30, 2024 % Change June 30, 2025 June 30, 2024 % Change Revenue $ 4,178,440 $ 4,151,251 0.7 % $ 11,964,205 $ 11,995,004 (0.3 )% Cost of revenue 3,851,490 3,866,207 (0.4 )% 11,078,090 11,204,816 (1.1 )% Gross profit 326,950 285,044 14.7 % 886,115 790,188 12.1 % Equity in earnings (losses) of joint ventures 5,290 7,647 (30.8 )% 21,707 (1,835 ) (1282.9 )% General and administrative expenses (38,163 ) (36,209 ) 5.4 % (118,676 ) (116,619 ) 1.8 % Restructuring costs — (29,025 ) (100.0 )% — (80,670 ) (100.0 )% Income from operations 294,077 227,457 29.3 % 789,146 591,064 33.5 % Other income (loss) 823 963 (14.5 )% (1,001 ) 6,154 (116.3 )% Interest income 14,063 15,817 (11.1 )% 45,157 43,341 4.2 % Interest expense (40,198 ) (51,370 ) (21.7 )% (125,437 ) (140,350 ) (10.6 )% Income from continuing operations before taxes 268,765 192,867 39.4 % 707,865 500,209 41.5 % Income tax expense for continuing operations 65,148 46,035 41.5 % 145,618 118,078 23.3 % Net income from continuing operations 203,617 146,832 38.7 % 562,247 382,131 47.1 % Net (loss) income from discontinued operations (43,880 ) 5,677 (872.9 )% (63,766 ) (104,998 ) (39.3 )% Net income 159,737 152,509 4.7 % 498,481 277,133 79.9 % Net income attributable to noncontrolling interests from continuing operations (28,771 ) (17,355 ) 65.8 % (55,953 ) (44,585 ) 25.5 % Net income attributable to noncontrolling interests from discontinued operations — (881 ) (100.0 )% (1,126 ) (2,830 ) (60.2 )% Net income attributable to noncontrolling interests (28,771 ) (18,236 ) 57.8 % (57,079 ) (47,415 ) 20.4 % Net income attributable to AECOM from continuing operations 174,846 129,477 35.0 % 506,294 337,546 50.0 % Net (loss) income attributable to AECOM from discontinued operations (43,880 ) 4,796 (1014.9 )% (64,892 ) (107,828 ) (39.8 )% Net income attributable to AECOM $ 130,966 $ 134,273 (2.5 )% $ 441,402 $ 229,718 92.1 % Net income (loss) attributable to AECOM per share: Basic continuing operations per share $ 1.32 $ 0.95 38.9 % $ 3.82 $ 2.48 54.0 % Basic discontinued operations per share (0.33 ) 0.04 (925.0 )% (0.49 ) (0.79 ) (38.0 )% Basic earnings per share $ 0.99 $ 0.99 0.0 % $ 3.33 $ 1.69 97.0 % Diluted continuing operations per share $ 1.31 $ 0.95 37.9 % $ 3.80 $ 2.47 53.8 % Diluted discontinued operations per share (0.33 ) 0.03 (1200.0 )% (0.49 ) (0.79 ) (38.0 )% Diluted earnings per share $ 0.98 $ 0.98 0.0 % $ 3.31 $ 1.68 97.0 % Weighted average shares outstanding: Basic 132,301 136,025 (2.7 )% 132,411 135,976 (2.6 )% Diluted 133,078 136,790 (2.7 )% 133,281 136,868 (2.6 )% Article content AECOM Balance Sheet Information (unaudited – in thousands) June 30, 2025 September 30, 2024 Balance Sheet Information: Total cash and cash equivalents $ 1,794,077 $ 1,580,877 Accounts receivable and contract assets – net 4,519,999 4,599,765 Working capital 1,039,057 801,978 Total debt, excluding unamortized debt issuance costs 2,548,186 2,539,811 Total assets 12,252,145 12,061,669 Total AECOM stockholders' equity 2,492,340 2,184,205 Article content AECOM Reportable Segments (unaudited – in thousands) Americas International AECOM Capital Corporate Total Three Months Ended June 30, 2025 Revenue $ 3,277,136 $ 901,198 $ 106 $ — $ 4,178,440 Cost of revenue 3,038,353 813,137 — — 3,851,490 Gross profit 238,783 88,061 106 — 326,950 Equity in earnings of joint ventures 2,198 2,167 925 — 5,290 General and administrative expenses — — (2,265 ) (35,898 ) (38,163 ) Income (loss) from operations $ 240,981 $ 90,228 $ (1,234 ) $ (35,898 ) $ 294,077 Gross profit as a % of revenue 7.3 % 9.8 % 7.8 % Three Months Ended June 30, 2024 Revenue $ 3,246,882 $ 904,206 $ 163 $ — $ 4,151,251 Cost of revenue 3,043,053 823,154 — — 3,866,207 Gross profit 203,829 81,052 163 — 285,044 Equity in earnings of joint ventures 3,478 3,617 552 — 7,647 General and administrative expenses — — (540 ) (35,669 ) (36,209 ) Restructuring costs — — — (29,025 ) (29,025 ) Income from operations $ 207,307 $ 84,669 $ 175 $ (64,694 ) $ 227,457 Gross profit as a % of revenue 6.3 % 9.0 % 6.9 % Nine Months Ended June 30, 2025 Revenue $ 9,285,863 $ 2,677,941 $ 401 $ — $ 11,964,205 Cost of revenue 8,644,327 2,433,763 — — 11,078,090 Gross profit 641,536 244,178 401 — 886,115 Equity in earnings of joint ventures 12,571 9,071 65 — 21,707 General and administrative expenses — — (7,467 ) (111,209 ) (118,676 ) Income (loss) from operations $ 654,107 $ 253,249 $ (7,001 ) $ (111,209 ) $ 789,146 Gross profit as a % of revenue 6.9 % 9.1 % 7.4 % Contracted backlog $ 8,836,509 $ 4,614,568 $ — $ — $ 13,451,077 Awarded backlog 9,136,644 2,000,150 — — 11,136,794 Total backlog $ 17,973,153 $ 6,614,718 $ — $ — $ 24,587,871 Total backlog – Design only $ 16,499,843 $ 6,614,718 $ — $ — $ 23,114,561 Nine Months Ended June 30, 2024 Revenue $ 9,324,140 $ 2,670,034 $ 830 $ — $ 11,995,004 Cost of revenue 8,764,863 2,439,953 — — 11,204,816 Gross profit 559,277 230,081 830 — 790,188 Equity in earnings (losses) of joint ventures 11,866 12,847 (26,548 ) — (1,835 ) General and administrative expenses — — (12,667 ) (103,952 ) (116,619 ) Restructuring costs — — — (80,670 ) (80,670 ) Income (loss) from operations $ 571,143 $ 242,928 $ (38,385 ) $ (184,622 ) $ 591,064 Gross profit as a % of revenue 6.0 % 8.6 % 6.6 % Contracted backlog $ 8,883,852 $ 3,909,146 $ — $ — $ 12,792,998 Awarded backlog 8,468,398 2,100,828 — — 10,569,226 Total backlog $ 17,352,250 $ 6,009,974 $ — $ — $ 23,362,224 Total backlog – Design only $ 15,884,131 $ 6,009,974 $ — $ — $ 21,894,105 Article content AECOM Regulation G Information (in millions) Reconciliation of Revenue to Net Service Revenue (NSR) Three Months Ended Nine Months Ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Americas Revenue $ 3,277.1 $ 2,896.7 $ 3,246.9 $ 9,285.8 $ 9,324.2 Less: Pass-through revenue 2,098.3 1,772.0 2,150.6 5,931.4 6,177.0 Net service revenue $ 1,178.8 $ 1,124.7 $ 1,096.3 $ 3,354.4 $ 3,147.2 International Revenue $ 901.2 $ 874.8 $ 904.2 $ 2,678.0 $ 2,670.0 Less: Pass-through revenue 142.6 132.5 175.0 426.9 465.1 Net service revenue $ 758.6 $ 742.3 $ 729.2 $ 2,251.1 $ 2,204.9 Segment Performance (excludes ACAP) Revenue $ 4,178.3 $ 3,771.5 $ 4,151.1 $ 11,963.8 $ 11,994.2 Less: Pass-through revenue 2,240.9 1,904.5 2,325.6 6,358.3 6,642.1 Net service revenue $ 1,937.4 $ 1,867.0 $ 1,825.5 $ 5,605.5 $ 5,352.1 Consolidated Revenue $ 4,178.4 $ 3,771.6 $ 4,151.2 $ 11,964.2 $ 11,995.0 Less: Pass-through revenue 2,240.9 1,904.5 2,325.6 6,358.3 6,642.1 Net service revenue $ 1,937.5 $ 1,867.1 $ 1,825.6 $ 5,605.9 $ 5,352.9 Article content Balances at: Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Short-term debt $ 4.7 $ 3.2 $ 2.5 Current portion of long-term debt 68.5 67.1 63.6 Long-term debt, excluding unamortized debt issuance costs 2,475.0 2,476.6 2,475.4 Total debt 2,548.2 2,546.9 2,541.5 Less: Total cash and cash equivalents 1,794.1 1,600.1 1,644.8 Net debt $ 754.1 $ 946.8 $ 896.7 Article content Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three Months Ended Nine Months Ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Net cash provided by operating activities $ 283.7 $ 190.7 $ 291.3 $ 625.5 $ 528.7 Capital expenditures, net (22.0 ) (12.3 ) (18.4 ) (74.4 ) (94.9 ) Free cash flow $ 261.7 $ 178.4 $ 272.9 $ 551.1 $ 433.8 Article content AECOM Regulation G Information (in millions, except per share data) Three Months Ended Nine Months Ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Reconciliation of Income from Operations to Adjusted Income from Operations to Adjusted EBITDA with Noncontrolling Interests (NCI) to Adjusted EBITDA Income from operations $ 294.1 $ 257.6 $ 227.5 $ 789.2 $ 591.1 Noncore AECOM Capital loss (income) 1.3 4.7 (0.2 ) 7.0 38.3 Restructuring costs — — 29.0 — 80.7 Amortization of intangible assets 0.3 0.4 4.7 1.8 14.0 Adjusted income from operations $ 295.7 $ 262.7 $ 261.0 $ 798.0 $ 724.1 Other income (expense) 0.8 (8.7 ) 1.1 (1.0 ) 6.2 Fair value adjustment included in other income 1.3 10.5 1.6 6.8 1.6 Depreciation 42.9 39.9 37.7 122.6 113.5 Adjusted EBITDA with noncontrolling interests (NCI) $ 340.7 $ 304.4 $ 301.4 $ 926.4 $ 845.4 Net income attributable to NCI from continuing operations excluding interest income included in NCI (27.9 ) (14.7 ) (15.9 ) (52.5 ) (40.3 ) Amortization of intangible assets included in NCI — — — — (0.2 ) Adjusted EBITDA $ 312.8 $ 289.7 $ 285.5 $ 873.9 $ 804.9 Reconciliation of Income from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes Income from continuing operations before taxes $ 268.8 $ 221.1 $ 192.9 $ 707.9 $ 500.2 Noncore AECOM Capital loss (income) 1.2 4.7 (0.2 ) 6.9 38.3 Fair value adjustment 1.1 10.6 1.6 6.1 1.6 Restructuring costs — — 29.0 — 80.7 Amortization of intangible assets 0.3 0.4 4.7 1.8 14.0 Financing charges in interest expense 1.3 1.2 7.0 3.9 9.5 Adjusted income from continuing operations before taxes $ 272.7 $ 238.0 $ 235.0 $ 726.6 $ 644.3 Reconciliation of Income Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations Income tax expense for continuing operations $ 65.2 $ 51.2 $ 46.1 $ 145.7 $ 118.1 Tax effect of the above adjustments (1) 1.0 4.3 11.6 4.8 36.0 Valuation allowances and other tax only items (0.3 ) — 0.8 0.2 0.8 Adjusted income tax expense for continuing operations $ 65.9 $ 55.5 $ 58.5 $ 150.7 $ 154.9 (1) Adjusts the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. Reconciliation of Net Income Attributable to Noncontrolling Interests (NCI) from Continuing Operations to Adjusted Net Income Attributable to Noncontrolling Interests from Continuing Operations Net income attributable to noncontrolling interests from continuing operations $ (28.8 ) $ (15.8 ) $ (17.4 ) $ (56.0 ) $ (44.6 ) Amortization of intangible assets included in NCI — — — — (0.2 ) Adjusted net income attributable to noncontrolling interests from continuing operations $ (28.8 ) $ (15.8 ) $ (17.4 ) $ (56.0 ) $ (44.8 ) Article content AECOM Regulation G Information (in millions, except per share data) Three Months Ended Nine Months Ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Reconciliation of Net Income Attributable to AECOM from Continuing Operations to Adjusted Net Income Attributable to AECOM from Continuing Operations Net income attributable to AECOM from continuing operations $ 174.8 $ 154.1 $ 129.4 $ 506.2 $ 337.5 Noncore AECOM Capital loss (income), net of NCI 1.3 4.7 (0.2 ) 7.0 38.3 Fair value adjustment 1.1 10.6 1.6 6.1 1.6 Restructuring costs — — 29.0 — 80.7 Amortization of intangible assets 0.3 0.4 4.7 1.8 14.0 Financing charges in interest expense 1.2 1.2 7.0 3.8 9.5 Tax effect of the above adjustments (1) (1.0 ) (4.3 ) (11.6 ) (4.8 ) (36.0 ) Valuation allowances and other tax only items 0.3 — (0.8 ) (0.2 ) (0.8 ) Amortization of intangible assets included in NCI — — — — (0.2 ) Adjusted net income attributable to AECOM from continuing operations $ 178.0 $ 166.7 $ 159.1 $ 519.9 $ 444.6 (1) Adjusts the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. Article content Reconciliation of Net Income Attributable to AECOM from Continuing Operations per Diluted Share to Adjusted Net Income Attributable to AECOM from Continuing Operations per Diluted Share Net income attributable to AECOM from continuing operations per diluted share $ 1.31 $ 1.16 $ 0.95 $ 3.80 $ 2.47 Per diluted share adjustments: Noncore AECOM Capital loss, net of NCI 0.01 0.04 — 0.05 0.28 Fair value adjustment 0.01 0.08 0.01 0.05 0.01 Restructuring costs — — 0.21 — 0.59 Amortization of intangible assets — — 0.03 0.01 0.10 Financing charges in interest expense 0.01 0.01 0.05 0.03 0.07 Tax effect of the above adjustments (1) — (0.04 ) (0.08 ) (0.04 ) (0.26 ) Valuation allowances and other tax only items — — (0.01 ) — (0.01 ) Adjusted net income attributable to AECOM from continuing operations per diluted share $ 1.34 $ 1.25 $ 1.16 $ 3.90 $ 3.25 Weighted average shares outstanding – basic 132.3 132.4 136.0 132.4 136.0 Weighted average shares outstanding – diluted 133.1 133.1 136.8 133.3 136.9 (1) Adjusts the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above. Article content Reconciliation of Net Income Attributable to AECOM from Continuing Operations to Adjusted EBITDA Net income attributable to AECOM from continuing operations $ 174.8 $ 154.1 $ 129.4 $ 506.2 $ 337.5 Income tax expense 65.2 51.2 46.1 145.7 118.1 Depreciation and amortization 44.4 41.6 46.4 128.3 133.7 Interest income, net of NCI (13.1 ) (13.4 ) (14.3 ) (41.7 ) (39.1 ) Interest expense 40.2 42.2 51.4 125.4 140.4 Amortized bank fees included in interest expense (1.2 ) (1.3 ) (4.0 ) (3.9 ) (6.4 ) Noncore AECOM Capital loss (income), net of NCI 1.3 4.7 (0.2 ) 7.0 38.3 Fair value adjustment included in other income 1.2 10.6 1.7 6.9 1.7 Restructuring costs — — 29.0 — 80.7 Adjusted EBITDA $ 312.8 $ 289.7 $ 285.5 $ 873.9 $ 804.9 Article content AECOM Regulation G Information (in millions, except per share data) Three Months Ended Nine Months Ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Reconciliation of Segment Income from Operations to Adjusted Segment Income from Operations Americas Segment: Segment Income from operations $ 240.9 $ 217.4 $ 207.4 $ 654.1 $ 571.2 Amortization of intangible assets 0.4 0.3 4.4 1.8 13.0 Adjusted segment income from operations $ 241.3 $ 217.7 $ 211.8 $ 655.9 $ 584.2 International Segment: Segment Income from operations $ 90.2 $ 82.2 $ 84.6 $ 253.2 $ 242.9 Amortization of intangible assets — — 0.3 — 1.0 Adjusted segment income from operations $ 90.2 $ 82.2 $ 84.9 $ 253.2 $ 243.9 Segment Performance (excludes ACAP & G&A): Segment Income from operations $ 331.1 $ 299.6 $ 292.0 $ 907.3 $ 814.1 Amortization of intangible assets 0.4 0.3 4.7 1.8 14.0 Adjusted segment income from operations $ 331.5 $ 299.9 $ 296.7 $ 909.1 $ 828.1 Article content AECOM Regulation G Information FY2025 GAAP EPS Guidance based on Adjusted EPS Guidance (all figures approximate) Fiscal Year End 2025 GAAP EPS guidance $5.08 to $5.18 Adjusted EPS excludes: Amortization of intangible assets $0.02 Amortization of deferred financing fees $0.05 Noncore AECOM Capital $0.05 Fair value adjustment $0.05 Tax effect of the above items ($0.05) Adjusted EPS guidance $5.20 to $5.30 Article content FY2025 GAAP Net Income from Continuing Operations Guidance based on Adjusted EBITDA Guidance (in millions, all figures approximate) Fiscal Year End 2025 GAAP net income from continuing operations guidance $750 to $753 Net income attributable to noncontrolling interest from continuing operations ($75) to ($65) Net income attributable to AECOM from continuing operations $675 to $688 Adjusted net income attributable to AECOM from continuing operations excludes: Amortization of intangible assets $2 Amortization of deferred financing fees $7 Noncore AECOM Capital $7 Fair value adjustment $6 Tax effect of the above items ($5) Adjusted net income attributable to AECOM from continuing operations $692 to $705 Adjusted EBITDA excludes: Depreciation $165 Adjusted interest expense, net $115 Tax expense, including tax effect of above items $218 to $225 Adjusted EBITDA guidance $1,190 to $1,210 Article content Article content Article content Article content Contacts Article content Investor Contact Article content : Article content Article content Will Gabrielski Article content Article content Senior Vice President, Finance, Treasurer Article content Article content 213.593.8208 Article content Article content Article content Media Contact: Article content Brendan Ranson-Walsh Article content Article content Article content Article content
