--- title: "Engineering Consulting Industry" description: "24 SEC filers are classified under the Standard Industrial Classification codes that describe the engineering consulting industry." canonical: https://www.getswoopr.com/stocks/industries/industrials/engineering-consulting/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Engineering Consulting Industry ## Direct Answer 24 SEC filers are classified under the Standard Industrial Classification codes that describe the engineering consulting industry, and their latest annual reports show $45.5 billion of combined revenue and a median operating margin of 6.2%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Engineering consulting firms design infrastructure, buildings, energy systems and industrial facilities for public and private clients and bill on time-and-materials or fee bases. Backlog and utilization drive results. The first numbers to compare across companies here are backlog and book-to-bill, net service revenue growth and utilization. ## Key Industry Metrics - **Backlog and book-to-bill**: Backlog is contracted work yet to be performed, and book-to-bill compares new awards with revenue. A ratio above one suggests growing demand, and a backlog covering many months gives revenue visibility. - **Net service revenue growth**: Growth in revenue after excluding pass-through costs such as subcontractors, which better reflects the firm's own work. Compare it with total revenue growth to see whether pass-through volume distorts the picture. - **Utilization**: Share of staff hours billed to clients rather than spent on overhead or idle time. Higher utilization improves margin, but very high levels can signal stretched staff and attrition risk. - **Operating margin**: Operating profit as a share of revenue. For a people business it reflects utilization, billing rates and overhead, so a margin held through a slowdown suggests disciplined staffing and pricing. - **Public versus private mix**: Split of revenue between government clients and private clients. Public work follows funding programs and tends to be steadier, while private work moves with energy and industrial investment. ## Primary Macro Drivers - **Infrastructure and public funding**: Government programs for transport, water and public works create design and project management work, adding to backlog and net service revenue. - **Energy and industrial spending**: Capital programs in power, resources and industry drive engineering scopes, so client budgets decide backlog and the private share of the mix. - **Staffing**: Revenue is limited by the number of billable engineers, so hiring and retention set capacity and utilization, and with them growth in net service revenue. - **Regulation**: New environmental, safety and building rules create compliance and design work, supporting backlog and demand for specialist advice. ## Major Risks - **Project cancellations**: Clients can pause or cancel projects, removing backlog and leaving staff unbilled; watch backlog adjustments, book-to-bill and utilization. - **Talent costs**: Competing for experienced engineers raises salaries and attrition, squeezing operating margin if billing rates lag; watch labor cost, utilization and turnover. - **Fixed-price risk**: Lump-sum contracts leave the firm bearing overruns, causing margin writedowns when scope or cost estimates are wrong; watch contract loss provisions. - **Government funding**: Delays, shutdowns or changes in public budgets slow new awards and payments, showing up in backlog and receivable days; watch the public share of backlog. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | Low | | Regulatory Intensity | Medium | | Industry Maturity | Mature | | Geographic Importance | U.S. / Global | ## Engineering Consulting Filers in the SEC Record 24 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 8711, 8742. Their latest fiscal years end between 2024 and 2026, and together they reported $45.5 billion of revenue. Median revenue growth over the prior year was -0.5%. Median operating margin was 6.2% and median net margin 3.9%. Median total liabilities were 52% of total assets, and 18 of 24 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Aecom](https://www.getswoopr.com/stocks/companies/aecom/) | $16.1 billion | 0.2% | 6.4% | 3.5% | FY 2025 | | [Booz Allen Hamilton Holding Corp](https://www.getswoopr.com/stocks/companies/booz-allen-hamilton-holding-corporation/) | $11.2 billion | -6.4% | 9.2% | 7.6% | FY 2026 | | [Tetra Tech Inc](https://www.getswoopr.com/stocks/companies/tetra-tech-inc/) | $5.4 billion | 4.7% | 7.5% | 4.6% | FY 2025 | | [Fti Consulting, Inc](https://www.getswoopr.com/stocks/companies/fti-consulting-inc/) | $3.8 billion | 2.4% | 10.3% | 7.1% | FY 2025 | | [Icf International, Inc.](https://www.getswoopr.com/stocks/companies/icf-international-inc/) | $1.9 billion | -7.3% | 7.8% | 4.9% | FY 2025 | | [Huron Consulting Group Inc.](https://www.getswoopr.com/stocks/companies/huron-consulting-group-inc/) | $1.7 billion | 11.7% | 10.5% | 6.2% | FY 2025 | | [Onterris, Inc.](https://www.getswoopr.com/stocks/companies/onterris-inc/) | $831 million | 19.3% | 1.4% | -0.1% | FY 2025 | | [Mistras Group, Inc.](https://www.getswoopr.com/stocks/companies/mistras-group-inc/) | $724 million | -0.8% | 5.6% | 2.3% | FY 2025 | The 8 largest of 24 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Engineering Consulting guide describes how the industry earns money, what to measure and what can go wrong. 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Key performance indicators for the Engineering Consulting industry include: Backlog and book-to-bill, Net service revenue growth, Utilization, Operating margin, Public versus private mix. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Engineering Consulting industry? The Engineering Consulting industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important. What are the biggest risks in the Engineering Consulting industry? The primary risks for Engineering Consulting companies include: Project cancellations, Talent costs, Fixed-price risk, Government funding. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).