3 months ago
On August 17, AECOM (NYSE:ACM) delivered a third quarter that looked strong and messy at the same time. Backlog hit an all-time high on record quarterly wins, yet the company also absorbed a $337 million pretax charge tied to a delayed construction project. The result was a quarter where headline numbers cratered even as the underlying business kept expanding. That gap between top-line noise and forward momentum is what makes this print worth a closer look.
AECOM's backlog grew 13% to a new all-time high, powered by record quarterly wins and a company-wide book-to-burn ratio of 1.6, including 1.8 times in the Americas. Year to date, that ratio sits at 1.4, giving management unusually long visibility into future revenue. The design business, adjusted for one fewer working day, grew net service revenue 5%, with the Americas up 6% and international design returning to growth at 4%, led by the UK and Australia. Stripped of the charge, adjusted EBITDA climbed 5% and adjusted earnings per share rose 11% year over year, while the company raised its full-year adjusted EBITDA margin outlook to 17.4% from 17%.
Wins are coming from every direction. Canada landed a 10-year program management role on a highway and bus transit project, one of the company's largest Canadian awards ever, while Australia's backlog jumped more than 40% year over year. In the U.K., work on the Great Grid electricity upgrade helped push growth into the high single digits. The federal pipeline is expanding too, with the pipeline tied to the Department of War up roughly 30% in the quarter and less than half of IIJA infrastructure funding in AECOM's core markets spent so far. The balance sheet backs it up, with $2 billion of undrawn borrowing capacity and no near-term debt maturities.
The $337 million pretax charge stems from a construction management project first bid in 2019, where subcontractor productivity has pushed substantial completion from the first quarter of fiscal 2027 to near the end of the second quarter. That slippage cost $1.99 of earnings per share this quarter and forced a $185 million cash use, and management expects the project to keep burning cash through the first half of fiscal 2027. A second design-build P3 project from the same era also carries a significant claim position as AECOM pursues recoveries, even though the company says it no longer bids that structure for public-private partnership clients.
#year
AECOM's backlog grew 13% to a new all-time high, powered by record quarterly wins and a company-wide book-to-burn ratio of 1.6, including 1.8 times in the Americas. Year to date, that ratio sits at 1.4, giving management unusually long visibility into future revenue. The design business, adjusted for one fewer working day, grew net service revenue 5%, with the Americas up 6% and international design returning to growth at 4%, led by the UK and Australia. Stripped of the charge, adjusted EBITDA climbed 5% and adjusted earnings per share rose 11% year over year, while the company raised its full-year adjusted EBITDA margin outlook to 17.4% from 17%.
Wins are coming from every direction. Canada landed a 10-year program management role on a highway and bus transit project, one of the company's largest Canadian awards ever, while Australia's backlog jumped more than 40% year over year. In the U.K., work on the Great Grid electricity upgrade helped push growth into the high single digits. The federal pipeline is expanding too, with the pipeline tied to the Department of War up roughly 30% in the quarter and less than half of IIJA infrastructure funding in AECOM's core markets spent so far. The balance sheet backs it up, with $2 billion of undrawn borrowing capacity and no near-term debt maturities.
The $337 million pretax charge stems from a construction management project first bid in 2019, where subcontractor productivity has pushed substantial completion from the first quarter of fiscal 2027 to near the end of the second quarter. That slippage cost $1.99 of earnings per share this quarter and forced a $185 million cash use, and management expects the project to keep burning cash through the first half of fiscal 2027. A second design-build P3 project from the same era also carries a significant claim position as AECOM pursues recoveries, even though the company says it no longer bids that structure for public-private partnership clients.
#year
3 months ago
Aecom (NYSE: ACM) is an engineering and consulting giant that designs highways, transit lines, and water systems, and then manages the contractors who actually build them.
This week showed investors how important that distinction is as someone else's work hurt Aecom, sending its shares down 17.9% to a 52-week low of $60.35 as of Friday noon, according to data provided by S&P Global Market Intelligence.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Aecom reported a net loss of $0.65 per share for its third quarter of fiscal year 2026 this week versus net earnings per share (EPS) of $1.32 in the year-ago quarter.
Back in 2019, Aecom signed on to manage a construction project under terms and conditions that would not meet its current risk policies. Subcontractors are running behind, and costs are exceeding estimates, resulting in a $377 million pre-tax loss for Aecom in Q3.
#signal #down #loss #quarter
This week showed investors how important that distinction is as someone else's work hurt Aecom, sending its shares down 17.9% to a 52-week low of $60.35 as of Friday noon, according to data provided by S&P Global Market Intelligence.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Aecom reported a net loss of $0.65 per share for its third quarter of fiscal year 2026 this week versus net earnings per share (EPS) of $1.32 in the year-ago quarter.
Back in 2019, Aecom signed on to manage a construction project under terms and conditions that would not meet its current risk policies. Subcontractors are running behind, and costs are exceeding estimates, resulting in a $377 million pre-tax loss for Aecom in Q3.
#signal #down #loss #quarter
3 months ago
Engineering firm Aecom (NYSE: ACM) stock tumbled 5.5% through 10:25 a.m. ET Tuesday after missing badly on earnings last night.
Heading into the report, ***** ysts forecast Aecom would earn $1.51 per share in its fiscal Q3 2026. Instead, Aecom reported a $0.50 per share loss. Crazily, this came in a quarter when Aecom's revenue -- $3.6 billion -- was 80% more than the $2 billion Wall Street expected!
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Even $3.6 billion represented a 14% decline in revenue for Aecom year over year. Worse, the work Aecom did was unprofitable. Operating earnings ran negative, non-GAAP earnings were the $0.50 loss noted above, and GAAP results showed an even bigger net loss: $0.65 per share.
Even the good news at Aecom was kind of bad. Aecom generated positive free cash flow of $55 million in the quarter. However, this was 79% less free cash flow than the company generated a year ago.
#aecom #earnings #year
Heading into the report, ***** ysts forecast Aecom would earn $1.51 per share in its fiscal Q3 2026. Instead, Aecom reported a $0.50 per share loss. Crazily, this came in a quarter when Aecom's revenue -- $3.6 billion -- was 80% more than the $2 billion Wall Street expected!
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Even $3.6 billion represented a 14% decline in revenue for Aecom year over year. Worse, the work Aecom did was unprofitable. Operating earnings ran negative, non-GAAP earnings were the $0.50 loss noted above, and GAAP results showed an even bigger net loss: $0.65 per share.
Even the good news at Aecom was kind of bad. Aecom generated positive free cash flow of $55 million in the quarter. However, this was 79% less free cash flow than the company generated a year ago.
#aecom #earnings #year
5 months ago
AECOM (NYSE:ACM) ranks among the undervalued infrastructure stocks to buy now. The stock looks cheap on the surface, but the debate right now is whether that discount is an opportunity or a trap.
On May 19, 2026, Barclays lowered its price target on AECOM (NYSE:ACM) to $90 from $110, keeping an "Equal Weight" rating after the fiscal second-quarter report. The firm acknowledged the company's record of strong multi-year growth and free cash flow, but said those qualities were being overshadowed by an ***** et-light re-rating and a lack of near-term catalysts. Barclays described the stock as optically cheap but without a clear re-rating path.
Against that backdrop, AECOM (NYSE:ACM) has kept moving.
On June 10, 2026, AECOM (NYSE:ACM) entered into a new $500 million revolving credit agreement with a lender syndicate led by Bank of America, maturing June 9, 2028, with no borrowings outstanding at inception. The facility is secured by ***** ets of AECOM and certain subsidiaries, carries leverage-based pricing and unused commitment fees, and includes a maximum consolidated leverage ratio covenant of 4.0 to 1, reinforcing the company's liquidity while imposing standard financial discipline.
Then on June 12, 2026, AECOM (NYSE:ACM) appointed David Rottblatt as Senior Vice President and Director of Strategic Private Sector Client Growth in its Aviation Market Sector. Based in California, Rottblatt will focus on expanding AECOM's reach across private sector aviation clients and emerging aviation markets. He joins from Supernal, where he served as Chief Operating Officer, and brings more than two decades of leadership experience, including 15 years in the global aviation industry.
On May 19, 2026, Barclays lowered its price target on AECOM (NYSE:ACM) to $90 from $110, keeping an "Equal Weight" rating after the fiscal second-quarter report. The firm acknowledged the company's record of strong multi-year growth and free cash flow, but said those qualities were being overshadowed by an ***** et-light re-rating and a lack of near-term catalysts. Barclays described the stock as optically cheap but without a clear re-rating path.
Against that backdrop, AECOM (NYSE:ACM) has kept moving.
On June 10, 2026, AECOM (NYSE:ACM) entered into a new $500 million revolving credit agreement with a lender syndicate led by Bank of America, maturing June 9, 2028, with no borrowings outstanding at inception. The facility is secured by ***** ets of AECOM and certain subsidiaries, carries leverage-based pricing and unused commitment fees, and includes a maximum consolidated leverage ratio covenant of 4.0 to 1, reinforcing the company's liquidity while imposing standard financial discipline.
Then on June 12, 2026, AECOM (NYSE:ACM) appointed David Rottblatt as Senior Vice President and Director of Strategic Private Sector Client Growth in its Aviation Market Sector. Based in California, Rottblatt will focus on expanding AECOM's reach across private sector aviation clients and emerging aviation markets. He joins from Supernal, where he served as Chief Operating Officer, and brings more than two decades of leadership experience, including 15 years in the global aviation industry.
