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Aecom
(NYSE:ACM)
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Rating:52Neutral
Price Target:
$64.00
▼(-9.30% Downside)
Action:Reiterated
Date:08/18/26
ACM scores in the low-to-mid range primarily due to weakening financial quality (notably the sharp step-down in operating/free cash flow and higher leverage) and clearly bearish technicals (price below all key moving averages with weak MACD/RSI/Stoch). Earnings-call signals provide partial support via strong backlog/booking and raised adjusted margin guidance, but the large CM charge and expected cash drain into FY'27 keep near-term risk elevated; valuation is only modestly supported by the dividend given a P/E near 28.6.
Positive Factors
Backlog and Booking Visibility
Record backlog and book-to-burn above 1.0x indicate that new awards are replenishing delivered work. This provides multi-year revenue visibility for AECOM’s fee-based model and supports workforce utilization.
Negative Factors
Construction Project Execution Risk
The large charge exposes weaknesses in construction-management risk controls and reduces confidence in project profitability. Outstanding claims on two legacy P3 projects could prolong earnings volatility and management attention.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Booking Visibility
Record backlog and book-to-burn above 1.0x indicate that new awards are replenishing delivered work. This provides multi-year revenue visibility for AECOM’s fee-based model and supports workforce utilization.
Read all positive factors
Aecom Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks revenue down by region so you can see AECOM’s exposure to the U.S., Europe, Asia, Middle East and other markets. Reveals where growth opportunities from stimulus and infrastructure programs exist and where political, currency, or economic slowdowns could create risk.
Breaks revenue down by region so you can see AECOM’s exposure to the U.S., Europe, Asia, Middle East and other markets. Reveals where growth opportunities from stimulus and infrastructure programs exist and where political, currency, or economic slowdowns could create risk.
Data provided by:
The Fly
The FlyAecom (ACM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.94B
Dividend Yield1.83%
Average Volume (3M)1.71M
Price to Earnings (P/E)29.4
Beta (1Y)0.83
Revenue Growth-4.24%
EPS Growth-44.22%
CountryUS
Employees51,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.21
Shares Outstanding128,696,430
10 Day Avg. Volume1,452,349
30 Day Avg. Volume1,711,554
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)6.93
Price to Sales (P/S)1.07
P/FCF Ratio25.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$83.13Price Target Upside17.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)3.98
Revenue Forecast (FY)$7.51B
Aecom Business Overview & Revenue Model
Company Description
AECOM, along with its affiliated entities, delivers specialized infrastructure consulting services to public sector bodies, private businesses, and various organizations across the globe, with operations spanning the Americas, Europe, the Middle E...
How the Company Makes Money
AECOM primarily makes money by selling fee-based professional services on client projects. Revenue is generated from (1) consulting and advisory work (e.g., planning, environmental and sustainability consulting, and technical studies), (2) design ...
Aecom Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 23, 2026
Earnings Call Sentiment Neutral
The call presents meaningful operational and commercial strengths — record backlog, strong book-to-burn, broad geographic and market wins, improving international margins and maintained free cash flow guidance — but these positives are materially offset in the near term by a significant $337 million pretax construction management charge, related cash burn (~$500M through early FY'27), higher interest expense, and outstanding claims tied to two legacy P3 design-build projects. Management emphasizes that the problematic projects would not pass current risk controls, expects recoveries over time, and remains confident in the long-term 5%–8% organic growth algorithm and margin roadmap, creating a mixed near-term / constructive long-term outlook.Positive Updates
Record Backlog and Strong Win Activity
Backlog increased 13% to an all-time high driven by record quarterly wins; book-to-burn was 1.6x for the quarter (1.8x in the Americas) and 1.4x year-to-date, providing multiyear visibility.
Negative Updates
Large $337 Million Pretax Construction Management Charge
Recorded a $337 million pretax charge this quarter arising from delays and lower subcontractor productivity on a large construction management (CM) design-build P3 project; primary completion now expected near end of Q2 FY'27.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Backlog and Strong Win Activity
Backlog increased 13% to an all-time high driven by record quarterly wins; book-to-burn was 1.6x for the quarter (1.8x in the Americas) and 1.4x year-to-date, providing multiyear visibility.
Read all positive updates
Company Guidance
Management updated FY‑2026 guidance reflecting a $337M pretax construction‑management charge and slower-than-expected NSR growth: on a reported basis they now expect full‑year NSR of ~$7.3B, adjusted EBITDA of $950M and EPS of $4.05 at the midpoint; excluding the charge they forecast NSR of $7.65B–$7.7B with adjusted EBITDA of $1.29B and EPS of $6.00 at the midpoint, and raised adjusted EBITDA margin to 17.4% (from 17%). They expect full‑year free cash flow of $300M (YTD FCF was $55M), the CM projects used $185M of cash in Q3 and are expected to drive roughly $0.5B of cash impact into the first half of FY‑2027, which will add ~$30M–$35M of interest expense year‑on‑year in 2027; the charge reduced NSR/EBITDA by $337M and EPS by $1.99 in the quarter. Management pointed to strong visibility underpinning the outlook — backlog up 13% to a record, book‑to‑burn 1.6x for the quarter (1.4x YTD; Americas 1.8x), design NSR +5% adjusted for a workday, Americas design +6%, International NSR +4%, International adjusted operating margin 14.3% and Americas margin ex‑charge ~18% — and reiterated a longer‑term target to exit FY‑2028 at roughly 20% margins.Aecom Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
57
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.39B | 16.14B | 16.11B | 14.38B | 13.15B | 13.34B |
| Gross Profit | 874.05M | 1.22B | 1.08B | 945.47M | 847.97M | 798.42M |
| EBITDA | 837.11M | 1.28B | 1.08B | 548.47M | 831.84M | 823.56M |
| Net Income | 288.04M | 561.77M | 402.27M | 55.33M | 310.61M | 173.19M |
Balance Sheet | ||||||
| Total Assets | 12.03B | 12.20B | 12.06B | 11.23B | 11.14B | 11.73B |
| Cash, Cash Equivalents and Short-Term Investments | 762.02B | 1.59B | 1.58B | 1.26B | 1.17B | 1.23B |
| Total Debt | 3.33B | 3.36B | 3.03B | 2.75B | 2.80B | 2.89B |
| Total Liabilities | 9.63B | 9.50B | 9.69B | 8.85B | 8.53B | 8.90B |
| Stockholders Equity | 2.19B | 2.49B | 2.18B | 2.21B | 2.48B | 2.71B |
Cash Flow | ||||||
| Free Cash Flow | 203.45M | 684.93M | 707.89M | 590.38M | 576.62M | 568.41M |
| Operating Cash Flow | 365.36M | 821.60M | 827.49M | 695.98M | 713.64M | 704.67M |
| Investing Cash Flow | -427.46M | -413.22M | -210.64M | -138.18M | -175.03M | -421.09M |
| Financing Cash Flow | -712.62M | -403.67M | -295.46M | -472.94M | -588.32M | -872.53M |
Aecom Technical Analysis
Negative
70.56
Price Trends
69.32
Negative
74.16
Negative
87.62
Negative
Market Momentum
-1.95
Positive
33.86
Neutral
12.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACM, the sentiment is Negative. The current price of 70.56 is above the 20-day moving average (MA) of 69.85, above the 50-day MA of 69.32, and below the 200-day MA of 87.62, indicating a bearish trend. The MACD of -1.95 indicates Positive momentum. The RSI at 33.86 is Neutral, neither overbought nor oversold. The STOCH value of 12.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACM.
Aecom Risk Analysis
Aecom disclosed 44 risk factors in its most recent earnings report. Aecom reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aecom Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.06B | 21.92 | 23.76% | 0.84% | -7.61% | 105.41% | |
73 Outperform | $104.66B | 76.63 | 14.86% | 0.07% | 26.30% | 34.94% | |
70 Outperform | $16.72B | 51.35 | 9.81% | 1.01% | 20.03% | -28.63% | |
70 Outperform | $4.74B | 11.44 | 27.41% | 1.79% | -4.37% | 13.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $7.14B | -4.49 | -57.08% | ― | -4.77% | -151.32% | |
52 Neutral | $7.94B | 29.43 | 12.54% | 1.69% | -4.24% | -44.22% |
* Industrials Sector Average
ACM
Aecom
65.04
-53.47
-45.12%
FLR
Fluor
54.06
13.18
32.24%
J
Jacobs Solutions
147.37
2.34
1.61%
KBR
KBR
37.97
-10.85
-22.22%
PWR
Quanta Services
677.41
301.86
80.38%
TTEK
Tetra Tech
36.60
1.23
3.48%
Aecom Corporate Events
Business Operations and StrategyPrivate Placements and Financing
AECOM Technology Secures New $500 Million Revolving Credit Facility
Positive
Jun 11, 2026
On June 10, 2026, AECOM entered into a new $500 million revolving credit agreement with a syndicate of lenders led by Bank of America, N.A., establishing a committed facility maturing on June 9, 2028, with no borrowings outstanding at inception. T...
Business Operations and StrategyDividendsFinancial Disclosures
AECOM Declares Quarterly Dividend, Signaling Ongoing Shareholder Returns
Positive
Jun 3, 2026
On June 3, 2026, AECOM said its board had declared a quarterly cash dividend of $0.31 per share as part of its ongoing dividend program. The payout is scheduled for July 17, 2026, to shareholders of record at the close of business on July 1, 2026,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.