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Aecom Technology
(NYSE:ACM)
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Rating:51Neutral
Price Target:
$63.00
â–¼(-3.24% Downside)
Action:Reiterated
Date:09/17/26
ACM’s score is held back primarily by deteriorating cash generation and elevated leverage, alongside a clearly bearish technical setup (price below major moving averages and negative MACD). The earnings call adds a mixed but slightly supportive offset due to record backlog and improved margin guidance, though the large CM charge, projected cash drain into FY’27, and claims uncertainty keep near-term risk elevated. Valuation appears demanding (P/E ~28.4) relative to the current growth and cash-flow profile, with only modest support from a ~1.9% dividend yield.
Positive Factors
Record backlog and strong bookings
Record backlog and book-to-burn above 1x indicate that AECOM is replenishing work faster than it is delivering it. This provides multiyear revenue visibility, supports professional-staff utilization, and reduces dependence on winning work in any single quarter.
Negative Factors
Deteriorating cash generation
The sharp decline in operating and free cash flow shows weaker conversion of accounting earnings into financial resources. Persistently lower cash generation could constrain debt reduction, shareholder returns, and investment capacity, especially during project-related cash demands.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and strong bookings
Record backlog and book-to-burn above 1x indicate that AECOM is replenishing work faster than it is delivering it. This provides multiyear revenue visibility, supports professional-staff utilization, and reduces dependence on winning work in any single quarter.
Read all positive factors
Aecom Technology 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 Technology (ACM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.63B
Dividend Yield2.01%
Average Volume (3M)1.85M
Price to Earnings (P/E)26.8
Beta (1Y)0.78
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. Volume1,672,894
30 Day Avg. Volume1,849,735
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 Cap1.51
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit13.16
Enterprise Value/Ebitda12.73
Forecast
1Y Price Target
$82.40Price Target Upside26.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)6.36
Revenue Forecast (FY)$7.96B
Aecom Technology 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 makes money primarily by delivering fee-based professional services on infrastructure and built-environment projects. Its revenue is largely generated from (1) consulting, engineering, and design services—earning fees for planning, technical...
Aecom Technology 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 Technology 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 | 903.35M | 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 Technology Technical Analysis
Negative
65.11
Price Trends
64.61
Negative
67.21
Negative
78.59
Negative
Market Momentum
-1.59
Negative
40.93
Neutral
52.38
Neutral
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 65.11 is above the 20-day moving average (MA) of 60.82, above the 50-day MA of 64.61, and below the 200-day MA of 78.59, indicating a bearish trend. The MACD of -1.59 indicates Negative momentum. The RSI at 40.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACM.
Aecom Technology Risk Analysis
Aecom Technology disclosed 44 risk factors in its most recent earnings report. Aecom Technology 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 Technology Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.54B | 19.96 | 23.76% | 0.82% | -7.61% | 105.41% | |
71 Outperform | $3.32B | 31.30 | 31.48% | 1.76% | 12.84% | 11.59% | |
70 Outperform | $4.46B | 10.64 | 27.41% | 1.87% | -4.37% | 13.37% | |
64 Neutral | $16.29B | 48.48 | 9.81% | 1.01% | 20.03% | -28.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $7.63B | 26.82 | 12.54% | 2.08% | -4.24% | -44.22% | |
50 Neutral | $6.78B | -4.21 | -57.08% | 6.65% | -4.77% | -151.32% |
* Industrials Sector Average
ACM
Aecom Technology
59.28
-70.80
-54.43%
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139.15
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-8.63%
KBR
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35.34
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TTEK
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33.34
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Aecom Technology Corporate Events
Business Operations and StrategyDividends
AECOM Board Declares Quarterly Dividend, Signaling Stability
Positive
Sep 17, 2026
On September 17, 2026, AECOM announced that its Board of Directors had declared a quarterly cash dividend of $0.31 per share, continuing the company’s ongoing dividend program. The dividend will be paid on October 30, 2026 to shareholders of...
Executive/Board Changes
AECOM Announces Chief Legal Officer Transition Plans
Neutral
Sep 16, 2026
On September 14, 2026, AECOM announced that Chief Legal Officer David Gan will retire, remaining in his role until October 2, 2026 and then serving as Senior Advisor on transition and special initiatives until the second half of 2027, while retain...
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.