Aecom (E6Z) AI Stock Analysis

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.