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Key Takeaways AECOM selected for $151B SHIELD IDIQ, eligible to compete for defense orders, no work guaranteed.AECOM will provide advisory, design, planning and construction services for defense systems.AECOM backlog hit $25.96B, up 8.7%, with margins at 16.4% and EPS of $1.29, beating estimates.AECOM (ACM) has been offered a position by the U.S. Missile Defense Agency in the SHIELD (Scalable Homeland Innovative Enterprise Layered Defense) program, an indefinite-delivery/indefinite-quantity (IDIQ) contract ...

AECOM (NYSE:ACM) is one of the most promising stocks under $100 to buy. On March 17, AECOM announced it had been selected to provide design and technical services as part of the ILIOS consortium for the first phase of the £200 million Spherical Tokamak for Energy Production/STEP program. Appointed by UK Fusion Energy, the consortium will oversee the initial 3-year tranche of this flagship initiative aimed at building a world-leading prototype fusion power plant in Nottinghamshire. This project represents ...

Key Takeaways AECOM's Q1 FY 2026 adjusted operating profit rose 10% with margin up 100 bps despite revenue decline.AI investments are boosting productivity, client wins and profit per employee, supporting efficiency gains.Backlog hit $25.96B, up 8.7% Y/Y, though AI benefits and macro risks may take time to fully play out.AECOM’s (ACM) aggressive push into Artificial Intelligence (AI) is not just a buzzword, but may be a meaningful margin catalyst. In its recent first-quarter fiscal 2026 earnings release, th ...

Group 1 - AECOM has been awarded a position on the U.S. Missile Defense Agency's SHIELD contract, which has a ceiling of $151 billion [1] - The contract allows for a broad range of work areas aimed at the rapid delivery of innovative capabilities with increased speed and agility [1] - This award reinforces the trust that the U.S. government places in AECOM as a global infrastructure leader [1]

Core Viewpoint - AECOM has been recognized as one of the 2026 World's Most Ethical Companies for the tenth time, reflecting its commitment to ethical business practices and integrity [1][2]. Company Recognition - AECOM has received the World's Most Ethical Companies recognition for six consecutive years and ten times overall, showcasing its dedication to ethics and integrity in operations [1][2]. - The recognition is awarded by Ethisphere, which evaluates companies based on their ethical practices and compliance programs [3][4]. Leadership Statements - Troy Rudd, AECOM's CEO, emphasized that safety, ethics, and quality are central to the company's operations, with a 100% completion rate of annual Code of Conduct training [2]. - David Gan, AECOM's Chief Legal Officer, stated that the company's commitment to ethics has been a key factor in its strong performance and risk management [4]. Ethics and Compliance Program - AECOM's Code of Conduct includes a comprehensive ethics and compliance program designed to prevent, detect, and resolve issues, supported by global and regional ethics committees [2][4]. - The assessment for the World's Most Ethical Companies is based on Ethisphere's Ethics Quotient, which requires over 240 documented proof points on various ethical practices [4]. Company Overview - AECOM is a global infrastructure leader with a revenue of $16.1 billion in fiscal year 2025, providing services in water, environment, energy, transportation, and buildings [5].

Core Insights - AECOM has seen a significant stock decline of 29.7% over the past six months, underperforming both the Zacks Engineering – R&D Services industry and the broader Zacks Construction sector [1][9] - The stock is currently trading at approximately $59.80, well below its 52-week high of $135.52, raising questions about potential buying opportunities or further challenges ahead [5][9] Financial Performance - AECOM reported fiscal Q1 2026 revenues of $3.83 billion, a decrease of about 5% year-over-year, but managed to improve profitability with adjusted earnings per share of $1.29 (down 2%) and adjusted EBITDA of $287 million (up 6%) [5][6] - The company achieved a segment operating margin of 16.4%, an improvement of 100 basis points year-over-year, indicating operational efficiency [6] - AECOM's backlog reached a record level of approximately $26 billion, supported by a 1.5X book-to-burn ratio, marking the 21st consecutive quarter above 1 [7][9] - Despite missing EPS expectations, AECOM raised its full-year outlook for adjusted EPS to a range of $5.85-$6.05, reflecting a 12% improvement from fiscal 2025 levels [8] Market Trends and Opportunities - AECOM's growth is closely linked to global infrastructure spending, with significant demand for infrastructure development projected over the next decade [10] - The company is securing high-profile projects, including participation in the Brisbane 2032 Olympic and Paralympic Games infrastructure program, which enhances revenue visibility [11] - AECOM is expanding its advisory services to capture a larger share of the project lifecycle, which supports margin expansion [12] Technological Advancements - AECOM is integrating digital tools and artificial intelligence into its infrastructure delivery platform, enhancing project efficiency and decision-making [13] - The adoption of technology is expected to differentiate AECOM from competitors and unlock new opportunities [13] Capital Allocation and Valuation - AECOM returned over $340 million to shareholders through dividends and share repurchases in Q1, with a share repurchase authorization increased to $1 billion [14] - The stock currently trades at approximately 14.26X forward earnings, significantly lower than the industry average of 25.82X, suggesting that recent pessimism may be priced in [16] Analyst Expectations - The Zacks Consensus Estimate for fiscal 2026 EPS has increased to $5.97, indicating a projected 13.5% earnings growth [17] - Revenue is expected to grow modestly, with consensus projections indicating around 4.8% year-over-year growth [18] Competitive Landscape - AECOM faces competition from companies like Jacobs Solutions, Fluor Corporation, and KBR Inc., which are also vying for large infrastructure projects [21][25] - Despite the competitive environment, AECOM's operational momentum and strategic investments position it well for future growth [26]

Core Viewpoint - AECOM's recent earnings report showed mixed results, with earnings missing estimates and revenues declining year-over-year, while the backlog reached a record high, indicating sustained demand and potential for future growth [2][3][4]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 was $1.29, missing the consensus estimate of $1.41 by 8.5% and down 1.5% from the previous year [3]. - Total revenues were reported at $4.01 billion, a decline of 4.6% year-over-year, while net service revenues (NSR) increased by 2.7% to $1.85 billion [3][4]. - Adjusted operating income rose 9% year-over-year to $214 million, with an adjusted operating margin expanding by 120 basis points to 19.9% [6]. Backlog and Opportunities - The total backlog reached a record high of $25.96 billion, up 9% from the previous year, with a book-to-burn ratio of 1.5x, indicating strong demand [4]. - The design backlog increased by 7.6%, and the pipeline of opportunities also saw double-digit growth, driven by strong performance in both the Americas and International segments [4]. Segment Performance - Americas' revenues were $3 billion, down 4% year-over-year, while NSR increased by 9% to $1.1 billion [5]. - International revenues decreased by 5% to $854 million, but NSR remained stable at $736 million [7]. Cash Flow and Liquidity - Cash and cash equivalents at the end of Q1 were $1.25 billion, down from $1.59 billion at the end of fiscal 2024 [10]. - Operating cash flow decreased by 54% year-over-year to $70 million, and adjusted free cash flow declined by 62% to $42 million [10]. Guidance and Outlook - AECOM raised its fiscal 2026 adjusted EPS guidance to a range of $5.85-$6.05, indicating a 12% improvement from fiscal 2025 levels [11][12]. - The company expects adjusted EBITDA to be between $1,270-$1,305 million, reflecting a 7% year-over-year growth at the midpoint [12]. - Long-term financial targets include achieving a 20%+ margin exit rate by fiscal 2028 and delivering adjusted EPS growth at a 15%+ CAGR from fiscal 2026 through fiscal 2029 [13]. Market Sentiment - Recent estimates for AECOM have trended upward, with a consensus estimate shift of 12.77% [14]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16].

Core Insights - AECOM (ACM) is experiencing strong momentum due to increasing infrastructure investments globally, particularly in transportation, water systems, and environmental infrastructure [1] Financial Performance - AECOM's net service revenues (NSR) for Q1 fiscal 2026 reached $1.85 billion, reflecting a 2.7% increase on an adjusted basis, with a notable 9% growth in the Americas segment year over year [2] - The company's backlog as of Q1 fiscal 2026 totaled $25.96 billion, marking an 8.7% increase from $23.88 billion in the same quarter of the previous year [3][10] - AECOM has maintained a book-to-burn ratio above 1x for 21 consecutive quarters, indicating consistent project awards and demand for infrastructure services [3][10] Strategic Capabilities - AECOM's Advisory business aids clients in planning infrastructure investments and managing risks, while the Program Management business supports large-scale developments across various markets [4] - Investments in leadership, technical expertise, and artificial intelligence are enhancing project execution and strengthening AECOM's competitive position [5] Industry Context - Rising infrastructure investments are also benefiting AECOM's peers, such as Fluor Corporation and Sterling Infrastructure, which are experiencing expanding project pipelines [6] - Fluor reported a backlog of $25.5 billion at the end of 2025, with 81% structured as reimbursable work, enhancing cost visibility [7] - Sterling's signed backlog reached approximately $3 billion, up 78% from the previous year, with strong demand for mission-critical projects [8] Stock Performance and Valuation - AECOM's stock has declined by 5.9% over the past three months, underperforming compared to the Zacks Engineering - R and D Services industry and the broader market [9] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.96, indicating a discount relative to industry peers [11] - Earnings estimates for fiscal 2026 and 2027 have been revised upward, suggesting year-over-year growth of 13.5% and 12%, respectively [13]

Group 1 - AECOM (NYSE:ACM) had a poor quarterly performance, leading to skepticism about its investment potential despite being a good company [1] - Jim Cramer suggested Quanta Services (PWR) as a better-run alternative within the same business sector [1] - AECOM is positioned to benefit from the AI data center boom, which is seen as a significant tailwind for its infrastructure consulting and construction services [3] Group 2 - While AECOM shows potential, there are AI stocks that may offer greater upside and less downside risk, indicating a competitive investment landscape [4] - The company is recognized for its public sector work, particularly in infrastructure construction, but also engages in commercial business [3]