AECOM (ACM) Faces Reassessment as Barclays Shifts Focus Within Construction Sector

Group 1: Company Overview - AECOM (NYSE:ACM) designs and engineers transportation systems, buildings, water networks, energy infrastructure, and environmental projects, providing consulting and construction management services [6] Group 2: Recent Developments - Barclays analyst Adam Seiden downgraded AECOM to Equal Weight from Overweight and lowered the price target to $100 from $135 as part of the firm's 2026 outlook for the machinery and construction space [2] - AECOM raised its segment-adjusted operating margin target to over 20% by the end of fiscal 2028, linking this to higher-return investments in proprietary AECOM AI tools and its Advisory services business [4] - The company increased its expected adjusted EPS CAGR for fiscal 2026 through 2029 to over 15%, indicating confidence in earnings power as investments scale [5] Group 3: Strategic Focus - AECOM launched a review of strategic alternatives for its construction management business, including a potential sale, to focus on faster-growing, higher-return opportunities [5] - Starting with first-quarter results, the construction management unit is expected to be classified as held for sale on the balance sheet and reported as discontinued operations under GAAP [5] Group 4: Market Outlook - Barclays remains constructive on the broader construction sector heading into 2026, expecting modest share gains after several strong years, while favoring machinery and rental companies due to cyclical and macro factors [3]