AECOM pins hopes on highway bill as revenue, profits drop

Core Insights - Federal construction work is expected to resume following recent government shutdowns, with AECOM anticipating increased federal award activity in the second and third quarters of 2026 [1][2] Federal Construction Market - AECOM reported that federal award activity slowed during a 43-day shutdown at the end of 2025, but demand remained, with work accumulating as agencies awaited clarity [2] - Over half of the $1.2 trillion Infrastructure Investment and Jobs Act funding is still unspent, indicating significant opportunities in the federal construction market [3] Federal Funding and Transportation - The passage of key federal funding bills for fiscal 2026 has provided greater certainty for clients, accelerating progress in multiyear surface transportation authorization [4] - An extension of the transportation construction cycle is expected, which includes roadway work and environmental services [4][5] State and Municipal Budgets - State and municipal construction budgets are healthier than anticipated, particularly in large markets like California, Florida, and Texas, supported by improved tax revenue projections for fiscal 2025 [6] Program Management Demand - Demand for program management services is expected to grow faster than traditional design work as multiyear capital programs become available [7] - AECOM aims to expand its advisory and program management offerings, targeting these services to account for approximately half of its business [7]