Aecom Technology (ACM) AI Stock Analysis

• Market Cap: $11.46B
• Dividend Yield: 1.06%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 42.3
• Beta (1Y): 0.89
• Revenue Growth: 0.21%
• EPS Growth: 53.80%
• Country: US
• Employees: 51,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.29
• Shares Outstanding: 129,288,620
• 10 Day Avg. Volume: 1,053,442
• 30 Day Avg. Volume: 1,683,830
• PEG Ratio: 0.72
• Price to Book (P/B): 6.93
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 25.22
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 11.56
• Enterprise Value/Ebitda: 11.22
• 1Y Price Target: $126.56
• Price Target Upside: 42.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 5.94
• Revenue Forecast (FY): $7.94B

• Rating: 68 Neutral
• Price Target: $100.00 ▲(12.80% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven primarily by solid underlying financial performance (improved profitability and reliable cash flow) and a constructive earnings update with raised guidance and strong backlog visibility. These positives are tempered by weak technicals (price below key moving averages with negative MACD) and a stretched valuation (high P/E with modest yield).

Positive Factors

Record backlog and strong book-to-burn

A multi-quarter backlog at an all-time high and a sustained 1.5x book-to-burn provide durable revenue visibility and reduce cyclicality. This backlog cadence supports steady utilization, more predictable cash flow timing, and underpins management's raised guidance and multi-year growth planning.

Margin expansion and improving profitability

Documented margin expansion driven by mix shift and technology-driven efficiencies indicates structural improvement in operating leverage. Sustained margin gains support higher free cash flow, make long-term margin targets (20% by FY‑28) feasible, and improve resilience to revenue volatility.

Consistent cash generation and active capital returns

Stable operating cash flow and repeated large share repurchases plus dividend payments show reliable free cash flow conversion and disciplined capital allocation. This strengthens shareholder returns, signals management confidence, and provides flexibility for buybacks or reinvestment over time.

Negative Factors

Meaningful leverage and covenant exposure

Total debt remains material after refinancing, and a formalized 4.0x leverage covenant constrains financial flexibility. Elevated leverage increases interest and refinancing sensitivity, limiting the company's ability to cushion prolonged project slowdowns or fund opportunistic investments without covenant risk.

Revenue deceleration and TTM softness

A trailing‑twelve‑month revenue decline and slight margin giveback signal cooling growth momentum versus recent years. If top-line growth stays sub‑trend, it could hinder progress toward stated 5–8% annual targets and limit operating leverage needed to sustain margin expansion and EPS/FCF per‑share goals.

Execution and integration risk in Construction Management

Choosing to retain the CM business keeps project delivery and integration risk on the balance sheet. CM work can expose the firm to fixed‑price delivery, subcontractor risk, and execution complexity that may hamper margin improvement and require sustained investment in controls and oversight.

Aecom Technology Business Overview & Revenue Model

Company Description

AECOM, together with its subsidiaries, provides professional infrastructure consulting services for governments, businesses, and organizations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to commercial and government clients. It also invests in and develops real estate projects. In addition, the company provides construction services, including building construction and energy, and infrastructure and industrial construction. It serves transportation, water, government, facilities, environmental, and energy sectors. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was incorporated in 1980 and is headquartered Dallas, Texas.

How the Company Makes Money

AECOM primarily makes money by providing fee-based professional services tied to the planning, design, and management of infrastructure and capital projects. Revenue is generated through client contracts that typically bill (a) time-and-materials or labor-based fees (hours worked by technical staff billed at agreed rates), (b) fixed-price or lump-sum fees for defined scopes of work (common in design packages or discrete deliverables), and (c) cost-reimbursable arrangements where eligible project costs are reimbursed by the client plus an added fee or margin for management/overhead. Key revenue streams come from consulting and engineering design (upfront project development, studies, permitting support, detailed engineering, and architecture), environmental services (site assessment, compliance, remediation planning and execution management), and program/construction management (owner’s representative services, schedule/cost controls, procurement support, construction oversight, and commissioning). A large portion of work is awarded by government agencies and regulated utilities, which can involve multi-year framework agreements, indefinite-delivery/indefinite-quantity (IDIQ) contracts, or task-order contracts that create recurring revenue as projects are authorized and executed. The company’s earnings are influenced by its ability to win and renew long-duration contracts, maintain utilization of technical staff, manage project execution to avoid cost overruns on fixed-price work, and deliver specialized capabilities that support premium pricing. Partnerships and teaming arrangements (e.g., joint ventures or consortiums) are commonly used to pursue large or complex programs, enabling access to broader capabilities and sharing execution risk; where used, AECOM earns its share of contract revenues in line with its participation and responsibilities.

Aecom Technology Financial Statement Overview

Summary

Profitability and returns improved materially from 2023–2025 and cash generation remains consistently positive, supporting earnings quality. Offsetting factors include meaningful leverage (debt-to-equity roughly ~1.1–1.4x in provided annual periods) and softer near-term momentum in TTM with slight revenue decline, some margin giveback versus 2025, and lower free cash flow.

Income Statement

ACM shows solid profitability improvement versus the low-profit 2023 period: annual net margin rebounded from ~0.4% (2023) to ~2.5% (2024) and ~3.5% (2025), with EBIT and EBITDA margins also stepping up meaningfully. However, growth has cooled—TTM (Trailing-Twelve-Months) revenue is down ~1.1% and net margin in TTM is lower than 2025 (about 2.9% vs. 3.5%), indicating some near-term pressure despite still-healthy operating profitability for the business model.

Balance Sheet

Leverage is meaningful: total debt is ~3.2–3.4B against equity of ~2.2–2.5B (debt-to-equity ~1.1–1.4x in the annual periods provided), which reduces balance-sheet flexibility. That said, equity remains sizable and returns on equity are strong in the last two annual reports (~18% in 2024 and ~23% in 2025), supporting the view that the company is using capital productively. A key weakness is that the TTM leverage ratio is shown as 0.0 (likely missing/invalid), so the most recent leverage read-through is less clear from the provided data.

Cash Flow

Cash generation is consistently positive, with operating cash flow in the ~0.7–0.8B range annually and free cash flow around ~0.57–0.71B. Free cash flow tracks net income well (free cash flow is ~0.81–0.86x of net income historically; ~0.83x in TTM), which supports earnings quality. The main negatives are decelerating momentum—free cash flow growth is slightly negative in 2025 and down ~5.9% in TTM (Trailing-Twelve-Months)—and an operating-cash-flow-to-sales figure that appears low in the data, suggesting cash conversion may be a watch item.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	15.96B	16.14B	16.11B	14.38B	13.15B	13.34B
Gross Profit	1.23B	1.22B	1.08B	945.47M	847.97M	798.42M
EBITDA	1.27B	1.28B	1.08B	548.47M	831.84M	823.56M
Net Income	469.25M	561.77M	402.27M	55.33M	310.61M	173.19M
Balance Sheet
Total Assets	11.94B	12.20B	12.06B	11.23B	11.14B	11.73B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.59B	1.58B	1.26B	1.17B	1.23B
Total Debt	3.84B	3.36B	3.03B	2.75B	2.80B	2.89B
Total Liabilities	9.49B	9.50B	9.69B	8.85B	8.53B	8.90B
Stockholders Equity	2.23B	2.49B	2.18B	2.21B	2.48B	2.71B
Cash Flow
Free Cash Flow	615.95M	684.93M	707.89M	590.38M	576.62M	568.41M
Operating Cash Flow	740.73M	821.60M	827.49M	695.98M	713.64M	704.67M
Investing Cash Flow	-423.30M	-413.22M	-210.64M	-138.18M	-175.03M	-421.09M
Financing Cash Flow	-656.57M	-403.67M	-295.46M	-472.94M	-588.32M	-872.53M

Aecom Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 88.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 88.65 is below the 20-day moving average (MA) of 94.23, below the 50-day MA of 96.27, and below the 200-day MA of 112.18, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 10.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACM.

Aecom Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWR	77 Outperform	$85.88B	62.25	12.60%	0.09%	18.72%	23.97%
TTEK	72 Outperform	$8.19B	21.14	20.29%	0.74%	4.69%	-24.37%
KBR	69 Neutral	$4.62B	12.59	28.27%	1.65%	9.66%	29.01%
ACM	68 Neutral	$11.46B	42.33	19.75%	1.06%	0.21%	53.80%
J	68 Neutral	$15.13B	30.11	11.80%	0.94%	-23.00%	-61.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	55 Neutral	$6.42B	-131.50	-1.14%	―	-1.81%	1228.51%

Aecom Technology Corporate Events

AECOM Amends Syndicated Credit Agreement, Secures New Facilities

On March 10, 2026, AECOM amended its long-standing syndicated credit agreement, securing a new $1.5 billion revolving credit facility, a $950 million term loan A and a $500 million term loan B, which together replace and refinance its prior revolving and term loan facilities. The revolving and term loan A facilities now mature on March 10, 2031, extending their tenor by two years, while the term loan B maturity remains April 19, 2031, with pricing tied to AECOM’s leverage ratio and slightly reduced margins on the term loan B, and the package includes sustainability-linked adjustments, customary covenants, and collateral and guarantee structures that reinforce lenders’ protections and formalize leverage limits for the company.

Borrowings under the new facilities can be made in U.S. dollars and certain foreign currencies, with interest based on SOFR or applicable base and reference rates plus leverage-dependent margins, and an unused commitment fee on the revolving facility. The credit agreement imposes standard negative and affirmative covenants, including a consolidated leverage ratio cap of 4.00 to 1.00, along with traditional events of default that could trigger acceleration and collateral remedies, underscoring a disciplined capital structure framework as AECOM extends and slightly improves the terms of its core bank financing.

The most recent analyst rating on (ACM) stock is a Hold with a $101.00 price target. To see the full list of analyst forecasts on Aecom Technology stock, see the ACM Stock Forecast page.

Aecom Technology Declares Quarterly Dividend, Signals Ongoing Confidence

At its March 3, 2026 annual meeting, AECOM stockholders elected eight director nominees to serve until the 2027 annual meeting, ratified Ernst & Young LLP as the independent auditor for the fiscal year ending September 30, 2026, and approved the company’s executive compensation on an advisory basis. These votes reaffirmed the existing board slate and governance framework, supporting continuity in management oversight and financial reporting practices for investors.

On March 5, 2026, AECOM’s board declared a quarterly cash dividend of $0.31 per share, payable April 17, 2026 to stockholders of record as of April 1, 2026, as part of its ongoing dividend program. The move underscores the company’s continued capital return to shareholders and signals confidence in its cash generation and balance-sheet strength within the infrastructure services sector.

The most recent analyst rating on (ACM) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Aecom Technology stock, see the ACM Stock Forecast page.