Aecom (ACM)
NYSE:ACM
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Aecom Technology
(NYSE:ACM)
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Rating:64Neutral
Price Target:
$75.00
▼(-13.40% Downside)
Action:Reiterated
Date:05/14/26
The score is anchored by decent underlying financial performance and a strong, guidance-raising earnings outlook with record backlog and improving margins. These positives are tempered by weak technicals (price below all key moving averages with negative MACD) and financial risks from leverage and recently weaker cash-flow momentum.
Positive Factors
Record Backlog / Book-to-Burn
A record backlog up 8% and a 1.2x design book-to-burn materially improve revenue visibility over the next 12–24 months. For a project-services business, stronger booked work reduces revenue volatility, supports utilization planning, and underpins guided growth targets for the year.
Negative Factors
Elevated Leverage
Leverage near 1.4x and roughly $3.3B of debt constrain financial flexibility in a project-driven business with lumpy cash timing. Elevated debt increases refinancing, covenant, and interest-rate exposure, reducing capacity to absorb prolonged downturns or fund opportunistic investments without more costly financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Backlog / Book-to-Burn
A record backlog up 8% and a 1.2x design book-to-burn materially improve revenue visibility over the next 12–24 months. For a project-services business, stronger booked work reduces revenue volatility, supports utilization planning, and underpins guided growth targets for the year.
Read all positive factors
Aecom Technology Key Performance Indicators (KPIs)
Aecom Technology (ACM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.26B
Dividend Yield1.06%
Average Volume (3M)1.53M
Price to Earnings (P/E)15.2
Beta (1Y)0.85
Revenue Growth-0.38%
EPS Growth2.58%
CountryUS
Employees51,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)4.20
Shares Outstanding128,522,920
10 Day Avg. Volume2,314,751
30 Day Avg. Volume1,525,396
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)6.93
Price to Sales (P/S)1.07
P/FCF Ratio25.22
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit9.37
Enterprise Value/Ebitda9.26
Forecast
1Y Price Target
$101.71Price Target Upside17.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.98
Revenue Forecast (FY)$7.92B
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 segmen...
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 ...
Aecom Technology Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record backlog, margin expansion, raised profit guidance, notable AI-enabled wins, and robust Americas performance. These positives are tempered by near-term headwinds tied to the Middle East conflict, timing-related cash/claims delays and international revenue softness in some regions. Management expressed confidence in cash flow recovery and continued margin progression, and AI investments are positioned to drive medium-term productivity and competitive advantage.Positive Updates
Record Backlog and Strong Book-to-Burn
Backlog increased 8% to a new record driven by strong wins; design book-to-burn was 1.2x, enhancing revenue visibility and supporting expected second-half growth.
Negative Updates
Middle East Revenue and NSR Headwind
Conflict in the Middle East created an approximate 100 basis point headwind to NSR in the quarter; revenue was disproportionately impacted due to consolidated joint venture exposure, though profit impact was smaller.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Backlog and Strong Book-to-Burn
Backlog increased 8% to a new record driven by strong wins; design book-to-burn was 1.2x, enhancing revenue visibility and supporting expected second-half growth.
Read all positive updates
Company Guidance
AECOM raised full‑year profit guidance for the second time, and at the midpoints of the updated ranges now expects adjusted EBITDA to grow ~7% and adjusted EPS to grow ~14% year‑over‑year; NSR guidance is 4%–6% for the year (accounting for fewer Q4 workdays) or 6%–8% excluding that impact. The company reaffirmed its free cash flow guidance (about $400M) and a long‑term free‑cash‑flow conversion target of >100%, and returned $155M to shareholders in Q2. Supporting the outlook, backlog rose 8% to a record (International backlog +25%), the pipeline has grown double‑digits for three consecutive quarters, Americas design NSR was +8% with a design book‑to‑burn of 1.2x (International TTM book‑to‑burn ~1.4x), segment adjusted operating margin improved 50 bps to 16.5% (Americas margin +60 bps to 20%, International margin ~11%), Q2 included an ~100 bps NSR headwind from the Middle East, and AI investment ramped to $13M in Q2 (≈66 bps), underpinning the company’s confidence in margin expansion and H2 NSR growth.Aecom Technology Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.99B | 16.14B | 16.11B | 14.38B | 13.15B | 13.34B |
| Gross Profit | 1.24B | 1.22B | 1.08B | 945.47M | 847.97M | 798.42M |
| EBITDA | 1.25B | 1.28B | 1.08B | 548.47M | 831.84M | 823.56M |
| Net Income | 505.72M | 561.77M | 402.27M | 55.33M | 310.61M | 173.19M |
Balance Sheet | ||||||
| Total Assets | 12.01B | 12.20B | 12.06B | 11.23B | 11.14B | 11.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.03B | 1.59B | 1.58B | 1.26B | 1.17B | 1.23B |
| Total Debt | 3.35B | 3.36B | 3.03B | 2.75B | 2.80B | 2.89B |
| Total Liabilities | 9.53B | 9.50B | 9.69B | 8.85B | 8.53B | 8.90B |
| Stockholders Equity | 2.27B | 2.49B | 2.18B | 2.21B | 2.48B | 2.71B |
Cash Flow | ||||||
| Free Cash Flow | 410.25M | 684.93M | 707.89M | 590.38M | 576.62M | 568.41M |
| Operating Cash Flow | 553.86M | 821.60M | 827.49M | 695.98M | 713.64M | 704.67M |
| Investing Cash Flow | -400.42M | -413.22M | -210.64M | -138.18M | -175.03M | -421.09M |
| Financing Cash Flow | -706.75M | -403.67M | -295.46M | -472.94M | -588.32M | -872.53M |
Aecom Technology Technical Analysis
Negative
86.61
Price Trends
82.52
Negative
89.34
Negative
104.69
Negative
Market Momentum
-3.80
Positive
33.18
Neutral
25.83
Neutral
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 86.61 is above the 20-day moving average (MA) of 77.32, above the 50-day MA of 82.52, and below the 200-day MA of 104.69, indicating a bearish trend. The MACD of -3.80 indicates Positive momentum. The RSI at 33.18 is Neutral, neither overbought nor oversold. The STOCH value of 25.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACM.
Aecom Technology Risk Analysis
Aecom Technology disclosed 44 risk factors in its most recent earnings report. Aecom Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aecom Technology Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $108.56B | 88.83 | 13.03% | 0.09% | 21.09% | 17.37% | |
74 Outperform | $7.18B | 20.67 | 24.36% | 0.74% | -6.06% | 139.35% | |
64 Neutral | $9.26B | 15.18 | 21.32% | 1.06% | -0.38% | 2.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $4.24B | 11.84 | 26.57% | 1.65% | -3.61% | 10.17% | |
60 Neutral | $13.54B | -81.35 | 10.82% | 0.94% | 0.95% | -10.51% | |
45 Neutral | $6.27B | 12.34 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
ACM
Aecom Technology
72.04
-34.38
-32.30%
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114.69
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KBR
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33.46
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PWR
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723.44
388.40
115.93%
TTEK
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27.65
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-21.31%
Aecom Technology Corporate Events
Business Operations and StrategyPrivate Placements and Financing
AECOM Amends Syndicated Credit Agreement, Secures New Facilities
Positive
Mar 11, 2026
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 revolv...
Executive/Board ChangesDividendsShareholder Meetings
Aecom Technology Declares Quarterly Dividend, Signals Ongoing Confidence
Positive
Mar 5, 2026
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 co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.