Aecom (ACM)
NYSE:ACM
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Aecom Technology
(NYSE:ACM)
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Rating:68Neutral
Price Target:
$100.00
▲(19.63% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Aecom Technology (ACM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.81B
Dividend Yield1.06%
Average Volume (3M)1.11M
Price to Earnings (P/E)42.3
Beta (1Y)0.83
Revenue Growth0.21%
EPS Growth53.80%
CountryUS
Employees51,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.29
Shares Outstanding129,288,620
10 Day Avg. Volume1,047,760
30 Day Avg. Volume1,113,259
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 Cap1.24
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit10.90
Enterprise Value/Ebitda10.58
Forecast
1Y Price Target
$129.25Price Target Upside54.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)5.95
Revenue Forecast (FY)$7.94B
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 Key Performance Indicators (KPIs)
Aecom Technology Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record outcomes (record backlog, margin expansion, adjusted EBITDA and EPS beats), raised full-year guidance, significant buybacks, and tangible early success from AI and strategic wins—balanced against timing-related headwinds (federal shutdown, fewer billable days), near-term international softness in select markets, and first-half cash seasonality. Overall the positive operational outperformance, strong backlog/pipeline, guidance uplift and capital returns substantially outweigh the near-term and timing-driven challenges.Positive Updates
Record Backlog and Strong Book-to-Burn
Backlog increased 9% year-over-year to an all-time high, supported by a 1.5x book-to-burn ratio and a book-to-burn above 1 for 21 consecutive quarters, providing strong near-term visibility.
Negative Updates
U.S. Federal Funding Disruption
An unprecedented 43-day U.S. federal government shutdown disrupted award activity and contributed to fewer billable days, negatively affecting timing of recognitions and comparability versus the prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Backlog and Strong Book-to-Burn
Backlog increased 9% year-over-year to an all-time high, supported by a 1.5x book-to-burn ratio and a book-to-burn above 1 for 21 consecutive quarters, providing strong near-term visibility.
Read all positive updates
Company Guidance
Management raised full‑year financial guidance following strong Q1 operational outperformance: Q1 adjusted EBITDA was $287 million and adjusted EPS $1.29, and the midpoint of FY‑26 adjusted EPS was increased to $5.95 (from $5.75 previously) while the midpoint of adjusted EBITDA guidance was also raised. They expect Q2 NSR and adjusted EBITDA to each be roughly 24% of full‑year guidance and Q2 tax rate to be ~12–13%; full‑year NSR was up 5% when adjusted for fewer billable days, enterprise segment adjusted operating margin widened 100 bps to 16.4% (Americas margin 19.9%, +120 bps) and International NSR was essentially flat (workday‑adjusted). Backlog hit an all‑time high—up 9% overall and 25% in International—with a 1.5 book‑to‑burn (above 1 for 21 consecutive quarters), pipeline +20% (early‑stage +34%), defense ≈10% of NSR, and management reiterated long‑term targets of 5–8% annual revenue growth, a 20% margin exit by FY‑28, mid‑teens compounded EPS and FCF per‑share growth, enterprise gross‑margin expansion of ~90–100 bps this year (net of tech investments ~30 bps). Capital allocation remains active: >$300M repurchased in Q1 (nearly $350M returned in the quarter), ~$3.3B returned over several years, and buyback authorization increased to $1 billion.Aecom Technology Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| 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
Negative
83.59
Price Trends
91.93
Negative
96.43
Negative
109.67
Negative
Market Momentum
-2.29
Negative
38.10
Neutral
39.14
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 83.59 is below the 20-day moving average (MA) of 86.80, below the 50-day MA of 91.93, and below the 200-day MA of 109.67, indicating a bearish trend. The MACD of -2.29 indicates Negative momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 39.14 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 | $87.58B | 62.25 | 12.60% | 0.09% | 18.72% | 23.97% | |
72 Outperform | $7.87B | 21.14 | 20.29% | 0.74% | 4.69% | -24.37% | |
69 Neutral | $4.64B | 12.59 | 28.27% | 1.65% | 9.66% | 29.01% | |
68 Neutral | $10.81B | 42.33 | 19.75% | 1.06% | 0.21% | 53.80% | |
68 Neutral | $14.43B | 30.11 | 11.80% | 0.94% | -23.00% | -61.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $7.07B | -131.50 | -1.14% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
ACM
Aecom Technology
83.59
-9.68
-10.38%
FLR
Fluor
49.21
15.60
46.41%
J
Jacobs Solutions
122.87
7.32
6.33%
KBR
KBR
36.67
-13.17
-26.42%
PWR
Quanta Services
585.36
311.33
113.61%
TTEK
Tetra Tech
30.19
-0.01
-0.04%
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.