Aecom Technology (ACM) AI Stock Analysis

• Market Cap: $17.15B
• Dividend Yield: 0.77%
• Average Volume (3M): 990.28K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.77
• Revenue Growth: 1.50%
• EPS Growth: 164.17%
• Country: US
• Employees: 51,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.34
• Shares Outstanding: 132,446,100
• 10 Day Avg. Volume: 1,272,108
• 30 Day Avg. Volume: 990,285
• PEG Ratio: 0.05
• Price to Book (P/B): 6.41
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 19.77
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 14.08
• Enterprise Value/Ebitda: 13.09
• 1Y Price Target: $133.88
• Price Target Upside: 3.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $146.00 ▲(12.96% Upside)

Aecom Technology's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, increased guidance, and strategic focus on high-return investments contribute positively. However, the high valuation and technical indicators suggesting overbought conditions slightly temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth, particularly in high-margin segments, indicates robust demand and effective business strategies, supporting long-term expansion.

Backlog and Pipeline Growth

A growing backlog and pipeline suggest sustained demand and future revenue visibility, enhancing the company's market position and stability.

Strategic Financial Management

Optimizing debt structure through strategic financial maneuvers enhances financial flexibility, supporting long-term growth and investment capacity.

Negative Factors

Declining Free Cash Flow

Reduced free cash flow growth may limit the company's ability to fund operations and investments internally, potentially increasing reliance on external financing.

Challenges in Australia

Budgetary constraints in Australia impacting revenue highlight regional vulnerabilities, which could affect overall growth if not addressed.

Moderate Net Profit Margin

A moderate net profit margin suggests room for profitability enhancement, which is crucial for sustaining competitive advantage and shareholder value.

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 generates revenue primarily through its professional services, which include consulting, design, and management services across various sectors. The company operates through two main segments: Design and Consulting Services, and Construction Management. The Design and Consulting Services segment accounts for a significant portion of revenue, as AECOM provides expertise in planning, engineering, and environmental services to public and private sector clients. The Construction Management segment focuses on overseeing large-scale construction projects, ensuring that they are completed on time and within budget. Key revenue streams include fees for services rendered, contract-based work, and project management services. AECOM also benefits from long-term contracts with government entities and international organizations, which provide a stable source of income. Additionally, partnerships with other firms and collaborations on large infrastructure projects enhance its market position and revenue potential.

Aecom Technology Financial Statement Overview

Summary

Aecom Technology displays a solid financial performance with strong revenue growth, improved profitability, and efficient cash flow management. Despite moderately high leverage, the company effectively utilizes its equity to generate substantial returns, positioning it well in the industry.

Income Statement

Aecom Technology exhibits strong revenue growth with a notable increase from $13.1 billion in 2020 to $16 billion in TTM (Trailing-Twelve-Months). The gross profit margin has remained stable, though slightly improving from 5.4% in 2020 to 7.1% in TTM. Net profit margins have improved significantly from 1.4% in 2020 to 3.8% in TTM, indicating enhanced profitability. The EBIT and EBITDA margins show a consistent upward trend, reflecting operational efficiency. Overall, the company demonstrates solid revenue growth and improved profitability.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of approximately 1.32 in TTM, slightly decreasing from 1.05 in 2020. While the equity ratio has decreased from 25.1% in 2020 to 19.4% in TTM, indicating increased reliance on debt, the return on equity has improved from 5.7% in 2020 to 27% in TTM, suggesting better utilization of equity to generate profits. Despite the higher leverage, the company maintains stable financial health with a solid equity base.

Cash Flow

The cash flow analysis reveals strong operating cash flow, increasing from $329 million in 2020 to $931 million in TTM, supporting robust financial operations. Free cash flow has shown notable growth, increasing from $215 million in 2020 to $836 million in TTM, with a positive free cash flow to net income ratio. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to reported profits, which enhances liquidity and financial sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.07B	16.11B	14.38B	13.15B	13.34B	13.24B
Gross Profit	1.18B	1.08B	945.47M	847.97M	798.42M	709.56M
EBITDA	1.27B	1.08B	548.47M	831.84M	823.56M	629.89M
Net Income	613.95M	402.27M	55.33M	310.61M	173.19M	-186.37M
Balance Sheet
Total Assets	12.25B	12.06B	11.23B	11.14B	11.73B	13.00B
Cash, Cash Equivalents and Short-Term Investments	1.79B	1.58B	1.26B	1.17B	1.23B	1.71B
Total Debt	3.05B	3.03B	2.75B	2.80B	2.89B	2.81B
Total Liabilities	9.55B	9.69B	8.85B	8.53B	8.90B	9.59B
Stockholders Equity	2.49B	2.18B	2.21B	2.48B	2.71B	3.29B
Cash Flow
Free Cash Flow	825.29M	707.89M	590.38M	576.62M	568.41M	215.03M
Operating Cash Flow	924.25M	827.49M	695.98M	713.64M	704.67M	329.62M
Investing Cash Flow	-158.06M	-210.64M	-138.18M	-175.03M	-421.09M	2.04B
Financing Cash Flow	-621.44M	-295.46M	-472.94M	-588.32M	-872.53M	-1.63B

Aecom Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 129.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACM, the sentiment is Positive. The current price of 129.25 is above the 20-day moving average (MA) of 127.58, above the 50-day MA of 121.56, and above the 200-day MA of 108.33, indicating a bullish trend. The MACD of 2.45 indicates Positive momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 40.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACM.

Aecom Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	$17.15B	26.44	28.17%	0.77%	1.50%	164.17%
PWR	74 Outperform	59.73B	62.10	12.37%	0.10%	18.26%	21.24%
J	73 Outperform	17.67B	36.55	13.06%	0.85%	-30.12%	-21.04%
TTEK	73 Outperform	8.76B	41.03	12.41%	0.74%	7.91%	-25.17%
KBR	72 Outperform	6.10B	16.04	24.55%	1.36%	12.59%	98.20%
FLR	62 Neutral	6.82B	1.74	69.52%	―	3.62%	943.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Aecom Technology Corporate Events

AECOM Completes $1.2 Billion Senior Notes Offering

On July 22, 2025, AECOM completed a $1.2 billion offering of 6.000% Senior Notes due 2033, sold to qualified institutional buyers in the U.S. and non-U.S. persons abroad. The proceeds are being used to repurchase existing 5.125% Senior Notes due 2027 and for general corporate purposes, with redemption options available prior to 2028. This financial maneuver aims to optimize AECOM’s debt structure and enhance its financial flexibility, potentially impacting its market positioning and stakeholder interests.

Aecom Technology Launches $1 Billion Note Offering

On July 15, 2025, AECOM announced the launch of a private offering of $1.0 billion in senior unsecured notes due 2033. Concurrently, the company initiated a cash tender offer for its outstanding $997.3 million 5.125% senior notes due 2027. The proceeds from the new notes will be used to purchase and redeem the 2027 notes, enhancing the company’s financial flexibility and potentially impacting its debt profile.