AECOM ACM
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The news check keeps the assessment current.
General analysis — not personal advice.
Current position can be maintained pending confirmation in the next report.
Strong backlog and positive cash-flow generation are balanced by the recent earnings miss and lowered guidance, supporting the hold signal.
Sentiment is mixed with focus on the sharp earnings miss and the strong underlying order intake.
HOLD is the call. Neutral is the market mood. Medium risk means some things can go wrong.
Latest change
- 12 May 2026 — The company reported revenue of about $3.8B and adjusted EPS of $1.59 (beat), with record backlog of $26.2B and raised full-year guidance (EPS $5.90–$6.10). Operating cash flow fell sharply YoY.
About the company
AECOM is a global leader in infrastructure consulting providing planning, design, engineering and project management for transport, water, environment and buildings. The company has shifted to an asset-light professional services model focused on higher margins. Operations are mature and profitable on a TTM basis with a record order book.
Bull case
Record backlog and stable contracts provide support for recovery after the Q3 miss.
Bear case
The $337M write-down and lowered guidance have damaged confidence in execution.
Sensitivity analysis
| Factor | If it weakens | If it strengthens |
|---|---|---|
| Backlog conversion | Weaker conversion → lower revenue growth and margin pressure. | Strong conversion → improved visibility and higher profitability. |
| Legacy project execution | Further impairments → continued loss of credibility and lowered guidance. | Problem projects completed → return to normal profitability. |
Why this signal
Strong backlog and positive cash-flow generation are balanced by the recent earnings miss and lowered guidance, supporting the hold signal.
Recent news
The Q3 report showed a large one-off $337M write-down related to a legacy project, resulting in a loss and lowered full-year guidance. However, the backlog continued to grow strongly. On 10 September a joint venture with Jacobs was appointed program delivery partner for the MetroLink project in Dublin.