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Aecom (ACM) Down 14.5% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Aecom Technology (ACM - Free Report) . Shares have lost about 14.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aecom due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for AECOM before we dive into how investors and analysts have reacted as of late.
AECOM reported better-than-expected results for the fourth quarter of fiscal 2025, where both earnings and revenues surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. However, net service revenues (NSR) increased from the prior-year quarter.
AECOM delivered a strong fourth-quarter performance, surpassing its raised earnings guidance and achieving its highest-ever annual margin. The company ended the year with a record backlog and pipeline, marking the fifth consecutive quarter of sequential backlog growth. It now expects to reach a 20%+ margin run rate by fiscal 2028, supported by advancements in its proprietary AI capabilities and continued growth in its higher-margin Advisory business. AECOM also issued fiscal 2026 guidance that reflects sustained strength across all key financial metrics.
Delving Deeper Into AECOM’s Q4 Results
The company reported adjusted earnings per share (EPS) of $1.36, which topped the consensus mark of $1.34 by 1.5% and increased 7.1% from the prior-year quarter.
Revenues of $4.11 billion grew 1.6% year over year to $4.18 billion. NSR of $1.97 billion surpassed the consensus mark of $1.95 billion and increased 8.5% year over year.
Total backlog at the fiscal fourth-quarter end was $24.83 billion, up 4% from the year-ago period. AECOM’s design backlog rose 3% to a new record high and a solid 1.1x book-to-burn ratio in its U.S. design business. This marks the 20th consecutive quarter with a book-to-burn ratio above 1.0, reflecting sustained demand. Additionally, the company’s pipeline of opportunities reached an all-time high, which increased by 13%. This growth is being driven by strong funding across the company’s major markets, which is creating more project opportunities.
AECOM’s Segment Details
Americas’ revenues were $3.2 billion during the reported quarter, up 2% from the prior-year quarter’s levels. And NSR of $1.2 billion moved up 13% year over year.
Adjusted operating income of $244 million was up 17% year over year. Adjusted operating margin (on an NSR basis) expanded 70 basis points (bps) year over year to a new high of 20.4%. This growth was driven by ongoing execution of initiatives to deliver expanding operating leverage, as well as strong execution and growth.
The total backlog at the end of the fiscal fourth quarter was $17.96 billion compared with $17.44 billion a year ago.
International revenues were down 1% year over year to $935 million. Nonetheless, NSR remained unchanged year over year at $769 million.
Adjusted operating income in the segment rose 2% year over year to $93 million. Adjusted operating margin (on an NSR basis) also moved down 50 bps year over year to 12.1%. This decline was caused by lower revenues in certain end markets.
The total backlog at the end of the fiscal fourth quarter was $6.87 billion, up from $6.43 billion a year ago.
AECOM Capital's quarterly revenues were $0.1 million.
Operating Highlights of AECOM
Adjusted segment operating profit amounted to $299 million, up 14% from the year-ago quarter. The segment’s adjusted operating margin improved 40 bps to 17.1%.
Adjusted EBITDA rose 13% year over year to $329 million. Adjusted EBITDA margin of 17.5% also rose 80 bps year over year.
Liquidity & Cash Flow of AECOM
At the end of the fiscal fourth quarter, AECOM’s cash and cash equivalents totaled $1.59 billion, up from $1.58 billion at fiscal 2024-end. The total debt (excluding unamortized debt issuance costs) as of Sept. 30, 2025, was $2.74 billion, up from $2.54 billion at fiscal 2024-end.
At the fiscal fourth-quarter end, operating cash flow decreased 34% year over year to $196 million. Adjusted free cash flow also declined 51% to $134 million year over year.
AECOM’s FY26 Guidance
AECOM’s fiscal 2026 guidance for adjusted EBITDA and EPS reaffirms its outlook for record net service revenues, robust profitability and margins, and sustained strong cash flow conversion throughout the year.
It is now expecting adjusted EPS in the range of $5.65-$5.85. This indicates a 9% improvement from fiscal 2024 levels on a constant-currency basis, considering the midpoint of the guidance.
AECOM expects adjusted EBITDA in the range of $1.265-$1.305. This indicates 7% year-over-year growth at the midpoint.
Free cash flow is expected to be approximately $400 million, which also includes planned investments related to the company’s announced restructuring to support key AI initiatives and the efficiency improvements outlined at today’s 2025 Investor Day.
AECOM’s Guidance for FY26 Excluding the Construction Management Business
AECOM expects NSR in the range of $7.2-$7.4 billion. This indicates 5% year-over-year growth at the midpoint.
It expects adjusted EBITDA in the range of $1,180-$1,220 million, an adjusted operating margin of 16.6% and an adjusted EBITDA margin of 16.8%.
AECOM is now expecting adjusted EPS in the range of $5.15-$5.35. The company anticipates generating 6-8% organic NSR growth in fiscal 2026.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Aecom has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Aecom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Aecom (ACM) Down 14.5% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Aecom Technology (ACM - Free Report) . Shares have lost about 14.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aecom due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for AECOM before we dive into how investors and analysts have reacted as of late.
AECOM Q4 Earnings Surpass Estimates, Backlog Increases Y/Y
AECOM reported better-than-expected results for the fourth quarter of fiscal 2025, where both earnings and revenues surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. However, net service revenues (NSR) increased from the prior-year quarter.
AECOM delivered a strong fourth-quarter performance, surpassing its raised earnings guidance and achieving its highest-ever annual margin. The company ended the year with a record backlog and pipeline, marking the fifth consecutive quarter of sequential backlog growth. It now expects to reach a 20%+ margin run rate by fiscal 2028, supported by advancements in its proprietary AI capabilities and continued growth in its higher-margin Advisory business. AECOM also issued fiscal 2026 guidance that reflects sustained strength across all key financial metrics.
Delving Deeper Into AECOM’s Q4 Results
The company reported adjusted earnings per share (EPS) of $1.36, which topped the consensus mark of $1.34 by 1.5% and increased 7.1% from the prior-year quarter.
Revenues of $4.11 billion grew 1.6% year over year to $4.18 billion. NSR of $1.97 billion surpassed the consensus mark of $1.95 billion and increased 8.5% year over year.
Total backlog at the fiscal fourth-quarter end was $24.83 billion, up 4% from the year-ago period. AECOM’s design backlog rose 3% to a new record high and a solid 1.1x book-to-burn ratio in its U.S. design business. This marks the 20th consecutive quarter with a book-to-burn ratio above 1.0, reflecting sustained demand. Additionally, the company’s pipeline of opportunities reached an all-time high, which increased by 13%. This growth is being driven by strong funding across the company’s major markets, which is creating more project opportunities.
AECOM’s Segment Details
Americas’ revenues were $3.2 billion during the reported quarter, up 2% from the prior-year quarter’s levels. And NSR of $1.2 billion moved up 13% year over year.
Adjusted operating income of $244 million was up 17% year over year. Adjusted operating margin (on an NSR basis) expanded 70 basis points (bps) year over year to a new high of 20.4%. This growth was driven by ongoing execution of initiatives to deliver expanding operating leverage, as well as strong execution and growth.
The total backlog at the end of the fiscal fourth quarter was $17.96 billion compared with $17.44 billion a year ago.
International revenues were down 1% year over year to $935 million. Nonetheless, NSR remained unchanged year over year at $769 million.
Adjusted operating income in the segment rose 2% year over year to $93 million. Adjusted operating margin (on an NSR basis) also moved down 50 bps year over year to 12.1%. This decline was caused by lower revenues in certain end markets.
The total backlog at the end of the fiscal fourth quarter was $6.87 billion, up from $6.43 billion a year ago.
AECOM Capital's quarterly revenues were $0.1 million.
Operating Highlights of AECOM
Adjusted segment operating profit amounted to $299 million, up 14% from the year-ago quarter. The segment’s adjusted operating margin improved 40 bps to 17.1%.
Adjusted EBITDA rose 13% year over year to $329 million. Adjusted EBITDA margin of 17.5% also rose 80 bps year over year.
Liquidity & Cash Flow of AECOM
At the end of the fiscal fourth quarter, AECOM’s cash and cash equivalents totaled $1.59 billion, up from $1.58 billion at fiscal 2024-end. The total debt (excluding unamortized debt issuance costs) as of Sept. 30, 2025, was $2.74 billion, up from $2.54 billion at fiscal 2024-end.
At the fiscal fourth-quarter end, operating cash flow decreased 34% year over year to $196 million. Adjusted free cash flow also declined 51% to $134 million year over year.
AECOM’s FY26 Guidance
AECOM’s fiscal 2026 guidance for adjusted EBITDA and EPS reaffirms its outlook for record net service revenues, robust profitability and margins, and sustained strong cash flow conversion throughout the year.
It is now expecting adjusted EPS in the range of $5.65-$5.85. This indicates a 9% improvement from fiscal 2024 levels on a constant-currency basis, considering the midpoint of the guidance.
AECOM expects adjusted EBITDA in the range of $1.265-$1.305. This indicates 7% year-over-year growth at the midpoint.
Free cash flow is expected to be approximately $400 million, which also includes planned investments related to the company’s announced restructuring to support key AI initiatives and the efficiency improvements outlined at today’s 2025 Investor Day.
AECOM’s Guidance for FY26 Excluding the Construction Management Business
AECOM expects NSR in the range of $7.2-$7.4 billion. This indicates 5% year-over-year growth at the midpoint.
It expects adjusted EBITDA in the range of $1,180-$1,220 million, an adjusted operating margin of 16.6% and an adjusted EBITDA margin of 16.8%.
AECOM is now expecting adjusted EPS in the range of $5.15-$5.35. The company anticipates generating 6-8% organic NSR growth in fiscal 2026.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Aecom has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Aecom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.