AECOM
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.31%.
Did ACM Beat Earnings? Q1 2026 Results
AECOM kicked off fiscal 2026 with a standout first quarter, posting adjusted EPS of $1.29 against a consensus estimate of $1.16, a beat of 10.88%, while revenue of $3.83 billion topped expectations by 8.61% despite falling 4.6% year-over-year, a decline management attributed almost entirely to a deliberate reduction in lower-margin pass-through revenue. Strip out the pass-throughs and the picture sharpens considerably: net service revenue grew 5% after adjusting for fewer working days, and adjusted EBITDA climbed 6% to $286.80 million with margins expanding 80 basis points to 16.4%. The most consequential number in the report, however, may be backlog, which surged 9% to a record $25.96 billion on a 1.5x book-to-burn ratio, its 21st consecutive quarter above 1.0x, fueled by major wins including the Brisbane 2032 Olympic Games infrastructure role. Analysts have taken note, with at least one firm lifting its price target to $132 on a maintained Buy rating. Confidence in the trajectory prompted AECOM to raise its full-year adjusted EPS guidance to $5.85 to $6.05 and reiterate a 15%+ adjusted EPS compound growth target through fiscal 2029.
- Net service revenue growth of 5% adjusted for fewer working days, highlighted by 9% growth in the Americas segment
- Segment adjusted operating margin expanded 100 basis points to 16.4%
- Record total backlog of $25.96 billion, up 9% year-over-year with 1.5x book-to-burn ratio
- 21st consecutive quarter with book-to-burn ratio exceeding 1.0x
- Persistent NSR and profit per employee growth for six consecutive years
- Strong execution and operational efficiencies across both segments
“We outperformed our expectations on every key financial metric in the quarter and raised our full year guidance as a result. Importantly, backlog increased by 9%, highlighted by a 1.5 book-to-burn ratio that featured some of the largest and most iconic projects in the world. Our successes are built on the foundation of having the number one-ranked franchises in each of our end markets, technical leadership, infrastructure domain expertise, and trusted client relationships. Our investments in the Advisory and Program Management businesses, as well as in technology and AI enable us to scale these attributes, expand our addressable market, deliver even greater value to clients, and build an even stronger and more durable moat – all of which underscore our confidence in achieving our financial objectives.”
AECOM CEO, on the earnings call
Forward Guidance & Outlook
AECOM raised its fiscal 2026 guidance: adjusted EPS of $5.85 to $6.05 (from $5.65 to $5.85), adjusted EBITDA of $1,270 million to $1,305 million (from $1,265 million to $1,305 million), organic NSR growth of 6% to 8% (excluding ~200 bps impact from fewer working days), segment adjusted operating margin of 16.8%, adjusted EBITDA margin of 17.0%, free cash flow of approximately $400 million, average fully diluted share count of 131 million, and adjusted effective tax rate of approximately 20%–22% (from 22%–23%). The company also reiterated long-term financial targets including a 20%+ margin exit rate by fiscal 2028 and 15%+ adjusted EPS CAGR from fiscal 2026 to fiscal 2029.
ACM YoY Financials
ACM Revenue by Segment
ACM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.