AECOM Q3 revenue beats on design business growth

Aecom

10/08/2026 21:44

Overview
US infrastructure services firm's fiscal Q3 revenue beat analyst expectations
Company backlog rose 13% to a record high, driven by strong new wins

Outlook
AECOM now expects fiscal 2026 adjusted EPS of $3.95-$4.15 and adjusted EBITDA of $935-$965 mln
Company sees fiscal 2026 total NSR of $7.30-$7.35 bln and free cash flow of about $300 mln

Result Drivers
PROJECT CHARGE - $337 mln pre-tax charge from delayed Construction Management project drove quarterly loss; co cited lower subcontractor productivity as cause
DESIGN BUSINESS GROWTH - Net service revenue in design business rose 4% (5% adjusted for fewer working days), led by Americas and International segments
INTERNATIONAL SEGMENT IMPROVEMENT - International segment operating income rose 21% and margin increased 240 bps, helped by growth in UK and Australia and restructuring actions

Company press release: ID:nBw1ngjTza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$3.59 bln
$2.02 bln (7 Analysts)
Q3 Loss Per Share
 
$0.67
 
Q3 Operating Income
 
-$75.98 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for AECOM is $100.50, about 32.5% above its August 7 closing price of $75.84
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)