AECOM raises fiscal 2026 forecast after Q2 results beat

Aecom

11/05/2026 21:25

Overview

U.S. infrastructure engineering firm's fiscal Q2 revenue rose 1%, beating analyst expectations

Adjusted EPS for fiscal Q2 rose 27% and beat analyst expectations

Company raised full-year earnings guidance after record backlog and strong pipeline growth

Outlook

AECOM raises fiscal 2026 adjusted EPS guidance to $5.90-$6.10 from $5.85-$6.05

Company expects fiscal 2026 adjusted EBITDA of $1.275 bln-$1.305 bln, up from $1.270 bln-$1.305 bln

AECOM maintains fiscal 2026 organic net service revenue growth target of 6%-8%

Result Drivers

AMERICAS DESIGN GROWTH - 8% constant-currency growth in the Americas design business drove higher net service revenue

RECORD BACKLOG - Total backlog rose 8% to a record high, supported by a 1.2 book-to-burn ratio in the design business

MIDDLE EAST PAYMENT DELAYS - Delayed payment timing in the Middle East business and longer-than-anticipated claim resolution impacted operating cash flow

Company press release: ID:nBw2pkT8ra

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$3.80 bln
$1.94 bln (6 Analysts)
Q2 Adjusted EPS
Beat
$1.59
$1.55 (10 Analysts)
Q2 EPS
$1.42
Q2 Adjusted Net Income
Beat
$205 mln
$202.79 mln (7 Analysts)
Q2 Net Income
$190.4 mln
Q2 Adjusted EBITDA
Slight Beat*
$312 mln
$309.40 mln (9 Analysts)
Q2 Adjusted Operating Income
Slight Miss*
$280 mln
$282.66 mln (7 Analysts)
Q2 Operating Income
$248 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $119.00, about 47.7% above its May 8 closing price of $80.59

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 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.)