AECOM Reports Record Q2 2026 Earnings and Backlog Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: seekingalpha
- Record Performance: AECOM's adjusted EBITDA and adjusted EPS for Q2 2026 increased by 7% and 14%, respectively, despite a 100 basis point headwind from the Middle East conflict, demonstrating the company's resilience and profitability in a dynamic market environment.
- Backlog Growth: The company's backlog rose by 8% year-over-year to a new record, driven by an 8% increase in its Americas design business, indicating strong market demand and promising future performance.
- Accelerated AI Deployment: AECOM is rapidly deploying AI solutions on projects, with contract mechanisms expected to capture value, enhancing the company's growth in AI infrastructure investments and strengthening its competitive position in the market.
- Guidance Upgrade: Management raised its full-year profit guidance for the second time, expecting NSR growth between 4% and 6% for the year, and 6% to 8% excluding Middle East impacts, reflecting confidence in future performance.
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Analyst Views on ACM
Wall Street analysts forecast ACM stock price to rise
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 70.870
Low
100.00
Averages
133.78
High
152.00
Current: 70.870
Low
100.00
Averages
133.78
High
152.00
About ACM
AECOM is a global provider of professional infrastructure consulting and advisory services for governments, businesses and organizations throughout the world. It provides advisory, planning, consulting, architectural and engineering design, construction and program management services, and investment and development services to public and private clients worldwide in major end markets, such as transportation, facilities, water, environmental, and energy. Its Americas segment provides planning, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America. The International segment provides planning, consulting, architectural and engineering design services and program management to public and private clients in Europe, the Middle East, India, Africa, and the Asia-Australia-Pacific regions. Its AECOM Capital primarily invests in and develops real estate projects.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AECOM Faces Investor Lawsuit Investigation
- Deteriorating Financials: AECOM reported an operating cash flow of approximately $4 million for Q2 2026, down 98% year-over-year, indicating severe financial strain that could impact future investment attractiveness.
- Negative Cash Flow Warning: The company disclosed a negative free cash flow of approximately $27 million, highlighting challenges in project execution and cash recovery, which may lead to declining investor confidence and affect stock performance.
- Surge in Claims: As of March 31, 2026, significant claims recorded in contract assets and other non-current assets reached approximately $680 million, up from $400 million as of September 30, 2025, reflecting potential risks in project management.
- Stock Price Plunge: On May 12, 2026, AECOM's stock price fell from $79.50 to $69.95, a drop of about 12%, indicating increasing market concerns over the company's financial health, which may prompt investors to reassess their holdings.
See More
AECOM Under Investigation for Securities Law Violations
- Investigation Background: Johnson Fistel, PLLP is investigating whether AECOM violated federal securities laws, focusing on investor losses and potential recovery under the law, indicating serious concerns about the company's compliance.
- Financial Performance: AECOM reported approximately $4 million in operating cash flow for Q2 FY2026, a staggering 98% year-over-year decline, alongside negative free cash flow of about $27 million, reflecting pressures from delayed payments in the Middle East and prolonged claim resolution.
- Claims Situation: As of March 31, 2026, significant claims recorded in contract assets and other non-current assets totaled approximately $680 million, a notable increase from $400 million as of September 30, 2025, indicating escalating financial risks for the company.
- Management Statement: During the earnings call on May 12, 2026, management acknowledged that the claim resolution process took longer than expected, although the company reaffirmed its full-year free cash flow guidance, demonstrating confidence in future financial recovery.
See More
AECOM CEO's Insider Purchase Signals Confidence
- Insider Buying Trend: AECOM's CEO Troy Rudd purchased 4,225 shares at $71.02 each on May 14, totaling $300,059.50, indicating strong confidence in the company's future performance, which may attract investor interest.
- Market Trading Opportunity: On Wednesday, AECOM shares traded as low as $70.44, below Rudd's purchase price, suggesting that market fluctuations may provide attractive entry points for investors looking for bargains.
- Price Performance Analysis: AECOM's stock has a 52-week low of $67.64 and a high of $135.52, with the current trading price at $70.48, indicating that the stock has some support despite volatility in the market.
- Dividend Yield Situation: AECOM currently pays an annualized dividend of $1.24 per share, yielding approximately 1.7%, with the most recent dividend ex-date on April 1, 2026, demonstrating the company's commitment to shareholder returns.
See More
AECOM Q2 Results Fall Short of Expectations
- Underperformance: AECOM's Q2 revenue of $3.80 billion fell short of Wall Street's $4.01 billion expectations, remaining flat year-over-year, which triggered a sharp market reaction as the stock price dropped from $79.50 to $71.24, indicating investor concerns about future growth prospects.
- Middle East Challenges: Management attributed a 100 basis point revenue headwind to slower project ramp-ups in the Middle East, and while local joint venture structures mitigated profit impacts, overall results were affected by geopolitical issues and project timing, highlighting uncertainties in international markets.
- Adjusted EPS Performance: The adjusted EPS of $1.59 exceeded analyst expectations of $1.54, demonstrating effective cost control measures, which, despite stagnant overall revenue, provided some reassurance to investors regarding the company's operational efficiency.
- Future Guidance and Outlook: Management slightly raised its full-year adjusted EPS guidance to $6, with EBITDA expected at $1.29 billion, aligning with analyst forecasts, reflecting confidence in revenue acceleration in the second half, particularly from recovering Middle Eastern and federal U.S. clients.
See More
AECOM Reports Record Q2 2026 Earnings and Backlog Growth
- Record Performance: AECOM's adjusted EBITDA and adjusted EPS for Q2 2026 increased by 7% and 14%, respectively, despite a 100 basis point headwind from the Middle East conflict, demonstrating the company's resilience and profitability in a dynamic market environment.
- Backlog Growth: The company's backlog rose by 8% year-over-year to a new record, driven by an 8% increase in its Americas design business, indicating strong market demand and promising future performance.
- Accelerated AI Deployment: AECOM is rapidly deploying AI solutions on projects, with contract mechanisms expected to capture value, enhancing the company's growth in AI infrastructure investments and strengthening its competitive position in the market.
- Guidance Upgrade: Management raised its full-year profit guidance for the second time, expecting NSR growth between 4% and 6% for the year, and 6% to 8% excluding Middle East impacts, reflecting confidence in future performance.
See More
Under Armour Reports Loss, Shares Drop 14%
- Earnings Loss: Under Armour reported a loss of 3 cents per share on revenue of $1.17 billion, significantly missing analyst expectations of a 2-cent loss and $1.68 billion in revenue, resulting in a 14% drop in stock price, highlighting the challenges the company faces in a competitive market.
- Acquisition Rejection: GameStop shares fell over 4% after eBay rejected its $56 billion takeover bid due to financing concerns, negatively impacting market confidence in GameStop's strategic direction.
- Strong Performance: On Holding's stock fell 5% in premarket trading despite reporting first-quarter earnings and revenue that exceeded analyst expectations, while reiterating its full-year net sales growth outlook, indicating resilience in its business model.
- Significant Stock Movement: Wendy's shares surged over 23% following reports that Trian Fund Management is raising funds for a bid to take the fast-food chain private, reflecting optimistic market sentiment regarding its privatization potential.
See More
AECOM Faces Investor Lawsuit Investigation
- Deteriorating Financials: AECOM reported an operating cash flow of approximately $4 million for Q2 2026, down 98% year-over-year, indicating severe financial strain that could impact future investment attractiveness.
- Negative Cash Flow Warning: The company disclosed a negative free cash flow of approximately $27 million, highlighting challenges in project execution and cash recovery, which may lead to declining investor confidence and affect stock performance.
- Surge in Claims: As of March 31, 2026, significant claims recorded in contract assets and other non-current assets reached approximately $680 million, up from $400 million as of September 30, 2025, reflecting potential risks in project management.
- Stock Price Plunge: On May 12, 2026, AECOM's stock price fell from $79.50 to $69.95, a drop of about 12%, indicating increasing market concerns over the company's financial health, which may prompt investors to reassess their holdings.
See More
AECOM Under Investigation for Securities Law Violations
- Investigation Background: Johnson Fistel, PLLP is investigating whether AECOM violated federal securities laws, focusing on investor losses and potential recovery under the law, indicating serious concerns about the company's compliance.
- Financial Performance: AECOM reported approximately $4 million in operating cash flow for Q2 FY2026, a staggering 98% year-over-year decline, alongside negative free cash flow of about $27 million, reflecting pressures from delayed payments in the Middle East and prolonged claim resolution.
- Claims Situation: As of March 31, 2026, significant claims recorded in contract assets and other non-current assets totaled approximately $680 million, a notable increase from $400 million as of September 30, 2025, indicating escalating financial risks for the company.
- Management Statement: During the earnings call on May 12, 2026, management acknowledged that the claim resolution process took longer than expected, although the company reaffirmed its full-year free cash flow guidance, demonstrating confidence in future financial recovery.
See More
AECOM CEO's Insider Purchase Signals Confidence
- Insider Buying Trend: AECOM's CEO Troy Rudd purchased 4,225 shares at $71.02 each on May 14, totaling $300,059.50, indicating strong confidence in the company's future performance, which may attract investor interest.
- Market Trading Opportunity: On Wednesday, AECOM shares traded as low as $70.44, below Rudd's purchase price, suggesting that market fluctuations may provide attractive entry points for investors looking for bargains.
- Price Performance Analysis: AECOM's stock has a 52-week low of $67.64 and a high of $135.52, with the current trading price at $70.48, indicating that the stock has some support despite volatility in the market.
- Dividend Yield Situation: AECOM currently pays an annualized dividend of $1.24 per share, yielding approximately 1.7%, with the most recent dividend ex-date on April 1, 2026, demonstrating the company's commitment to shareholder returns.
See More
AECOM Q2 Results Fall Short of Expectations
- Underperformance: AECOM's Q2 revenue of $3.80 billion fell short of Wall Street's $4.01 billion expectations, remaining flat year-over-year, which triggered a sharp market reaction as the stock price dropped from $79.50 to $71.24, indicating investor concerns about future growth prospects.
- Middle East Challenges: Management attributed a 100 basis point revenue headwind to slower project ramp-ups in the Middle East, and while local joint venture structures mitigated profit impacts, overall results were affected by geopolitical issues and project timing, highlighting uncertainties in international markets.
- Adjusted EPS Performance: The adjusted EPS of $1.59 exceeded analyst expectations of $1.54, demonstrating effective cost control measures, which, despite stagnant overall revenue, provided some reassurance to investors regarding the company's operational efficiency.
- Future Guidance and Outlook: Management slightly raised its full-year adjusted EPS guidance to $6, with EBITDA expected at $1.29 billion, aligning with analyst forecasts, reflecting confidence in revenue acceleration in the second half, particularly from recovering Middle Eastern and federal U.S. clients.
See More
AECOM Reports Record Q2 2026 Earnings and Backlog Growth
- Record Performance: AECOM's adjusted EBITDA and adjusted EPS for Q2 2026 increased by 7% and 14%, respectively, despite a 100 basis point headwind from the Middle East conflict, demonstrating the company's resilience and profitability in a dynamic market environment.
- Backlog Growth: The company's backlog rose by 8% year-over-year to a new record, driven by an 8% increase in its Americas design business, indicating strong market demand and promising future performance.
- Accelerated AI Deployment: AECOM is rapidly deploying AI solutions on projects, with contract mechanisms expected to capture value, enhancing the company's growth in AI infrastructure investments and strengthening its competitive position in the market.
- Guidance Upgrade: Management raised its full-year profit guidance for the second time, expecting NSR growth between 4% and 6% for the year, and 6% to 8% excluding Middle East impacts, reflecting confidence in future performance.
See More
Under Armour Reports Loss, Shares Drop 14%
- Earnings Loss: Under Armour reported a loss of 3 cents per share on revenue of $1.17 billion, significantly missing analyst expectations of a 2-cent loss and $1.68 billion in revenue, resulting in a 14% drop in stock price, highlighting the challenges the company faces in a competitive market.
- Acquisition Rejection: GameStop shares fell over 4% after eBay rejected its $56 billion takeover bid due to financing concerns, negatively impacting market confidence in GameStop's strategic direction.
- Strong Performance: On Holding's stock fell 5% in premarket trading despite reporting first-quarter earnings and revenue that exceeded analyst expectations, while reiterating its full-year net sales growth outlook, indicating resilience in its business model.
- Significant Stock Movement: Wendy's shares surged over 23% following reports that Trian Fund Management is raising funds for a bid to take the fast-food chain private, reflecting optimistic market sentiment regarding its privatization potential.
See More
