| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 29.0x | 17.8x | Top tier | |
Growth | 9 | -4.2% | 7.1% | Bottom tier | |
Quality | 40 | 9.5% | 4.5% | Around median | |
Safety | 47 | 2.7x | 2.6x | Around median | |
Capital Return | 62 | 1.79% | 2.12% | Around median | |
Momentum | 4 | -39.1% | 2.9% | Bottom tier | |
Sentiment | 91 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
AECOM operates in design, consulting, program management, and construction management services related to infrastructure, water, the environment, transportation, energy, defense, and data centers. The company generates revenue by performing technical work and managing projects for government and private-sector clients, and uses net service revenue NSR to measure activity after excluding revenue passed through to other parties. Its operations include the Americas and International segments, while construction management typically represents about 6% to 7% of annual NSR, with the remainder of the operating base coming primarily from design and professional services.
In Q3 fiscal 2026, AECOM recorded revenue of $3.6 billion, down 14.2% year over year according to news dated August 20, 2026, compared with $3.8 billion in Q2 fiscal 2026. Gross loss was $34.0 million, equivalent to a negative gross margin of approximately 0.9%, while net loss was $86.7 million and negative earnings per share were $0.67. Results were affected by a $337 million pre-tax charge related to the delay of a large construction management project, while data for the twelve months ending in fiscal 2026 showed revenue of $16.0 billion, net income of $440.8 million, and earnings per share of approximately $3.41.
At the business-mix level in Q3 fiscal 2026, NSR in the Americas declined 29% due to the impact of the construction management project, but the region's design business grew 6% after adjusting for one fewer working day. International NSR increased 4%, with double-digit growth in Australia and high-single-digit growth in the United Kingdom, and the International adjusted operating margin reached 14.3%. The Americas adjusted margin was negative 16.1%, but reached 18% when excluding the impact of the construction management project.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates ACM shares a “Buy,” with an average target of $84.56 and a wide range between $65 and $102. The average target is approximately 37.6% below the 52-week range high of $135.52 and approximately 40.1% above the range low of $60.35, while the breadth of the targets reflects meaningful differences in estimating the impact of project charges and cash flows versus the strength of the backlog. The data does not provide a specific price-to-earnings multiple, so the valuation assessment is based on the target range, the 52-week range, and twelve-month earnings per share of approximately $3.41.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
AECOM recorded a $337 million pre-tax charge, primarily due to a delay in delivering a large construction management project caused by subcontractor productivity during its final stage. This resulted in a net loss of $86.7 million and negative earnings per share of $0.67 according to EDGAR data, while the reported adjusted loss was $0.50 per share. Management expects the affected project to be completed near the end of Q2 fiscal 2027, after it had previously been expected to be substantially completed in Q1 fiscal 2027.
The two projects used $185 million of cash in Q3 fiscal 2026, although the company generated positive free cash flow of $55 million during the period. AECOM reduced its fiscal 2026 free cash flow forecast from $400 million to $300 million. Management expects a total cash impact of approximately $500 million during the first two quarters of fiscal 2027, with expected annual interest expense increasing by $30 million to $35 million.
Backlog increased 13% to a record level in Q3 fiscal 2026, and the book-to-burn ratio reached 1.6 times for the quarter and 1.4 times since the beginning of the year. The Americas recorded a ratio of 1.8 times, while International backlog increased 28% and Australia recorded a year-over-year increase exceeding 40%. Management expects Americas design growth to remain above 7% after adjusting for working days in Q4 fiscal 2026, but believes that construction management's contribution to growth will be concentrated in the second half of fiscal 2027.
The U.S. water opportunity pipeline increased 30%, while the pipeline with the company's largest single client in the U.S. defense sector increased by about 30%. In the United Kingdom, the Great Grid project and the AMP8 program supported high-single-digit growth, while Australia recorded double-digit NSR growth. After quarter-end, the company added a ten-year transportation program in Canada and a major railway project in Saudi Arabia, alongside continued expansion in the data center business.
After accounting for the construction management project charge and weak NSR growth, the company expects NSR of approximately $7.3 billion, adjusted EBITDA of $950 million, and adjusted earnings per share of $4.05 at the midpoint of the ranges. Excluding the impact of the charge for comparison, it expects NSR of between $7.65 billion and $7.70 billion, adjusted EBITDA of $1.29 billion, and adjusted earnings per share of $6. At the same time, management raised its adjusted EBITDA margin forecast to 17.4% from 17%, indicating that the reduction is primarily related to the troubled project and slower revenue growth rather than a broad decline in underlying margins.
AECOM expects to complete the first phase of the second project in Q1 fiscal 2027 and to complete the project that incurred the charge near the end of Q2 fiscal 2027. The two projects are more than 80% to 85% complete and have only a limited amount of NSR remaining, but they will consume resources and cash until completion. The claims of approximately $600 million to $650 million should also be monitored, because the timing of their settlement will affect the recovery of working capital after execution ends.
