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
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
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
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
ACM•
