10-Q · May 12, 2026
AECOM reported robust financial performance in its Q2 2026 results, with revenue of $3.80 billion up 0.8% year-over-year, surpassing expectations. Diluted EPS of $1.59 exceeded estimates by a notable 3.25%. Despite a…
Earnings analysis · 10-Q
ACM earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
AECOM reported $3.586 billion of revenue and a $0.50 EPS loss for the quarter, with results affected by a $337 million pre-tax Construction Management charge. Underlying adjusted EPS of $1.49 modestly exceeded…
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AECOM reported $3.586 billion of revenue and a $0.50 EPS loss for the quarter, with results affected by a $337 million pre-tax Construction Management charge. Underlying adjusted EPS of $1.49 modestly exceeded consensus, and backlog rose 13% to a record $27.816 billion, but FY2026 adjusted EPS guidance was cut to $3.95-$4.15 from $5.90-$6.10 and free cash flow expectations were reduced to approximately $300 million. Debt was broadly stable at $1,448.8 million, while floating-rate exposure remains a moderate earnings risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.5
What stood out
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Revenue and EPS deteriorated year over year
Revenue was $3.586 billion, down from $4.18 billion in 2025 Q3, a decline of approximately 14.2%. Reported EPS was a $0.50 loss versus $0.98 of diluted EPS in 2025 Q3.
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Underlying EPS beat estimates
Excluding a $337 million pre-tax Construction Management charge, adjusted EPS was $1.49, narrowly above the $1.48 consensus estimate.
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Backlog reached a record
Backlog increased 13% to a record $27.816 billion, providing visibility despite the quarterly loss and revenue shortfall.
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Debt was broadly stable
Borrowings under term credit agreements and revolving facilities were $1,448.8 million at June 30, 2026, compared with $1,439.9 million at September 30, 2025.
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No material control weaknesses reported
Management reported that disclosure controls were effective as of June 30, 2026, and that there were no changes in internal control over financial reporting during the quarter that materially affected, or were reasonably likely to materially affect, those controls.
What to watch
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Construction charge pressured earnings
The $337 million pre-tax Construction Management charge drove the reported quarterly loss and contributed to the reduction in FY2026 adjusted EPS guidance from $5.90-$6.10 to $3.95-$4.15.
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Floating-rate debt creates interest risk
A 1.00% increase in short-term floating interest rates would have increased interest expense by $8.7 million for the nine months ended June 30, 2026. The company had $1,448.8 million of borrowings at June 30, 2026, exposing results to refinancing and rate risk.
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Government-contracting compliance exposure
As a government contractor, the company faces audits, investigations, claims and potential civil or criminal liability, including suspension or debarment. The filing states there were no material changes to the risk factors in the most recent Form 10-K, but legal and compliance exposure remains relevant.
Management's outlook
FY2026 adjusted EPS guidance was lowered to $3.95-$4.15 from $5.90-$6.10. Free cash flow is expected to be approximately $300 million and NSR $7.30-$7.35 billion; no separate total-revenue guidance range was provided.
Earlier filings 4
10-Q · February 10, 2026
AECOM reported quarter revenue of $3,830,834,000 (3,830,834 in filing thousands), down versus prior-year revenue of $4,014,152,000 and with diluted EPS of $0.56. Gross profit improved to $280,990,000, but operating…
10-K · November 19, 2025
AECOM presents a stable, scale-driven professional infrastructure services business with fiscal 2025 revenue of $16,139.6 million and backlog of $39.7 billion (up $2.3 billion or 6.1% vs. prior year). The company…
10-Q · August 5, 2025
AECOM reported quarter revenue of $4,178,440,000 (up from $4,151,251,000 a year earlier) with gross profit rising to $326,950,000 and income from operations increasing to $294,077,000. Continuing operations performance…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.