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what it is
AECOM plans, designs, and manages big infrastructure projects for governments and companies.
how it gets paid
FY2025 revenue $16.1B (10-K). Segment rows on this page are illustrative—tie dollars to the filing’s segment footnotes.
why it's growing
Q1 FY2026: record backlog ~$26.0B (+9%) and book-to-burn ~1.5× per the Feb 9, 2026 release—execution shows up in NSR and backlog more than as-reported revenue alone.
what just happened
Q1 FY2026: as-reported revenue ~$3.83B; GAAP diluted EPS $1.06; adjusted EPS $1.29—do not confuse GAAP with adjusted when comparing to “consensus.”
At a glance
B+ balance sheet — decent shape, but not bulletproof
90/100 earnings predictability — you can trust these numbers
17.7x trailing p/e — the market's not buying it — or you found a deal
1.5% dividend yield — cash in your pocket every quarter
20.0% return on capital — nothing to write home about
xvary composite: 67/100 — average
What they do
AECOM plans, designs, and manages big infrastructure projects for governments and companies.
AECOM sells expertise, not widgets. With 52,000 employees, it can handle planning, design, and construction in one shop. That means your airport or water project does not need three different firms, which is why switching hurts.
How they make money
$16.1B
annual revenue · their business grew +0.2% last year
Engineering design
$5.8B
+6.0%
Program & construction management
$4.5B
+4.0%
Consulting & advisory
$3.9B
+3.0%
Planning & other services
$1.9B
0.0%
FY2025: SEC Form 10-K. Q1 FY2026: AECOM IR Feb 9, 2026.
The products that matter
design, engineering, and project management
Infrastructure services
$16.1B revenue
it is the entire $16.1B business, and its economics are better understood through execution than volume: 28% return on equity, 4.7% net margin, and a 1.5 book-to-burn ratio.
whole business
Key numbers
$16.1B
annual revenue
That is the size of the machine. Flat sales on a $16.1B base mean this is a scale story, not a speed story.
20.0%
return on capital
For every dollar tied up in the business, AECOM gets 20 cents back in operating profit. That is a strong use of capital.
17.7x
trailing p/e
You pay 17.7 times last year's earnings. For a services business with 0.2% annual revenue growth, that is not cheap.
$123
target price
That is 32% above $93.28. The gap is the market saying the stock is fine, while the estimates say more is left.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- long-term debt $2.6B (18% of capital)
- net profit margin 5.2% — keeps 5 cents of every dollar in revenue
- return on equity 29% — $0.29 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ACM 3 years ago → it's now worth $10,900.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
AECOM posted $3.83B of revenue, and EPS came in at $1.36 versus $1.35 expected.
Revenue topped the $3.65B estimate. The gross margin stayed thin at 7.3%, so this was a volume beat, not a margin blowout.
$3.83B
revenue
$1.36
eps
7.3%
gross margin
the number that mattered
The key number was $3.83B, because it beat the $3.65B estimate while margin stayed at 7.3%.
-
aecom reported better-than-anticipated results to open its fiscal 2026. (year ends september 30th.) the global professional services company reported total revenue of $3.83 billion, down 5% from a year ago, with net service revenue (nsr) increasing 5% on an adjusted basis.
-
the top line was buoyed by a 9% nsr surge in the americas design business and a record $3.5 billion in quarterly contract wins.
-
the primary catalyst for aecom continues to be its ‘think and act globally‘ strategy, which has centralized technical expertise to drive a record 1.5 book-to-burn ratio.
-
for the full fiscal year, we anticipate organic nsr growth to remain robust at 6% to 8%, resulting in total revenues of around $16.75 billion.the company has made notable strides in the modernization of critical infrastructure, particularly in the water and transportation sectors.
-
aecom’s unique strategy has placed it at the intersection of traditional engineering and digital transformation, deploying proprietary tools with artificial intelligence to compress design cycles and reduce material costs by up to 20%.this tech-led approach is reshaping the of how the world builds, allowing aecom to maintain its #1 ranking across every major end market while expanding its operating margins. with its professional services model now highly refined, aecom is expanding into higher-margin advisory and program management services. this includes a growing focus on the digital twin and ai-integrated design space, which represents a force multiplier for the company.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a slowdown in government-funded infrastructure awards.
med
public spending slowdown
AECOM wins large infrastructure work from government clients. If awards slow or budgets get pushed out, the backlog machine matters less and the 1.5 book-to-burn ratio can come back to earth.
With only a 4.7% net margin on $16.1B revenue, this business does not need a dramatic slowdown for earnings to feel it.
med
execution on complex projects
This is a scale business, but scale cuts both ways. Large, technical projects can still run into delays, scope changes, or lower-margin work that drags on profitability.
Quarterly margin was 3.5%. That leaves limited room for ugly surprises before they show up in EPS.
med
growth slipping below the story
The company is asking investors to focus on 6–8% organic net service revenue growth while total revenue last year was up only 0.2% and the latest quarter was down 5% from a year ago.
If net service revenue slows too, the valuation stops looking like a quiet bargain and starts looking like a fair price for a slow grower.
A business earning just 4.7% net margin on $16.1B revenue needs backlog strength and project discipline to stay intact. If either slips, EPS feels it faster than the top line suggests.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
book-to-burn staying above 1.0
1.5 is the current flex. If that ratio falls toward 1.0, the backlog story goes from accelerating to merely replacing itself.
calendar
next earnings report
You want the next update on adjusted net service revenue, contract wins, and whether revenue still lags the underlying work mix.
trend
6–8% organic net service revenue target
That is management's core growth promise. Hit it, and the stock has a cleaner rerating case. Miss it, and the flat top line becomes harder to excuse.
risk
margin discipline
Quarterly margin was 3.5% and net margin was 4.7%. Those are workable numbers, not luxurious ones. One bad mix shift matters.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they think ACM should do better than most stocks.
risk profile
average
stability score 3 — average risk, which fits a company with a B+ balance sheet and a 4.7% net margin.
chart momentum
average
technical score 3 — the stock is not flashing a strong signal either way. welcome to a stock the market finds sensible, not exciting.
earnings predictability
90 / 100
high predictability means the numbers usually land close to what management guides. That matters more in a slow-and-steady operator than in a story stock.
source: institutional data
Institutional activity
202 buyers vs. 277 sellers in 4q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$80
$166
$93
current price
$123
target midpoint · +32% from current · 3-5yr high: $220 (+135% · 25% ann'l return)
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