AECOM (ACM) Q1 2026 earnings summary

Executive summary

• First quarter fiscal 2026 performance exceeded expectations across NSR, adjusted EBITDA, margins, and backlog, prompting an increase in full-year earnings guidance.

• Backlog reached a record high of $26.0 billion, up 9% year-over-year, with a 1.5x book-to-burn ratio and strong win rates, especially on large projects.

• Strategic review of the Construction Management business concluded with a decision to retain and integrate it more closely for greater value creation.

• Major project wins include delivery partner for the 2032 Brisbane Olympics and Scottish Water’s capital program.

• Over $340 million was returned to shareholders via repurchases and dividends; share repurchase authorization increased to $1 billion.

Financial highlights

• Net service revenue (NSR) grew 5% year-over-year, with Americas NSR up 9% and International NSR flat after adjusting for fewer billable days.

• Adjusted EBITDA reached $287 million, with margin improving to 16.4%–17.0%, and adjusted EPS was $1.29.

• Returned over $340 million to shareholders in Q1 and nearly $3.4 billion since September 2020.

• Free cash flow for Q1 was $42 million; full-year guidance is approximately $400 million.

• Operating cash flow was $70 million, down 54% year-over-year.

Outlook and guidance

• Fiscal 2026 adjusted EPS guidance raised to $5.85–$6.05, reflecting Q1 outperformance and strong backlog.

• Adjusted EBITDA guidance set at $1,270–$1,305 million; segment adjusted operating margin targeted at 16.8%.

• Organic NSR growth expected at 6–8%, excluding a 200bps impact from fewer working days.

• Free cash flow for the year projected at approximately $400 million.

• Long-term targets include a 20%+ margin exit rate by fiscal 2028 and adjusted EPS CAGR of 15%+ from 2026 to 2029.