AECOM (ACM) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter performance with revenue up 1% year-over-year to $3.8 billion and net income up 19% to $184 million, with adjusted EPS up 27% and backlog up 8% to a record $26.2 billion.

• Raised full-year profit and earnings guidance for the second consecutive quarter, reflecting strong operational momentum and robust year-to-date results.

• Margin expansion driven by Americas design NSR growth and proprietary AI investments, supporting major project wins and improved competitive positioning.

• Continued focus on high-margin advisory services, technology investments, and disciplined capital allocation, including dividends and share repurchases.

Financial highlights

• Net service revenue increased 4% as reported (2% constant currency), led by 8% growth in Americas design; segment adjusted operating margin rose 50 bps to 16.5%, both record highs for Q2.

• Adjusted EPS grew 27% year-over-year; adjusted EBITDA rose 8% to $312 million.

• Returned $155 million to shareholders in Q2 via repurchases and dividends; over $3.5 billion returned since September 2020.

• Free cash flow guidance reaffirmed at ~$400 million, with a long-term target of 100%+ free cash flow conversion.

• Cash and cash equivalents at March 31, 2026 were $1.03 billion; net debt at $1.62 billion.

Outlook and guidance

• Fiscal 2026 adjusted EPS guidance raised to $5.90–$6.10 (14% growth at midpoint); adjusted EBITDA guidance increased to $1,275–$1,305 million (7% growth at midpoint).

• Organic net service revenue growth expected between 6% and 8%, excluding a 200 bps impact from fewer working days.

• Segment adjusted operating margin targeted at 16.8% and adjusted EBITDA margin at 17.0%.

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

• Guidance incorporates uncertainties in the Middle East due to ongoing conflict and other geopolitical risks.