AECOM reported a significant miss on top and bottom-line estimates for the third quarter of fiscal 2026, primarily driven by a $337 million pre-tax charge related to a legacy Construction Management project awarded in 2019. Despite this specific project headwind, the company achieved record backlog levels and maintained growth in its core design business.
Key Highlights
- Total revenue of $3.6 billion declined 14% year-over-year, missing the consensus estimate of $4.38 billion.
- Adjusted EPS was a loss of $0.50, compared to expectations of $1.53 profit, due to lower subcontractor productivity on a single construction project.
- Total backlog grew 13% to an all-time record of $27.8 billion, supported by a 1.6x book-to-burn ratio and strong wins in transportation and water segments.
- Net service revenue (NSR) in the design segment increased 4% on a constant-currency basis, with the Americas up 6% and International up 4%.
- Fiscal 2026 guidance was lowered to reflect the project charge, with adjusted EPS now expected at $3.95 to $4.15, down from previous expectations of approximately $6.00.