Stock Information
symbol line chart

ACMAECOM

Upcoming Earnings

We were not able to find an announced earnings date for this symbol yet. Check back again later

Company Info

CEO

W. Troy Rudd

Location

Texas, USA

Exchange

NYSE

Website

https://aecom.com

Summary

AECOM, together with its subsidiaries, provides professional infrastructure consulting services for governments, businesses, and organizations in the Americas, Europe, the Middle East, Africa, and Asia Pacific.

Company Info

CEO

W. Troy Rudd

Location

Texas, USA

Exchange

NYSE

Website

https://aecom.com

Summary

AECOM, together with its subsidiaries, provides professional infrastructure consulting services for governments, businesses, and organizations in the Americas, Europe, the Middle East, Africa, and Asia Pacific.

AI Insights for ACM
2 min read

Quick Summary

AECOM is a leading global infrastructure consulting firm that provides professional services to governments, businesses, and organizations across the Americas, Europe, the Middle East, Africa, and Asia Pacific. With over 50,000 employees, the company delivers expertise in planning, designing, engineering, consulting, and managing large-scale infrastructure projects. AECOM's clientele includes government agencies, municipalities, corporations, and institutions seeking solutions for complex civil engineering, transportation, environmental, water, and construction management projects. Their operations are segmented geographically, with significant business in the Americas and an established international footprint, including a dedicated investment and development segment branded as AECOM Capital. The company was founded in 1980 and is headquartered in Dallas, Texas.

The Bull Case

  • AECOM's key strengths include its global scale and reputation as a premier infrastructure consultant, a diverse service offering unrivaled by many rivals, and a solid track record of executing complex, high-value contracts.
  • The company boasts a strong backlog, indicating sustained demand for its services, and a disciplined approach to margin improvement and earnings growth.
  • Its diversified geographic presence helps mitigate regional economic fluctuations.
  • AECOM's ability to leverage technology and advisory services, including AI-driven solutions, also sets it apart in a competitive field.
  • Deep relationships with government and institutional clients further enhance its business stability and growth prospects.

The Bear Case

  • Despite its strengths, AECOM faces certain vulnerabilities, including exposure to fluctuations in government infrastructure budgets and cycles that can impact project funding.
  • The company has lagged some peers in terms of stock performance and earnings estimates in recent periods.
  • International operations sometimes face headwinds from geopolitical and regulatory challenges.
  • The construction management segment is under review, reflecting strategic uncertainty.
  • Lastly, AECOM's relatively high price-to-book and price-to-earnings ratios may signal limited current value for some investors, affecting relative attractiveness.

Key Risks

  • Key risks to AECOM include cyclicality and political uncertainty in public infrastructure funding, especially if government priorities or budgets shift.
  • Geopolitical challenges and global economic slowdowns can impact international operations.
  • Competition remains fierce, and AECOM must continually innovate to maintain its edge.
  • Execution risk around large projects and potential disruptions from divestitures or restructuring initiatives are also significant.

What to Watch

UpcomingIn the most recent quarter, AECOM achieved record financial results, exceeding forecasts for both margin expansion and adjusted EPS growth.
UpcomingThe company reported significant revenue growth, a record backlog in new contracts, and announced a 19% increase to its dividend.
UpcomingNotably, AECOM initiated a strategic review of its Construction Management segment, considering options including a potential sale.
ExpectedLooking ahead to the next quarter, AECOM is expected to build on its strong backlog and positive momentum in the Americas, leveraging continued infrastructure investment.

Price Drivers

  • AECOM's stock price is influenced by several key factors including quarterly earnings performance, the growth of its backlog, changes in operating margins, and the ability to meet or exceed forward guidance.
  • Macroeconomic trends such as increased infrastructure spending, both in the United States and globally, play a significant role in shaping demand for AECOM's services.
  • Sentiment is also affected by government budgets, funding for public projects, and the execution of infrastructure bills.
  • Additionally, stock price movements are responsive to dividend policies, share performance compared to peers, and investor confidence, as evidenced by hedge fund holdings.

Recent News

  • Recent headlines highlight AECOM's addition to notable investment portfolios, record-setting earnings and backlog, and a major strategic review of its Construction Management unit, with a possible sale under consideration.
  • The company increased its dividend by 19% and raised guidance for fiscal 2026, signaling strong future performance.
  • Comparisons with peers such as MasTec and Matrix Service underscore AECOM's solid positioning, though some rivals are judged to have stronger value opportunities or momentum.
  • Industry analysts point to the company's growing AI and advisory business as a driver for future growth.

Market Trends

  • The broader market is experiencing increased investment in infrastructure and clean energy, particularly in the United States, driven by governmental stimulus and public policy initiatives.
  • There is a movement toward digitization and technology integration within infrastructure consulting, with AI and advanced analytics becoming more prominent.
  • Competition remains intense as firms vie for a pipeline of large-scale projects, with margin pressure and project complexity escalating.
  • Investors are paying close attention to EPS growth, backlog expansion, and management's ability to deliver on ambitious long-term targets.

AI-generated summary. Not investment advice. DYOR.

Community Research

Research from investors like you

Be the first to share your analysis on ACM

Help fellow investors make informed decisions by sharing your research on fundamentals, catalysts, and outlook.

Topics: Company overview • Products • Competitors • Strengths & Risks

Symbol's posts

No more topics to show