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Dec 31, 2025
AECOM Q1 2026 Earnings Report
AECOM reported strong performance in the first quarter of fiscal 2026, exceeding expectations on key financial metrics and raising its full-year guidance.
Key Takeaways
AECOM delivered a strong first quarter in fiscal 2026, with performance exceeding expectations across all key financial metrics. The company reported a revenue of $3.83 billion, net income of $93.35 million, and diluted EPS of $0.56. Backlog reached a record high of $25.96 billion, driven by a 1.5x book-to-burn ratio. The company also raised its fiscal 2026 earnings guidance and returned over $340 million to shareholders through repurchases and dividends.
Strong performance exceeded expectations on all key financial metrics, leading to raised earnings guidance for fiscal 2026.
Total backlog increased by 9% year-over-year and sequentially to a record high of $25.96 billion, supported by a 1.5x book-to-burn ratio.
The company completed its strategic review of the Construction Management business and decided to retain and operate it as a continuing operation.
AECOM returned more than $340 million to shareholders through repurchases and dividends during the quarter, and the Board of Directors approved an increase of the share repurchase authorization to $1 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
AECOM raised its fiscal 2026 earnings guidance, reflecting strong first-quarter performance, benefits from capital allocation strategy, a lower tax rate, and record backlog and pipeline.
Positive Outlook
- Adjusted EPS guidance raised to between $5.85 and $6.05 (previously $5.65 to $5.85).
- Adjusted EBITDA guidance maintained between $1,270 million and $1,305 million.
- Organic NSR growth expected to be 6% to 8%, excluding the impact of fewer working days.
- Segment adjusted operating margin expected to be 16.8% and adjusted EBITDA margin of 17.0%.
- Free cash flow expected to be approximately $400 million.
Challenges Ahead
- Average fully diluted share count of 131 million does not include potential future benefits from capital allocation actions.
- Adjusted effective tax rate of approximately 20-22% (previously 22-23%).
- Guidance for NSR to GAAP revenue cannot be reconciled due to unpredictable pass-through revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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