AECOM — Aug 10, 2026 release
Fiscal 2026 third-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-26-093421
Showing in the filing
Adjusted effective tax rate
“approximately 19%”
Period
FY2026
Measure
Company-defined measure
Source
Prose
All guidance in this release · 20
Free cash flow for FY2026
“approximately $300 million”
Free cash flow conversion (long-term target) for the long term
“100%+”
Total NSR for FY2026
“between $7.30 and $7.35 billion”
Average fully diluted share count for FY2026
“130 million”
Adjusted effective tax rate for FY2026
“approximately 19%”
Total NSR (excluding Construction Management… for FY2026
“between $7.65 and $7.70 billion”
Segment adjusted operating margin (excluding… for FY2026
“17.0%”
Adjusted EBITDA margin (excluding Constructi… for FY2026
“17.4%”
Adjusted EPS (excluding Construction Managem… for FY2026
“between $5.90 and $6.10”
Adjusted EBITDA (excluding Construction Mana… for FY2026
“between $1,275 million and $1,305 million”
Margin exit rate (long-term target) for the long term
“20%+”
Adjusted EPS CAGR (excluding Construction Ma… for the long term
“15%+”
GAAP EPS for FY2026
“$2.37 to $2.87”
Adjusted EPS for FY2026
“$3.95 to $4.15”
GAAP net income from continuing operations for FY2026
“$354 to $419”
Adjusted interest expense, net for FY2026
“$140”
Adjusted income tax expense for FY2026
“$121 to $126”
Adjusted EBITDA for FY2026
“$935 to $965”
GAAP interest expense for FY2026
“$190”
GAAP income tax expense for FY2026
“$73 to $88”
Exhibit 99.1 · full document
EXHIBIT 99.1
Exhibit 99.1
Press Release
Investor Contact :
Will Gabrielski
Senior Vice President, Finance, Treasurer
213.593.8208
William.Gabrielski@aecom.com
Media Contact:
Brendan Ranson-Walsh
Senior Vice President, Global Communications
213.996.2367
Brendan.Ranson-Walsh@aecom.com
AECOM reports third quarter fiscal 2026 results
· Results
included a $337 million pre-tax loss related to the delayed completion of a Construction
Management project
· Excluding
this project’s impacts, margins, earnings and cash flow were strong
· Backlog
increased 13% to a new record driven by a 1.6 book-to-burn ratio
· Updated
fiscal 2026 financial guidance to reflect the financial impacts from the Construction Management
project charge, including impacts to cash flow, and lower fiscal 2026 NSR growth expectations
DALLAS (August 10, 2026) — AECOM (NYSE:ACM), the
trusted global infrastructure leader, today reported third quarter fiscal 2026 results.
(from
Continuing Operations; $
in millions, except EPS)
As
Reported (GAAP)
YoY % Change
Adjusted 2 (Non-GAAP)
YoY % Change
Revenue
$ 3,586
(14 )%
--
--
Net
Service Revenue (NSR) 1
--
--
$ 1,609
(16 )%
Operating Income
$ (76 )
NM
$ (49 )
NM
Segment
Operating Margin 3
--
--
(1.0 )%
(1,810 )
bps
Net Income
$ (84 )
NM
$ (64 )
NM
EPS (Fully Diluted)
$ (0.65 )
NM
$ (0.50 )
NM
EBITDA 5
--
--
$ (8 )
NM
EBITDA
Margin 4
--
--
(0.3 )%
(1,790 )
bps
Operating Cash Flow
$ 95
(66 )%
--
--
Free
Cash Flow 8
--
--
$ 55
(79 )%
Total
Backlog 6
$ 27,816
13 %
Construction Management Project Impact
(from
Continuing Operations; $
in millions, except EPS)
Adjusted 2
(Non-GAAP)
Const.
Mgmt.
Project Charge
Impact
Metrics
Excl.
Const. Mgmt.
Project Charge
YoY
% Change
Net
Service Revenue (NSR) 1
$ 1,609
$ 337
$ 1,946
2 %
Segment Adj. Operating Margin
(1.0 )%
1,750 bps
16.5 %
(60 )
bps
Adj. 2
EBITDA 5
$ (8 )
$ 337
$ 329
5 %
Adj. 2
EBITDA Margin 4
(0.3 )%
1,730 bps
17.0 %
(60 )
bps
Adj. 2
EPS
$ (0.50 )
$ 1.99
$ 1.49
11 %
· Included
in AECOM’s third quarter results is a $337 million pre-tax charge resulting from a
higher projected cost to complete a Construction Management project.
· The
project was awarded in 2019 under terms and conditions that would not be acceptable after
the substantial changes the Company implemented to its risk policies several years ago.
· The
project is expected to achieve substantial completion during the second quarter of fiscal
2027.
· The
Company is pursuing claims related to its work on the project and confidence in recovery
has been validated by successes on initial matters that have been ruled upon to date; however,
it will likely take several years and litigation to fully resolve all matters.
· As
a result, the Company is now projecting full year free cash flow of approximately $300 million.
1
“We are disappointed by the loss we took this quarter on the
Construction Management project,” said Troy Rudd, AECOM’s chairman and chief executive officer. “The project is nearing
completion, but lower subcontractor productivity is driving a delayed completion and a higher estimated cost to complete. This project
was bid in 2019 under terms and conditions that would not clear our substantially transformed risk processes today. Beyond this, the
quarter included several key highlights, including record wins and an all-time high backlog, which make us very confident in the health
of the business.”
“Our momentum continues to build, as we win work at a record
pace and gain further share in the marketplace,” said Lara Poloni, AECOM’s president. “In fact, our backlog increased
by 13% and we were successful in capturing two of the largest recompetes in our Company’s history that also include significantly
expanded scope. We are well positioned to capitalize on growing demand in our markets with our strengthened value proposition for clients,
which is supported by our number one rankings across our key markets, as well as our expanding addressable market through our Advisory
capabilities.”
“We have a strong balance sheet and healthy underlying cash
flow,” said Gaurav Kapoor, AECOM’s chief financial and operations officer. “As a result, we are able to operate with
certainty while continuing to invest in organic growth initiatives that underpin the expanding value we deliver to clients. Against the
current backdrop, our positive free cash flow and expectation for the full year demonstrates the resilience of our business and strength
of our markets.”
Third Quarter Summary:
· Reflecting
as reported GAAP performance from continuing operations, third quarter revenue of $3.6 billion
reflected a 14% decrease over the prior year; the Company also reported an operating loss
of $76 million, net loss of $84 million and diluted loss per share of $0.65.
- Third
quarter results included a $337 million pre-tax charge on a Construction Management project,
which impacted both the Company’s revenue and profitability in the quarter.
· Net
service revenue 1 increased by 4% in the design business and increased 5% when
adjusted for a fewer working day compared to the prior year period, driven by 6% and 4% growth
in the Americas and International, respectively.
· Excluding
the Construction Management charge, both the segment adjusted 2 operating margin 3
and the adjusted 2 EBITDA margin 4 would have decreased by 60 basis points
to 16.5% and 17.0%, respectively.
· Adjusted 2
EBITDA 5 and adjusted 2 EPS after excluding the Construction Management
charge would have increased by 5% and 11% to $329 million and $1.49, respectively.
· Total
backlog 6 increased by 13% to a record high, driven by a record $4.2 billion in
wins that resulted in a 1.6 book-to-burn 7 ratio.
- Total
design wins of $4.0 billion contributed to a 1.6 book-to-burn ratio in the design business,
including a 1.8 book-to-burn ratio in the Americas design business and a 1.4 book-to-burn
ratio in the International segment.
- The
design pipeline increased again to a new all-time high, including growth in both early-stage
and late-stage pursuits, even as the Company delivered record wins in the quarter.
Cash Flow and Capital Allocation
· Cash
flow excluding the impact of the Construction Management project remains strong and AECOM
expects to deliver on its long-term 100%+ free cash flow conversion target once the Construction
Management project headwinds subside.
· The
Company remains committed to its returns-based capital allocation policy, which in the near-term
will be prioritized towards its organic growth investments and its quarterly dividend program.
· The
Company maintains a strong balance sheet with net leverage 9 of 1.5x.
Fiscal 2026 and Long-Term Financial Guidance
· AECOM
updated its fiscal 2026 earnings guidance to reflect the impacts of the Construction Management
charge.
· The
Company’s guidance also contemplates higher than expected margin performance excluding
the Construction Management charge, offset by lower expected NSR growth primarily attributable
to delayed project starts in the Construction Management business and ongoing conflict in
the Middle East.
· As
a result, the Company’s fiscal 2026 guidance now includes expectations for:
‒ Adjusted 2 EPS of between $3.95 and $4.15 and adjusted 2
EBITDA 5 of between $935 million and $965 million.
‒ Total NSR 1 of between $7.30 and $7.35 billion.
‒ Free cash flow 8 of approximately $300 million.
- An
average fully diluted share count of 130 million.
- An
adjusted effective tax rate of approximately 19%.
· Excluding
the Construction Management charge, the Company’s guidance contemplates the following:
- Total
NSR of between $7.65 and $7.70 billion.
- A
segment adjusted operating margin 3 of 17.0% and an adjusted EBITDA margin 4
of 17.4%.
- Adjusted 2
EPS of between $5.90 and $6.10 and adjusted 2 EBITDA 5 of between $1,275
million and $1,305 million, which is consistent with the Company’s prior guidance.
2
· In
addition, the Company reaffirmed its long-term financial targets, which includes its expectation
to deliver a 20%+ margin exit rate by fiscal 2028 and to grow adjusted 2 EPS at
a 15%+ CAGR from fiscal 2026 to fiscal 2029, excluding the Construction Management charge.
· See
the Regulation G Information tables at the end of this release for a reconciliation of non-GAAP
measures to the most directly comparable GAAP measures.
Business Segments
Americas
Revenue in the third quarter was $2.6 billion, a 20% decrease from
the prior year. Net service revenue 1 in the third quarter was $808 million, a 29% decrease from the prior year, which included
6% growth in the Americas design business after adjusting for one fewer working day in the period compared to the prior year.
Operating loss was $139 million and on an adjusted 2 basis
was a loss of $130 million. Excluding the Construction Management charge, the adjusted operating margin on net service revenue decreased
by 250 basis points over the prior year to 18.0%. This decline is primarily driven by record amounts of business development activity
and the timing of Construction Management project starts, which was partially offset by benefits from a continued focus on driving operating
efficiencies across the business.
Backlog in the Americas segment grew by 8% to a new record high, driven
by a 1.8 book-to-burn ratio 7 . The Americas design business book-to-burn ratio was driven by strong wins across each of the
Company’s transportation, water, environment and facilities markets.
International
Revenue in the third quarter was $953 million, a 6% increase from
the prior year. Net service revenue 1 was $800 million, a 4% increase from the prior year, driven by strong growth in the U.K
and Australian markets.
Operating income increased by 21% over the prior year to $109 million
and on an adjusted 2 basis increased 26% to $114 million. The adjusted operating margin on net service revenue was 14.3%, an
increase of 240 basis points, which included the benefits from improved growth and from restructuring actions taken within the last year.
Backlog in the International segment grew 28% over the prior year
to a new record high, driven by a 1.4 book-to-burn ratio 7 and strong wins in the U.K. and Middle East markets.
Tax Rate
The effective tax rate was 24.9% in the third quarter. On an adjusted 2
basis, the effective tax rate was 24.8%. The adjusted tax rate was derived by re-computing the quarterly effective tax rate on adjusted
net income 10 . The adjusted tax expense differs from the GAAP tax expense based on the taxability or deductibility and tax
rate applied to each of the adjustments.
Conference Call
AECOM is hosting a conference call tomorrow at 8 a.m. Eastern
Time, during which management will make a brief presentation focusing on the Company's results, strategy and operating trends, and outlook.
Interested parties can listen to the conference call and view accompanying slides via webcast at https://investors.aecom.com .
The webcast will be available for replay following the call.
1 Revenue, less pass-through revenue; growth rates are
presented on a constant-currency basis, unless otherwise noted.
2 Excludes the impact of certain items, such as restructuring
costs, amortization of intangible assets, non-core AECOM Capital and other items. See Regulation G Information for a reconciliation of
non-GAAP measures to the comparable GAAP measures.
3 Reflects segment operating performance, excluding AECOM
Capital and G&A, and margins are presented on a net service revenue basis.
4 Adjusted EBITDA margin includes non-controlling interests
in EBITDA and is on a net service revenue basis.
5 Net income before interest expense, tax expense, depreciation
and amortization.
6 Backlog represents the total value of work for which
AECOM has been selected that is expected to be completed by consolidated subsidiaries and includes the proportionate share of work expected
to be performed by unconsolidated joint ventures.
7 Book-to-burn ratio is defined as the dollar amount of
wins divided by revenue recognized during the period, including revenue related to work performed in unconsolidated joint ventures and
excludes the impact of the Construction Management charge.
8 Free cash flow is defined as cash flow from operations
less capital expenditures, net of proceeds from disposals of property and equipment; free cash flow conversion is defined as free cash
flow divided by adjusted net income attributable to AECOM.
9 Net leverage is comprised of EBITDA as defined in the
Company’s credit agreement dated October 17, 2014, as amended, and total debt on the Company’s financial statements,
net of total cash and cash equivalents.
10 Inclusive of non-controlling interest deduction and
adjusted for financing charges in interest expense, the amortization of intangible assets and is based on continuing operations.
3
About AECOM
AECOM (NYSE: ACM) is the global infrastructure leader, committed to
delivering a better world. As a trusted professional services firm powered by deep technical abilities, we solve our clients’ complex
challenges in water, environment, energy, transportation and buildings. Our teams partner with public- and private-sector clients to
create innovative, sustainable and resilient solutions throughout the project lifecycle – from advisory, planning, design and engineering
to program and construction management. AECOM is a Fortune 500 firm that had revenue of $16.1 billion in fiscal year 2025. Learn more
at aecom.com.
Forward-Looking Statements
All statements in this communication other than statements of historical
fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements that relate
to our future revenues, expenditures and business trends; future reduction of our self-perform at-risk construction exposure; future
accounting estimates; future contractual performance obligations; future conversions of backlog; future capital allocation priorities,
including common stock repurchases, future trade receivables, future debt pay downs; future tax benefits and expenses, and the impact
of future tax laws; future legal claims and insurance coverage; future costs savings; and other future economic and industry conditions.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially
from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance
and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements
include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions;
government shutdowns; changes in administration or other funding directives and circumstances that cause governmental agencies to modify,
curtail or terminate our contracts; government contracts are subject to audits and adjustments of contractual terms; long-term government
contracts are subject to uncertainties related to government contract appropriations; losses under fixed-price contracts; our ability
to successfully and timely perform our contractual obligations and to recover claims for additional contract costs; potential liquidated
damages under our contracts; limited control over operations run through our joint venture entities; liability for misconduct by our
employees or consultants; changes in government laws, regulations and policies, including failure to comply with laws or regulations
applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our
debt and guarantees; our capital allocation strategy, including our ability to continue payment of dividends and repurchase stock; exposure
to political and economic risks in different countries, including tariffs and trade policies, geopolitical events, and conflicts; inflation,
currency exchange rates and interest rate fluctuations; changes in capital markets and stock market volatility; retaining and recruiting
key technical and management personnel; legal claims and litigation; inadequate insurance coverage; environmental law compliance and
inadequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may
fail to satisfy their legal obligations; managing pension costs; AECOM Capital’s real estate development; cybersecurity issues, IT
outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk
civil infrastructure, power construction and oil and gas construction businesses, including the risk that any purchase adjustments from
those transactions could be unfavorable and any future proceeds owed to us as part of the transactions could be lower than we expect;
risks associated with our strategic initiatives, including AI investments and potential acquisitions and divestitures; as well as other
additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our
reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend,
and undertake no obligation, to update any forward-looking statement.
Non-GAAP Financial Information
This communication contains financial information calculated other
than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that non-GAAP financial
measures such as adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, adjusted net/operating income, segment adjusted operating margin,
adjusted tax rate, net service revenue and free cash flow provide a meaningful perspective on its business results as the Company utilizes
this information to evaluate and manage the business. We use adjusted operating income, adjusted net income, adjusted EBITDA, adjusted
EBITDA margin, and adjusted EPS to exclude the impact of certain items, such as amortization expense and taxes to aid investors in better
understanding our core performance results. We use free cash flow to present the cash generated from operations after capital expenditures
to maintain our business. We present net service revenue (NSR) to exclude pass-through subcontractor costs from revenue to provide investors
with a better understanding of our operational performance. We present segment adjusted operating margin to reflect segment operating
performance of our Americas and International segments, excluding AECOM Capital. We present adjusted tax rate to reflect
the tax rate on adjusted earnings. We also use constant-currency growth rates where appropriate, which are calculated by conforming
the current period results to the comparable period exchange rates.
Our non-GAAP disclosure has limitations as an analytical tool, should
not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation
or as a substitute for analysis of our results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures
that may be presented by other companies. A reconciliation of these non-GAAP measures is found in the Regulation G Information tables
at the back of this communication. The Company is unable to reconcile certain of its non-GAAP financial guidance and long-term financial
targets due to uncertainties in these non-operating items as well as other adjustments to net income. The Company is unable to
provide a reconciliation of its guidance for NSR to GAAP revenue because it is unable to predict with reasonable certainty its pass-through
revenue. In addition, the Company is unable to provide a reconciliation of its guidance for financial metrics excluding the Construction
Management business due to uncertainties in these non-operating items as well as other adjustments to these measures.
4
AECOM
Consolidated Statements of Income
(unaudited - in thousands, except per share
data)
Three
Months Ended
Nine Months
Ended
June 30,
2026
June 30,
2025
% Change
June 30,
2026
June 30,
2025
% Change
Revenue
$ 3,586,067
$ 4,178,440
(14.2 )%
$ 11,218,044
$ 11,964,205
(6.2 )%
Cost of revenue
3,620,109
3,851,490
(6.0 )%
10,674,596
11,078,090
(3.6 )%
Gross (loss) profit
(34,042 )
326,950
(110.4 )%
543,448
886,115
(38.7 )%
Equity in earnings
of joint ventures
4,512
5,290
(14.7 )%
23,461
21,707
8.1 %
General and administrative
expenses
(34,368 )
(38,163 )
(9.9 )%
(119,508 )
(118,676 )
0.7 %
Restructuring
and acquisition costs
(12,082 )
-
NM
(53,580 )
-
NM
(Loss) income
from operations
(75,980 )
294,077
(125.8 )%
393,821
789,146
(50.1 )%
Other income (expense)
5,028
823
510.9 %
23,484
(1,001 )
(2446.1 )%
Interest income
12,024
14,063
(14.5 )%
39,477
45,157
(12.6 )%
Interest
expense
(47,641 )
(40,198 )
18.5 %
(143,477 )
(125,437 )
14.4 %
(Loss) income from
continuing operations before taxes
(106,569 )
268,765
(139.7 )%
313,305
707,865
(55.7 )%
Income
tax (benefit) expense for continuing operations
(26,569 )
65,148
(140.8 )%
39,355
145,618
(73.0 )%
(Loss) income from continuing operations
(80,000 )
203,617
(139.3 )%
273,950
562,247
(51.3 )%
Loss from discontinued operations
(2,888 )
(43,880 )
(93.4 )%
(73,038 )
(63,766 )
14.5 %
Net (loss) income
(82,888 )
159,737
(151.9 )%
200,912
498,481
(59.7 )%
Net income attributable
to noncontrolling interests from continuing operations
(3,824 )
(28,771 )
(86.7 )%
(33,244 )
(55,953 )
(40.6 )%
Net
income attributable to noncontrolling interests from discontinued operations
-
-
NM
-
(1,126 )
(100.0 )%
Net income attributable
to noncontrolling interests
(3,824 )
(28,771 )
(86.7 )%
(33,244 )
(57,079 )
(41.8 )%
Net (loss) income
attributable to AECOM from continuing operations
(83,824 )
174,846
(147.9 )%
240,706
506,294
(52.5 )%
Net
loss attributable to AECOM from discontinued operations
(2,888 )
(43,880 )
(93.4 )%
(73,038 )
(64,892 )
12.6 %
Net (loss) income
attributable to AECOM
$ (86,712 )
$ 130,966
(166.2 )%
$ 167,668
$ 441,402
(62.0 )%
Net (loss) income
attributable to AECOM per share:
Basic continuing operations per
share
$ (0.65 )
$ 1.32
(149.2 )%
$ 1.86
$ 3.82
(51.3 )%
Basic discontinued
operations per share
(0.02 )
(0.33 )
(93.9 )%
(0.56 )
(0.49 )
14.3 %
Basic earnings
per share
$ (0.67 )
$ 0.99
(167.7 )%
$ 1.30
$ 3.33
(61.0 )%
Diluted continuing operations per
share
$ (0.65 )
$ 1.31
(149.6 )%
$ 1.85
$ 3.80
(51.3 )%
Diluted discontinued
operations per share
(0.02 )
(0.33 )
(93.9 )%
(0.56 )
(0.49 )
14.3 %
Diluted earnings
per share
$ (0.67 )
$ 0.98
(168.4 )%
$ 1.29
$ 3.31
(61.0 )%
Weighted average shares outstanding:
Basic
128,564
132,301
(2.8 )%
129,393
132,411
(2.3 )%
Diluted
128,564
133,078
(3.4 )%
130,071
133,281
(2.4 )%
NM — not meaningful
5
AECOM
Balance Sheet Information
(unaudited - in thousands)
June 30,
2026
September 30,
2025
Balance Sheet Information:
Total
cash and cash equivalents
$ 1,012,932
$ 1,585,739
Accounts receivable
and contract assets – net
4,504,507
4,282,326
Working capital
340,266
801,411
Total debt, excluding
unamortized debt issuance costs
2,745,196
2,743,719
Total assets
12,026,900
12,200,249
Total AECOM stockholders’
equity
2,193,260
2,492,584
6
AECOM
Reportable
Segments
(unaudited
- in thousands)
Americas
International
AECOM
Capital
Corporate
Total
Three Months Ended June 30, 2026
Revenue
$ 2,632,802
$ 953,045
$ 220
$ -
$ 3,586,067
Cost of revenue
2,775,826
844,283
-
-
3,620,109
Gross (loss) profit
(143,024 )
108,762
220
-
(34,042 )
Equity in earnings (loss) of joint ventures
4,373
(80 )
219
-
4,512
General and administrative expenses
-
-
(1,575 )
(32,794 )
(34,369 )
Restructuring and acquisition costs
-
-
-
(12,082 )
(12,082 )
(Loss) income from operations
$ (138,651 )
$ 108,682
$ (1,136 )
$ (44,876 )
$ (75,981 )
Gross (loss) profit as a % of revenue
(5.4 )%
11.4 %
-
-
(0.9 )%
Three Months Ended June 30, 2025
Revenue
$ 3,277,136
$ 901,198
$ 106
$ -
$ 4,178,440
Cost of revenue
3,038,353
813,137
-
-
3,851,490
Gross profit
238,783
88,061
106
-
326,950
Equity in earnings of joint ventures
2,198
2,167
925
-
5,290
General and administrative expenses
-
-
(2,265 )
(35,898 )
(38,163 )
Income (loss) from operations
$ 240,981
$ 90,228
$ (1,234 )
$ (35,898 )
$ 294,077
Gross profit as a % of revenue
7.3 %
9.8 %
-
-
7.8 %
Nine Months Ended June 30, 2026
Revenue
$ 8,521,658
$ 2,696,166
$ 220
$ -
$ 11,218,044
Cost of revenue
8,231,988
2,442,572
36
-
10,674,596
Gross profit
289,670
253,594
184
-
543,448
Equity in earnings of joint ventures
13,730
8,095
1,636
-
23,461
General and administrative expenses
-
-
(5,612 )
(113,896 )
(119,508 )
Restructuring and acquisition costs
-
-
-
(53,580 )
(53,580 )
Income (loss) from operations
$ 303,400
$ 261,689
$ (3,792 )
$ (167,476 )
$ 393,821
Gross profit as a % of revenue
3.4 %
9.4 %
-
-
4.8 %
Contracted backlog
$ 8,861,199
$ 4,868,883
$ -
$ -
$ 13,730,082
Awarded backlog
10,479,904
3,606,122
-
-
14,086,026
Total backlog
$ 19,341,103
$ 8,475,005
$ -
$ -
$ 27,816,108
Total backlog – Design only
$ 17,661,072
$ 8,475,005
$ -
$ -
$ 26,136,077
Nine Months Ended June 30, 2025
Revenue
$ 9,285,863
$ 2,677,941
$ 401
$ -
$ 11,964,205
Cost of revenue
8,644,327
2,433,763
-
-
11,078,090
Gross profit
641,536
244,178
401
-
886,115
Equity in earnings of joint ventures
12,571
9,071
65
-
21,707
General and administrative expenses
-
-
(7,467 )
(111,209 )
(118,676 )
Income (loss) from operations
$ 654,107
$ 253,249
$ (7,001 )
$ (111,209 )
$ 789,146
Gross profit as a % of revenue
6.9 %
9.1 %
-
-
7.4 %
Contracted backlog
$ 8,836,509
$ 4,614,568
$ -
$ -
$ 13,451,077
Awarded backlog
9,136,644
2,000,150
-
-
11,136,794
Total backlog
$ 17,973,153
$ 6,614,718
$ -
$ -
$ 24,587,871
Total backlog – Design only
$ 16,499,843
$ 6,614,718
$ -
$ -
$ 23,114,561
7
AECOM
Regulation
G Information
(in millions)
Reconciliation
of Revenue to Net Service Revenue (NSR)
Three
Months Ended
Nine Months
Ended
Jun 30,
2026
Mar 31,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Americas
Revenue
$ 2,632.7
$ 2,911.6
$ 3,277.2
$ 8,521.6
$ 9,285.9
Less: Pass-through
revenue
1,824.3
1,717.3
2,098.3
5,404.2
5,931.4
Net service revenue
$ 808.4
$ 1,194.3
$ 1,178.9
$ 3,117.4
$ 3,354.5
International
Revenue
$ 953.1
$ 889.6
$ 901.2
$ 2,696.2
$ 2,678.0
Less: Pass-through
revenue
152.6
135.5
142.6
405.4
426.9
Net service revenue
$ 800.5
$ 754.1
$ 758.6
$ 2,290.8
$ 2,251.1
Segment Performance (excludes
ACAP)
Revenue
$ 3,585.8
$ 3,801.2
$ 4,178.4
$ 11,217.8
$ 11,963.9
Less: Pass-through
revenue
1,976.9
1,852.8
2,240.9
5,809.6
6,358.3
Net service revenue
$ 1,608.9
$ 1,948.4
$ 1,937.5
$ 5,408.2
$ 5,605.6
Consolidated
Revenue
$ 3,586.0
$ 3,801.2
$ 4,178.5
$ 11,218.0
$ 11,964.3
Less: Pass-through
revenue
1,976.9
1,852.8
2,240.9
5,809.6
6,358.3
Net service revenue
$ 1,609.1
$ 1,948.4
$ 1,937.6
$ 5,408.4
$ 5,606.0
Reconciliation
of Total Debt to Net Debt
Balances
at:
Jun 30,
2026
Mar 31,
2026
Jun 30,
2025
Short-term debt
$ 2.6
$ 2.2
$ 4.7
Current portion of long-term debt
60.2
60.7
68.5
Long-term debt, excluding unamortized
debt issuance costs
2,682.4
2,684.8
2,475.0
Total debt
2,745.2
2,747.7
2,548.2
Less: Total cash and cash equivalents
1,012.9
1,034.3
1,794.1
Net debt
$ 1,732.3
$ 1,713.4
$ 754.1
Reconciliation
of Net Cash Provided by Operating Activities to Free Cash Flow
Three
Months Ended
Nine Months
Ended
Jun 30,
2026
Mar 31,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Net cash provided by operating activities
$ 95.2
$ 3.8
$ 283.7
$ 169.2
$ 625.5
Capital expenditures, net
(40.1 )
(31.2 )
(22.0 )
(99.6 )
(74.4 )
Free cash flow
$ 55.1
$ (27.4 )
$ 261.7
$ 69.6
$ 551.1
8
AECOM
Regulation
G Information
(in millions, except
per share data)
Three
Months Ended
Nine Months
Ended
Jun 30,
2026
Mar 31,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Reconciliation of Income
from Operations to Adjusted Income from Operations to Adjusted EBITDA with Noncontrolling Interests (NCI) to Adjusted EBITDA
(Loss) income from operations
$ (76.0 )
$ 247.8
$ 294.1
$ 393.8
$ 789.2
Noncore AECOM Capital loss
1.1
1.5
1.3
3.8
7.0
Restructuring and acquisition costs
12.1
13.6
-
53.6
-
Amortization of
intangible assets
13.9
17.1
0.3
43.9
1.8
Adjusted (loss) income from operations
$ (48.9 )
$ 280.0
$ 295.7
$ 495.1
$ 798.0
Other income (expense)
5.1
10.5
0.8
23.5
(1.0 )
Fair value adjustment included in other
income
(2.2 )
(7.9 )
1.3
(15.2 )
6.8
Depreciation
40.7
38.9
42.9
117.3
122.6
Adjusted EBITDA with noncontrolling interests (NCI)
$ (5.3 )
$ 321.5
$ 340.7
$ 620.7
$ 926.4
Net
income attributable to NCI from continuing operations excluding interest income included in NCI
(2.9 )
(9.4 )
(27.9 )
(30.0 )
(52.5 )
Adjusted EBITDA
$ (8.2 )
$ 312.1
$ 312.8
$ 590.7
$ 873.9
Reconciliation of Income
from Continuing Operations Before Taxes to Adjusted Income from Continuing Operations Before Taxes
(Loss) income from continuing operations before taxes
$ (106.6 )
$ 221.6
$ 268.8
$ 313.3
$ 707.9
Noncore AECOM Capital loss
1.1
1.5
1.2
3.8
6.9
Fair value adjustment
(2.8 )
(8.3 )
1.1
(16.6 )
6.1
Restructuring and acquisition costs
12.1
13.6
-
53.6
-
Amortization of intangible assets
13.9
17.1
0.3
43.9
1.8
Financing charges
in interest expense
1.4
3.5
1.3
6.3
3.9
Adjusted (loss) income from continuing
operations before taxes
$ (80.9 )
$ 249.0
$ 272.7
$ 404.3
$ 726.6
Reconciliation of Income
Taxes for Continuing Operations to Adjusted Income Taxes for Continuing Operations
Income tax (benefit) expense for continuing operations
$ (26.6 )
$ 26.9
$ 65.2
$ 39.3
$ 145.7
Tax
effect of the above adjustments (1) and valuation allowance
5.6
6.2
0.7
19.6
5.0
Adjusted income tax (benefit) expense
for continuing operations
$ (21.0 )
$ 33.1
$ 65.9
$ 58.9
$ 150.7
(1) Adjusts the
income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above.
9
AECOM
Regulation
G Information
(in millions, except
per share data)
Three
Months Ended
Nine Months
Ended
Jun 30,
2026
Mar 31,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Reconciliation of Net Income
Attributable to AECOM from Continuing Operations to Adjusted Net Income Attributable to AECOM from Continuing Operations
Net
(loss) income attributable to AECOM from continuing operations
$ (83.9 )
$ 184.2
$ 174.8
$ 240.7
$ 506.2
Noncore AECOM Capital loss, net of
NCI
1.1
1.5
1.3
3.8
7.0
Fair value adjustment
(2.8 )
(8.3 )
1.1
(16.6 )
6.1
Restructuring and acquisition costs
12.1
13.6
-
53.6
-
Amortization of intangible assets
13.9
17.1
0.3
43.9
1.8
Financing charges in interest expense
1.4
3.5
1.2
6.3
3.8
Tax
effect of the above adjustments (1) and valuation allowance
(5.6 )
(6.2 )
(0.7 )
(19.6 )
(5.0 )
Adjusted
net (loss) income attributable to AECOM from continuing operations
$ (63.8 )
$ 205.4
$ 178.0
$ 312.1
$ 519.9
(1) Adjusts
the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above
Reconciliation of Net Income
Attributable to AECOM from Continuing Operations per Diluted Share to Adjusted Net Income Attributable to AECOM from Continuing Operations
per Diluted Share
Net
(loss) income attributable to AECOM from continuing operations per diluted share
$ (0.65 )
$ 1.42
$ 1.31
$ 1.85
$ 3.80
Per diluted share adjustments:
Noncore AECOM
Capital loss, net of NCI
0.01
0.01
0.01
0.03
0.05
Fair value adjustment
(0.02 )
(0.06 )
0.01
(0.13 )
0.05
Restructuring
and acquisition costs
0.09
0.11
-
0.41
-
Amortization
of intangible assets
0.10
0.13
-
0.34
0.01
Financing charges
in interest expense
0.01
0.03
0.01
0.05
0.03
Tax
effect of the above adjustments (1) and valuation allowance
(0.04 )
(0.05 )
-
(0.15 )
(0.04 )
Adjusted
net (loss) income attributable to AECOM from continuing operations per diluted share
$ (0.50 )
$ 1.59
$ 1.34
$ 2.40
$ 3.90
Weighted average shares outstanding – basic
128.6
128.7
132.3
129.4
132.4
Weighted average shares outstanding – diluted
128.6
129.2
133.1
130.1
133.3
(1) Adjusts
the income taxes during the period to exclude the impact on our effective tax rate of the pre-tax adjustments shown above.
Reconciliation of Net Income
Attributable to AECOM from Continuing Operations to Adjusted EBITDA
Net (loss) income attributable to AECOM from continuing
operations
$ (83.9 )
$ 184.2
$ 174.8
$ 240.7
$ 506.2
Income tax (benefit) expense
(26.6 )
26.9
65.2
39.3
145.7
Depreciation and amortization
55.9
59.5
44.4
167.4
128.3
Interest income, net of NCI
(11.0 )
(12.8 )
(13.1 )
(36.3 )
(41.7 )
Interest expense
47.7
50.5
40.2
143.5
125.4
Amortized bank fees included in interest
expense
(1.3 )
(3.5 )
(1.2 )
(6.2 )
(3.9 )
Noncore AECOM Capital loss, net of
NCI
1.1
1.5
1.3
3.8
7.0
Fair value adjustment included in other
income
(2.2 )
(7.8 )
1.2
(15.1 )
6.9
Restructuring
and acquisition costs
12.1
13.6
-
53.6
-
Adjusted EBITDA
$ (8.2 )
$ 312.1
$ 312.8
$ 590.7
$ 873.9
10
AECOM
Regulation
G Information
(in millions, except
per share data)
Three
Months Ended
Nine Months
Ended
Jun 30,
2026
Mar 31,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Reconciliation of Segment
Income from Operations to Adjusted Segment Income from Operations
Americas Segment:
Segment (loss) income from
operations
$ (138.7 )
$ 227.9
$ 240.9
$ 303.3
$ 654.1
Amortization of
intangible assets
8.5
10.6
0.4
27.2
1.8
Adjusted segment
(loss) income from operations
$ (130.2 )
$ 238.5
$ 241.3
$ 330.5
$ 655.9
International Segment:
Segment Income from operations
$ 108.7
$ 77.0
$ 90.2
$ 261.7
$ 253.2
Amortization of
intangible assets
5.4
6.6
-
16.8
-
Adjusted segment
income from operations
$ 114.1
$ 83.6
$ 90.2
$ 278.5
$ 253.2
Segment Performance (excludes ACAP & G&A):
Segment (loss) income from operations
$ (30.0 )
$ 304.9
$ 331.1
$ 565.0
$ 907.3
Amortization of
intangible assets
13.9
17.2
0.4
44.0
1.8
Adjusted segment
(loss) income from operations
$ (16.1 )
$ 322.1
$ 331.5
$ 609.0
$ 909.1
11
AECOM
Regulation
G Information
FY2026
GAAP EPS Guidance based on Adjusted EPS Guidance
(all figures approximate)
Fiscal Year End 2026
GAAP EPS guidance
$2.37 to $2.87
Adjusted EPS excludes:
Amortization of intangible
assets
$0.45
Amortization of deferred financing
fees
$0.06
Noncore AECOM Capital
$0.03
Fair value adjustments
($0.13)
Restructuring and acquisition costs
$1.54 to $1.16
Tax effect of
the above items
($0.37) to ($0.29)
Adjusted EPS guidance
$3.95 to $4.15
FY2026
GAAP Net Income from Continuing Operations Guidance based on Adjusted EBITDA Guidance
(in millions, all figures approximate)
Fiscal Year End 2026
GAAP net income from continuing operations guidance
$354 to $419
Net income attributable to
noncontrolling interest from continuing operations
($45)
Net
income attributable to AECOM from continuing operations
$309 to $374
Adjusted net income
attributable to AECOM from continuing operations excludes:
Amortization of intangible assets
$58
Amortization of deferred financing
fees
$8
Noncore AECOM Capital
$4
Fair value adjustments
($17)
Restructuring and acquisition costs
$200 to $150
Tax effect of
the above items
($48) to ($38)
Adjusted net income attributable to AECOM
from continuing operations
$514 to $539
Adjusted EBITDA excludes:
Depreciation
$160
Adjusted interest expense, net
$140
Tax expense, including
tax effect of above items
$121 to $126
Adjusted EBITDA guidance
$935 to $965
FY2026
GAAP Interest Expense Guidance based on Adjusted Interest Expense Guidance
(in millions, all figures approximate)
Fiscal Year End 2026
GAAP interest expense guidance
$190
Finance charges in interest expense
($8)
Interest income, net of NCI
($42)
Adjusted interest expense guidance,
net
$140
FY2026
GAAP Income Tax Guidance based on Adjusted Income Tax Guidance
(in millions, all figures approximate)
Fiscal Year End 2026
GAAP income tax expense guidance
$73 to $88
Tax effect of adjusting items
$48
to $38
Adjusted income tax expense guidance
$121
to $126
Note: Variances
in tables are due to rounding.
12
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.