AECOM: Q2'26 First Look: Mixed Quarter (P/L In-Line to Above, FCF Below); FY'26 Mostly Reaffirmed

Research evidence excerpt

AECOM: Q2'26 First Look: Mixed Quarter (P/L In-Line to Above, FCF Below); FY'26 Mostly Reaffirmed

Equity Research

U.S. Machinery & Construction

11 May 2026

AECOM

Q2'26 First Look: Mixed Quarter

(P/L In-Line to Above, FCF Below);

ACM EQUAL WEIGHTFY'26 Mostly Reaffirmed

U.S. Machinery & POSITIVE

Stronger Americas margins and co. EBITDA were mostly offset Construction Price Target USD 110.00

by flattish Americas backlog and weak FCF. Top‑line growth Price (11-May-26) USD 79.50

Potential Upside/Downside +38.4%slowed vs trend, raising reliance on a Q4‑heavy 2H to hit Source: Bloomberg, Barclays Research

reaffirmed NSR/FCF targets. Margin momentum is

encouraging, but execution risk remains. U.S. Machinery & Construction

Adam Seiden, CFA

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ACM's Q2 beat due to Americas margins. Americas Backlogs were flat and ACM's FCF was adam.seiden@barclays.com

negative but 1/3rd from ME seen as transitory, according to the company. FY views on NSR BCI, US

and FCF were reaffirmed. Implies 2H ramps (Q4 led) and/or working day adjustments. 1)

Vraj PatelSales met, EBITDA beat, and margins were ahead. The KPIs compared slightly less favorably

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against our model. 2) Sales were up 4% y/y and 2% y/y on a constant currency (CC) basis. Q2 vraj.patel1@barclays.com

was a notable deceleration from the 5-6% CC rate since last year. Their NSR guidance is 6-8% BCI, US

after 1H quarters of 5% and 2%. The guide already excludes the working day headwind. The

Tyler RussellMiddle East could be a 50-100bps headwind for the FY. 3) Contracted backlog was up 4% as

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areas like the UK and Australia return to growth and ME works keeps booking despite the war. tyler.russell@barclays.com

Americas backlogs remain flat; essentially unchanged for 10 consecutive quarters.