ACM – A Second Act

Research evidence excerpt

ACM – A Second Act

pursuits),

including strong awards after quarter end, and pointed to an estimated $40–$50B in potential spending to repair and expand

U.S. military infrastructure in the region as an additional long-term opportunity.

FCF and Capital Allocation: FCF was ($27M) vs $178M in 2Q’25 and ACM returned $155M through share repurchases and

dividends in the quarter. ACM noted that underlying FCF was in line management’s expectations, offset by collections delays in

the Middle East as well as longer than anticipated claim resolution on certain projects. That said, management noted that the

Middle East collections have recovered in 3Q’26 allowing the company to reaffirm its FY’26 FCF guide.

Advisory: Advisory continues to grow rapidly, with management reaffirming expectations to double NSR in the business by

2028. Net service revenue grew at a double‑digit rate in the first half. The company is accelerating hiring to support backlog

conversion and sustain growth as the platform scales.

Construction Management: ACM noted several large projects have been completed, while newer wins (sports venues and

convention centers) are currently underway and will continue over the next six months. Revenue impact is expected to ramp

meaningfully in FY27, particularly starting in Q2, with improving book‑to‑burn in Q3–Q4 tied to the nature of project flow.

Americas Segment

Americas NSR was $1.194B, up 5% y/y on a constant currency basis (6% in total) driven by an 8% increase in Americas design

NSR despite impacts from the government shutdown. Americas adjusted operating income was $239M up 10% y/y and adjusted

operating margin was 20.0%, up 60bps y/y reflecting continued focus on operating efficiency and high returns on investments.

International Segment