The second consecutive guidance raise, record backlog, and expanding margins signal strong operational momentum. However, negative free cash flow in Q2 due to Middle East payment delays warrants monitoring. The stock should react positively to the beat and raised guidance, but watch for any commentary on cash flow recovery on the conference call.
Price Chart
Executive Summary
AECOM reported Q2 fiscal 2026 results with GAAP diluted EPS of $1.42 (up 22% YoY) and adjusted EPS of $1.59 (up 27% YoY), beating consensus estimates. Revenue grew 1% to $3.8B, while net service revenue increased 2%. The company raised its full-year adjusted EPS guidance for the second consecutive quarter to $5.90-$6.10, driven by record backlog and strong margin expansion.
Key Financial Metrics
Key Facts
- GAAP diluted EPS from continuing operations: $1.42, up 22% YoY
- Adjusted EPS: $1.59, up 27% YoY, beating consensus of $1.54
- Revenue: $3.8B, up 1% YoY
- Net service revenue: $1.95B, up 2% YoY
- Segment adjusted operating margin: 16.5%, up 50 bps YoY (record Q2 high)
- Total backlog: $26.2B, up 8% YoY to a record high
- Design book-to-burn ratio: 1.2x; 22nd consecutive quarter above 1.0x
- Raised FY2026 adjusted EPS guidance to $5.90-$6.10 (from $5.85-$6.05)
- Raised FY2026 adjusted EBITDA guidance to $1.275B-$1.305B
- Free cash flow was -$27M in Q2 due to delayed Middle East payments; FY guidance of ~$400M reiterated
- Returned $155M to shareholders via buybacks and dividends in Q2
Financial Impact
Adjusted EPS beat consensus by ~3.2% ($1.59 vs $1.54); guidance raised by $0.05 at midpoint
Risk Factors
- Negative free cash flow of -$27M in Q2 due to delayed Middle East payments
- International net service revenue declined 3% YoY, driven by Asia and Middle East weakness
- Operating cash flow collapsed 98% YoY to $4M
- Restructuring costs of $13.6M in Q2; $41.5M YTD
- Interest expense increased 19.8% YoY to $50.6M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-058656 |
| Document: tm2614102d1_8k.htm | 0001104659-26-058656 |
| Document: 0001104659-26-058656-index-headers.html | 0001104659-26-058656 |
| Document: 0001104659-26-058656-index.html | 0001104659-26-058656 |
| Document: 0001104659-26-058656.txt | 0001104659-26-058656 |
| 8-K Data (Synthetic) | 0001104659-26-058656 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 14, 2026 7w ago | Press Release | $63.11 $64.60 | ▼ −2.36% | ▼ −4.35% | $59.66 (+5.47%) |
Aug 10, 2026 7w ago | 8-K | $67.05 $64.02 | ▲ +4.52% | ▲ +3.46% | $59.66 (+11.02%) |
Aug 7, 2026 8w ago | Institutional Cluster | $75.81 $66.58 | ▲ +12.17% | ▲ +11.77% | $59.66 (+21.30%) |
Jun 30, 2026 13w ago | Court Ruling | $69.80 $70.96 | ▲ +1.66% | ▲ +2.69% | $59.66 (−14.53%) |
Jun 11, 2026 16w ago | 8-K | $70.12 $68.25 | ▼ −2.67% | ▼ −4.45% | $59.66 (−14.92%) |
Jun 3, 2026 17w ago | 8-K | $72.40 $66.86 | ▼ −7.65% | ▼ −6.52% | $59.66 (−17.59%) |
May 11, 2026 20w ago | 8-K | $69.86 $68.58 | ▼ −1.83% | ▼ −0.10% | $59.66 (−14.60%) |
Mar 5, 2026 30w ago | 8-K | $93.69 $84.71 | ▼ −9.59% | ▼ −7.54% | $59.66 (−36.32%) |
US Market Status
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