Q1 2026 AECOM Earnings Call Transcript
Key Points
- AECOM (ACM) reported record first quarter net service revenue (NSR), adjusted EBITDA, margins, and backlog, indicating strong financial performance.
- Backlog increased by 9% to a new all-time high, supported by a 1.5 book-to-burn ratio, despite challenges such as a 43-day US federal government shutdown.
- The company announced an increased share repurchase authorization to $1 billion, reflecting confidence in long-term value creation.
- AECOM (ACM) secured significant wins, including being selected as a delivery partner for the 2032 Olympic and Paralympic Games in Brisbane and providing engineering services for Scottish Water's capital investment program.
- The company is experiencing strong market conditions in the US, with federal funding bills providing greater certainty and momentum in sectors like transportation and data centers.
- The year-over-year growth rates were impacted by fewer workdays compared to the prior year first quarter, affecting comparability of results.
- Near-term trends in international markets remain varied, with geopolitical and funding uncertainties causing pockets of weakness.
- The integration of acquired AI technology is still in its early stages, and while initial performance results are promising, the full impact on revenue and operations is yet to be realized.
- Cash flow in the first quarter was weaker than expected, although consistent with historical patterns, raising concerns about cash management.
- The construction management business, while retained, represents only 8% of NSR, and its future growth potential remains uncertain despite plans for closer alignment with the design business.
Thank you for standing by. My name is Jay, and I will be your conference operator today. At this time, I would like to welcome everyone to the AECOM First Quarter 2026 Earnings Conference Call. (Operator Instructions) I'd now like to turn the conference over to Will Gabrielski, Senior Vice President, Finance, Investor Relations. You may begin.
Thank you, operator. I would like to direct your attention to the safe harbor statement on Page 1 of today's presentation. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements.
We use certain non-GAAP financial measures in our presentation. The appropriate GAAP reconciliations are
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