Q2 2026 AECOM Earnings Call Transcript
Key Points
- AECOM (ACM) achieved record highs in NSR margins, adjusted EBITDA, and adjusted EPS for the second quarter.
- Backlog increased by 8% to a new record, driven by strong demand and robust funding in key markets.
- The Americas design business, AECOM's most profitable segment, saw an 8% growth, contributing to a 50 basis point increase in segment adjusted operating margin.
- AECOM's proprietary AI solutions have been integral to securing major contracts, enhancing competitive advantage and client value.
- The company raised its full-year profit guidance for the second time, reflecting strong financial performance and strategic execution.
- The Middle East conflict resulted in a 100 basis point headwind to NSR, impacting revenue growth.
- Ongoing weakness in the UK transportation market partially offset growth in other sectors.
- Cash flow was affected by delayed payments in the Middle East and longer-than-anticipated claim resolutions.
- The company's international segment saw a 3% decline in NSR on a constant currency basis, despite growth in the UK and Australia.
- The geopolitical issues in the Middle East have created uncertainties, affecting the pace of project execution and revenue realization.
Thank you for standing by. At this time, I would like to welcome everyone to AECOM's second quarter 2026 earnings conference call. (Operator Instructions) I would now like to turn the call over to Will Gabrielski, Senior Vice President of Finance and 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 incorporated into our materials, which are posted to our website.
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