AECOM reported a record backlog and quarterly wins alongside a $337 million pretax charge tied to a delayed construction project in its third quarter. The backlog grew 13% to an all-time high with a company-wide book-to-burn ratio of 1.6, while adjusted EBITDA rose 5% and adjusted earnings per share climbed 11% year over year. The charge stems from a construction management project first bid in 2019, where subcontractor productivity pushed substantial completion from the first quarter of fiscal 2027 to near the end of the second quarter, costing $1.99 of earnings per share and forcing a $185 million cash use. Management expects the project to keep burning cash through the first half of fiscal 2027 and raised its full-year adjusted EBITDA margin outlook to 17.4% from 17%. The Americas segment saw net service revenue decline 29% primarily due to the charge, while design net service revenue grew 6% on a constant-day basis.
Aecom Technology CorporationRecord backlog and raised EBITDA margin are positive, but $337M charge and cash burn from delayed project are negative.
