Aecom Technology CorporationACM
▼ NegativeCapitalrelevance
Unexpected Q3 loss and slashed full-year guidance due to a $377M pre-tax loss on a construction project.
Impact on stocks 1
Climate Adaptation & Water
Aecom Technology CorporationAecom shares plunged 17.9% to a 52-week low of $60.35 after the engineering and consulting giant posted an unexpected third-quarter loss and slashed its full-year guidance. The company reported a net loss of $0.65 per share for its fiscal 2026 third quarter, compared with earnings of $1.32 per share a year earlier, driven by a $377 million pre-tax loss on a construction project signed in 2019 under terms that would not meet its current risk policies. Revenue fell 14% year over year, and management cut its full-year adjusted EPS forecast to $3.95 to $4.15 per share and free cash flow estimate to only $300 million, down from prior guidance of $5.90 to $6.10 per share and $400 million in free cash flow. Despite the setback, Aecom's backlog jumped 13% to a record $27.8 billion, with a book-to-burn ratio of 1.6, indicating strong demand. The troubled project is not expected to be completed until mid-2027, leaving room for further cost overruns, and the company's heavy reliance on government contracts exposes it to federal budget pressures.
Aecom Technology CorporationUnexpected Q3 loss and slashed full-year guidance due to a $377M pre-tax loss on a construction project.