AECOM (ACM) SEC Filings & Earnings Calls

Key legal officer departure, but with orderly transition and retention as advisor; low risk.

“Mr. Gan will continue in his role through October 2, 2026, after which he will serve as Senior Advisor.”

Construction Management project losses

“On one of the Construction Management projects discussed above, we assessed the estimated cost to complete the project compared to the estimated revenue with the relevant components of variable consideration, including significant claims that represent a portion of the significant claims discussed in Note 4, Revenue Recognition, and recorded an aggregate los” · word for word

Cash flow pressure from CM projects

“We also expect to incur future net cash outflows between $600 million and $800 million through the completion of two projects in our Construction Management business, which does not include potential cash inflows for unapproved change orders and claims from clients, subcontractors or insurers.” · word for word

Uncertain tax positions

“During the second quarter of fiscal 2026, we recorded a reserve of $34.4 million related to uncertain tax positions associated with certain federal and state tax credits claimed for fiscal 2017 through fiscal 2026.” · word for word

Large project charge from legacy contract exposes risk in project execution and cost overruns on fixed-price contracts.

“$337M pre-tax charge on Construction Management project bid in 2019 under terms no longer acceptable.”

Litigation risk from pursuing claims; recovery uncertain and may take years.

“Company is pursuing claims... it will likely take several years and litigation to fully resolve all matters.”

Covenants include leverage ratio test (<=4.00x) and restrictions on debt, liens, and investments.

“maintain a consolidated leverage ratio of less than or equal to 4.00 to 1.00... restrictions on the ability... to incur liens and debt” · word for word

Operating Cash Flow Decline

“Net cash provided by operating activities was $74.0 million for the six months ended March 31, 2026 as compared to $341.7 million for the six months ended March 31, 2025.” · word for word

International Margin Pressure

“Gross profit for our International segment for the three months ended March 31, 2026 decreased $4.8 million, or 6.1%, to $73.4 million as compared to $78.2 million for the corresponding period last year.” · word for word

Claims Resolution Uncertainty

“The change was primarily attributable to a decrease in net income of approximately $54.9 million, which was impacted by a longer than anticipated claims resolution process.” · word for word

Operating cash flow weak in Q2 due to delayed Middle East payments and claim resolution; collections recovered in Q3.

“Underlying cash flow in the second quarter was consistent with expectations, but was offset by delayed payment timing in the Middle East business, as well as longer-than-anticipated claim resolution on certain projects.” · word for word

Increased leverage with $2.95B in new debt facilities, though covenant leverage ratio of 4.00x provides some headroom.

“consolidated leverage ratio of less than or equal to 4.00 to 1.00” · word for word

Discontinued operations loss

“Net loss from discontinued operations was $65.9 million for the three months ended December 31, 2025 compared to net loss of $9.6 million for the three months ended December 31, 2024, an increase of $56.3 million.” · word for word

Working capital pressure

“Working capital decreased $191.3 million, or 23.9%, to $610.1 million at December 31, 2025 from $801.4 million at September 30, 2025.”

U.S. federal government shutdown caused award delays, but AECOM still achieved 1.0 book-to-burn in Americas design.

“Americas design business had a 1.0 book-to-burn ratio despite the unprecedented 43-day U.S. federal government shutdown that resulted in award delays.” · word for word

Discontinued operations loss

“Net loss from discontinued operations was $75.4 million for the year ended September 30, 2025 compared to $105.0 million for the year ended September 30, 2024, a decrease of $29.6 million.” · word for word

Uncertain tax positions

“During fiscal 2025, we recorded a reserve of $47.0 million related to uncertain tax positions associated with federal and state tax credits claimed for years subject to examination by the tax authorities.” · word for word

Review of strategic alternatives for Construction Management business introduces uncertainty, but decision to retain it in subsequent quarter suggests no material risk.

“Announced a review of strategic alternatives for the Construction Management business, including a potential sale.” · word for word