AECOM FY2Q Takeaways Mixed Quarter But Pullback Overdone

AECOM's FY2Q results showed a slight EBITDA beat but missed on free cash flow due to Middle East payment delays. Goldman Sachs maintains a Buy rating, viewing the recent 12% stock decline as an overreaction.

Key Takeaways

• 1.AECOM reported a mixed quarter with a slight EBITDA beat but lower than expected free cash flow due to Middle East payment delays.
• 2.Underlying margin expansion remains strong, with EBITDA margins up over 85 bps year-over-year when excluding AI investment headwinds.
• 3.Management reiterated 2026 FCF guidance and slightly raised EBITDA/EPS guidance despite a recent 12% stock pullback.

Table of Contents

• FY2Q Takeaways: Mixed quarter but pullback overdone
• Other takeaways
• Variance vs GSe
• Segment variance details
• 2026 Guidance revised higher
• Valuation and risks
• 2026-2028 variance
• Disclosure Appendix
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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