AECOM (ACM) reported a significant earnings miss for the fiscal third quarter of 2026 on August 10, posting a loss of $0.50 per share, falling short of the Zacks Consensus Estimate by $1.99. This was largely attributed to a $337 million pre-tax charge from a construction management project awarded in 2019, which has now incurred higher projected costs due to changed risk policies.
Despite achieving a record backlog of $4.2 billion with a 13% increase, analysts have reduced AECOM’s earnings estimates for 2026 from $5.97 to $4.48, reflecting a projected 14.8% decline compared to last year’s earnings of $5.26. For 2027, estimates were also cut from $6.76 to $6.05, although analysts anticipate a 35% growth in earnings.
Following the earnings report, AECOM’s shares experienced significant decline, dropping 46.7% over the past year and now trading near five-year lows. The company has a forward price-to-earnings ratio of 14.5, suggesting potential undervaluation, but investors are advised to monitor future earnings revisions before making investment decisions.
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