📊 ACM Key Takeaways
Is Aecom (ACM) a Good Investment?
AECOM exhibits deteriorating operational fundamentals with net income declining 11.7% YoY despite flat revenue, indicating severe margin compression in an already thin-margin business. The company carries excessive leverage (1.17x D/E) while generating minimal free cash flow (0.2% margin), severely constraining financial flexibility and raising concerns about debt sustainability.
AECOM shows stable revenue and positive operating profitability, but the quality of growth is mixed because net income declined while EPS growth likely benefited from share count effects rather than stronger core earnings. The balance sheet is manageable with adequate liquidity, yet leverage, thin margins, weak returns on capital, and modest free cash flow limit the fundamental upside.
Aecom Key Strengths (ACM)
- Profitable with positive operating cash flow of $74M
- Adequate interest coverage ratio of 5.3x provides debt service capability
- Established market position as major engineering services provider with $7.6B revenue base
- Positive operating income and a 5.8% operating margin indicate the core business remains profitable
- Liquidity is adequate with $1.25B in cash and a 1.10x current ratio
- Revenue is stable year over year, which supports resilience in a project-based engineering business
ACM Stock Risks: Aecom Investment Risks
- Net income declining 11.7% YoY while revenue flat indicates significant margin compression and operational deterioration
- Free cash flow of only $14.5M (0.2% margin) insufficient to service $2.7B debt with high leverage ratio of 1.17x D/E
- Critically thin profitability margins (7.6% gross, 6.2% operating, 3.3% net) leave no room for error or market downturns
- Weak liquidity position with current ratio of 1.11x and quick ratio of 1.11x limits financial flexibility
- Stalled revenue growth of 0.2% YoY suggests no organic growth momentum or competitive advantage
- Net income declined 11.7% year over year despite flat revenue, pointing to pressure below the operating line
- Profitability is thin with 1.9% net margin, 3.3% ROE, and 0.6% ROA
- Leverage is meaningful with 1.18x debt-to-equity and only 2.5x interest coverage
Key Metrics to Watch
- Free cash flow generation and path to positive FCF margin above 2-3%
- Gross margin trend and evidence of pricing power or cost control
- Debt/Equity ratio and deleveraging progress toward sub-1.0x
- Revenue growth acceleration above 2% and operating margin recovery
- Free cash flow margin and operating cash flow conversion
- Interest coverage and trend in net income margin
Aecom (ACM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.2% FCF margin may limit capital allocation flexibility.
ACM Profit Margin, ROE & Profitability Analysis
ACM vs Services Sector: How Aecom Compares
How Aecom compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aecom Stock Overvalued? ACM Valuation Analysis 2026
Based on fundamental analysis, Aecom has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aecom Balance Sheet: ACM Debt, Cash & Liquidity
ACM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aecom's revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.39 reflects profitable operations.
ACM Revenue Growth, EPS Growth & YoY Performance
ACM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $3.8B | $143.4M | $1.08 |
| Q1 2026 | $3.8B | $74.5M | $0.56 |
| Q3 2025 | $4.2B | $131.0M | $0.98 |
| Q2 2025 | $3.8B | $1.0M | $0.01 |
| Q1 2025 | $3.9B | $94.4M | $0.69 |
| Q3 2024 | $3.7B | $29.9M | $0.21 |
| Q2 2024 | $3.5B | $1.0M | $0.01 |
| Q1 2024 | $3.4B | $87.9M | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aecom Dividends, Buybacks & Capital Allocation
ACM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aecom (CIK: 0000868857)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACM
What is the AI rating for ACM?
Aecom (ACM) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACM's key strengths?
Claude: Profitable with positive operating cash flow of $74M. Adequate interest coverage ratio of 5.3x provides debt service capability. ChatGPT: Positive operating income and a 5.8% operating margin indicate the core business remains profitable. Liquidity is adequate with $1.25B in cash and a 1.10x current ratio.
What are the risks of investing in ACM?
Claude: Net income declining 11.7% YoY while revenue flat indicates significant margin compression and operational deterioration. Free cash flow of only $14.5M (0.2% margin) insufficient to service $2.7B debt with high leverage ratio of 1.17x D/E. ChatGPT: Net income declined 11.7% year over year despite flat revenue, pointing to pressure below the operating line. Profitability is thin with 1.9% net margin, 3.3% ROE, and 0.6% ROA.
What is ACM's revenue and growth?
Aecom reported revenue of $7.6B.
Does ACM pay dividends?
Aecom pays dividends, with $75.7M distributed to shareholders in the trailing twelve months.
Where can I find ACM SEC filings?
Official SEC filings for Aecom (CIK: 0000868857) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACM's EPS?
Aecom has a diluted EPS of $1.95.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ACM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aecom has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ACM stock overvalued or undervalued?
Valuation metrics for ACM: ROE of 11.2% (sector avg: 16%), net margin of 3.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ACM's AI grade for 2026?
Our dual AI analysis gives Aecom a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACM's free cash flow?
Aecom's operating cash flow is $74.0M, with capital expenditures of $59.5M. FCF margin is 0.2%.
How does ACM compare to other Services stocks?
Vs Services sector averages: Net margin 3.3% (avg: 10%), ROE 11.2% (avg: 16%), current ratio 1.11 (avg: 1.5).