AECOM Shares Drop as $3.80 Billion Q1 Revenue Misses Estimates by 5.3%
Updated
Updated · stockstory.org · May 12
AECOM Shares Drop as $3.80 Billion Q1 Revenue Misses Estimates by 5.3%
5 articles · Updated · stockstory.org · May 12
AECOM reported Q1 revenue of $3.80 billion, flat from a year earlier and below the $4.01 billion analysts expected, triggering a sharp stock selloff despite stronger profitability.
Adjusted EPS rose to $1.59 from a $1.54 consensus, while adjusted EBITDA reached $312.1 million; management still nudged full-year adjusted EPS guidance up to $6 at the midpoint.
A 100-basis-point revenue headwind from the Middle East and delayed customer activity in some international markets weighed on sales, even as North America design revenue grew 8%.
Backlog climbed 8% to a record $26.2 billion, supported by wins in the Americas, U.K. and Australia, and management said proprietary AI tools are helping win higher-margin energy and water contracts.
AECOM expects Americas growth and a second-half Middle East recovery to support coming quarters, but project timing in international markets remains the key execution risk.
With its stock falling despite AI hype, can AECOM prove its tech strategy is more than a distraction from execution problems?
Is AECOM underestimating Mideast instability, risking its record backlog on a fragile geopolitical bet?