Is AECOM’s Unprecedented Backlog an Indicator of Robust Future Infrastructure Needs?

AECOM Benefits from Global Infrastructure Expansion

Global infrastructure spending is accelerating, fueling robust growth for AECOM (ACM). Increased funding for transportation, water, and environmental projects is generating a steady flow of new opportunities. This surge in investment is driving demand for engineering and consulting services, while also providing infrastructure companies with greater clarity on future workloads.

AECOM is capitalizing on these favorable market conditions. The company’s net service revenue (NSR)—which excludes subcontractor and direct costs—remains strong, particularly in transportation, water, and environmental sectors. In the first quarter of fiscal 2026, AECOM’s adjusted NSR climbed 2.7% to reach $1.85 billion, with the Americas division posting a notable 9% year-over-year increase.

The company’s backlog underscores the scale of ongoing demand. As of the first quarter of fiscal 2026, AECOM’s backlog reached $25.96 billion, marking an 8.7% rise from $23.88 billion a year earlier. The company also achieved its 21st straight quarter with a book-to-burn ratio above 1x, highlighting consistent project wins and sustained demand for its services.

AECOM’s strategic focus is also fueling backlog growth. Its Advisory division helps clients plan investments and manage risks in complex projects, while the Program Management segment oversees large-scale developments across various markets. Over time, these two segments are expected to contribute nearly half of AECOM’s total operations.

Ongoing investments in leadership, technical skills, and artificial intelligence are further enhancing project delivery and strengthening AECOM’s competitive edge, supporting long-term revenue prospects.

Industry Peers Show Similar Growth in Backlogs

Other major players in the sector, such as Fluor Corporation (FLR) and Sterling Infrastructure, Inc. (STRL), are also experiencing improved revenue visibility thanks to expanding project pipelines in complex infrastructure, industrial, and mission-critical developments.

Fluor’s diversified backlog across engineering, procurement, and construction markets reached $25.5 billion by the end of 2025, reflecting steady demand in areas like LNG, mining, advanced technologies, life sciences, nuclear fuels, and national security. Approximately 81% of Fluor’s backlog is structured as reimbursable contracts, which helps manage costs and balance project risks. In 2025, the company secured $12 billion in new awards—nearly 87% of which were reimbursable—while positive backlog adjustments of about $1 billion reflected ongoing project growth.

Sterling is also enhancing its outlook with exposure to large, multi-phase projects. By the end of 2025, Sterling’s signed backlog stood at roughly $3 billion, up 78% year over year. Including $301 million in unsigned awards and over $1 billion in future-phase opportunities, the company’s total potential workload approaches $4.5 billion. Strong demand for mission-critical projects, such as data centers, is driving growth in Sterling’s E-Infrastructure segment.

ACM Stock: Price Trends and Valuation

Shares of AECOM, a Texas-based provider of professional, technical, and management solutions, have declined 5.9% over the past three months. This performance lags behind the broader Engineering - R and D Services industry, the Construction sector, and the S&P 500 index.

Image Source: Zacks Investment Research

Currently, ACM trades at a forward 12-month price-to-earnings (P/E) ratio of 14.96, which is lower than its industry peers, as shown in the chart below.

Image Source: Zacks Investment Research

Upward Revisions in ACM’s Earnings Estimates

Analysts have raised their earnings forecasts for AECOM for fiscal years 2026 and 2027 over the past month. The latest projections suggest year-over-year earnings growth of 13.5% in 2026 and 12% in 2027.

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AECOM currently holds a Zacks Rank #2 (Buy). View the full list of Zacks #1 Rank (Strong Buy) stocks here.

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