AECOM Reports 14.2% Revenue Decline and $86.7 Million Net Loss in Q3 Fiscal 2026

AECOM reported a significant decline in financial performance for the third quarter of fiscal 2026, with total revenue of $3.586 billion, down 14.2% from $4.178 billion in the same period last year. For the nine months ending June 30, 2026, revenue also decreased by 6.2% to $11.218 billion compared to $11.964 billion in the prior year. The company experienced a gross loss of $34.1 million for the quarter, a stark contrast to a gross profit of $326.9 million in the previous year. This downturn was attributed to substantial losses on specific construction management projects, particularly a $336.8 million loss recorded during the quarter.

In terms of operational metrics, AECOM's cost of revenue decreased to $3.620 billion for the three months ended June 30, 2026, down from $3.851 billion in the prior year. The company reported a net loss attributable to AECOM of $86.7 million for the quarter, compared to a net income of $131 million in the same period last year. The decline in profitability was further reflected in the earnings per share, which fell to a loss of $0.67 from a profit of $0.99 in the previous year.

Strategically, AECOM has been focusing on restructuring its operations and optimizing its organizational structure, incurring $12.1 million in restructuring and acquisition costs during the quarter. The company has also been active in pursuing acquisitions, having completed two business acquisitions in the previous fiscal year, although the initial accounting for these acquisitions remains incomplete as of June 30, 2026. The company continues to assess the value of acquired tax liabilities and intellectual property.

Geographically, AECOM's Americas segment saw a revenue decline of 19.7% to $2.633 billion for the quarter, primarily due to a significant drop in revenue from a construction management project. Conversely, the International segment reported a revenue increase of 5.8% to $953.1 million, driven by growth in the Facilities and Energy end markets. The company’s total cash and cash equivalents decreased to $1.013 billion as of June 30, 2026, down from $1.586 billion at the end of the previous fiscal year, reflecting a net cash outflow from operations.

Looking ahead, AECOM anticipates continued challenges in its construction management projects, particularly regarding claims and recoveries. The company is actively working to resolve these issues, which could impact its capital allocation strategy, including stock repurchases. Despite the current downturn, AECOM remains focused on leveraging infrastructure investments and government spending initiatives to drive future growth.