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AECOM’s Hidden Strength: Backlog Hits A Record Despite A $337 Million Charge!

AECOM Incorporated reported its third quarter fiscal 2026 results marked by a significant $337 million pretax charge tied to delays in completing a large construction management (CM) project. This delay, primarily caused by subcontractor productivity issues during the project’s final phase, has postponed its substantial completion from the first to the second quarter of fiscal 2027. Additionally, the company is actively pursuing claims related to this and a second design-build public-private partnership (P3) project, although resolution timelines extend into 2027 and are expected to continue impacting cash flow through the first half of the year. Despite these setbacks, AECOM indicates that its CM business historically generates strong cash flows and high returns, with changes to leadership and tightened risk controls now in place to mitigate future risks. Notably, the company has ceased pursuing design-build work for P3 clients in CM, reflecting a strategic shift after difficulties encountered on these projects.