AECOM ACM appears well-positioned to capitalize on some of the most powerful infrastructure trends shaping global markets. The company’s second-quarter fiscal 2026 results highlighted how investments in transportation, water, energy, defense and digital infrastructure are translating into stronger financial performance and improved visibility.
The global infrastructure leader reported a record backlog of $26.2 billion as of second-quarter fiscal 2026, up 8% year over year, supported by a design book-to-burn ratio of 1.2x. The company also delivered record adjusted EPS of $1.59, up 27% from the prior-year period, while raising its fiscal 2026 earnings guidance for the second consecutive quarter. ACM is benefiting from accelerating investments in AI-related infrastructure and data centers, where it provides services ranging from site selection and environmental permitting to design and program management. Management noted that its proprietary AI platform is increasingly helping win large contracts and enhance client value.
Energy remains another major opportunity. Rising power demand, grid modernization initiatives and emerging nuclear fusion projects are creating new avenues for growth. The company is involved in advanced fusion programs in both the United States and the United Kingdom, positioning it early in a potentially transformative market.
Meanwhile, favorable funding trends continue to support demand. More than half of the U.S. Infrastructure Investment and Jobs Act funding remains unspent, while defense spending is increasing across several key markets, including the United States, Canada and Australia.
Although near-term challenges persist in the Middle East and parts of the transportation market in the UK, AECOM’s record pipeline, expanding margins and diversified end-market exposure suggest that it remains well-equipped to convert long-term infrastructure megatrends into sustained earnings growth.
AECOM, MasTec & KBR: Powering the Next Buildout Boom
AECOM, alongside MasTec, Inc. MTZ and KBR, Inc. KBR, is benefiting from rising investments across transportation, water, energy, defense and digital infrastructure, though each approaches these opportunities differently. ACM leverages its global design, engineering and program-management expertise to capitalize on large-scale transportation, water and environmental projects, while expanding into AI-related infrastructure, data centers and advisory services.
MasTec is more construction-focused, with strengths in power delivery, communications, clean energy and data-center infrastructure deployment, making it a direct beneficiary of hyperscaler and utility spending. KBR differentiates itself through its government-focused portfolio, serving defense, national security, space and mission-critical infrastructure markets while also expanding its presence in energy transition and digital engineering.
As demand for AI infrastructure accelerates, ACM’s planning capabilities, MasTec’s construction execution and KBR’s defense and technology expertise position all three companies to capture long-term infrastructure growth opportunities.
ACM Stock’s Price Performance & Valuation Trend
Shares of this Texas-based provider of professional, technical and management solutions have plunged 25% year to date, underperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
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ACM stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 11.01, as evidenced by the chart below.
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Earnings Estimate Revision of ACM
ACM’s earnings estimates for fiscal 2026 and fiscal 2027 have trended upward in the past 30 days. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 13.5% and 13.1%, respectively.
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AECOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).