AECOM ACM, in partnership with Bureau Veritas, has been selected as the Independent Certifier for Stage 1 of The Wave, a major passenger rail project in Queensland, Australia. The six-year joint venture contract covers independent certification for the design and construction of a new dual-track rail corridor between Beerwah and Caloundra, including new and upgraded stations. Rather than participating in construction, AECOM will independently certify that the project's design and execution comply with stringent safety, operational, quality and regulatory standards.
Following the news, shares of ACM gained 0.6% during trading hours yesterday.
AECOM Expands Its Transportation Leadership in Australia
Under the engagement, the joint venture will independently review engineering designs, inspect construction activities and verify that key project milestones meet required safety, operational, quality and regulatory standards. The Wave is expected to strengthen connectivity across Southeast Queensland by linking the Sunshine Coast more closely with the broader passenger rail network, easing congestion, improving accessibility and supporting population growth. The project is also a key component of Queensland’s infrastructure program for the Brisbane 2032 Olympic and Paralympic Games.
AECOM said its selection reflects its established transportation expertise, experienced local teams and track record in independent assurance. The company has supported major Australian infrastructure programs, including the Melbourne Metro Tunnel, Sydney Metro Brownfields and the M1 Pacific Motorway extension to Raymond Terrace.
The award comes as AECOM continues to build momentum in Australia. Management said regional backlog reached a multiyear high in the second quarter, supported by transportation and defense wins. The expanding pipeline should improve growth visibility into fiscal 2027 and beyond as infrastructure investment continues across the country.
Record Backlog Continues to Support ACM's Long-Term Growth
AECOM continues to benefit from robust demand across transportation, water, energy, environmental services, defense and high-tech infrastructure. Management highlighted record investment opportunities tied to hyperscale data centers, power generation and transmission while noting that its defense pipeline has expanded roughly 50% year over year.
The company ended the second quarter of fiscal 2026 with a record backlog of $26.2 billion, up 8% year over year, supported by a design book-to-burn ratio of 1.2x. The design pipeline also reached a record level, reflecting strong funding across key infrastructure markets and continued project wins.
Supported by its record backlog, expanding pipeline and strong execution, management raised fiscal 2026 earnings guidance for the second consecutive quarter and now expects adjusted EPS and adjusted EBITDA to increase 14% and 7%, respectively, at the midpoint of the updated guidance ranges.
AECOM stock has declined 28% in the year-to-date period, significantly underperforming the Zacks Engineering - R and D Services industry’s 28.5% growth. Near-term performance could remain affected by geopolitical uncertainty in the Middle East and the timing of project awards and execution.
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Nevertheless, AECOM's long-term investment case remains supported by a record backlog, expanding transportation opportunities, growing exposure to defense and AI infrastructure, and sustained demand across its core end markets. Continued success in securing large, technically complex infrastructure programs should provide solid revenue visibility and support long-term earnings growth.
ACM’s Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Construction sector:
Argan, Inc. AGX flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 40.5%, on average. AGX stock has surged 91.4% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Argan’s 2026 sales and EPS indicates growth of 38% and 29.4%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. STRL flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. STRL stock has jumped 115.5% year to date.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 59.2% and 75.7%, respectively, from the prior-year levels.
Everus Construction Group ECG presently has a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 62%, on average. ECG stock has climbed 55.8% year to date.
The Zacks Consensus Estimate for ECG’s 2026 sales and EPS indicates growth of 17% and 11.1%, respectively, from the year-ago period’s levels.
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This article originally published on Zacks Investment Research (zacks.com).