AECOM, one of the world’s largest infrastructure engineering firms, reported an $86.7 million net loss for its fiscal third quarter even as the company’s project backlog climbed to a record $27.8 billion, according to results the company released Aug. 10.
The loss stemmed from a $337 million pretax charge tied to a design-build public-private partnership construction management project the company was awarded in 2019, AECOM disclosed in an exhibit filed with the Securities and Exchange Commission. The company attributed the charge to lower-than-expected subcontractor productivity on the project, which it now expects to substantially complete in the second quarter of fiscal 2027. AECOM said it is pursuing dispute-resolution claims in an effort to recover some of the cost.
Total revenue for the quarter fell 14% year over year to $3.59 billion, while net service revenue β a metric AECOM uses to strip out pass-through subcontractor costs β declined 16% to $1.61 billion. Diluted earnings per share from continuing operations came in at a loss of $0.65; on an adjusted basis, the company reported a loss of $0.50 per share.
Record backlog offsets the charge
Despite the quarterly loss, AECOM’s backlog β a forward-looking measure of contracted future work β rose 13% year over year to $27.8 billion, with a book-to-burn ratio of 1.6 times, meaning the company won new work faster than it completed existing contracts. The company posted $4.2 billion in new wins during the quarter, also a record.
Backlog growth was broad-based: AECOM’s Americas segment backlog rose 8% to $19.3 billion, while its International segment backlog jumped 28% to $8.5 billion.
AECOM updated its full-year fiscal 2026 guidance following the results, now projecting adjusted earnings per share of $5.90 to $6.10 excluding the one-time charge (or $3.95 to $4.15 as reported), adjusted EBITDA of $935 million to $965 million, and free cash flow of roughly $300 million.
AECOM is one of the largest infrastructure consulting and engineering firms in the world, providing design, construction management and environmental services on transportation, water, government and commercial projects globally. The Dallas-headquartered company’s revenue scale β even after this quarter’s decline β puts it among the handful of engineering and construction firms whose results are closely watched as a bellwether for broader capital spending on public and private infrastructure.
What it means
The one-time charge on the 2019 project is the clearest driver of the quarter’s headline loss, and AECOM’s own disclosure frames it as project-specific rather than reflective of broader demand weakness β a distinction supported by the simultaneous record in backlog and quarterly bookings. The company’s results add to a broader pattern this earnings season among large engineering and construction firms, several of which have reported strong backlog growth tied to infrastructure and data-center-adjacent demand, including Granite Construction’s 29% revenue jump and EMCOR Group’s record $17.14 billion backlog.
AECOM’s own earnings materials do not break out data centers as a named driver of its backlog growth, so RealtyWire is not attributing the increase to that specific end market; the company’s disclosures instead point to broadly higher demand for infrastructure, water, environmental and facilities work globally. Investors will be watching whether the disputed 2019 project resolves without further charges as it moves toward substantial completion next year.
