Core Insights - AECOM has reported record first-quarter results, exceeding expectations across key financial metrics, including net service revenue (NSR), adjusted EBITDA, and margins, while backlog grew 9% to an all-time high [3][4][6] Financial Performance - The company achieved a segment-adjusted operating margin of 16.4%, a 100-basis-point increase, and adjusted EBITDA reached $287 million, with adjusted EPS at $1.29, both surpassing management's expectations [2][6] - AECOM raised its full-year adjusted EPS guidance to a midpoint of $5.95, up from $5.75, due to first-quarter outperformance and strong backlog visibility [17] Strategic Developments - AECOM completed the integration of an AI acquisition, which is now operational on projects, and plans to align its construction management business more closely with program management to enhance value [5][11][14] - The company has increased its share repurchase authorization to $1 billion after returning nearly $350 million to shareholders in the first quarter [3][18] Market Position and Opportunities - AECOM has secured significant contracts, including a role in the 2032 Olympic and Paralympic Games in Brisbane and engineering services for Scottish Water's capital investment program, indicating strong positioning in key markets [7][8] - The U.S. market remains robust, with over half of the Infrastructure Investment and Jobs Act funding yet to be utilized, and private-sector investments are gaining momentum [8][9] International Trends - While near-term trends in international markets are mixed, long-term infrastructure demand is strong, with a 25% increase in backlog and expectations for revenue growth as fiscal 2026 progresses [9][16] - The company noted geopolitical and funding uncertainties but remains optimistic about future growth opportunities [9] Segment Performance - The Americas segment reported a 9% growth in NSR, with an adjusted operating margin of 19.9%, driven by operational efficiencies and a shift to higher-margin services [15] - International NSR was flat after adjusting for fewer billable days, but backlog increased significantly, indicating potential for future growth [16]

Revenue and Profitability - Revenue for the three months ended December 31, 2025, decreased by $183.4 million, or 4.6%, to $3,830.8 million compared to $4,014.2 million for the same period last year [145]. - Gross profit increased by $12.6 million, or 4.7%, to $281.0 million for the three months ended December 31, 2025 [145]. - Net income attributable to AECOM decreased by $92.5 million, or 55.4%, to $74.5 million for the three months ended December 31, 2025 [145]. - Total revenue for the three months ended December 31, 2025, was $2,205.2 million, with a gross profit of $149.2 million [214]. - Net income from continuing operations for the same period was $42.2 million, with no net loss from discontinued operations reported [214]. Cost and Expenses - Cost of revenue decreased to $3,549.8 million for the three months ended December 31, 2025, a decrease of $196.0 million, or 5.2% [150]. - Interest income decreased to $13.7 million from $16.6 million, primarily due to a decrease in interest-bearing assets [157]. - Interest expense increased to $45.3 million from $43.0 million, mainly due to an increase in interest-bearing liabilities [158]. - Net cash used in investing activities was $34.8 million for the three months ended December 31, 2025, compared to $24.7 million for the same period in 2024, primarily due to a $23.3 million increase in investments in unconsolidated joint ventures [182]. - Net cash used in financing activities increased to $374.2 million for the three months ended December 31, 2025, from $121.3 million in the prior year, mainly due to a $270.7 million increase in cash used for stock repurchases [183]. Segment Performance - Revenue for the Americas segment decreased by $134.7 million, or 4.3%, to $2,977.3 million for the three months ended December 31, 2025, primarily due to a $198.4 million decrease in pass-through revenues [165]. - Gross profit for the Americas segment increased by $19.4 million, or 10.2%, to $209.6 million, with gross profit as a percentage of revenue rising to 7.0% from 6.1% [168]. - Revenue for the International segment decreased by $48.5 million, or 5.4%, to $853.5 million, impacted by a 3 percentage point decrease in working days and a decrease in pass-through revenues [171]. - Gross profit for the International segment decreased by $6.6 million, or 8.5%, to $71.4 million, with gross profit as a percentage of revenue decreasing to 8.4% from 8.6% [174]. Cash Flow and Working Capital - Cash and cash equivalents decreased by $339.0 million to $1,246.7 million as of December 31, 2025 [180]. - Net cash provided by operating activities was $70.2 million for the three months ended December 31, 2025, down from $151.1 million for the same period last year [181]. - Working capital decreased by $191.3 million, or 23.9%, to $610.1 million at December 31, 2025, from $801.4 million at September 30, 2025 [184]. - Days Sales Outstanding (DSO) increased to 77 days at December 31, 2025, compared to 74 days at September 30, 2025 [185]. Debt and Financial Position - Total debt as of December 31, 2025, was $2,738.5 million, slightly down from $2,743.7 million at September 30, 2025 [188]. - The average effective interest rate on total debt was 5.3% for the three months ended December 31, 2025, compared to 5.2% for the same period in 2024 [203]. - Outstanding borrowings under term credit agreements and revolving credit facility were $1,438.2 million as of December 31, 2025 [220]. - The company had $1,495.6 million available under its New Revolving Credit Facility as of December 31, 2025 [194]. - The estimated fair value of the 2033 Senior Notes was approximately $1,222.5 million as of December 31, 2025 [196]. Strategic Initiatives - The company completed two business acquisitions during the year ended September 30, 2025, which were accounted for as business combinations [143]. - The company intends to deploy future available cash towards dividends and stock repurchases, with approximately $336 million remaining of the Board's stock repurchase authorization as of December 31, 2025 [140]. - The company has exited substantially all of its self-perform at-risk construction businesses to improve profitability and maintain a reduced risk profile [141]. - The company anticipates continued revenue growth driven by increased investment in infrastructure and national defense spending across its end markets [148]. Pension and Retirement Plans - The defined benefit pension plans had an aggregate deficit of approximately $77.2 million as of December 31, 2025 [207]. - The company contributed $2.7 million to multiemployer pension plans for the year ended September 30, 2025 [207]. Asset and Equity Position - Total assets decreased from $6,556.5 million as of September 30, 2025, to $6,300.2 million as of December 31, 2025 [212]. - Total stockholders' equity declined from $599.9 million to $387.1 million during the same period [212]. - Current liabilities slightly decreased from $2,853.8 million to $2,825.8 million [212].

Financial Data and Key Metrics Changes - The company reported a 5% increase in Net Service Revenue (NSR) when adjusted for fewer billable days in the period [7] - Adjusted EBITDA reached $287 million, exceeding expectations, and Adjusted EPS was $1.29 [8] - The segment-adjusted operating margin increased by 100 basis points to 16.4%, marking a new first-quarter record [7][8] - Backlog increased by 9% to an all-time high, supported by a 1.5 book-to-burn ratio [6] Business Line Data and Key Metrics Changes - In the Americas, NSR increased by 9%, with adjusted operating margin rising to 19.9%, up 120 basis points from the prior year [21] - The International segment's NSR was essentially flat after adjusting for fewer billable days, consistent with expectations [22] - The company noted a 25% backlog increase in the International segment, indicating a positive outlook for future growth [22] Market Data and Key Metrics Changes - In the U.S., market conditions are strong, bolstered by the recent passage of key federal funding bills [10] - The private sector is experiencing growth, particularly in the data center market, which is expected to continue [10][11] - Internationally, trends remain varied, but long-term demand for infrastructure investment is strong, with significant wins in the U.K. and Middle East [11][12] Company Strategy and Development Direction - The company aims to extend its competitive advantages through investments in program management, advisory services, AI, and technology [6][7] - A focus on integrating technology and AI into workflows is expected to enhance value delivery to clients [14][56] - The decision to retain the construction management business is based on its strong cash flow profile and potential for collaboration with other business units [27][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value creation opportunities, citing a robust backlog and increased share repurchase authorization [7][15] - The company anticipates a pickup in award activity in the U.S. following the passage of federal funding bills, enhancing visibility for future growth [6][10] - Management expects revenue trends to improve as the year progresses, particularly in the second half of the fiscal year [12][22] Other Important Information - The company has completed the integration of its acquired AI technology, which is expected to enhance operational efficiencies [56] - The company reaffirmed its long-term growth targets, including annual revenue growth of 5%-8% and achieving a 20% margin exit rate by fiscal 2028 [15] Q&A Session All Questions and Answers Question: Can you share thoughts on the decision to keep the construction management business? - Management highlighted the construction management business as a high-quality industry leader with strong backlog and cash flow, emphasizing opportunities for collaboration with other business units [26][27] Question: How is the demand environment in the U.S. evolving compared to last year? - Management noted continued strength in the Americas market, with a robust pipeline and strong growth across various sectors [28][29] Question: Can you provide an update on AI's impact on AECOM? - Management indicated that AI investments are expected to enhance value delivery to clients, with a focus on increasing productivity and profitability [39][40] Question: How is the private-facing business performing in the U.S.? - Management reported strong growth in the data center sector, with positive trends expected to continue [44][45] Question: Can you update on the integration of acquired AI technology? - Integration has gone exceptionally well, with a focus on facilities markets and creating efficiencies across all business lines [56] Question: What drove the acceleration in international bookings? - Management attributed the acceleration to a strong pipeline and successful repositioning in response to changing government agendas [60][61]

Financial Data and Key Metrics Changes - The company reported a 5% increase in Net Service Revenue (NSR) when adjusted for fewer billable days [7] - Adjusted EBITDA reached $287 million, exceeding expectations, with Adjusted EPS at $1.29 [8] - The segment-adjusted operating margin increased by 100 basis points to 16.4%, marking a new first-quarter record [7][8] - Backlog increased by 9% to an all-time high, supported by a 1.5 book-to-burn ratio [6] Business Line Data and Key Metrics Changes - In the Americas, NSR increased by 9%, with an adjusted operating margin of 19.9%, up 120 basis points from the prior year [21] - The International segment's NSR was essentially flat after adjusting for fewer billable days, consistent with expectations [22] - The company noted a 25% backlog increase in the International segment, indicating a strong pipeline for future growth [22] Market Data and Key Metrics Changes - In the U.S., market conditions are strong, bolstered by the recent passage of key federal funding bills [10] - The company is seeing growth in the private sector, particularly in the booming data center market [10] - Internationally, trends remain varied, but long-term demand for infrastructure investment is strong, with significant wins in the U.K. and Middle East [11][12] Company Strategy and Development Direction - The company plans to focus on extending competitive advantages through investments in program management, advisory services, AI, and technology [6][7] - An increased share repurchase authorization of $1 billion was announced, with over $300 million repurchased in the first quarter [7] - The company aims for annual revenue growth of 5%-8% and a 20% margin exit rate by fiscal 2028 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term value creation opportunities, particularly with the expected increase in award activity in the U.S. [6] - The company anticipates revenue trends to improve as the year progresses, supported by a strong backlog and favorable market conditions [12] - Management highlighted the importance of AI and technology in enhancing service delivery and client value [41] Other Important Information - The company completed a review of strategic alternatives for the construction management business and decided to continue operating it, citing strong backlog and cash flow [15][27] - The integration of acquired AI technology is progressing well, with expectations for significant improvements in workflows and profitability [56] Q&A Session Summary Question: Thoughts on keeping the construction management business and demand environment in the U.S. - Management highlighted the construction management business as a high-quality industry leader with substantial opportunities for collaboration with other business lines [26][27] - The demand environment in the U.S. remains strong, with a robust pipeline and growth in various sectors [28][29] Question: AI's impact on AECOM and productivity improvements - Management believes AI will enhance value for clients, leading to increased revenue opportunities rather than shrinking revenue [39][40] - The company is focused on leveraging AI to improve productivity and profitability across its operations [56] Question: Performance of the private-facing business in the U.S. - The company has a strong position in the data center market, with significant growth expected in this sector [45][46] Question: Integration of acquired AI technology and targeted workflows - Integration of AI technology is progressing well, with a focus on facilities and other business lines to enhance operational efficiencies [56] Question: Trends in international bookings and margin expectations - The company expects continued strong book-to-bill ratios in international markets, with a focus on margin expansion [101][102]

Financial Data and Key Metrics Changes - The company reported a 5% increase in Net Service Revenue (NSR) when adjusted for fewer billable days, with a record first quarter NSR and adjusted EBITDA of $287 million, exceeding expectations [5][6] - Adjusted operating margin increased by 100 basis points to 16.4%, marking a new first quarter record [5][6] - Adjusted EPS rose to $1.29, surpassing expectations [6] Business Line Data and Key Metrics Changes - In the Americas, NSR increased by 9%, with adjusted operating margin at 19.9%, up 120 basis points from the prior year [17] - International NSR was essentially flat after adjusting for fewer billable days, consistent with expectations, but backlog increased by 25% [18][10] Market Data and Key Metrics Changes - U.S. market conditions are strong, bolstered by the recent passage of federal funding bills, with over half of the IIJA funding yet to be spent [8][9] - In the U.K., significant wins include the Scottish Water project, while the Middle East saw substantial wins, including a leading design role on the Dubai Metro [9][10] - Australia reported a new multi-year high in backlog, particularly in the transportation sector [10] Company Strategy and Development Direction - The company will continue to own and operate the construction management business, recognizing its high quality and strong backlog [12] - Investments in program management, advisory services, AI, and technology are aimed at unlocking greater value for clients and achieving multi-year financial targets [5][12] - The company aims for annual revenue growth of 5%-8% and a 20% margin exit rate by fiscal 2028 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term value creation opportunities, citing a strong backlog and expected increases in award activity in the U.S. [4][5] - The company anticipates revenue trends to improve as the year progresses, supported by strong demand for infrastructure investment [10][12] Other Important Information - The company announced an increased share repurchase authorization to $1 billion, having repurchased over $300 million in the first quarter [5][17] - The integration of acquired AI technology is progressing well, with a focus on enhancing workflows in the facilities market [11][53] Q&A Session Questions and Answers Question: Thoughts on the decision to keep the construction management business - Management highlighted the construction management business as a high-quality industry leader with great backlog and cash flow, emphasizing opportunities for collaboration with the rest of the company [21][22] Question: Evolution of demand environment in the U.S. - Management noted continued strength in the Americas market, particularly in design, with a robust pipeline up 20% year-over-year [23][24] Question: AI's impact on AECOM - Management clarified that AI investments are expected to enhance value for clients, leading to potential increases in productivity and profitability [33][35] Question: Update on integration of acquired AI technology - Integration has gone exceptionally well, with a focus on facilities market workflows and positive momentum across the organization [51][52] Question: Trends in international bookings - Management indicated strong book-to-burn ratios and a healthy pipeline, with expectations for continued growth in international markets [96][97]

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Core Viewpoint - Top Wall Street analysts have revised their outlook on several prominent companies, indicating potential investment opportunities and shifts in market sentiment [1] Company Analysis - Analysts are considering buying CAT stock, suggesting a positive outlook for the company [1]

First Quarter Fiscal 2026 Page 2 SCOTTISH WATER ENTERPRISE ALLIANCE Scotland, United Kingdom AECOM was selected as a preferred bidder for the multi-billion-dollar investment program to enhance Scotland's water and wastewater infrastructure. Disclosures Forward-Looking Statements All statements in this communication other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for f ...

Exhibit 99.1 | | | Investor Contact: Will Gabrielski Senior Vice President, Finance, Treasurer 213.593.8208 William.Gabrielski@aecom.com Media Contact: Brendan Ranson-Walsh Senior Vice President, Global Communications 213.996.2367 Brendan.Ranson-Walsh@aecom.com AECOM reports first quarter fiscal 2026 results DALLAS (February 9, 2026) — AECOM (NYSE:ACM), the trusted global infrastructure leader, today reported first quarter fiscal 2026 results. Consistent with the decision to retain the Construction Manageme ...

Core Insights - Pelican Bay Capital Management (PBCM) reported a strong performance for its Concentrated Value Strategy, achieving an 8.5% return in Q4 2025, outperforming the Russell 1000 Value Index which returned 3.8% [1] - The full-year return for the Strategy was 20.6%, compared to 15.9% for the Index, driven by AI-related stocks and commodities exposure [1] Company Overview: AECOM (NYSE:ACM) - AECOM is highlighted as a new addition to PBCM's portfolio, recognized as the world's largest engineering, design, and construction management firm [2][3] - As of February 6, 2026, AECOM's stock closed at $101.03 per share, with a one-month return of 1.60% and a decline of 6.45% over the past twelve months [2] - AECOM has a market capitalization of $13.06 billion [2] Strategic Shift - AECOM has undergone a structural transformation over the past six years, divesting its construction operations and focusing on Design Engineering and Project Management, which reduces risks associated with large-scale project deadlines and budget overruns [3] Hedge Fund Interest - AECOM is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding the stock at the end of Q3 2025, down from 41 in the previous quarter [4] - While AECOM is recognized for its potential, PBCM suggests that certain AI stocks may offer greater upside potential and lower downside risk [4]