AECOM Can Continue Its Outperformance


  • End-market demand continues to remain strong across all major geographies, contributing to the company’s strong backlog exiting FY22.
  • The company is focusing on winning higher-margin projects, which should help in margin growth.
  • Increased investments in infrastructure globally as well as a strong backlog level and high-margin projects, should help the company deliver growth in the coming years.

bull and chart for business or bull market trader concept


Investment Thesis

AECOM (NYSE:ACM) has meaningfully outperformed the broader markets since my previous bullish article, gaining over 11% versus the S&P500’s (SPY) decline of ~10% during the same time period. Despite recessionary pressure and forex headwinds, AECOM benefited from

Aecom's historic Revenue and NSR

Aecom’s historic Revenue and NSR (Company Data, GS Analytics Research)

Aecom's Order Backlog

Aecom’s Order Backlog (Company Data, GS Analytics Research)

Aecom's Historic Adjusted Operating Margin

Aecom’s Historic Adjusted Operating Margin (Company Data, GS Analytics Research)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is written by Saloni V.

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