Any references to segment margins or segment-adjusted operating margins will reflect the performance for the Americas and International segments. When discussing revenue and revenue growth, we will refer to Net Service Revenue, or NSR, which is defined as revenue excluding Pass-Through Revenue. NSR growth rates are presented on a constant currency basis, unless otherwise noted. Both our reported results and financial guidance are inclusive of construction management.
Also, as a reminder, our year-over-year growth rates were impacted by fewer workdays compared to the prior year first quarter. On today's call, Troy Rudd, our Chief Executive Officer, will review our key accomplishments, our strategy, and our outlook for the business. Lara Poloni, our President, will discuss key operational successes and priorities, and Gaurav Kapoor, our Chief Financial and Operations Officer, will review our financial performance and outlook in greater detail. We exceeded expectations across every key financial metric, including record first quarter NSR, adjusted EBITDA, margins, and backlog.
Backlog increased 9% to a new all-time high, fueled by a 1.5 book-to-burn ratio, even while managing through an unprecedented 43-day U.S. As a result, our visibility is high, and we are increasing our full-year financial guidance, which I will discuss shortly. We repurchased more than $300 million in the first quarter and expect to continue to deploy our strong free cash flow to deliver greater value to our shareholders over time. Net service revenue increased by 5% when adjusted for fewer billable days in the period.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS | FY2026 | $5.95 (midpoint), raised on Q1 outperformance, capital deployment, a lower tax rate, and record backlog visibility |
| Adjusted EBITDA | FY2026 | Midpoint of the range increased |
| Organic NSR growth (constant currency) | FY2026 | 6%-8% |
| Enterprise gross margin expansion | FY2026 | ~90-100 bps gross; ~30 bps net of technology investments |
| Q2 NSR and adjusted EBITDA (% of FY) | Q2 2026 | ~24% of full-year guidance |
| Effective tax rate | Q2 2026 | ~12%-13% |
| Share repurchase authorization | Ongoing | Increased to $1 billion |
| Metric | YoY | Note |
|---|---|---|
| Total NSR | +5% (adjusted for fewer billable days) | Broad-based demand and scaling of competitive advantages across both segments; presented on a constant-currency basis. |
| Americas NSR | +9% | Broad-based design growth stronger in the eastern states and Canada, where budgets and visibility are best; design business up 9%. |
| International NSR | ~Flat (adjusted for fewer billable days) | Slower activity in the UK, Australia, transportation, and Hong Kong, consistent with expectations, offset by successful repositioning that lifted backlog. |
| Adjusted EBITDA | $287M (exceeded expectations) | Strong NSR growth plus margin expansion from mix shift to higher-margin services and technology-driven efficiencies. |
| Segment-adjusted operating margin | 16.4% (+100 bps) | New first quarter record from operating leverage and high-returning investments in advisory, technology, and business development. |
| Americas adjusted operating margin | 19.9% (+120 bps) | Operating leverage from strong growth, mix shift to higher-margin services, and technology-driven delivery efficiencies. |
| Backlog | +9% to all-time high | Strong win rate on large pursuits and a 1.5 book-to-burn ratio; International backlog up 25% and Americas backlog up 3%. |
| Book-to-burn | 1.5x (International 2.3x) | 21st consecutive quarter above one, reflecting the value AECOM delivers to clients across strong end markets. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| U.S. end markets and federal funding | Uncertainty from the 43-day shutdown delayed federal awards | Passage of all key FY2026 federal funding bills provides certainty; over half of IIJA funding remains unspent, a multi-year Surface Transportation Authorization is progressing, and a new national highways bill is expected in the spring. | — |
| Data center / private-sector demand | Data center practice grew 50% in FY2025 | AECOM benefits directly (electrical engineering, digital ecosystem) and indirectly (water, power studies, advisory/due diligence for all major hyperscalers); One Big Beautiful Deal incentives and reshoring add multi-year visibility. | — |
| Advisory expansion | Advisory in its second-year infancy | Targeting a $50 billion annual addressable spend with a goal to double the business; hiring accelerating, pipeline expanding, and wins like the UK AMP9 advisory role demonstrating the higher-margin offering. | — |
| Program management + construction management | CM business under a strategic-alternatives review including a possible sale | Concluded to keep and operate CM (about 8% of NSR) more closely aligned with program management to create a differentiated offering; long-term goal for advisory plus program management to reach ~50% of the business. | — |
| AI and technology | Announced a September AI acquisition | Integration complete three months in, team doubled, technology live on projects with results matching expectations; focus on the facilities market first, with AI cited as a differentiator in the Scottish Water win. | — |
| Capital returns | Over $3.3 billion returned over the last several years | Buyback authorization increased to $1 billion; more than $300 million repurchased and nearly $350 million total returned in Q1, funded by strong free cash flow and a nimble balance sheet. | — |
| International repositioning | 18 months of election-driven agenda changes across 60+ cycles slowed activity | Repositioning paying off with agendas fixed and funding coming to market; 25% backlog growth, record pipeline, and expected revenue inflection in the second half and into FY2027. | — |
| Defense spending | — | Defense is ~10% of NSR with the U.S. Department of War as largest client; spending set to rise for several years alongside the U.S. Coast Guard, DHS, and a reaffirmed AUKUS pact with Australia and the U.K. | — |