AECOM named design partner for $2.11bn New Zealand’s Northland Corridor project

AECOM (ACM) was selected by the Santa Clara Valley Water District to design a 200-gallon-per-minute water purification facility in Silicon Valley. The project aims to advance drought-resilient drinking water sources. ACM stock rose 0.6% on the news. AECOM's U.S. water pipeline grew 30% in Q3 2026, with total backlog up 13% year over year. The company's design wins reached $4.2 billion, including $4 billion in design wins.

AECOM was selected by the Santa Clara Valley Water District to design a $100m Pure Water Silicon Valley facility, advancing direct potable reuse. The project includes a pilot facility and a learning center, with AECOM leading design and management. The initiative aims to enhance water supply resilience in the region, with a future full-scale facility planned.

AECOM stock rose 2.7% after a glacier-collapse flood in Nepal, with estimated rebuilding costs of $5 billion. The company, with a $21 billion backlog, is seen as a potential beneficiary for reconstruction contracts. This follows a recent earnings miss and a price target cut by Baird to $73. The broader market's positive trend also supports infrastructure-linked stocks.

AECOM (ACM) shares have dropped 49.3% over the past year, closing at $62.78. Analysts estimate intrinsic values of $77.69 and $90.00, suggesting a 19.2% discount. The decline follows a $337M charge on a legacy project, but the company has a $27.8B backlog. Options traders expect volatility, and investors debate whether the stock is undervalued or at risk due to execution concerns.

AECOM (ACM) reported Q3 2026 sales of $3.59B and a net loss of $86.71M, with weaker year-to-date earnings. The company cut its full-year 2026 outlook due to a Construction Management charge, delayed projects, and Middle East conflict, despite higher underlying margins. The revised guidance ties weaker earnings to these factors, with the company projecting $19.6B revenue and $1B earnings by 2029, a 34% upside from current prices.

AECOM (ACM) reported a mixed Q3 with a record backlog of $42.2B, up 13%, but a $337M pretax charge for a delayed project. Adjusted EBITDA rose 5%, EPS up 11%. Full-year EBITDA margin outlook raised to 17.4%.