AECOM raises financial targets, reviews construction unit sale

AECOM (NYSE: ACM) announced increased financial targets and initiated a review of strategic alternatives for its Construction Management business, including a potential sale, according to a company statement.

The infrastructure services company raised its segment adjusted operating margin target to 20% by fiscal 2028, up from a previous 17% target. The company also increased its expected adjusted earnings per share compound annual growth rate to 15% for fiscal 2026-2029, compared to previous guidance of annual double-digit growth.

"Following more than five years focused on building a culture, business profile and operating structure to lead our industry, today's announcements reflect the significant strategic successes we have delivered," said Troy Rudd, AECOM's chairman and chief executive officer.

The company attributes the improved targets to investments in proprietary artificial intelligence solutions and growth in its Advisory services business, which it expects to double to $400 million in annual net service revenue over three years. AECOM reported having a team of more than 200 professionals with advanced degrees in AI and related fields.

AECOM announced a 19% increase to its quarterly dividend to $0.31 per share. The company has returned more than $3 billion to investors since September 2020 through repurchases and dividends, including nearly $500 million in fiscal 2025. It maintains $645 million in capacity under its existing share repurchase authorization.

The Construction Management business review reflects the company's focus on higher-returning opportunities. Beginning with first quarter results, the Construction Management business is expected to be classified as held for sale and reported in discontinued operations.

AECOM reported revenue of $16.1 billion in fiscal year 2025.

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