AECOM

ACM: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$62.00	Sxl	Brmzkgqm

We Think Aecom’s Portfolio Shift to Professional Services Will Lead to Higher Margins and Lower Risk

Krzysztof Smalec

Feb 7, 2023

Business Strategy and Outlook

In recent years, Aecom has transformed its portfolio and focused on growing its professional services business. The firm is in the process of exiting several business lines including fixed-price combined cycle gas power plant construction, at-risk oil and gas construction, and international at-risk construction projects. Furthermore, in January 2020, Aecom completed the sale of its management services business. We view Aecom’s transformation favorably and believe that the strategic shift will result in a less volatile and more profitable portfolio.

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