Is ACM a good stock to buy? We came across a bullish thesis on AECOM on The Dividend Auditor’s Substack. In this article, we will summarize the bulls’ thesis on ACM. AECOM’s share was trading at $71.44 as of June 2nd. ACM’s trailing and forward P/E were 15.08 and 10.72 respectively according to Yahoo Finance.
AECOM, together with its subsidiaries, provides professional infrastructure consulting services for governments, businesses, and organizations internationally. ACM is positioned as a critical, underappreciated enabler of the global AI infrastructure buildout, where hyperscalers such as Microsoft, Google, Amazon, and Meta require large-scale engineering, design, and program management long before any compute infrastructure is deployed.
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The company operates as the world’s largest infrastructure design and engineering firm, delivering asset-light, fee-based services across transportation, water, energy, and buildings, with a growing exposure to high-growth AI datacenter development. This model generates stable, high-margin revenue with no commodity or capital risk, while benefiting from increasing complexity and scale in global infrastructure spending.
AECOM’s investment case is reinforced by accelerating financial performance, with FY2025 adjusted EPS growing 32% to $5.26 and EBITDA margins expanding from 10.6% to 15.3%, with a long-term target of 17%+ by FY2029. The company also reported a record $24.8B backlog, supported by 18 consecutive quarters of book-to-burn above 1.0x, providing strong multi-year revenue visibility.
The digital infrastructure opportunity is particularly compelling, as AI datacenters alone are expected to require massive global capex, with AECOM earning design and engineering fees across power, cooling, grid connectivity, and environmental systems without taking execution or balance sheet risk.
Additional upside is supported by the US Infrastructure Investment and Jobs Act pipeline, international margin convergence, and AI-driven internal productivity gains that could further expand margins. AECOM’s dividend, initiated in 2024, is growing at 19% annually with a target of 10%+ growth through 2029, supported by a low payout ratio and strong free cash flow generation.
At $87, the stock trades at a 53% discount to consensus with a price target of $133, implying approximately 53% upside. With multiple structural growth drivers, margin expansion potential, and a re-rating opportunity as backlog converts into earnings, AECOM presents a high-quality, underappreciated infrastructure compounder with strong upside skew.
