FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Aecom Q2 Fy 26: Strong Margins And Backlog Growth Drive Guidance Raise

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

AECOM delivered strong Q2 FY 26 results with adjusted EPS of $1.59 (+27% Y/Y, +3.2% vs. consensus), while segment adjusted operating margin reached 16.5% (+50 bps), ahead of long-term targets. Net service revenue grew 4% to $1.948B, with Americas design business up 8% in constant currency reflecting market share gains, though International NSR declined 3% due to Middle East conflicts. The company's diversified market exposure and strong execution drove backlog to $26.2B (+8% Y/Y) with a 1.2x book-to-burn ratio for the 22nd consecutive quarter above 1.0x. Management raised adjusted EPS guidance to $5.90-$6.10 (from $5.85-$6.05) and adjusted EBITDA guidance to $1,275M-$1,305M, while reaffirming long-term targets including 20%+ margin exit rate by FY 28. We believe AECOM's margin expansion ahead of schedule and consistent backlog growth demonstrate strong operational execution and provide visibility for sustained profitability improvements.

Related Articles

Research

Research Alert: Ovv: A Q1 Eps Beat And Strategic Repositioning Complete

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:OVV posted Q1 adjusted EPS of $2.00 vs. $1.42, beating consensus by $0.17, driven by strong volume growth. Total production rose 15% Y/Y to 678,900 boe/d, with oil/condensate up 9.5% and natural gas up 20%, all at the high end of guidance. OVV's strategic repositioning is complete, having closed the NuVista acquisition for ~$2.8B and Anadarko divestiture for ~$2.85B, streamlining operations into two core assets: the liquids-focused Permian Basin and natural gas-focused Montney play in Western Canada. The company guides 2026 production at 620-645k boe/d, excluding divested Anadarko volumes. The Permian delivered 221k boe/d with plans for $1.35B capex and 125-135 net wells in 2026, while Montney produced 365k boe/d enhanced by NuVista's 100k boe/d addition. The Anadarko sale significantly strengthened the balance sheet, with net debt declining 40% to below $3.3B and Net Debt to Adjusted EBITDA improving to below 0.8x. OVV returned $84M via buybacks in Q1 and $180M YTD.

$OVV
Research

Research Alert: Plug: Q1 Beat, Though Cash Burn Remains A Concern

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PLUG delivered a strong Q1 top-line beat, with revenue of $163M (+22% Y/Y), meaningfully above consensus of $140M due to strength across equipment sales, services, and hydrogen fuel sales. GAAP gross margin improved to -13% from -55% prior year, while adjusted loss per share improved to $0.08 from $0.17, beating consensus of $0.10. We believe the broad-based revenue strength validates management's execution across the platform, with continued material handling demand and electrolyzer project progress. Management maintained its target of achieving EBITDAS positive performance by Q4 2026. Liquidity remains supported with total cash of $802M and expected proceeds of $275M from asset monetization initiatives. We expect sequential improvement in cash usage as operational efficiencies materialize, though cash burn remains elevated and we anticipate another year of significant usage before profitability.

$PLUG
Research

Research Alert: CFRA Maintains Hold Rating On Shares Of Appian Corporation.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target price to $23 from $27 on an EV/S multiple of 1.9x our 2027 sales projection of $920M, below its three-year average. We increase our 2026 EPS estimate to $0.99 from $0.93 and our 2027 EPS forecast to $1.25 from $1.17. APPN delivered strong Q1 2026 results, with cloud subscription revenue of $124.5M up 25% Y/Y (20% constant currency), while total revenue of $202.2M rose 21% Y/Y (17% constant currency). Cloud net annual recurring revenue (ARR) expansion improved to 115% from 112% due to AI tier upgrades with nearly 40% of customers now purchasing AI-inclusive advanced tier licenses. Adjusted EBITDA of $26.6M exceeded the $19M-$22M guidance range, with full-year guidance raised to $97M-$105M (approximately 12% margin at midpoint). We believe the combination of AI-driven efficiency focus and APPN's improved sales productivity position the company favorably for continued growth, though we remain cautious on guidance implying 2H deceleration.

$APPN