ACM

AECOM achieved record backlog of $27.8B with 13% year-over-year growth and strong project wins across multiple sectors. The company maintains a 5%-8% organic growth target through fiscal 2029, supported by robust U.S. water and federal defense pipelines.

However, slower project starts, a $337M legacy charge, and cash flow pressures through early fiscal 2027 present near-term headwinds. The company currently carries a Zacks Rank #5 (Strong Sell) rating.

Quanta Services (PWR) reported strong Q2 2026 revenues of $9.6 billion with a record $53 billion backlog, driven by infrastructure demand and power grid modernization. However, the company faces headwinds from inflation, labor shortages, and permitting delays that could pressure margins.

Recent acquisitions are expected to add $1.2-$1.4 billion in 2026 revenues. Success will depend on effective backlog conversion and project execution amid macroeconomic uncertainties.

Quanta Services stock rose 3% on Friday after Citigroup analysts identified it as one of four construction stocks that historically outperform the S&P 500 by ~2% in the 10 days following major storms. The analysts cited Hurricane Isaias as a potential catalyst. However, the article cautions that investors should focus on Quanta's broader business fundamentals, particularly its $50+ billion project backlog driven by AI data center build-outs and power grid work, rather than relying solely on post-storm reconstruction opportunities.