AECOM

Previous wording

This Quarterly Report contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect the Company’s current beliefs, expectations or intentions regarding future events. These statements include forward-looking statements with respect to the Company, including the Company’s business, operations and strategy, and infrastructure consulting industry. Statements that are not historical facts, without limitation, including statements that use terms such as “anticipates,” “believes,” “expects,” “estimates,” “intends,” “may,” “plans,” “potential,” “projects,” and “will” and that relate to our future revenues, expenditures and business trends; future reduction of our self-perform at-risk construction exposure; future accounting estimates; future contractual performance obligations; future conversions of backlog; future capital allocation priorities, including common stock repurchases, future trade receivables, future debt pay downs; future post-retirement expenses; future tax benefits and expenses, and the impact of future tax laws; future compliance with regulations; future legal claims and insurance coverage; future effectiveness of our disclosure and internal controls over financial reporting; future costs savings; and other future economic and industry conditions, are forward-looking statements. In light of the risks and uncertainties inherent in all forward-looking statements, the inclusion of such statements in this Quarterly Report should not be considered as a representation by us or any other person that our objectives or plans will be achieved. Although management believes that the assumptions underlying the forward-looking statements are reasonable, these assumptions and the forward-looking statements are subject to various factors, risks and uncertainties, many of which are beyond our control, including, but not limited to, our business is cyclical and vulnerable to economic downturns and client spending reductions; government shutdowns; changes in administration or other funding directives and circumstances that cause governmental agencies to modify, curtail or terminate our contracts; government contracts are subject to audits and adjustments of contractual terms; long-term government contracts are subject to uncertainties related to government contract appropriations; losses under fixed-price contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; changes in government laws, regulations and policies, including failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; our capital allocation strategy, including our ability to continue payment of dividends and repurchase stock; exposure to polit…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect the Company’s current beliefs, expectations or intentions regarding future events. These statements include forward-looking statements with respect to the Company, including the Company’s business, operations and strategy, and infrastructure consulting industry. Statements that are not historical facts, without limitation, including statements that use terms such as “anticipates,” “believes,” “expects,” “estimates,” “intends,” “may,” “plans,” “potential,” “projects,” and “will” and that relate to our future revenues, expenditures and business trends; future reduction of our self-perform at-risk construction exposure; future accounting estimates; future contractual performance obligations; future conversions of backlog; future capital allocation priorities, including common stock repurchases, future trade receivables, future debt pay downs; future post-retirement expenses; future tax benefits and expenses, and the impact of future tax laws; future compliance with regulations; future legal claims and insurance coverage; future effectiveness of our disclosure and internal controls over financial reporting; future costs savings; and other future economic and industry conditions, are forward-looking statements. In light of the risks and uncertainties inherent in all forward-looking statements, the inclusion of such statements in this Quarterly Report should not be considered as a representation by us or any other person that our objectives or plans will be achieved. Although management believes that the assumptions underlying the forward-looking statements are reasonable, these assumptions and the forward-looking statements are subject to various factors, risks and uncertainties, many of which are beyond our control, including, but not limited to, our business is cyclical and vulnerable to economic downturns and client spending reductions; government shutdowns; changes in administration or other funding directives and circumstances that cause governmental agencies to modify, curtail or terminate our contracts; government contracts are subject to audits and adjustments of contractual terms; long-term government contracts are subject to uncertainties related to government contract appropriations; losses under fixed-price contracts; our ability to successfully and timely perform our contractual obligations and to recover claims for additional contract costs; potential liquidated damages under our contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; changes in government laws, regulations and policies, including failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

•Americas: Planning, advisory, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America in major end markets such as transportation, water, government, facilities, environmental, and energy. As previously announced, the strategic review of our construction management business has been completed, and we intend to continue to own and operate the business.

Current wording

•Americas: Planning, advisory, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America in major end markets such as transportation, water, government, facilities, environmental, and energy.

Previous wording

The Company's portion of revenue excluding pass-through revenue attributable to subcontractors increased for both the three and six-month periods ended March 31, 2026. Underlying revenue excluding pass-through revenues increased across most of our end markets as a result of increased investment by large, publicly financed, global programs with infrastructure incentive and spending including the Infrastructure Investment and Jobs Act and the One Big Beautiful Bill Act in the U.S. and similar large programs in our largest end markets globally. For example, in Canada, the federal government is helping drive infrastructure investment with its Major Projects Office and launching a Sovereign Wealth Fund. In the United Kingdom, infrastructure investment is backed by the 10 Year Infrastructure Strategy with £725 billion in long-term funding. Additionally, a clear trend emerging globally across our markets is the rapid acceleration in national defense spending, and this is contributing to our revenue growth as well as driving growth in our backlog and pipeline of opportunities. We are benefiting from the rapid growth in the energy and high-tech sectors driven by robust demand from population and economic growth, widespread electrification, and rapid data center development. Our Water end market has been benefiting from increased investment to address drought, flooding, emerging contaminant remediation, water storage, and clean and safe drinking water. Our Transportation end market has been benefiting from incremental investments across the globe to modernize transportation infrastructure and address growth and urbanization trends, while our Environment end market has been benefiting from infrastructure that requires permitting, compliance, and remediation as well as investments in energy. Our Facilities end market has been benefiting from positive public sector investment, trends in asset maintenance and repositioning as well as demand for modern, efficient facilities. The quantification of the impact of these trends by end market is noted within our Americas and International reportable segments discussion below, where applicable, and represents substantially all of our revenue change.

Current wording

The Company's portion of revenue excluding pass-through revenue attributable to subcontractors increased for both the three and nine-month periods ended June 30, 2026. Underlying revenue excluding pass-through revenues increased across most of our end markets as a result of increased investment by large, publicly financed, global programs with infrastructure incentive and spending including the Infrastructure Investment and Jobs Act and the One Big Beautiful Bill Act in the U.S. and similar large programs in our largest end markets globally. For example, in Canada, the federal government is helping drive infrastructure investment with its Major Projects Office and launching a Sovereign Wealth Fund. In the United Kingdom, infrastructure investment is backed by the 10 Year Infrastructure Strategy with £725 billion in long-term funding. Additionally, a clear trend emerging globally across our markets is the rapid acceleration in national defense spending, and this is contributing to our revenue growth as well as driving growth in our backlog and pipeline of opportunities. We are benefiting from the rapid growth in the energy and high-tech sectors driven by robust demand from population and economic growth, widespread electrification, and rapid data center development. Our Water end market has been benefiting from increased investment to address drought, flooding, emerging contaminant remediation, water storage, and clean and safe drinking water. Our Transportation end market has been benefiting from incremental investments across the globe to modernize transportation infrastructure and address growth and urbanization trends, while our Environment end market has been benefiting from infrastructure that requires permitting, compliance, and remediation as well as investments in energy. Our Facilities end market has been benefiting from positive public sector investment, trends in asset maintenance and repositioning as well as demand for modern, efficient facilities. The quantification of the impact of these trends by end market is noted within our Americas and International reportable segments discussion below, where applicable, and represents substantially all of our revenue change.

Previous wording

In the course of providing our services, we routinely subcontract for services and incur other direct costs on behalf of our clients. These costs are passed through to clients and, in accordance with industry practice and GAAP, are included in our revenue and cost of revenue. Because these pass-through revenues can change significantly from project to project and period to period, changes in revenue may not be indicative of business trends. Pass-through revenues for the three-month periods ended March 31, 2026 and 2025 were $1.9 billion and $1.9 billion, respectively. Pass-through revenue as a percentage of total revenue was 49% and 50% during the three months ended March 31, 2026 and 2025, respectively. Pass-through revenues for the six-month periods ended March 31, 2026 and 2025 were $3.8 billion and $4.1 billion, respectively. Pass-through revenue as a percentage of total revenue was 50% and 53% during the six months ended March 31, 2026 and 2025, respectively.

Current wording

In the course of providing our services, we routinely subcontract for services and incur other direct costs on behalf of our clients. These costs are passed through to clients and, in accordance with industry practice and GAAP, are included in our revenue and cost of revenue. Because these pass-through revenues can change significantly from project to project and period to period, changes in revenue may not be indicative of business trends. Pass-through revenues for the three-month periods ended June 30, 2026 and 2025 were $2.0 billion and $2.2 billion, respectively. Pass-through revenue as a percentage of total revenue was 55% and 54% during the three months ended June 30, 2026 and 2025, respectively. Pass-through revenues for the nine-month periods ended June 30, 2026 and 2025 were $5.8 billion and $6.4 billion, respectively. Pass-through revenue as a percentage of total revenue was 52% and 53% during the nine months ended June 30, 2026 and 2025, respectively.

Previous wording

Our cost of revenue decreased to $7,054.5 million for the six months ended March 31, 2026 compared to $7,226.6 million for the corresponding period last year, a decrease of $172.1 million, or 2.4%.

Current wording

Our cost of revenue decreased to $3,620.1 million for the three months ended June 30, 2026 compared to $3,851.5 million for the corresponding period last year, a decrease of $231.4 million, or 6.0%.

Previous wording

Substantially all of the change in our cost of revenue for the three and six months ended March 31, 2026 occurred in our Americas and International reportable segments, which is discussed in more detail below.

Current wording

Substantially all of the change in our cost of revenue for the three and nine months ended June 30, 2026 occurred in our Americas and International reportable segments, which is discussed in more detail below.

Previous wording

Our gross profit for the three months ended March 31, 2026 increased $5.7 million, or 2.0%, to $296.5 million as compared to $290.8 million for the corresponding period last year. For the three months ended March 31, 2026, gross profit, as a percentage of revenue, increased to 7.8% from 7.7% in the corresponding period last year.

Current wording

Our gross profit for the three months ended June 30, 2026 decreased $361.0 million, or 110.4%, to a loss of $34.1 million as compared to profit of $326.9 million for the corresponding period last year. For the three months ended June 30, 2026, gross profit, as a percentage of revenue, decreased to(0.9)% from 7.8% in the corresponding period last year.

Previous wording

Our general and administrative expenses for the six months ended March 31, 2026 increased $4.6 million, or 5.7%, to $85.1 million, as compared to $80.5 million for the corresponding period last year. For the six months ended March 31, 2026, general and administrative expenses, as a percentage of revenue, increased to 1.1% as compared to 1.0% in the corresponding period last year.

Current wording

Our general and administrative expenses for the three months ended June 30, 2026 decreased $3.8 million, or 9.9%, to $34.4 million as compared to $38.2 million for the corresponding period last year. For the three months ended June 30, 2026, general and administrative expenses, as a percentage of revenue, increased to 1.0% as compared to 0.9% in the corresponding period last year.

Previous wording

Our general and administrative expenses for the three months ended March 31, 2026 increased $4.2 million, or 10.5%, to $44.2 million as compared to $40.0 million for the corresponding period last year. For the three months ended March 31, 2026, general and administrative expenses, as a percentage of revenue, was 1.1% which was consistent with the corresponding period last year.

Current wording

Our general and administrative expenses for the nine months ended June 30, 2026 increased $0.8 million, or 0.7%, to $119.5 million, as compared to $118.7 million for the corresponding period last year. For the nine months ended June 30, 2026, general and administrative expenses, as a percentage of revenue, was 1.0% which was consistent with the corresponding period last year.

Previous wording

Restructuring and acquisition costs are comprised of personnel costs, real estate costs, and costs associated with optimizing our organizational structure that position us for broader deployment of AI and technology tools to drive efficiencies. During the three and six months ended March 31, 2026, we incurred total restructuring and acquisition costs of $13.6 million and $41.5 million, respectively, primarily related to actions taken for acquisitions and optimizing our organization structure. No new restructuring costs were incurred during the three and six months ended March 31, 2025.

Current wording

Restructuring and acquisition costs are comprised of personnel costs, real estate costs, and costs associated with optimizing our organizational structure that position us for broader deployment of AI and technology tools to drive efficiencies. During the three and nine months ended June 30, 2026, we incurred total restructuring and acquisition costs of $12.1 million and $53.6 million, respectively, primarily related to actions taken for acquisitions and optimizing our organization structure. No new restructuring costs were incurred during the three and nine months ended June 30, 2025.

Previous wording

The increases in other income for the three and six months ended March 31, 2026 was primarily due to the increases in fair values of our investments measured at fair value.

Current wording

The increases in other income for the three and nine months ended June 30, 2026 was primarily due to the gains in fair values of our investments measured at fair value of $2.2 million and $15.2 million for the three and nine months ended June 30, 2026, respectively, compared to losses of $1.3 million and $6.9 million for the three and nine ended June 30, 2025, respectively.

Previous wording

The decrease in interest income for the three and six months ended March 31, 2026 was primarily due to a decrease in our interest-bearing assets.

Current wording

The decrease in interest income for the three and nine months ended June 30, 2026 was primarily due to a decrease in our interest-bearing assets.

Previous wording

The increase in interest expense for the three and six months ended March 31, 2026 was primarily due to an increase in our interest-bearing liabilities.

Current wording

The increase in interest expense for the three and nine months ended June 30, 2026 was primarily due to an increase in our interest-bearing liabilities.

Previous wording

Our income tax expense for the three months ended March 31, 2026 was $27.0 million as compared to $51.2 million in the corresponding period last year. The decrease in tax expense for the current period compared to the corresponding period last year was due primarily to a tax benefit of $54.7 million related to deferred tax assets recognized due to legal entity restructuring implemented in the second quarter of fiscal 2026 and tax expense of $34.4 million related to changes in uncertain tax positions.

Current wording

Our income tax benefit for the three months ended June 30, 2026 was $26.6 million as compared to income tax expense of $65.1 million in the corresponding period last year. The decrease in tax expense for the current period compared to the corresponding period last year was due primarily to the tax impact of a decrease in pre-tax income of $375.4 million and a decrease in tax expense of $18.0 million related to state income taxes.

Previous wording

Our income tax expense for the six months ended March 31, 2026 was $66.0 million as compared to $80.5 million in the corresponding period last year. The decrease in tax expense for the current period compared to the corresponding period last year was due primarily to a tax benefit of $54.7 million related to deferred tax assets recognized due to legal entity restructuring implemented in the second quarter of fiscal 2026, a decrease in tax expense of $6.1 million related to state income taxes, and a decrease in tax expense of $4.3 million related to foreign residual income, partially offset by tax expense of $34.4 million related to changes in uncertain tax positions and a tax benefit of $20.1 million related to deferred tax assets recognized due to legal entity restructuring implemented in the first quarter of fiscal 2025.

Current wording

Our income tax expense for the nine months ended June 30, 2026 was $39.4 million as compared to $145.6 million in the corresponding period last year. The decrease in tax expense for the current period compared to the corresponding period last year was due primarily to the tax impact of a decrease in pre-tax income of $394.6 million, a deferred tax benefit of $54.7 million related to tax attributes that are expected to be utilized in the future that resulted from legal entity restructuring implemented in the second quarter of fiscal 2026, and a decrease in tax expense of $24.1 million related to state income taxes, partially offset by tax expense of $31.0 million related to changes in uncertain tax positions and a tax benefit of $20.1 million related to deferred tax assets recognized due to legal entity restructuring implemented in the first quarter of fiscal 2025.

Previous wording

Net loss from discontinued operations was $4.2 million for the three months ended March 31, 2026 compared to net loss of $10.3 million for the three months ended March 31, 2025, an increase of $6.1 million.

Current wording

Net loss from discontinued operations was $73.0 million for the nine months ended June 30, 2026 compared to $63.8 million for the nine months ended June 30, 2025, an increase of $9.2 million.

Previous wording

The increase in net loss from discontinued operations for the six months ended March 31, 2026 was primarily due to a change in our expected recovery on a deactivation, demolition, and removal project in the first quarter of the current year.

Current wording

The increase in net loss from discontinued operations for the nine months ended June 30, 2026 was primarily due to a change in our expected recovery on a deactivation, demolition, and removal project in the first quarter of the current year.

Previous wording

Net Income Attributable to AECOM

Current wording

Net (Loss) Income Attributable to AECOM

Previous wording

The factors described above resulted in net income attributable to AECOM of $179.9 million and $254.4 million for the three and six months ended March 31, 2026, respectively, as compared to net income attributable to AECOM of $143.4 million and $310.4 million for the three and six months ended March 31, 2025, respectively.

Current wording

The factors described above resulted in net loss attributable to AECOM of $86.7 million and net income attributable to AECOM of $167.7 million for the three and nine months ended June 30, 2026, respectively, as compared to net income attributable to AECOM of $131.0 million and $441.4 million for the three and nine months ended June 30, 2025, respectively.

Previous wording

Revenue increased despite a $54.8 million decrease in pass-through revenues on contracts for which we subcontract work on behalf of our clients compared to the corresponding period in the prior year. The increase in revenue from the Americas was primarily due to increased project activity in our Transportation end market of $69.6 million, or 11.6%, and an increase in our Water and Environment end markets of $47.9 million, or 9.0%, and was partially offset by our Facilities end market, which decreased $77.7 million, or 4.6%, compared to the corresponding period last year.

Current wording

Revenue decreased due to a $473.0 million decrease in revenue on a Construction Management project for the three months ended June 30, 2026 compared to the corresponding period in the prior year. Revenue also decreased due to a $153.6 million decrease in pass-through revenues on contracts for which we subcontract work on behalf of our clients compared to the corresponding period in the prior year. The decrease in revenue from the Construction Management project contributed to a decrease in our Facilities end market, which decreased $486.0 million, or 24.1%, compared to the corresponding period last year. Our Water and Environment end markets decreased $99.9 million, or 17.3%, and our Transportation end market decreased $52.3 million, or 8.1%, compared to the corresponding period last year.

Previous wording

The decrease in revenues was primarily due to a $253.2 million decrease in pass-through revenues on contracts for which we subcontract work on behalf of our clients compared to the corresponding period in the prior year. The decrease in revenue was also due to a decrease in our Facilities end market, which decreased $268.8 million, or 7.4%, and was partially offset by increased project activity in our Transportation end market of $106.0 million, or 9.0%, and an increase in our Water and Environment end markets of $91.5 million, or 8.5%, compared to the corresponding period last year.

Current wording

The decrease in revenues was due to a $641.8 million decrease in revenue on a Construction Management project for the nine months ended June 30, 2026 compared to the corresponding period in the prior year and a $257.3 million decrease in pass-through revenues on contracts for which we subcontract work on behalf of our clients compared to the corresponding period in the prior year. The decrease in revenue from the Construction Management project contributed to a decrease in our Facilities end market, which decreased $754.6 million, or 13.4%. Our Water and Environment end markets decreased $11.8 million, or 0.7%, and was partially offset by increased project activity in our Transportation end market of $57.1 million, or 3.1%, compared to the corresponding period last year.

Previous wording

The decrease in cost of revenue for the six months ended March 31, 2026 was primarily due to the decreases in subcontractor and other direct costs partially offset by increased project activity.

Current wording

The decrease in cost of revenue for the nine months ended June 30, 2026 was primarily due to the decreases in subcontractor and other direct costs partially offset by increased project activity.

Previous wording

The increase in revenue for the three months ended March 31, 2026 was benefitted by an increase in pass-through revenues of $3.0 million, compared to the corresponding period in the prior year. Revenue increased in our Facilities end market by $9.4 million, or 2.6%, and in Water and Environment end markets of $10.9 million, or 5.5%, partially offset by a decrease in our Transportation end market by $18.8 million, or 6.6%, compared to the corresponding period last year.

Current wording

The increase in revenue for the three months ended June 30, 2026 was benefitted by an increase in pass-through revenues of $10.0 million, compared to the corresponding period in the prior year. Revenue increased in our Facilities end market by $40.2 million, or 11.4%, in our Energy end market by $15.3 million, or 55.7%, and in our Transportation end market by $6.9 million, or 3.3%, partially offset by a decrease in our Water and Environment end markets of $10.6 million, or 3.4%, compared to the corresponding period last year.

Previous wording

Revenue in our International segment for the six months ended March 31, 2026 decreased $33.7 million, or 1.9%, to $1,743.1 million as compared to $1,776.8 million for the corresponding period last year.

Current wording

Revenue in our International segment for the nine months ended June 30, 2026 increased $18.3 million, or 0.7%, to $2,696.2 million as compared to $2,677.9 million for the corresponding period last year.

Previous wording

The increase in cost of revenue for the three months ended March 31, 2026 was primarily due the increase project activity compared to the corresponding period last year.

Current wording

The increase in cost of revenue for the three months ended June 30, 2026 was primarily due an increase in subcontractor and other direct costs of $10.0 million and the increase in project activity compared to the corresponding period last year.

Previous wording

The decrease in cost of revenue for the six months ended March 31, 2026 was primarily due to the $31.5 million decrease in subcontractor and other direct costs compared the corresponding period last year.

Current wording

The increase in cost of revenue for the nine months ended June 30, 2026 was primarily due to an increase in project activity partially offset by the $21.5 million decrease in subcontractor and other direct costs compared the corresponding period last year.

Previous wording

The decreases in gross profit and gross profit as a percentage of revenue for the three months ended March 31, 2026 were primarily due to decreases in Asia and the Middle East, which were partially offset by increases in Europe and Australia.

Current wording

The increases in gross profit and gross profit as a percentage of revenue for the three months ended June 30, 2026 were primarily due to increases in Europe and Australia, which were partially offset by decreases in the Middle East and Asia.

Previous wording

The decreases in gross profit and gross profit as a percentage of revenue for the six months ended March 31, 2026 were primarily due to decreases in Asia and the Middle East, which were partially offset by increases in Europe.

Current wording

The increases in gross profit and gross profit as a percentage of revenue for the nine months ended June 30, 2026 were primarily due to increases in Europe and Australia, which were partially offset by decreases in Asia and the Middle East.

Previous wording

Equity in earnings of joint ventures for the three months ended March 31, 2026 increased $2.7 million, or 128.6%, to $0.6 million compared to a loss $2.1 million for the corresponding period last year. Equity in earnings of joint ventures for the six months ended March 31, 2026 increased $2.2 million to $1.3 million compared to a loss of $0.9 million for the corresponding period last year. The increases in equity in earnings of joint ventures for the three and six months ended March 31, 2026 was primarily due to favorable earnings of investments in the current year compared to the prior year.

Current wording

Equity in earnings of joint ventures for the three months ended June 30, 2026 decreased $0.8 million, or 80.0%, to $0.2 million compared to $1.0 million for the corresponding period last year. Equity in earnings of joint ventures for the nine months ended June 30, 2026 increased $1.5 million to $1.6 million compared to $0.1 million for the corresponding period last year. The increases in equity in earnings of joint ventures for the nine months ended June 30, 2026 was primarily due to favorable earnings of investments in the current year compared to the prior year.

Previous wording

Our principal sources of liquidity are cash flows from operations, borrowings under our credit facilities, and access to financial markets. Our principal uses of cash are operating expenses, capital expenditures, working capital requirements, acquisitions, repurchases of common stock, dividend payments, and refinancing or repayment of debt. We believe our anticipated sources of liquidity including operating cash flows, existing cash and cash equivalents, borrowing capacity under our revolving credit facility and our ability to issue debt or equity, if required, will be sufficient to meet our projected cash requirements for at least the next twelve months. We expect to spend approximately $36 million for restructuring costs in fiscal 2026 associated with restructuring actions taken in prior periods that are expected to deliver continued margin improvement and efficiencies.

Current wording

Our principal sources of liquidity are cash flows from operations, borrowings under our credit facilities, and access to financial markets. Our principal uses of cash are operating expenses, capital expenditures, working capital requirements, acquisitions, repurchases of common stock, dividend payments, and refinancing or repayment of debt. We believe our anticipated sources of liquidity including operating cash flows, existing cash and cash equivalents, borrowing capacity under our revolving credit facility and our ability to issue debt or equity, if required, will be sufficient to meet our projected cash requirements for at least the next twelve months. We expect to spend approximately $25 million for restructuring costs in fiscal 2026 associated with restructuring actions taken in prior periods that are expected to deliver continued margin improvement and efficiencies. We also expect to incur future net cash outflows between $600 million and $800 million through the completion of two projects in our Construction Management business, which does not include potential cash inflows for unapproved change orders and claims from clients, subcontractors or insurers. Approximately $175 million to $225 million of these net cash outflows are expected in the fourth quarter of fiscal year 2026 with the remaining net cash outflows expected during fiscal year 2027.

Previous wording

At March 31, 2026, cash and cash equivalents were $1,034.3 million, a decrease of $551.4 million from $1,585.7 million at September 30, 2025.

Current wording

At June 30, 2026, cash and cash equivalents were $1,012.9 million, a decrease of $572.8 million from $1,585.7 million at September 30, 2025.

Previous wording

Net cash provided by operating activities was $74.0 million for the six months ended March 31, 2026 as compared to $341.7 million for the six months ended March 31, 2025. The change was primarily attributable to a decrease in net income of approximately $54.9 million, which was impacted by a longer than anticipated claims resolution process, and an increase in cash used by changes in working capital of $282.1 million, partially offset by an increase in adjustments for non-cash items of approximately $69.3 million. The sale of trade receivables to financial institutions included in operating cash flows decreased $13.6 million during the six months ended March 31, 2026 compared to the six months ended March 31, 2025. We expect to continue to sell trade receivables in the future as long as the terms continue to remain favorable to us.

Current wording

Net cash provided by operating activities was $169.2 million for the nine months ended June 30, 2026 as compared to $625.5 million for the nine months ended June 30, 2025. The change was primarily attributable to an increase in net cash outflow of $283.5 million for the nine months ended June 30, 2026 related to two Construction Management projects compared to the corresponding period in the prior year, partially offset by a $51.1 million cash collection on a refinery turnaround project. The change in net cash flow from operations was also attributable to a decrease in net income of approximately $297.6 million, and an increase in cash used by changes in working capital of $179.3 million, partially offset by an increase in adjustments for non-cash items of approximately $20.6 million. The sale of trade receivables to financial institutions included in operating cash flows decreased $10.1 million during the nine months ended June 30, 2026 compared to the nine months ended June 30, 2025. We expect to continue to sell trade receivables in the future as long as the terms continue to remain favorable to us.

Previous wording

Net cash used in investing activities was $75.2 million for the six months ended March 31, 2026, as compared to $86.0 million for the six months ended March 31, 2025. The change was primarily attributable to a $45.4 million cash outflow from the deconsolidation of a joint venture recognized in the prior year period, which did not reoccur in the current year period, partially offset by a $22.3 million change in our investment in the revolving credit facility which was comprised of net cash collections of $14.3 million in the prior year period compared to net cash loaned of $8.0 million in the current year period.

Current wording

Net cash used in investing activities was $147.6 million for the nine months ended June 30, 2026, as compared to $133.3 million for the nine months ended June 30, 2025. The change was primarily attributable to a $45.4 million cash outflow from the deconsolidation of a joint venture recognized in the prior year period, which did not reoccur in the current year period, partially offset by a $29.1 million change in our credit facility investment which was comprised of net cash collections of $16.6 million in the prior year period compared to net cash loaned of $12.5 million in the current year period.

Previous wording

Net cash used in financing activities was $547.4 million for the six months ended March 31, 2026 as compared to $236.4 million for the six months ended March 31, 2025. The change from the prior year was primarily attributable to a $308.2 million increase in cash used to repurchase common stock. Total borrowings under our Credit Agreement may vary during the period as we regularly draw and repay amounts to fund working capital.

Current wording

Net cash used in financing activities was $590.6 million for the nine months ended June 30, 2026 as compared to $281.6 million for the nine months ended June 30, 2025. The change from the prior year was primarily attributable to a $303.5 million increase in cash used to repurchase common stock in the current year. Total borrowings under our Credit Agreement may vary during the period as we regularly draw and repay amounts to fund working capital.

Previous wording

Working capital, or current assets less current liabilities, decreased $183.1 million, or 22.9%, to $618.3 million at March 31, 2026 from $801.4 million at September 30, 2025. Net accounts receivable and contract assets, net of contract liabilities, increased to $3,505.2 million at March 31, 2026 from $3,194.4 million at September 30, 2025.

Current wording

Working capital, or current assets less current liabilities, decreased $461.1 million, or 57.5%, to $340.3 million at June 30, 2026 from $801.4 million at September 30, 2025. Net accounts receivable and contract assets, net of contract liabilities, increased to $3,375.2 million at June 30, 2026 from $3,194.4 million at September 30, 2025.

Previous wording

Days Sales Outstanding (DSO), which includes net accounts receivable and contract assets, net of contract liabilities, was 83 days at March 31, 2026 compared to 74 days at September 30, 2025.

Current wording

Days Sales Outstanding (DSO), which includes net accounts receivable and contract assets, net of contract liabilities, was 86 days at June 30, 2026 compared to 74 days at September 30, 2025. At June 30, 2026 and September 30, 2025, the DSO impact of the two projects in our Construction Management business was 14 days and less than one day, respectively.

Previous wording

In Note 4, Revenue Recognition, in the notes to our consolidated financial statements, a comparative analysis of the various components of accounts receivable is provided. Except for claims, substantially all contract assets are expected to be billed and collected within twelve months.

Current wording

In Note 4, Revenue Recognition, in the notes to our consolidated financial statements, a comparative analysis of the various components of accounts receivable is provided. Except for significant claims, substantially all contract assets are expected to be billed and collected within twelve months.

Previous wording

On March 10, 2026 (the "Amendment Effective Date"), we and certain of our subsidiaries entered into Amendment No. 16 to Syndicated Facility Agreement ("Amendment") with Bank of America, N.A. as administrative agent (the "Administrative Agent") and the other lenders party thereto, which amended the Syndicated Facility Agreement, dated October 17, 2014, to which we and certain of our subsidiaries are party (as amended prior to the Amendment Effective Date, the "Existing Credit Agreement" and as amended by the Amendment, the "Credit Agreement"), pursuant to which we obtained a new $1,500,000,000 revolving credit facility (the “Revolving Credit Facility”), a new $950,000,000 term loan A facility (the “Term Loan A Facility” and a new $500,000,000 term loan B facility (the “Term Loan B Facility” and, together with the Revolving Credit Facility and the Term Loan A Facility, the "Amended Facilities"). The Revolving Credit Facility and the Term Loan A Facility mature on March 10, 2031, which represents a two-year extension of the maturity date applicable to such facilities under the Existing Credit Agreement. The Term Loan B Facility matures on April 19, 2031, which is unchanged from the Existing Credit Agreement. The Term Loan A Facility and the Term Loan B Facility were borrowed in full on the Amendment Effective Date in U.S. dollars. Loans under the Revolving Credit Facility may be borrowed, and letters of credit thereunder may be issued, in U.S. dollars or in certain foreign currencies. The Amended Facilities replace in full our existing revolving credit facility and term loan facilities under the Existing Credit Agreement, and borrowings under the Amended Facilities were used on the Amendment Effective Date to refinance in full our existing credit facilities under the Existing Credit Agreement. The Credit Agreement permits us to designate certain of our subsidiaries as additional co-borrowers from time to time. Currently, there are no co-borrowers under the Amended Facilities.

Current wording

On March 10, 2026 (the "Amendment Effective Date"), we and certain of our subsidiaries entered into Amendment No. 16 to Syndicated Facility Agreement ("Amendment") with Bank of America, N.A. ("Bank of America") as administrative agent and the other lenders party thereto, which amended the Syndicated Facility Agreement, dated October 17, 2014, to which we and certain of our subsidiaries are party (as amended prior to the Amendment Effective Date, the "Existing Credit Agreement" and as amended by the Amendment, the "Amended Credit Agreement"), pursuant to which we obtained a new $1,500,000,000 revolving credit facility (the “$1.5 Billion Revolving Credit Facility”), a new $950,000,000 term loan A facility (the “Term Loan A Facility” and a new $500,000,000 term loan B facility (the “Term Loan B Facility” and, together with the $1.5 Billion Revolving Credit Facility and the Term Loan A Facility, the "Amended Facilities"). The $1.5 Billion Revolving Credit Facility and the Term Loan A Facility mature on March 10, 2031. The Term Loan B Facility matures on April 19, 2031. The Term Loan A Facility and the Term Loan B Facility were borrowed in full on the Amendment Effective Date in U.S. dollars. Loans under the $1.5 Billion Revolving Credit Facility may be borrowed, and letters of credit thereunder may be issued, in U.S. dollars or in certain foreign currencies. The Amended Facilities replace in full our prior revolving credit facility and term loan facilities under the Existing Credit Agreement, and borrowings under the Amended Facilities were used on the Amendment Effective Date to refinance in full our existing credit facilities under the Existing Credit Agreement.

Previous wording

Borrowings under (a) the Revolving Credit Facility (in U.S. dollars) and the Term Loan A Facility bear interest at a rate per annum equal to, at our option, (i) excluding the sustainability adjustment, a SOFR rate (with a 0% floor) plus a margin ranging from 1.125% to 2% or (ii) a base rate (with a 0% floor) plus a margin ranging from 0.125% to 1%, in each case, with the actual margin determined from time to time on the basis of our consolidated leverage ratio; and (b) the Revolving Credit Facility in currencies other than U.S. dollars bear interest at a rate per annum equal to the applicable reference rate for such currency (including any related adjustments), plus the same margin applicable to SOFR rate loans. An unused commitment fee ranging from 0.15% to 0.30% (with the actual fee amount determined from time to time on the basis of our consolidated leverage ratio) is payable on the average daily undrawn portion of the commitments in respect of the Revolving Credit Facility.

Current wording

Borrowings under (a) the Revolving Credit Facilities (in U.S. dollars) and the Term Loan A Facility bear interest at a rate per annum equal to, at our option, (i) a SOFR rate (with a 0% floor) plus a margin ranging from 1.125% to 2% or (ii) a base rate (with a 0% floor) plus a margin ranging from 0.125% to 1%, in each case, excluding any applicable sustainability adjustment with respect to the $1.5 Billion Revolving Credit Facility and the Term Loan A Facility, and with the actual margin determined from time to time on the basis of our consolidated leverage ratio; and (b) the $1.5 Billion Revolving Credit Facility in currencies other than U.S. dollars bear interest at a rate per annum equal to the applicable reference rate for such currency, plus the same margin applicable to SOFR rate loans. An unused commitment fee ranging from 0.15% to 0.30% (excluding any applicable sustainability adjustment, and with the actual fee amount determined from time to time on the basis of our consolidated leverage ratio) is payable on the average daily undrawn portion of the commitments in respect of the Revolving Credit Facilities.

Previous wording

Borrowings under the Term Loan B Facility bear interest at a rate per annum equal to, at our option, (a) a SOFR rate (with a 0% floor) or (b) a base rate (with a 0% floor), in each case, plus an applicable margin of 1.50% in the case of the SOFR rate and 0.50% in the case of the base rate. Such applicable margin represents a 0.25% reduction from that applicable under the Existing Credit Agreement.

Current wording

Borrowings under the Term Loan B Facility bear interest at a rate per annum equal to, at our option, (a) a SOFR rate (with a 0% floor) or (b) a base rate (with a 0% floor), in each case, plus an applicable margin of 1.50% in the case of the SOFR rate and 0.50% in the case of the base rate.