Law firms probe AECOM after Q2 cash flow disclosure

1 min read     Updated on 17 Jun 2026, 04:03 AM
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AI Summary

Schall Law Firm and Pomerantz LLP are investigating AECOM for potential securities law violations following a 98% drop in Q2 operating cash flow to $4 million. CFO Gaurav Kapoor cited delayed claim resolutions on older projects as a cause. Significant claims in contract assets rose to $680 million by March 31, 2026, from $400 million in September 2025. AECOM's stock declined 12% to $69.95 on May 12, 2026, after these disclosures.

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The Schall Law Firm and Pomerantz LLP are investigating claims on behalf of investors of AECOM concerning potential violations of securities laws. The investigations focus on whether the company issued false or misleading statements or failed to disclose material information following its Q2 2026 financial results. AECOM reported operating cash flow of $4 million, down 98% year over year, and adjusted free cash flow swung to negative $27 million. Following these disclosures, AECOM's stock price fell $9.55 per share, or 12%, to close at $69.95 per share on May 12, 2026.

On May 11, 2026, AECOM announced its second quarter fiscal 2026 results. During the earnings call, Chief Financial Officer Gaurav Kapoor attributed the performance to longer-than-anticipated claim resolution on certain projects and delayed payment timing in the Middle East. Kapoor specified that these issues involved projects bid in fiscal year 2019 and 2020 for two clients, where the resolution process had been unexpectedly slow despite successful outcomes on individual claims.

The following day, on May 12, 2026, AECOM filed its quarterly report on Form 10-Q. The filing showed that significant claims recorded in contract assets and other non-current assets were approximately $680 million as of March 31, 2026. This figure represents a significant increase from approximately $400 million as of September 30, 2025.

The Schall Law Firm, a national shareholder rights litigation firm, has advised affected shareholders to contact Brian Schall to discuss their rights. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is also pursuing the investigation to determine if investors have suffered damages due to the alleged misconduct. Investors are advised to contact Danielle Peyton at Pomerantz LLP.

Key Financial Metrics

Metric Value
Operating Cash Flow $4 million
YoY Change in Operating Cash Flow -98%
Adjusted Free Cash Flow -$27 million
Significant Claims (March 31, 2026) $680 million
Significant Claims (September 30, 2025) $400 million

What is the expected timeline for resolving the outstanding claims tied to the 2019 and 2020 projects?

How will the ongoing investigations impact AECOM's ability to secure future contracts in the Middle East?

What measures is management implementing to prevent similar cash flow disruptions in upcoming quarters?

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