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AECOM (ACM) to Design Brent Spence Bridge Corridor Project

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AECOM (ACM - Free Report) has been selected as the lead designer for the renovation and rehabilitation of the Brent Spence Bridge Corridor Project led by the consortium of Walsh-Kokosing.

The aforementioned project is partially funded through a historic investment of $1.6 billion from President Biden’s Infrastructure Investment and Jobs Act.

The company is optimistic about the new contract win as it believes its diverse capabilities and design expertise make it the perfect fit for the commencement of this transformative infrastructure project’s services.

Role as the Lead Designer

AECOM will deliver comprehensive design and engineering leadership services for ensuring the implementation of critical upgrades to the project. These upgrades are set be implemented to address safety, traffic flow, increase capacity between the states, improve the complex interchange geometry and upgrade the interstate multiple miles into Kentucky. AECOM will directly provide the design for the project and supervise a team of subcontractors for the remaining service delivery, which includes Jacobs Solutions Inc. (J - Free Report) and other engineering firms.

It will also serve as the Engineer of Record for the construction of the new double-decked companion bridge over the Ohio River. This determines the rehabilitation of the existing Brent Spence Bridge, which is the primary gateway between Ohio and Kentucky, to its original design intent of three lanes each in every direction of travel, along with emergency shoulders on each side.

 

Zacks Investment Research
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Shares of AECOM have inched down 0.35% on Aug 4, during the trading session. Also, the stock has gained 5.7% in the past three months, compared with the Zacks Engineering - R and D Services industry’s 12.7% growth. Although the shares of the have company underperformed its industry, its ongoing contract wins will enable it to gain traction in the upcoming period.

Global Infrastructure Spending to Drive Growth

AECOM expects its solid pipeline of opportunities to be up in double digits in the Americas design business. This is backed by its clients' strengthening funding backdrop, including benefits from the $1.2-trillion infrastructure bill in the United States, which ensures the continued growth of the company’s backlog. Overall, the company’s performance demonstrates that it has been outgrowing the industry organically and capturing market share.

Moreover, the company is expecting better infrastructural prospects in the international markets, owing to the improvement in the global economic scenario. ACM is benefiting from solid infrastructure spending in the United Kingdom, Canada, Hong Kong and Australia. In the U.K., ACM has been generating revenues backed by growing investments in rail and transportation, which are its leading markets. In addition, the U.K. government's leveling-up strategy, which includes key prosperity and equity-focused initiatives that touch on all elements of infrastructure, is creating opportunities.

At the end of second-quarter fiscal 2023, the company’s total backlog increased 1.8% to $35.89 billion year over year.

Zacks Rank

AECOM currently carries a Zacks Rank #2 (Buy).

About Jacobs Solutions

Jacobs is one of the leading providers of professional, technical and construction services to industrial, commercial and governmental clients. The company operates in four operating segments - Critical Mission Solutions, People & Places Solutions, its business unit Divergent Solutions and its majority investment in PA Consulting. At the end of second-quarter fiscal 2023, the company had a backlog of $29 billion, up 4% from a year ago.

The company currently carries a Zacks Rank #3 (Hold). J delivered a trailing four-quarter earnings surprise of 2.1%, on average. The Zacks Consensus Estimate for J’s fiscal 2023 sales and earnings per share indicates growth of 7.6% and 6.1%, respectively, from the previous year’s reported levels.

Other Key Picks

Some other top-ranked stocks from the Construction sector are Martin Marietta Materials, Inc. (MLM - Free Report) and EMCOR Group, Inc. (EME - Free Report) .

Martin Marietta currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MLM delivered a trailing four-quarter earnings surprise of 33.4%, on average. Shares of the company have gained 30.8% in the past year. The Zacks Consensus Estimate for MLM’s 2023 sales and earnings per share indicates growth of 19.3% and 42.3%, respectively, from the previous year’s reported levels.

EMCOR currently flaunts a Zacks Rank of 1. EME delivered a trailing four-quarter earnings surprise of 17.2%, on average. Shares of the company have risen 89.8% in the past year.

The Zacks Consensus Estimate for EME’s 2023 sales and earnings per share indicates growth of 10.9% and 36.8%, respectively, from the previous year’s reported levels.


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