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AECOM (ACM) Secures Portage Bay Bridge Project Contract
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AECOM (ACM - Free Report) has been selected as the Lead Designer for the Washington State Department of Transportation's (“WSDOT”) SR 520 Portage Bay Bridge and Roanoke Lid Project. This project, led by Skanska as part of a design-build team, aims to replace the aging Portage Bay Bridge and add a landscaped lid segment in Seattle's North Capitol Hill neighborhood.
The project should bring significant improvements to commuters traveling across Lake Washington and through the SR 520 corridor. New ramps, seismically resilient structures and enhanced connections to transit, local streets and shared-use trails will be among the key benefits.
AECOM will oversee the technical design of two new parallel bridges, one for eastbound traffic and the other for westbound, replacing the 1960s-era structure with a more robust and seismically sound bridge. Additionally, a landscaped lid will be constructed over SR 520 between 10th Avenue East and Delmar Drive East. This project aims to improve regional mobility by completing the SR 520 Program’s transit and high-occupancy vehicle enhancements between Redmond and Seattle.
The new eastbound bridge will extend the SR 520 Trail for bicycles and pedestrians across Portage Bay, linking it to Seattle’s non-motorized trail network. This enhancement is expected to significantly boost non-motorized transportation options in the area, promoting healthier and more sustainable travel.
In conclusion, AECOM's role as Lead Designer for the Portage Bay Bridge replacement marks a significant milestone in the firm's ongoing relationship with WSDOT. The project underscores ACM’s extensive experience and commitment to delivering infrastructure projects that enhance safety, mobility and community connectivity. As Seattle looks to modernize its transportation infrastructure, this initiative stands out as a forward-thinking solution that will benefit the region for decades to come.
Image Source: Zacks Investment Research
Contract Wins & Solid Backlog Level: A Boon
Owing to the improving global scenario, which is fostering infrastructural demand around the globe, there has been an increase in demand for ACM’s services. This improving trend is reflected in the company’s backlog levels.
As of the fiscal second-quarter end, the total backlog was $23.74 billion compared with $22.98 billion reported in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. The design business backlog grew 6.3% to $22.29 billion. The metric was driven by a near-record win rate and continued strong end-market trends.
The company’s net service revenues (NSR) — defined as revenues excluding subcontractor and other direct costs — have been benefiting from strength across core transportation, water and environment markets. NSR for the fiscal second quarter rose 8% year over year, marking the 13th consecutive quarter of accelerating organic growth.
Shares of AECOM have gained 3.9% in the past year compared with the Zacks Engineering - R and D Services industry’s growth of 37.4%. Although shares of the company have underperformed the industry in the past year, the ongoing contract wins are expected to boost its prospects in the forthcoming quarters. Also, increasing infrastructural spending trends across the world are encouraging for ACM.
Zacks Rank & Other Key Picks
ACM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Construction sector are:
HWM has a trailing four-quarter earnings surprise of 8.5%, on average. Shares of HWM have gained 82.6% in the past year. The Zacks Consensus Estimate for HWM’s 2024 sales and earnings per share (EPS) indicates a rise of 10.6% and 29.9%, respectively, from prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 26.7%. Shares of MPTI have risen 220.4% in the past year.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 8.8% and 58.6%, respectively, from prior-year levels.
Gates Industrial Corporation plc (GTES - Free Report) presently carries a Zacks Rank #2. GTES has a trailing four-quarter earnings surprise of 14.9%, on average. Shares of GTES have gained 28.2% in the past year.
The Zacks Consensus Estimate for GTES’ 2024 sales indicates a 0.2% decline but EPS growth of 2.9% from the prior-year levels.
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AECOM (ACM) Secures Portage Bay Bridge Project Contract
AECOM (ACM - Free Report) has been selected as the Lead Designer for the Washington State Department of Transportation's (“WSDOT”) SR 520 Portage Bay Bridge and Roanoke Lid Project. This project, led by Skanska as part of a design-build team, aims to replace the aging Portage Bay Bridge and add a landscaped lid segment in Seattle's North Capitol Hill neighborhood.
The project should bring significant improvements to commuters traveling across Lake Washington and through the SR 520 corridor. New ramps, seismically resilient structures and enhanced connections to transit, local streets and shared-use trails will be among the key benefits.
AECOM will oversee the technical design of two new parallel bridges, one for eastbound traffic and the other for westbound, replacing the 1960s-era structure with a more robust and seismically sound bridge. Additionally, a landscaped lid will be constructed over SR 520 between 10th Avenue East and Delmar Drive East. This project aims to improve regional mobility by completing the SR 520 Program’s transit and high-occupancy vehicle enhancements between Redmond and Seattle.
The new eastbound bridge will extend the SR 520 Trail for bicycles and pedestrians across Portage Bay, linking it to Seattle’s non-motorized trail network. This enhancement is expected to significantly boost non-motorized transportation options in the area, promoting healthier and more sustainable travel.
In conclusion, AECOM's role as Lead Designer for the Portage Bay Bridge replacement marks a significant milestone in the firm's ongoing relationship with WSDOT. The project underscores ACM’s extensive experience and commitment to delivering infrastructure projects that enhance safety, mobility and community connectivity. As Seattle looks to modernize its transportation infrastructure, this initiative stands out as a forward-thinking solution that will benefit the region for decades to come.
Image Source: Zacks Investment Research
Contract Wins & Solid Backlog Level: A Boon
Owing to the improving global scenario, which is fostering infrastructural demand around the globe, there has been an increase in demand for ACM’s services. This improving trend is reflected in the company’s backlog levels.
As of the fiscal second-quarter end, the total backlog was $23.74 billion compared with $22.98 billion reported in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. The design business backlog grew 6.3% to $22.29 billion. The metric was driven by a near-record win rate and continued strong end-market trends.
The company’s net service revenues (NSR) — defined as revenues excluding subcontractor and other direct costs — have been benefiting from strength across core transportation, water and environment markets. NSR for the fiscal second quarter rose 8% year over year, marking the 13th consecutive quarter of accelerating organic growth.
Shares of AECOM have gained 3.9% in the past year compared with the Zacks Engineering - R and D Services industry’s growth of 37.4%. Although shares of the company have underperformed the industry in the past year, the ongoing contract wins are expected to boost its prospects in the forthcoming quarters. Also, increasing infrastructural spending trends across the world are encouraging for ACM.
Zacks Rank & Other Key Picks
ACM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Construction sector are:
Howmet Aerospace Inc. (HWM - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
HWM has a trailing four-quarter earnings surprise of 8.5%, on average. Shares of HWM have gained 82.6% in the past year. The Zacks Consensus Estimate for HWM’s 2024 sales and earnings per share (EPS) indicates a rise of 10.6% and 29.9%, respectively, from prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 26.7%. Shares of MPTI have risen 220.4% in the past year.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 8.8% and 58.6%, respectively, from prior-year levels.
Gates Industrial Corporation plc (GTES - Free Report) presently carries a Zacks Rank #2. GTES has a trailing four-quarter earnings surprise of 14.9%, on average. Shares of GTES have gained 28.2% in the past year.
The Zacks Consensus Estimate for GTES’ 2024 sales indicates a 0.2% decline but EPS growth of 2.9% from the prior-year levels.