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AECOM Secures Contract For NYPA's Decarbonization Push
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AECOM (ACM - Free Report) , a leading global infrastructure consulting firm, has been awarded a significant program management services contract by the New York Power Authority (“NYPA”). This contract is a major win for AECOM, as it aligns the company with NYPA’s VISION2030 strategic plan — a comprehensive initiative aimed at leading New York State toward a carbon-free energy future.
Under this contract, AECOM will oversee various capital improvement projects that are critical to NYPA’s efforts to provide affordable, clean, and reliable electricity across the state. These projects are essential to NYPA’s broader goals of enhancing hydropower, decarbonizing natural gas plants, leading transmission development, meeting energy objectives, and revitalizing the New York State Canal System. AECOM’s involvement will ensure that these initiatives are delivered with the highest standards of safety, technical excellence, and sustainability.
AECOM’s role in this contract is particularly noteworthy due to the company’s established expertise in energy transition and sustainable infrastructure. AECOM’s global leadership in clean energy solutions, coupled with its accreditation by the National Association of Energy Service Companies, positions it uniquely to manage NYPA’s extensive portfolio of projects efficiently and cost-effectively. The firm’s comprehensive approach, which integrates engineering, design, and procurement services, will be pivotal in driving NYPA’s decarbonization efforts.
The contract also highlights AECOM’s commitment to its Sustainable Legacies strategy, which focuses on achieving net-zero emissions, enhancing social outcomes, and embedding resilience into all aspects of its work. By contributing to NYPA’s VISION2030, AECOM is not only advancing its sustainability goals but also playing a crucial role in New York’s transition to a cleaner energy landscape.
This partnership further solidifies AECOM’s reputation as a trusted leader in infrastructure consulting and reinforces its ability to deliver transformative projects that support a just and equitable energy transition. As New York moves toward a carbon-free future, AECOM’s involvement in this landmark program management contract marks a significant step forward for both the company and the state.
Continuous Contract Wins: A Boon for AECOM’s Backlog
Thanks to the improving global landscape driving infrastructure demand worldwide, there has been a rise in demand for ACM's services. This positive trend is evident in the company's growing backlog levels. (read more: AECOM Boosts Backlog With New Rail Extension Project From TJPA).
By the end of the fiscal third quarter of 2024, ACM's total backlog reached $23.36 billion, up from $23.21 billion in the year-ago period. The current backlog includes a 54.8% increase in contracted backlog growth. Additionally, the design business backlog grew 3% to $21.89 billion, supported by a near-record win rate and sustained strong trends in key markets.
Image Source: Zacks Investment Research
AECOM stock was down 1.8% during the trading session on Aug. 28, 2024. Nonetheless, shares of this solutions provider for supporting professional, technical, and management solutions gained 16.3% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 5.4% growth.
The surge in backlog and robust pipeline positions AECOM favorably at the onset of a multi-decade secular growth cycle across its markets. With the $1.2 trillion IIJA funding accelerating in the United States and the U.K. government focusing on infrastructure investments, particularly in transportation and water markets, the company’s growth prospects appear promising.
AECOM Zacks Rank
AECOM currently carries a Zacks Rank #4 (Sell).
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Here are some better-ranked stocks from the Construction sector.
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Armstrong World Industries, Inc. (AWI - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 15.4%, on average.
The consensus estimate for AWI’s 2024 sales and EPS indicates growth of 10.1% and 14.1%, respectively, from the prior-year reported levels.
Advanced Drainage Systems, Inc. (WMS - Free Report) currently carries a Zacks Rank #2. WMS delivered a trailing four-quarter earnings surprise of 23.2%, on average.
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AECOM Secures Contract For NYPA's Decarbonization Push
AECOM (ACM - Free Report) , a leading global infrastructure consulting firm, has been awarded a significant program management services contract by the New York Power Authority (“NYPA”). This contract is a major win for AECOM, as it aligns the company with NYPA’s VISION2030 strategic plan — a comprehensive initiative aimed at leading New York State toward a carbon-free energy future.
Under this contract, AECOM will oversee various capital improvement projects that are critical to NYPA’s efforts to provide affordable, clean, and reliable electricity across the state. These projects are essential to NYPA’s broader goals of enhancing hydropower, decarbonizing natural gas plants, leading transmission development, meeting energy objectives, and revitalizing the New York State Canal System. AECOM’s involvement will ensure that these initiatives are delivered with the highest standards of safety, technical excellence, and sustainability.
AECOM’s role in this contract is particularly noteworthy due to the company’s established expertise in energy transition and sustainable infrastructure. AECOM’s global leadership in clean energy solutions, coupled with its accreditation by the National Association of Energy Service Companies, positions it uniquely to manage NYPA’s extensive portfolio of projects efficiently and cost-effectively. The firm’s comprehensive approach, which integrates engineering, design, and procurement services, will be pivotal in driving NYPA’s decarbonization efforts.
The contract also highlights AECOM’s commitment to its Sustainable Legacies strategy, which focuses on achieving net-zero emissions, enhancing social outcomes, and embedding resilience into all aspects of its work. By contributing to NYPA’s VISION2030, AECOM is not only advancing its sustainability goals but also playing a crucial role in New York’s transition to a cleaner energy landscape.
This partnership further solidifies AECOM’s reputation as a trusted leader in infrastructure consulting and reinforces its ability to deliver transformative projects that support a just and equitable energy transition. As New York moves toward a carbon-free future, AECOM’s involvement in this landmark program management contract marks a significant step forward for both the company and the state.
Continuous Contract Wins: A Boon for AECOM’s Backlog
Thanks to the improving global landscape driving infrastructure demand worldwide, there has been a rise in demand for ACM's services. This positive trend is evident in the company's growing backlog levels. (read more: AECOM Boosts Backlog With New Rail Extension Project From TJPA).
By the end of the fiscal third quarter of 2024, ACM's total backlog reached $23.36 billion, up from $23.21 billion in the year-ago period. The current backlog includes a 54.8% increase in contracted backlog growth. Additionally, the design business backlog grew 3% to $21.89 billion, supported by a near-record win rate and sustained strong trends in key markets.
Image Source: Zacks Investment Research
AECOM stock was down 1.8% during the trading session on Aug. 28, 2024. Nonetheless, shares of this solutions provider for supporting professional, technical, and management solutions gained 16.3% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 5.4% growth.
The surge in backlog and robust pipeline positions AECOM favorably at the onset of a multi-decade secular growth cycle across its markets. With the $1.2 trillion IIJA funding accelerating in the United States and the U.K. government focusing on infrastructure investments, particularly in transportation and water markets, the company’s growth prospects appear promising.
AECOM Zacks Rank
AECOM currently carries a Zacks Rank #4 (Sell).
Key Picks
Here are some better-ranked stocks from the Construction sector.
EMCOR Group, Inc. (EME - Free Report) currently flaunts a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 36.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for EME’s 2024 earnings per share (EPS) indicates an improvement of 34.9% from the prior-year levels.
Armstrong World Industries, Inc. (AWI - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 15.4%, on average.
The consensus estimate for AWI’s 2024 sales and EPS indicates growth of 10.1% and 14.1%, respectively, from the prior-year reported levels.
Advanced Drainage Systems, Inc. (WMS - Free Report) currently carries a Zacks Rank #2. WMS delivered a trailing four-quarter earnings surprise of 23.2%, on average.
The Zacks Consensus Estimate for WMS’ fiscal 2025 sales and EPS indicates growth of 4.7% and 12.4%, respectively, from the prior-year reported levels.