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ACM Wins Key Role in Wessex Water's Capital Delivery Framework
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AECOM (ACM - Free Report) has announced its continued partnership with Wessex Water, securing first place in the design consultant lot of Wessex Water’s new Capital Delivery Framework.
The company will provide multidisciplinary design throughout the AMP8 (Asset Management Period) regulatory period, covering Wessex Water’s water and wastewater assets. AECOM’s re-appointment as a Design Consultant is for an initial six years, with the option to extend for an additional five years.
AECOM is utilizing its technical expertise and innovations to support Wessex Water in delivering key projects that strengthen infrastructure resilience. Through this re-appointment to Lot 2, ACM will help Wessex in achieving its planned £3.7-billion investment between 2025 and 2030. It aims to focus on enhancing the environment and ensuring water availability to 2.9 million customers across the South West of England.
The company will lead Wessex Water’s next phase of capital improvements, focusing on sustainable water projects. It will collaborate with other framework suppliers to support Wessex Water’s achieve its 8 Outcomes, which includes net zero carbon, biodiversity enhancement, reliable water supply, improved river and coastal quality and an efficient sewerage system.
ACM’s strong performance in major modernization programs established it as a global leader in the water industry. This expertise will help it reach its goal of doubling its water business organically over the next five years.
AECOM has been witnessing robust prospects in each of its segments. Currently, it has a good visibility of a strong backlog and pipelines for the upcoming quarters. Impressively, state and local budgets are robust and private sector clients are investing to restore capacity and adapt to water and energy transition impacts. Growth in the U.K. water market is poised to accelerate in the next five years due to the expected near doubling of AMP8 funding, where ACM has existing experience with nearly every large water utility involved.
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 third-quarter end, the total backlog was $23.36 billion compared with $23.21 billion reported in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. The design business backlog rose 3% to $21.89 billion. The metric was driven by a near-record win rate and continued strong end-market trends.
The company’s net service revenues or NSR — defined as revenues excluding subcontractor and other direct costs — have been benefiting from strength across core transportation, water and environment markets. Adjusted NSR for the fiscal third quarter rose 8% year over year, marking the 14th consecutive quarter of accelerating organic growth.
Image Source: Zacks Investment Research
Shares of AECOM have gained 11.1% in the past three months compared with the Zacks Engineering - R and D Services industry’s growth of 10.2%. Ongoing contract wins are likely to boost its prospects in the forthcoming quarters. Also, increasing infrastructural spending trends across the world are encouraging for ACM.
The Zacks Consensus Estimate for HWM’s 2024 sales and earnings per share (EPS) indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) carries a Zacks Rank #1. Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2 (Buy). It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.
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ACM Wins Key Role in Wessex Water's Capital Delivery Framework
AECOM (ACM - Free Report) has announced its continued partnership with Wessex Water, securing first place in the design consultant lot of Wessex Water’s new Capital Delivery Framework.
The company will provide multidisciplinary design throughout the AMP8 (Asset Management Period) regulatory period, covering Wessex Water’s water and wastewater assets. AECOM’s re-appointment as a Design Consultant is for an initial six years, with the option to extend for an additional five years.
AECOM is utilizing its technical expertise and innovations to support Wessex Water in delivering key projects that strengthen infrastructure resilience. Through this re-appointment to Lot 2, ACM will help Wessex in achieving its planned £3.7-billion investment between 2025 and 2030. It aims to focus on enhancing the environment and ensuring water availability to 2.9 million customers across the South West of England.
The company will lead Wessex Water’s next phase of capital improvements, focusing on sustainable water projects. It will collaborate with other framework suppliers to support Wessex Water’s achieve its 8 Outcomes, which includes net zero carbon, biodiversity enhancement, reliable water supply, improved river and coastal quality and an efficient sewerage system.
ACM’s strong performance in major modernization programs established it as a global leader in the water industry. This expertise will help it reach its goal of doubling its water business organically over the next five years.
ACM’s Backlog Growth Signals Positive Momentum Ahead
AECOM has been witnessing robust prospects in each of its segments. Currently, it has a good visibility of a strong backlog and pipelines for the upcoming quarters. Impressively, state and local budgets are robust and private sector clients are investing to restore capacity and adapt to water and energy transition impacts. Growth in the U.K. water market is poised to accelerate in the next five years due to the expected near doubling of AMP8 funding, where ACM has existing experience with nearly every large water utility involved.
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 third-quarter end, the total backlog was $23.36 billion compared with $23.21 billion reported in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. The design business backlog rose 3% to $21.89 billion. The metric was driven by a near-record win rate and continued strong end-market trends.
The company’s net service revenues or NSR — defined as revenues excluding subcontractor and other direct costs — have been benefiting from strength across core transportation, water and environment markets. Adjusted NSR for the fiscal third quarter rose 8% year over year, marking the 14th consecutive quarter of accelerating organic growth.
Image Source: Zacks Investment Research
Shares of AECOM have gained 11.1% in the past three months compared with the Zacks Engineering - R and D Services industry’s growth of 10.2%. Ongoing contract wins are likely to boost its prospects in the forthcoming quarters. Also, increasing infrastructural spending trends across the world are encouraging for ACM.
ACM’s Zacks Rank & Key Picks
ACM currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space are:
Howmet Aerospace Inc. (HWM - Free Report) presently sports a Zacks Rank #1 (Strong Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HWM’s 2024 sales and earnings per share (EPS) indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) carries a Zacks Rank #1. Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank #2 (Buy). It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.