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AECOM to be the Prime Consultant for the Expansion of Austin's WWTP
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AECOM (ACM - Free Report) is all set to act as the prime consultant for the expansion of the Walnut Creek Wastewater Treatment Plant (WWTP), located in Austin, TX. Texas. This project, initiated by the City of Austin, aims to modernize the plant by increasing its capacity and upgrading key operational and environmental features.
The Walnut Creek WWTP, originally constructed in 1977 with an initial capacity of 18 million gallons per day (MGD), has undergone expansions in 1987, 1990, and 2005 to reach its current capacity of 75 MGD. The latest project will further enhance the plant's capability, boosting it to a capacity of 100 MGD. This expansion is crucial for improving the efficiency of the city's wastewater infrastructure and ensuring better environmental protection.
AECOM’s scope of work includes comprehensive process, mechanical, civil, electrical, and structural engineering services. The company will replace outdated equipment, construct a new 25 MGD treatment train, and build a 120-inch outfall line and structure. Additionally, the plant will be equipped with 100 MGD cloth filters for improved wet weather treatment, alongside the construction of a flood protection wall designed to last nearly 100 years.
These upgrades will not only bolster Austin’s wastewater treatment capacity but also enhance resilience against extreme weather events, ensuring long-term infrastructure reliability and environmental stewardship for the surrounding community.
ACM's Strong Backlog & Global Demand Drive Boost Growth
AECOM has been experiencing robust growth across all its segments, backed by a solid backlog and strong pipeline visibility for the upcoming quarters. Healthy state and local budgets, along with increased private sector investments in water and energy transitions, have contributed to this upward trend.
Additionally, the U.K. water market is expected to see accelerated growth over the next five years, driven by a near doubling of AMP8 funding. AECOM’s deep expertise with major water utilities positions it well to benefit from this expansion.
Global demand for infrastructure development is rising, further increasing the need for AECOM’s services. At the end of the fiscal second quarter, the company’s backlog reached $23.74 billion, up from $22.98 billion in the previous year, with contracted backlog growth accounting for 54.8%. AECOM’s design business backlog grew 6.3% to $22.29 billion, driven by a near-record win rate and strong market performance.
Net service revenues (NSR), which exclude subcontractor costs, also saw significant growth. NSR for the fiscal second quarter rose 8% year over year, marking 13 consecutive quarters of organic growth.
Image Source: Zacks Investment Research
The company’s shares have gained 14.3% over the past three months, outperforming the Zacks Engineering - R and D Services industry’s 10.8% growth, with ongoing contract wins expected to boost prospects. Global infrastructure spending trends remain strong, providing further opportunities for AECOM’s continued expansion.
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.
Howmet Aerospace Inc. (HWM - Free Report) presently carries a Zacks Rank #2 (Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the 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 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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AECOM to be the Prime Consultant for the Expansion of Austin's WWTP
AECOM (ACM - Free Report) is all set to act as the prime consultant for the expansion of the Walnut Creek Wastewater Treatment Plant (WWTP), located in Austin, TX. Texas. This project, initiated by the City of Austin, aims to modernize the plant by increasing its capacity and upgrading key operational and environmental features.
The Walnut Creek WWTP, originally constructed in 1977 with an initial capacity of 18 million gallons per day (MGD), has undergone expansions in 1987, 1990, and 2005 to reach its current capacity of 75 MGD. The latest project will further enhance the plant's capability, boosting it to a capacity of 100 MGD. This expansion is crucial for improving the efficiency of the city's wastewater infrastructure and ensuring better environmental protection.
AECOM’s scope of work includes comprehensive process, mechanical, civil, electrical, and structural engineering services. The company will replace outdated equipment, construct a new 25 MGD treatment train, and build a 120-inch outfall line and structure. Additionally, the plant will be equipped with 100 MGD cloth filters for improved wet weather treatment, alongside the construction of a flood protection wall designed to last nearly 100 years.
These upgrades will not only bolster Austin’s wastewater treatment capacity but also enhance resilience against extreme weather events, ensuring long-term infrastructure reliability and environmental stewardship for the surrounding community.
ACM's Strong Backlog & Global Demand Drive Boost Growth
AECOM has been experiencing robust growth across all its segments, backed by a solid backlog and strong pipeline visibility for the upcoming quarters. Healthy state and local budgets, along with increased private sector investments in water and energy transitions, have contributed to this upward trend.
Additionally, the U.K. water market is expected to see accelerated growth over the next five years, driven by a near doubling of AMP8 funding. AECOM’s deep expertise with major water utilities positions it well to benefit from this expansion.
Global demand for infrastructure development is rising, further increasing the need for AECOM’s services. At the end of the fiscal second quarter, the company’s backlog reached $23.74 billion, up from $22.98 billion in the previous year, with contracted backlog growth accounting for 54.8%. AECOM’s design business backlog grew 6.3% to $22.29 billion, driven by a near-record win rate and strong market performance.
Net service revenues (NSR), which exclude subcontractor costs, also saw significant growth. NSR for the fiscal second quarter rose 8% year over year, marking 13 consecutive quarters of organic growth.
Image Source: Zacks Investment Research
The company’s shares have gained 14.3% over the past three months, outperforming the Zacks Engineering - R and D Services industry’s 10.8% growth, with ongoing contract wins expected to boost prospects. Global infrastructure spending trends remain strong, providing further opportunities for AECOM’s continued expansion.
ACM’s Zacks Rank & Key Picks
ACM currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space are:
Sterling Infrastructure, Inc. (STRL - Free Report) presently sports a Zacks Rank #1 (Strong Buy). Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Howmet Aerospace Inc. (HWM - Free Report) presently carries a Zacks Rank #2 (Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average.
The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates a rise of 12.6% and 40.8%, respectively, from the 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 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.