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AECOM to Offer Design Services for Segment 3C-4 of the NHHIP
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AECOM (ACM - Free Report) has been selected by the Texas Department of Transportation (TxDOT) for Segment 3C-4 of the North Houston Highway Improvement Project (NHHIP). It will offer design services for the project.
The objective of the NHHIP is to expand multi-modal transit options by adding more high-occupancy vehicle lanes to alleviate traffic congestion, enhance commuter safety and improve flood resiliency. Furthermore, this project will enhance and support regional freight mobility, which is vital to Houston’s growth as local ports continue to expand.
Post the announcement, ACM stock lost 0.5% during trading hours but inched up 0.1% in the after-hours trading session on Tuesday.
ACM’s Work Scope for NHHIP
The NHHIP underscores a planned multi-segment redesign of the I-45N, running between downtown Houston and the North Sam Houston Tollway.
Per the contract by TxDOT, AECOM will redesign four express lanes, realign I-45's six main lanes, and widen the managed lanes from the first to the fourth, starting from the west of Houston Avenue to the west of White Oak Bayou. Additionally, the company’s scope of work includes drainage system improvements, which are intended to allow the roadway to be functional during extreme weather conditions.
The company is delighted to be part of TxDOT’s $148 billion transportation investment program. It believes that its experience in managing and delivering highway and road projects for all government levels will help it to deliver its services efficiently.
Increasing Backlog Bodes Well for AECOM
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. 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 in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. Also, the design business backlog rose 3% to $21.89 billion on the back of a near-record win rate and continued strong end-market trends.
Image Source: Zacks Investment Research
Shares of this solutions provider for supporting professional, technical and management solutions have gained 25% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 18.4% growth. With the $1.2 trillion IIJA funding accelerating in the United States and the U.K. government prioritizing investments in infrastructure, led by the transportation and water markets, the company’s growth prospects in the market seem encouraging.
ACM’s Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
AZEK delivered a trailing four-quarter earnings surprise of 34.2%, on average. The stock has increased 54.8% in the past year. The Zacks Consensus Estimate for AZEK’s fiscal 2025 sales and earnings per share (EPS) indicates growth of 7.6% and 18.8%, respectively, from the prior-year levels.
LSI Industries Inc. (LYTS - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 54.1%, on average. Shares of LYTS have lost 1.2% in the past year.
The consensus estimate for LYTS’ fiscal 2025 sales and EPS implies an increase of 14.5% and 6%, respectively, from the prior-year levels.
Frontdoor, Inc. (FTDR - Free Report) currently carries a Zacks Rank #2 (Buy). FTDR delivered a trailing four-quarter earnings surprise of 279%, on average. The stock has gained 55.7% in the past year.
The Zacks Consensus Estimate for FTDR’s 2024 sales and EPS indicates an increase of 3% and 21.3%, respectively, from a year ago.
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AECOM to Offer Design Services for Segment 3C-4 of the NHHIP
AECOM (ACM - Free Report) has been selected by the Texas Department of Transportation (TxDOT) for Segment 3C-4 of the North Houston Highway Improvement Project (NHHIP). It will offer design services for the project.
The objective of the NHHIP is to expand multi-modal transit options by adding more high-occupancy vehicle lanes to alleviate traffic congestion, enhance commuter safety and improve flood resiliency. Furthermore, this project will enhance and support regional freight mobility, which is vital to Houston’s growth as local ports continue to expand.
Post the announcement, ACM stock lost 0.5% during trading hours but inched up 0.1% in the after-hours trading session on Tuesday.
ACM’s Work Scope for NHHIP
The NHHIP underscores a planned multi-segment redesign of the I-45N, running between downtown Houston and the North Sam Houston Tollway.
Per the contract by TxDOT, AECOM will redesign four express lanes, realign I-45's six main lanes, and widen the managed lanes from the first to the fourth, starting from the west of Houston Avenue to the west of White Oak Bayou. Additionally, the company’s scope of work includes drainage system improvements, which are intended to allow the roadway to be functional during extreme weather conditions.
The company is delighted to be part of TxDOT’s $148 billion transportation investment program. It believes that its experience in managing and delivering highway and road projects for all government levels will help it to deliver its services efficiently.
Increasing Backlog Bodes Well for AECOM
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. 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 in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. Also, the design business backlog rose 3% to $21.89 billion on the back of a near-record win rate and continued strong end-market trends.
Image Source: Zacks Investment Research
Shares of this solutions provider for supporting professional, technical and management solutions have gained 25% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 18.4% growth. With the $1.2 trillion IIJA funding accelerating in the United States and the U.K. government prioritizing investments in infrastructure, led by the transportation and water markets, the company’s growth prospects in the market seem encouraging.
ACM’s Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
The AZEK Company Inc. (AZEK - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AZEK delivered a trailing four-quarter earnings surprise of 34.2%, on average. The stock has increased 54.8% in the past year. The Zacks Consensus Estimate for AZEK’s fiscal 2025 sales and earnings per share (EPS) indicates growth of 7.6% and 18.8%, respectively, from the prior-year levels.
LSI Industries Inc. (LYTS - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 54.1%, on average. Shares of LYTS have lost 1.2% in the past year.
The consensus estimate for LYTS’ fiscal 2025 sales and EPS implies an increase of 14.5% and 6%, respectively, from the prior-year levels.
Frontdoor, Inc. (FTDR - Free Report) currently carries a Zacks Rank #2 (Buy). FTDR delivered a trailing four-quarter earnings surprise of 279%, on average. The stock has gained 55.7% in the past year.
The Zacks Consensus Estimate for FTDR’s 2024 sales and EPS indicates an increase of 3% and 21.3%, respectively, from a year ago.