DALLAS - AECOM (NYSE: ACM), a global infrastructure consulting firm, has been selected as the primary design consultant for Wessex Water's Capital Delivery Framework, poised to support the utility's £3.7 billion investment program. The initiative, slated for the 2025-2030 period, aims to enhance water and wastewater services for nearly 3 million customers in South West England.
Colin Wood, AECOM's Europe and India chief executive, expressed enthusiasm for the continued partnership with Wessex Water, emphasizing the company's commitment to delivering sustainable water projects and ensuring infrastructure resilience.
The initial six-year appointment, with an optional five-year extension, will see AECOM provide comprehensive design services, from initial concept through to detailed design and construction support. This engagement falls under the forthcoming AMP8 regulatory period, which focuses on asset management and investment for UK utilities.
AECOM's role extends to collaborating with other framework suppliers to assist Wessex Water in achieving its '8 Outcomes', which include targets such as net zero carbon, biodiversity enhancements, and maintaining reliable water and sewerage systems.
Beverley Stinson, chief executive of AECOM's global Water business, highlighted the company's track record in modernization programs and its ambition to double its water business organically within the next five years. This contract aligns with that growth target and reinforces AECOM's position in the water industry.
The announcement contributes to AECOM's broader strategy, which has seen the Fortune 500 firm generate $14.4 billion in revenue for its Professional Services business in fiscal year 2023. The company is recognized for its diverse and inclusive culture and commitment to environmental, social, and governance priorities.
AECOM's forward-looking statements indicate plans for future operations, growth, and financial performance, though they caution that actual results may differ from projections due to various risks and uncertainties.
This news is based on a press release statement from AECOM.
In other recent news, AECOM, a global infrastructure consulting firm, has been involved in numerous significant projects. AECOM's third-quarter net service revenue saw an 8% increase, leading to a revised upward earnings guidance for the second consecutive quarter. The company anticipates a 21% increase in adjusted earnings per share for fiscal year 2024.
AECOM has been selected to lead program management services for the San Diego County Regional Airport Authority's Capital Improvement Plan. The plan includes the modernization of San Diego International Airport's Terminal 1 and Terminal 2 East. The program management services contract with the New York Power Authority (NYPA) has also been secured by AECOM, where the firm will oversee capital improvement projects as part of NYPA's VISION2030 strategic plan.
In other developments, AECOM has been appointed as the Lead Designer for the replacement of two aging bridges along the Bronx River Parkway, a project initiated by the New York State Department of Transportation. RBC Capital maintained an Outperform rating on AECOM's stock, citing the firm's effective strategic initiatives and increased infrastructure spending in key markets. Citi also reiterated its Buy rating on AECOM, highlighting the company's potential for long-term earnings visibility and strong cash flow generation. These are among the recent developments for AECOM.
InvestingPro Insights
AECOM (NYSE: ACM), the infrastructure consulting giant, has not only secured a significant design consultancy role with Wessex Water but is also making waves in the financial markets. With a robust market capitalization of $13.57 billion, AECOM stands out as a substantial player in the industry. The company's recent performance metrics from InvestingPro show a promising picture, with a P/E ratio adjusted for the last twelve months as of Q3 2024 at 23.46. This P/E ratio indicates that the company is trading at a lower multiple relative to its near-term earnings growth, suggesting a potentially undervalued stock in light of its growth prospects—an InvestingPro Tip worth noting for investors considering this stock.
Additionally, AECOM has demonstrated commendable revenue growth, with an increase of 13.43% over the last twelve months leading up to Q3 2024. This growth is aligned with the company's strategic direction and its plans to expand its water business. The company also boasts a strong dividend growth rate of 22.22% over the same period, a testament to its financial health and a signal to investors of its commitment to shareholder returns—an InvestingPro Tip highlighting the company's ability to consistently reward its investors.
Investors interested in further analysis will find a wealth of additional InvestingPro Tips for AECOM, including insights on earnings revisions, trading multiples, and debt levels. In fact, there are 12 more InvestingPro Tips available, offering a deeper dive into the company's financial health and market position. For those looking to explore these insights, they can be accessed at: https://www.investing.com/pro/ACM
As AECOM continues to navigate the market and grow its operations, these financial metrics and InvestingPro Tips provide a valuable perspective for investors and industry observers alike.
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