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AECOM secures roles in UK utility frameworks worth £1.25 billion

EditorNatashya Angelica
Published 05/23/2024, 06:37 PM
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ACM
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DALLAS - AECOM, a global infrastructure consulting firm, has been selected through its joint venture, Perfect Circle, to contribute to two new consultancy frameworks for SCAPE in the United Kingdom, with a combined potential value of £1.25 billion. The frameworks aim to deliver professional services for the utilities sector across the UK, including water, energy, and telecommunications.

Perfect Circle, which includes AECOM, Pick Everard, and Gleeds, will be involved in SCAPE's £750 million direct award framework for England, Wales, and Northern Ireland, as well as a £500 million framework dedicated to Scotland. These frameworks are set to run for four years with an option to extend for an additional two years.

Frank Sweet, chief executive of AECOM's Environment business, expressed pride in the continued collaboration with SCAPE and the joint venture's partners. He emphasized the team's multidisciplinary capabilities and their role in supporting the UK's water sector growth and energy transition.

Clients from various utility sectors in the UK will have access to a suite of services provided by the joint venture, including strategic advice, engineering, design, project management, and quantity surveying. Colin Wood, chief executive of AECOM's Europe and India region, remarked on the importance of the frameworks for the UK's infrastructure modernization goals and the deepening partnerships with the UK public sector.

Richard Whitehead, chief executive of AECOM's global Buildings + Places business, highlighted the Perfect Circle partnership's history of delivering value to the UK public sector and the intention to build upon this success through the experience of the partners and AECOM's expertise.

AECOM, listed on the New York Stock Exchange as NYSE:ACM, is recognized for its services throughout the project lifecycle, including advisory, planning, design, engineering, program, and construction management. The firm, which is a Fortune 500 company, reported revenue of $14.4 billion in the fiscal year 2023.

The announcement is based on a press release statement, and the company has made forward-looking statements regarding its plans and objectives. However, these are subject to various risks and uncertainties that could cause actual results to differ from projections.

The selection of AECOM's joint venture for these frameworks signifies the company's continued influence in the UK's infrastructure sector and its commitment to supporting the country's utility services.

InvestingPro Insights

AECOM (NYSE:ACM) has shown a notable performance in the construction and engineering sector, as evidenced by its selection for the SCAPE consultancy frameworks in the UK. As the company embarks on these new projects, investors might be interested in a few key financial metrics and insights from InvestingPro.

InvestingPro Data shows that AECOM boasts a robust market capitalization of $12.15 billion, reflecting its significant presence in the industry. The company's revenue growth is also impressive, with a 13.36% increase over the last twelve months as of Q2 2024, indicating a strong expansion in its business operations.

Despite a high Price/Book ratio of 5.53, which suggests the stock might be trading at a premium, AECOM's role as a prominent player in the Construction & Engineering industry could justify this valuation to some investors.

InvestingPro Tips highlight that AECOM is expected to be profitable this year, with net income projected to grow. This positive outlook is backed by the company's performance over the last five years, which has yielded strong returns. Still, it is worth noting that 4 analysts have revised their earnings estimates downwards for the upcoming period, which could signal potential headwinds or a more conservative outlook on the company's future earnings.

For investors seeking further insights and tips on AECOM, InvestingPro offers additional analysis and metrics. Currently, there are 11 InvestingPro Tips available that could provide deeper understanding of the company's financial health and market position. Interested readers can unlock these insights and benefit from a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

The selection of AECOM for the SCAPE frameworks not only underscores its industry influence but also aligns with the company's growth trajectory as reflected in recent financial data. With AECOM's stock trading at a high earnings multiple and a strong track record of profitability, the company's future endeavors in the UK's utilities sector are poised to be closely watched by investors and industry analysts alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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