DALLAS - AECOM (NYSE: ACM), a globally recognized infrastructure consulting firm, has been chosen to partner with contractors Kier and Morrison Water Services for the design engineering aspect of Southern Water's extensive capital delivery program. The program, valued at approximately $4.8 billion, aims to develop various infrastructure and wastewater projects scheduled for the Asset Management Plan period (AMP8) from 2025 to 2030.
As part of the partnership, AECOM will work with Kier and Pell Frischmann on Lot 1, focusing on non-infrastructure water projects, and Lot 2, concentrating on non-infrastructure wastewater projects. Additionally, AECOM has been appointed as the exclusive design partner for Morrison Water Services under the Strategic Delivery Partner (SDP) Lot 3 Framework for infrastructure projects and the Low Complexity Delivery Route Lot 2 (Wastewater) Framework. These frameworks have durations of seven and five years, respectively, with an option for a five-year extension.
Beverley Stinson, chief executive of AECOM's global Water business, emphasized the company's leadership in the market sector and its teams' technical expertise. She stated that AECOM's role in the AMP8 upgrades for Southern Water and other UK utilities highlights their commitment to infrastructure modernization and sustainability.
The collaboration will focus on advancing customer, community, and environmental outcomes through optioneering, outline, and detailed design across water and wastewater projects. AECOM's selection builds on its previous appointment to two Lots under the AMP8 Professional Services Framework for Southern Water, where it provided asset management and program/project management services.
Colin Wood, chief executive of AECOM's Europe and India region, underscored the importance of supply chain collaboration for meeting Southern Water's robust plans and expressed enthusiasm for the partnership's potential to deliver on Southern Water's ambitions.
Iain Sutherland, Managing Director of M Group Water Division, highlighted the combined expertise of AECOM and its partners in tackling challenges related to population growth, climate change, and environmental protection. He anticipates that the collaboration will lead to significant improvements in the wastewater network and the reliability of water supplies.
This partnership is part of AECOM's ongoing efforts to deliver professional services across various sectors, including transportation, buildings, water, new energy, and the environment, aiming to create sustainable legacies. The information disclosed in this article is based on a press release statement.
In other recent news, AECOM, an infrastructure consulting firm, has experienced significant developments. The firm reported a revenue of $14.4 billion in fiscal year 2023 and an 8% increase in its third-quarter net service revenue, leading to an upward adjustment of earnings guidance for the second consecutive quarter. AECOM's involvement in the North Houston Highway Improvement Project, the Capital Line South Light Rail Transit Extension project in Edmonton, Alberta, and LA's zero-emission bus initiative, among others, has been noted. Analysts from KeyBanc and Truist Securities have raised their stock targets for AECOM, citing the firm's growth strategy, leadership changes, and expectations of double-digit earnings per share (EPS) growth and strong cash flow. RBC Capital and Citi have maintained positive ratings on AECOM's stock, emphasizing the firm's potential for long-term earnings visibility and strong cash flow generation. These are some of the recent developments for AECOM.
InvestingPro Insights
AECOM's recent selection for Southern Water's capital delivery program aligns well with its strong market position and financial performance. According to InvestingPro data, AECOM boasts a market capitalization of $14.04 billion and has demonstrated impressive revenue growth of 13.43% over the last twelve months as of Q3 2024. This growth trajectory supports the company's capacity to take on large-scale projects like the $4.8 billion Southern Water initiative.
InvestingPro Tips highlight AECOM as a prominent player in the Construction & Engineering industry, which is evident from its selection for this significant infrastructure project. The company's ability to secure such contracts is likely contributing to its strong financial performance, with analysts predicting continued profitability this year.
Moreover, AECOM has shown a commitment to shareholder value, having raised its dividend for three consecutive years. This, coupled with a strong return of 27.32% over the last three months, suggests investor confidence in the company's strategic direction and project execution capabilities.
For investors seeking more comprehensive insights, InvestingPro offers 12 additional tips for AECOM, providing a deeper understanding of the company's financial health and market position.
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