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AECOM (ACM) Wins U.S. Air Force Infrastructure & Facilities Deal

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AECOM (ACM - Free Report) recently announced that it has been picked by the U.S. Air Force Civil Engineer Center (AFCEC) to provide planning, design and construction management services. The company has won this U.S. Air Force infrastructure and facilities contract under the Architect-Engineer NEXT 2021 contract.

This AFCEC’s architect-engineer contract is a multiple-award contract worth up to $2 billion. This contract has five years as base period and another five-year option.

With respect to this, AECOM’s president, Lara Poloni said, “We are proud to support the U.S. Air and Space Forces’ dominance in the skies and space for generations to come by delivering strong infrastructure built on the ground.”

AECOM is tied up with numerous projects across the globe, including the U.S. Air Force Academy in Colorado and is a supreme infrastructural service provider that facilitates technical expertise on extensive projects. The company is consistently engaged in the remodelling, retainment and improvement activities of the U.S. Department of Defense, including military construction programs and foreign military sales.

Strong Backlog & Share Performance

AECOM’s shares have surged 152.6% in the past year compared with the industry’s 142.1% rally. Also, the company’s earnings estimates fiscal for 2021 have moved up over the past 60 days, depicting analysts' optimism over bottom-line growth potential. On a further encouraging note, the company has a robust earnings surprise history, having surpassed the Zacks Consensus Estimate 12 out of 14 trailing quarters.

AECOM’s solid performance is backed by robust backlog. Its backlog of $39.7 billion at fiscal first quarter-end was up 8% from the prior-year period. Notably, backlog in the design business grew 9% from a year ago for the quarter and contracted backlog across the Professional Services business increased 13% to a record level. The company’s solid backlog levels, which are a key indicator of future revenue growth, indicate significant opportunities in the forthcoming quarters.

The company’s domestic segments are engaged in planning, consulting, architectural, engineering design and management services to commercial and government clients in the United States, Canada, and Latin America in major end markets. Majority of the U.S. government’s broad infrastructural plan is focused on the transit and water markets, wherein AECOM enjoys a dominant market share. Even beyond the borders, prospects of AECOM look promising.

Zacks Rank

AECOM — which shares space with Quanta Services, Inc. (PWR - Free Report) , KBR, Inc. (KBR - Free Report) and Jacobs Engineering Group Inc. (J - Free Report) in the Zacks Engineering - R and D Services industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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