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AECOM (ACM) to Modernize Facilities for NASA's SERAE Program

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AECOM (ACM - Free Report) has received an indefinite delivery, indefinite quantity (IDIQ) contract from the National Aeronautics and Space Administration or NASA to support the latter’s Southeast Regional Architect and Engineering (SERAE) program. This five-year multiple-award IDIQ contract has a shared program ceiling of $300 million.

Per the deal, AECOM will rehabilitate, modernize, and develop the new systems for facilities, utilities, and ground support at major NASA locations across the United States. Also, it will provide a wide range of architecture, civil, structural, mechanical and electrical infrastructure services throughout the project phases. The services include architectural design, field investigations and surveys, engineering and environmental reports, trade studies, design specifications, construction site inspections as well as scheduling and cost estimating.

Sean Chiao, chief executive of AECOM’s global Buildings + Places business, said “From the Mercury and Gemini programs through today, AECOM has been honored to work alongside NASA on all of its facilities spanning the country. This new contract allows us to continue our successful and longstanding partnership.” He continued, “We’re excited to leverage our intimate knowledge of the administration’s enterprises and best practices to deliver unmatched professional services that advance NASA’s goal of leading an innovative and sustainable program of space exploration, scientific discovery, and aeronautics research to the next frontier.”

Solid Project Execution Benefits AECOM

AECOM is a leading solutions provider for supporting professional, technical, and management solutions for diverse industries across end markets like transportation, facilities, government as well as environmental, energy, and water businesses. The major part of the U.S. government’s broad infrastructural plan is focused on transit and water markets, wherein AECOM enjoys a dominant position.

Over the past 50 years, AECOM has been supporting NASA in its globally impactful missions and cutting-edge operations.

Currently, this leading professional, technical and management solution provider has been witnessing a robust pipeline of pursuits across the business. The company’s net service revenues or NSR — defined as revenues excluding subcontractors and other direct costs — have been benefiting from strength across core transportation, water, and environment markets.

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The stock has rallied 34.6% in the year-to-date period compared with the industry’s 28.6% growth. Earnings estimates for fiscal 2021 have moved up 1.4% in the past 60 days, depicting analysts' optimism over bottom-line growth potential. The Zacks Consensus Estimate for the Zacks Rank #3 (Hold) company’s fiscal 2021 earnings indicates a 31.2% increase from the 2020 level. AECOM currently has good visibility into growth and a strong backlog for the upcoming quarters.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Picks

Some better-ranked stocks in the same industry include KBR, Inc. (KBR - Free Report) , Altair Engineering Inc. (ALTR - Free Report) and Quanta Services Inc. (PWR - Free Report) , each carrying a Zacks Rank #2 (Buy). KBR, Altair, and Quanta are likely to register earnings growth rate of 24.9%, 64.5%, and 19.9% year over year for 2021.

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