AECOM (ACM Quick QuoteACM - Free Report) is set to provide master planning, architecture, and engineering services to the United States Air Force Academy (USAFA).

Through a sole-source indefinite delivery, indefinite quantity (IDIQ) contract, AECOM is responsible to support USAFA with its multi-disciplined planning and conceptual designs.

AECOM has been working with USAFA for more than two decades and has been providing solutions to some of its most challenging architectural and engineering projects.

U.S. Infrastructural Push: A Boon

In the United States, the $1.2-trillion Infrastructure and Jobs Act marks a generational investment in America's infrastructure. This bill provides the much-needed long-term funding certainty across AECOM’s strongest end markets such as transit modernization, electrification, environmental remediation and climate resilience.

Demand for AECOM’s technical, advisory and program management capabilities is increasing against a backdrop of an improving funding environment, highlighted by the recent passing of the federal infrastructure bill in the United States as well as rising demand for ESG-related services. This has encouraged the company to expect accelerating revenue growth in fiscal 2022 and continued margin, adjusted EBITDA and adjusted earnings per share growth.

In the latest contract with the USAFA, AECOM will leverage its experience in higher education, historic preservation, and facility and supporting infrastructure design to create a master plan for the development of the campus. The company’s scope of work includes community, agency, and constituency outreach and collaboration; data and spatial analysis; visualization of planning efforts; creation of district and sustainability component plans; environmental services; historic preservation recommendations; and conceptual cost estimating.

AECOM is witnessing robust prospects in all its segments. The company’s net service revenues or NSR — defined as revenues excluding subcontractor and other direct costs — have been benefiting from strength across core transportation, water and environment markets. NSR for the first quarter of fiscal 2022 increased 5%, marking the fourth consecutive quarter of accelerating organic growth, including strong contributions from both the Americas and International businesses. Its backlog amounted to $38.8 billion at fiscal first quarter-end. The backlog level included 15% contracted backlog growth, with increases in both Design and Construction Management businesses.
 

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Coming to share price, this Zacks Rank #2 (Buy) company’s shares have gained 23.3% in the past year, outperforming the industry’s 9.2% rise. Earnings for fiscal 2022 are expected to grow 20.6% year over year. Earnings estimates have gone 3% up over the past 30 days, depicting analysts’ optimism over the company’s prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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