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AECOM (ACM) to Support SDG&E Strategic Undergrounding Program

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AECOM (ACM - Free Report) received a contract from San Diego Gas & Electric (SDG&E) to provide project management services to reduce wildfire risk and improve electric safety and reliability in selected areas. Shares of the company rose 2.05% on Nov 15, post news release.

Per this deal, AECOM will support Strategic Undergrounding Program that contains wildfire mitigation and public safety power shutoff risk reduction efforts. AECOM’s support will help SDG&E to minimize community disruption and improve efficiencies by implementing sustainable solutions and innovative approaches to pre-construction and construction activities, leveraging its global experience with energy companies.

Drew Jeter, chief executive of AECOM’s global Program Management business, stated, "We understand the essential need for investments in technology and energy infrastructure to mitigate impacts of climate change and the threat of wildfires, which is now year-round. SDG&E is already an industry leader in wildfire resiliency and we’re proud to be a part of providing innovative solutions, grounded in technical acumen and scientific principles, to support this essential work for the community."

Project Execution Strengthen Profitability

AECOM is a leading solutions provider supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and 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.

On Nov 10, the company’s joint venture received the California High-Speed Rail Authority contract to provide program management services for the first in the nation electrified high-speed rail line that will connect cities across the region with frequent train service exceeding 200 miles per hour.

On Nov 4, its South Jersey Transit Partners JV was selected by the Glassboro-Camden Line (GCL) Project Team to provide engineering, project management and additional professional services for the GCL Light Rail project in New Jersey.

AECOM is witnessing robust prospects in all its segments. Total September-end backlog, one of the best leading indicators for future growth, increased 4.1%. The current backlog level includes 53.2% contracted backlog growth.

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Shares of the company have outperformed the Zacks Engineering - R and D Services industry in the past six months. This leading professional, technical and management solutions provider is witnessing a robust pipeline of pursuits across the business. It benefits from solid infrastructure spending in the U.K., Canada, Hong Kong and Australia.

Zacks Rank & Key Picks

AECOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks, which warrant a look in the same industry, include Willdan Group, Inc. (WLDN - Free Report) , Sterling Infrastructure, Inc. (STRL - Free Report) and Altair Engineering Inc. (ALTR - Free Report) , each carrying a Zacks Rank #2 (Buy).

Willdan is a nationwide provider of professional, technical, and consulting services to utilities, government agencies, and private industry.

WLDN’s expected earnings growth rate for 2023 is 18.5%.

Sterling Infrastructure provides transportation, e-infrastructure and building solutions.

STRL’s expected earnings growth rate for 2022 and 2023 is 47.4% and 6.3%, respectively.

Altair Engineering provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics, and artificial intelligence worldwide.

ALTR’s expected earnings growth rate for 2022 and 2023 is 10.6% and 21.5%, respectively.

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