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AECOM (ACM) Wins NIA's Project Management Services Contract

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AECOM (ACM - Free Report) has secured a contract under which it will provide project management consultancy services for NEOM International Airport (NIA).

This multi-year contract enables AECOM to deliver services for NIA in the northwestern region of Saudi Arabia. The scope of the work under this contract includes project management for master planning, design and construction services, through to testing, commissioning, operational readiness, activation and transition.

Hamed Zaghw, chief executive of AECOM's Middle East and Africa region said, “This contract is a testament to our leadership position in the region and to our continuous commitment to NEOM and the goals of Saudi Arabia’s Vision 2030.”

Solid Backlog & International Infrastructural Activities Bode Well

Notably, AECOM specializes in providing integrated services for the planning, construction and maintenance of infrastructures. The company’s International unit is involved in planning, consulting, architectural and engineering design services, and program management for commercial and government clients in major markets of Europe, the Middle East, Africa, India and the Asia-Pacific regions.

As of December 2022-end, the company’s total backlog came in at $40.8 billion (including 9% growth in the design business) compared with $38.8 billion in the prior-year quarter. The current backlog level includes 56.8% contracted backlog growth. The book-to-burn ratio was 1.2 in the Americas and 1.5 in the International.

In the Middle East, Environmental, Social and Governance (ESG)-focused cities such as NEOM and AIUla are drawing on its expertise and are strong opportunities. The company is prioritizing its investments in ESG. The company has been benefiting from the industry-leading position in green building and green design, environmental compliance and remediation, energy efficiency and infrastructure resilience.

Zacks Investment Research
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In the past year, shares of the company have gained 8.9% compared with the Zacks Engineering - R and D Services industry’s 7.3% rally. This leading professional, technical and management solutions provider is witnessing a robust pipeline of pursuits across the business.


Zacks Rank & Other Key Picks

AECOM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the Zacks Construction sector are:

United Rentals, Inc. (URI - Free Report) currently carries a Zacks Rank #2. Shares of URI have gained 51.2% in the past six months. The long-term earnings growth rate of the company is 16.3%.

The Zacks Consensus Estimate for URI’s 2023 sales and earnings per share (EPS) indicates growth of 20.3% and 28.3%, respectively, from the previous year’s reported levels.

Sterling Infrastructure, Inc. (STRL - Free Report) currently carries a Zacks Rank #2. STRL has a trailing four-quarter earnings surprise of 19.3%, on average. Shares of the company have gained 77.8% in the past six months.

The Zacks Consensus Estimate for STRL’s 2023 sales indicates a 0.8% decline, while that for EPS suggests 10.8% growth.

Skyline Champion Corporation (SKY - Free Report) currently carries a Zacks Rank #2. SKY has a trailing four-quarter earnings surprise of 43.2%, on average. Its shares have rallied 31.4% in the past six months.

Earnings estimates for SKY’s fiscal 2024 have increased to $4.19 per share from $4.04 over the past 60 days.

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