Back to top

Image: Bigstock

AECOM (ACM) JV Wins FEMA Contract for Public Assistance Services

Read MoreHide Full Article

AECOM (ACM - Free Report) , a global infrastructure consulting firm, in partnership with Dewberry, has been awarded a contract by the U.S. Department of Homeland Security’s Federal Emergency Management Agency (“FEMA”) to provide public and technical assistance services. Operating under the Public Assistance Technical Assistance V contract, the joint venture, known as NISTAC PLUS JV, will support FEMA's Public Assistance grant program. AECOM will serve as the managing partner of the joint venture.

The contract will focus exclusively on the Atlantic Zone, encompassing eight states, Puerto Rico and the Virgin Islands. Its scope includes aiding in the processing of grants for the restoration or replacement of public facilities following presidentially declared disasters and emergencies. This involves assessing disaster damage and helping applicants identify eligible losses.

The task orders under this contract will support state and local governments as well as private non-profit organizations requiring recovery assistance services for public infrastructure, such as schools, hospitals, government buildings, roads, bridges and utilities. The scope of work includes site inspection, program technical assistance, program analysis and support, field technical support, cost estimating and other technical services.

This contract win underscores AECOM's extensive experience and dedication to supporting FEMA in its mission to assist communities in responding to and recovering from major disasters. With a track record of more than 400 responses to disasters worldwide, AECOM is poised to make significant contributions to FEMA's goals for its Public Assistance grant program.

Share Price Performance

AECOM has been gaining from high-returning organic growth initiatives. In the first quarter of fiscal 2024, revenues of $3.9 billion rose 15% on a year-over-year basis. Adjusted net service revenues (NSR) moved up 7% to $1.71 billion. Organic NSR in the design business recorded year-over-year growth of 8%, led by the water and transportation markets, and 9% growth in the Americas.

In the past six months, shares of the company have risen 0.3% compared with the Zacks Engineering - R and D Services industry’s 11.3% growth. Although shares of AECOM have underperformed its industry, its solid backlog level depicts strong growth potential. As of the fiscal first-quarter end, the total backlog came in at $39.81 billion. The current backlog level includes 56.5% contracted backlog growth.

Zacks Investment Research
Image Source: Zacks Investment Research

During the fiscal first quarter, the record-high 9% growth in the design business backlog (on a constant currency basis) was driven by a near-record win rate and continued strong end-market trends. The contracted backlog in the design business rose 17%, supported by funding strength across the key markets.

Zacks Rank & Key Picks

AECOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks that warrant a look in the sector are as follows:

Advanced Drainage Systems, Inc. (WMS - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). WMS delivered a trailing four-quarter earnings surprise of a whopping 37.1%, on average. The stock has risen 25.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Advanced Drainage Systems’ 2024 EPS has increased to $5.79 from $5.62 over the past 30 days.

Masco Corporation (MAS - Free Report) currently carries a Zacks Rank #2 (Buy).

Estimates for Masco’s earnings per share (EPS) for 2024 have increased to $4.10 from $3.98 over the past 30 days. This leading manufacturer of branded home improvement and building products has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of MAS have rallied 28.5% in the past six months.

Armstrong World Industries, Inc. (AWI - Free Report) currently carries a Zacks Rank of 2. AWI delivered a trailing four-quarter earnings surprise of 13.1%, on average. It has surged 56.7% in the past six months.

The Zacks Consensus Estimate for Armstrong World Industries’ EPS for 2024 has increased to $5.65 from $5.48 over the past 30 days.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

Published in