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AECOM (ACM) to be Lead Consultant & Designer for M80 Ring Road
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AECOM (ACM - Free Report) , along with Acciona and MACA Civil, has been appointed by the Victoria State Government, Australia, to design and construct the M80 Ring Road Completion in Watsonia, Melbourne.
Per the deal, ACM will serve as the lead consultant and the only designer of the alliance. It will play a key role in delivering professional and technical services for the planning and design of permanent works.
The project will involve a major upgrade of the M80 Ring Road between Plenty Road and the North East Link for a seamless connection to the North East Link.
Mark Southwell, chief executive of AECOM’s global Transportation business, said, “Guided by our Sustainable Legacies strategy, we will deploy sustainable construction practices and digital advances across our work, with a focus on generative design and project-specific project control tools as well as innovative design, material selection, and construction approaches.”
Solid Higher-Margin, Lower-Risk Professional Services Business
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.
AECOM has been reaping rewards from its high-yielding organic growth strategies. In the initial quarter of fiscal 2024, revenues increased 15% year over year, reaching $3.9 billion. Adjusted net service revenues (NSR) also saw a notable uptick, rising 7% to $1.71 billion. Within the design business segment, organic NSR witnessed an 8% increase compared with the previous year, primarily driven by robust performance in the water and transportation sectors, along with a noteworthy 9% growth in the Americas region.
Image Source: Zacks Investment Research
Over the past month, AECOM's shares have experienced a modest uptick of 8.5%, trailing ahead 6.2% growth observed in the Zacks Engineering - R and D Services industry. The company's recent growth and robust backlog signal strong prospects. As of the fiscal first-quarter end, AECOM's total backlog stood at an impressive $39.81 billion, with contracted backlog growth accounting for 56.5%.
During the fiscal first quarter, the design business segment witnessed a remarkable 9% growth in backlog (on a constant-currency basis), fueled by an exceptional win rate and sustained positive trends in end markets. Contracted backlog within the design business also rose 17%, supported by solid funding across key markets.
Looking ahead, AECOM boasts a favorable outlook with clear visibility of a robust backlog and promising pipelines for the forthcoming quarters. The company's strong backlog levels serve as significant indicators of future revenue growth, highlighting substantial opportunities on the horizon.
Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Construction sector are:
The Zacks Consensus Estimate for WLDN’s 2024 sales and earnings per share (EPS) indicates growth of 3.9% and 3.4%, respectively, from the year-ago levels.
Sterling Infrastructure, Inc. (STRL - Free Report) presently sports a Zacks Rank #1. Sterling Infrastructure has a trailing four-quarter earnings surprise of 20.4%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 11.7% and 11.4%, respectively, from the prior-year levels.
Altair Engineering Inc. (ALTR - Free Report) currently carries a Zacks Rank #2 (Buy). ALTR delivered a trailing four-quarter earnings surprise of 107%, on average.
The Zacks Consensus Estimate for ALTR’s 2024 sales and EPS indicates growth of 8.5% and 13.3%, respectively, from the prior-year reported levels.
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AECOM (ACM) to be Lead Consultant & Designer for M80 Ring Road
AECOM (ACM - Free Report) , along with Acciona and MACA Civil, has been appointed by the Victoria State Government, Australia, to design and construct the M80 Ring Road Completion in Watsonia, Melbourne.
Per the deal, ACM will serve as the lead consultant and the only designer of the alliance. It will play a key role in delivering professional and technical services for the planning and design of permanent works.
The project will involve a major upgrade of the M80 Ring Road between Plenty Road and the North East Link for a seamless connection to the North East Link.
Mark Southwell, chief executive of AECOM’s global Transportation business, said, “Guided by our Sustainable Legacies strategy, we will deploy sustainable construction practices and digital advances across our work, with a focus on generative design and project-specific project control tools as well as innovative design, material selection, and construction approaches.”
Solid Higher-Margin, Lower-Risk Professional Services Business
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.
AECOM has been reaping rewards from its high-yielding organic growth strategies. In the initial quarter of fiscal 2024, revenues increased 15% year over year, reaching $3.9 billion. Adjusted net service revenues (NSR) also saw a notable uptick, rising 7% to $1.71 billion. Within the design business segment, organic NSR witnessed an 8% increase compared with the previous year, primarily driven by robust performance in the water and transportation sectors, along with a noteworthy 9% growth in the Americas region.
Image Source: Zacks Investment Research
Over the past month, AECOM's shares have experienced a modest uptick of 8.5%, trailing ahead 6.2% growth observed in the Zacks Engineering - R and D Services industry. The company's recent growth and robust backlog signal strong prospects. As of the fiscal first-quarter end, AECOM's total backlog stood at an impressive $39.81 billion, with contracted backlog growth accounting for 56.5%.
During the fiscal first quarter, the design business segment witnessed a remarkable 9% growth in backlog (on a constant-currency basis), fueled by an exceptional win rate and sustained positive trends in end markets. Contracted backlog within the design business also rose 17%, supported by solid funding across key markets.
Looking ahead, AECOM boasts a favorable outlook with clear visibility of a robust backlog and promising pipelines for the forthcoming quarters. The company's strong backlog levels serve as significant indicators of future revenue growth, highlighting substantial opportunities on the horizon.
Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Construction sector are:
Willdan Group, Inc. (WLDN - Free Report) currently sports a Zacks Rank #1 (Strong Buy). WLDN delivered a trailing four-quarter average earnings surprise of a whopping 886.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WLDN’s 2024 sales and earnings per share (EPS) indicates growth of 3.9% and 3.4%, respectively, from the year-ago levels.
Sterling Infrastructure, Inc. (STRL - Free Report) presently sports a Zacks Rank #1. Sterling Infrastructure has a trailing four-quarter earnings surprise of 20.4%, on average.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates a rise of 11.7% and 11.4%, respectively, from the prior-year levels.
Altair Engineering Inc. (ALTR - Free Report) currently carries a Zacks Rank #2 (Buy). ALTR delivered a trailing four-quarter earnings surprise of 107%, on average.
The Zacks Consensus Estimate for ALTR’s 2024 sales and EPS indicates growth of 8.5% and 13.3%, respectively, from the prior-year reported levels.