AECOM (ACM Quick QuoteACM - Free Report) has been selected by the U.S. Army Corps of Engineers (USACE) Los Angeles District for a 10-year Optimized Remediation Contract (ORC).

ACM stock climbed 1.6% during yesterday’s trading hours.

AECOM’s Work Scope Under ORC

The optimized remediation contract outlines the scope of offering environmental remediation services at Vandenberg Space Force Base on California’s Central Coast. With a value of $81.3 million, this contract win by AECOM highlights its strong position in offering mission-critical solutions efficiently.

Per the contract, the company will be offering various services, including a range of remediation and management activities at 60 sites throughout Vandenberg Space Force Base. Moreover, ACM will utilize top-tier digital tools to enhance data collection, analysis and reporting, resulting in an optimized approach to site remediation.

Per Matt Crane, chief executive of AECOM’s U.S. West region, “By leveraging the principles of our Sustainable Legacies strategy and applying cutting-edge digital innovations, we are accelerating progress toward lasting restoration at Vandenberg Space Force Base.”

Strong Backlog Growth Bodes Well for AECOM

AECOM has been witnessing robust prospects in each of its segments. Currently, it has a good visibility of a strong backlog and pipelines for the upcoming quarters. Owing to the improving global scenario, which is fostering infrastructural demand, there has been an increase in demand for ACM’s services. This improving trend is reflected in the company’s backlog levels.

As of the end of the second quarter of fiscal 2025, the total backlog was $24.27 billion, up 3% from $23.74 billion in the prior-year period. The current backlog level includes 54.9% contracted backlog, which grew 5% year over year. AECOM’s ability to consistently secure large, complex projects underpins its competitive advantage. The company maintains a win rate of more than 50% for large pursuits, which rises further for projects exceeding $25 million.

Image Source: Zacks Investment Research

Shares of this provider of professional, technical and management solutions have gained 2.4% year to date against the Zacks Engineering - R and D Services industry’s 0.6% decline. With the $1.2 trillion IIJA funding accelerating in the United States and the U.K. government prioritizing investments in infrastructure, led by the transportation and water markets, the company’s growth prospects seem encouraging.

ACM’s Zacks Rank & Other Key Picks

AECOM currently carries a Zacks Rank #2 (Buy).

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