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AECOM Wins US Air Force Contract for Global Environmental Services

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Key Takeaways

  • ACM won a global environmental services contract from the U.S. Air Force Civil Engineer Center.
  • The deal includes a $1.5B ceiling, a five-year base period and an optional five-year extension.
  • ACM will handle all project phases, supporting restoration, compliance and resource protection.

AECOM (ACM - Free Report) has been awarded a multiple-award task order contract by the U.S. Air Force Civil Engineer Center to support global architecture and engineering services. 

The contract covers various environmental programs, including restoration, planning and conservation across various federal agencies. It has a ceiling of $1.5 billion and includes a five-year base period with an option for an additional five years.

ACM to Support Environmental Services Across Federal Agencies

The contract strengthens AECOM’s position in delivering environmental services to federal agencies. It highlights continued work with the U.S. Air Force and related defense entities. The company will focus on programs that help manage environmental quality and resource protection. The contract aligns with ongoing federal efforts related to infrastructure and environmental compliance.

Per the contract, AECOM will deliver environmental services to the U.S. Air Force, Air Force Materiel Command, AFCEC, and other defense and federal agencies. Work will cover all phases of the project lifecycle, including planning, assessment, investigation, design and long-term management.

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.

At the end of the second quarter of fiscal 2025, the total backlog was $24.27 billion, up from $23.74 billion in the prior-year period. The current backlog level includes 54.9% contracted backlog growth. AECOM’s ability to consistently secure large, complex projects underpins its competitive advantage. In the fiscal second quarter, the company achieved an 80% win rate on major enterprise pursuits and maintained a more than 50% overall win rate.
 

Zacks Investment Research
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Shares of this provider of professional, technical and management solutions have gained 3.7% year to date against the Zacks Engineering - R and D Services industry’s 2% gain. 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.

AECOM’s Zacks Rank & Other Key Picks

Currently, AECOM carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. (STRL - Free Report) , EMCOR Group, Inc. (EME - Free Report) and Gibraltar Industries, Inc. (ROCK - Free Report) .

Sterling presently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 11.5%, on average. The stock has increased 67.4% in the past year. The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a decrease of 1.7% and the same for earnings implies an increase of 38.5% year over year.

EMCOR currently holds a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 22.8%, on average. The stock has increased 28.9% in the past year.

The consensus estimate for EMCOR’s 2025 sales and EPS implies an increase of 13.3% and 9.7%, respectively, from a year ago.

Gibraltar currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 17.1% in the past year.

The Zacks Consensus Estimate for Gibraltar‘s 2025 sales and EPS implies an increase of 9.3% and 15.8%, respectively, from a year ago.

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