AECOM Stock Price, News & Analysis

AECOM (NYSE: ACM) has been appointed by Thames Water to a new £400 million professional services framework in the UK. The FA1980 framework combines multiple existing professional services frameworks and will run for five years, with a possible three-year extension. AECOM has secured positions on four lots, leading three as primary consultant with Arcadis and GHD as subconsultants, and serving as subconsultant on the fourth lot.

The framework supports Thames Water's 2025-2030 business plan for AMP8 regulatory period, focusing on improving water and wastewater services, infrastructure upgrades, leakage prevention, and environmental enhancement. The framework covers multi-disciplinary services, infrastructure engineering, environmental services, and non-infrastructure engineering services. Currently, AECOM has 20 staff members seconded to Thames Water under the previous FA1300 framework.

AECOM and Jacobs Consultancy Canada's joint venture has been selected by Metro Vancouver for preliminary engineering services on the Iona Island Wastewater Treatment Plant upgrade. The plant, built in 1963, serves 750,000 residents and processes 200 billion liters of wastewater annually. The upgrade aims to meet regulatory requirements, improve water quality, support carbon neutrality objectives, and enhance climate resilience. The joint venture will provide design and project planning oversight, focusing on sustainable improvements while minimizing environmental impact and enhancing operational efficiency.

AECOM announced key updates to its capital allocation strategy, including a $1 billion increase in share repurchase authorization and an 18% increase in quarterly dividend to $0.26 per share. The company has returned $2.5 billion to shareholders since 2020, with $2.2 billion in stock buybacks reducing shares outstanding by 21%. AECOM has delivered a 20% average annual increase in dividend over the last three years. The next dividend payment is scheduled for January 17, 2025, to stockholders of record on January 2, 2025.

AECOM (NYSE:ACM) reported strong Q4 and full year fiscal 2024 results, exceeding previously increased guidance. Q4 revenue grew 7% to $4.1B, with net income up 396% to $168M. Full-year revenue increased 12% to $16.1B, with net income rising 343% to $506M. The company achieved record margins with adjusted EBITDA margin at 16.7% in Q4 and 16.0% for the full year.

Total backlog reached a new record with a 3% increase, while design backlog grew 5%. Free cash flow hit a record $708M, up 20% YoY. For fiscal 2025, AECOM expects organic NSR growth of 5-8% and adjusted EPS of $5.00-$5.20. The company increased its share repurchase authorization to $1B and quarterly dividend by 18%.

AECOM has been awarded a $90 million single-award task order by USAID to support the G7 Partnership for Global Infrastructure and Investment (PGI). The company will provide technical expertise for infrastructure development in rail, port, clean energy, digital technology, and food security projects worldwide. The PGI initiative, launched at the G7 Summit in 2022, aims to facilitate sustainable infrastructure investments in developing nations. AECOM will offer technical advisory services and support private investment facilitation. The U.S. has already mobilized over $60 billion towards PGI investments and aims to reach $200 billion by 2027, contributing to the G7's $600 billion target.

AECOM (NYSE:ACM) has scheduled its fourth quarter and full year fiscal 2024 earnings release for November 18, 2024, after U.S. market close. The company will host a conference call and webcast on November 19, 2024, at 8 a.m. Eastern Time to discuss financial results, strategic accomplishments, and market trends. The presentation will be accessible via webcast at investors.aecom.com, with dial-in options available at 800-599-5188 (U.S.) or 646-307-1591 (International) using passcode 7295287.

AECOM (NYSE: ACM) has been selected to support Southern Water's $4.8 billion capital delivery program for the AMP8 period (2025-2030). The company will serve as a detailed design partner to Kier on non-infrastructure water and wastewater projects, and as the sole design partner to Morrison Water Services for infrastructure projects and low complexity wastewater projects.

This selection builds on AECOM's existing appointments to Southern Water's AMP8 Professional Services Framework. The company will provide design engineering services, including optioneering, outline, and detailed design across water and wastewater projects. The frameworks run for seven and five years, respectively, with options for extension.

AECOM's involvement underscores its market sector leadership and technical expertise in water infrastructure modernization and sustainability. The collaboration aims to address challenges posed by population growth, climate change, and environmental protection needs.

AECOM has been selected by the Texas Department of Transportation (TxDOT) to provide design services for Segment 3C-4 of the North Houston Highway Improvement Project (NHHIP). This project aims to redesign I-45N between downtown Houston and the North Sam Houston Tollway, focusing on lane expansions, traffic congestion alleviation, commuter safety enhancement, and flood resiliency improvement.

AECOM's scope includes designing four express lanes, realigning I-45's six main lanes, and widening from one to four managed lanes from west of Houston Avenue to west of White Oak Bayou. The project also involves drainage system improvements to ensure roadway functionality during extreme weather events.

The NHHIP is expected to expand multi-modal transit options by adding more high-occupancy vehicle lanes, bike lanes, and pedestrian trail paths. It also aims to enhance regional freight mobility, supporting Houston's growth as local ports continue to expand.

AECOM (NYSE: ACM) has been selected by Peel Region to provide program management services for the Queen Street Housing Enabling Infrastructure Program (HEIP) in Ontario, Canada. This initiative aims to build essential wastewater and water infrastructure to support housing development mandated under Bill 23, which includes Ontario's goal to build 1.5 million units by 2031.

AECOM's scope of work includes planning, designing, and implementing new water and wastewater systems to meet accelerated growth and housing demands in Peel. The company's recent work in the region includes expanding the Clarkson Water Resource Recovery Facility and supporting drinking water treatment projects at the Arthur P. Kennedy and Lorne Park water treatment plants.