Yahoo Finance AECOM (ACM) Secures NAVFAC Pacific Contract With Stantec JV
AECOM ACM, in partnership with Stantec, clinched a significant five-year environmental planning contract from NAVFAC Pacific. The contract, with a ceiling value of $99 million, aims to bolster Navy and Marine Corps compliance with the National Environmental Policy Act (NEPA) across the Pacific Region.
This single-award, indefinite-delivery, indefinite-quantity contract will see the Stantec GS-AECOM Pacific joint venture undertake crucial environmental planning services. These services encompass research, preparation, updating, and review of essential documents to ensure NEPA compliance. Additionally, the scope of work extends to environmental, facilities, and land use planning studies.
This strategic partnership between AECOM and Stantec underscores their collective expertise and dedication to delivering top-tier infrastructure solutions. By leveraging their combined strengths, they are poised to provide unparalleled support to the Navy and Marine Corps in meeting their environmental compliance objectives.
Investors should take note of AECOM's latest contract win, which not only enhances its revenue streams but also highlights its commitment to delivering impactful solutions in the vital field of environmental planning.
Backlog Growth Signals Positive Outlook
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 around the globe, 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 fiscal second-quarter end, the total backlog was $23.74 billion compared with $22.98 billion reported in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. The design business backlog grew 6.3% to $22.29 billion. The metric was driven by a near-record win rate and continued strong end-market trends.
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Shares of this current Zacks Rank #2 (Buy) company gained 19.1% in the past year compared with the Zacks Engineering - R and D Services industry’s 47.9% growth. Although shares of the company have underperformed its industry, the ongoing contract wins are likely to boost its prospects in the forthcoming quarters.
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