Yahoo Finance AECOM's (ACM) JV Wins Utilities Consultancy Frameworks in UK
AECOM's ACM joint venture (JV) — Perfect Circle — has been selected by SCAPE for two new £1.25 billion Utilities Consultancy Frameworks in the United Kingdom (UK). SCAPE is the UK’s leading public sector procurement authority.
This joint venture with Pick Everard and Gleeds will deliver professional services for the utilities sector across the UK under these frameworks.
The JV secured spots on SCAPE’s £750 million direct award framework for England, Wales, and Northern Ireland and its £500 million dedicated framework for Scotland. These frameworks will operate for four years initially, with the possibility of extending for an additional two years. These frameworks aim to provide solutions and services across various utility sectors such as water, renewables, energy, rail and metro, aviation, ports and harbors and telecommunications.
J aims to utilize its multidisciplinary capabilities and track record in key utilities to benefit communities across the U.K. These new frameworks extend the company's role as a key enabler of the nation’s water sector growth and ongoing energy transition, empowering its teams to fortify the utilities infrastructure essential for a sustainable future.
Increasing Backlog Bodes Well
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.
The company has been witnessing robust prospects in each of its segments. 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 Zacks Rank #3 (Hold) company have gained 16.4% in the past year compared with the Zacks Engineering - R and D Services industry’s 51.3% growth. Although the stock has underperformed its industry, the ongoing contract wins are likely to boost its prospects in the forthcoming quarters. Its earnings per share (EPS) estimates for the fiscal 2024 reflect 21% year-over-year growth.
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