AECOM Lands Major Framework to Propel UK Water Upgrades

Global infrastructure leader AECOM ACM has been appointed to Thames Water’s new £400 million FA1980 framework, marking a significant milestone in its collaboration with the UK’s largest water utility. This framework consolidates several prior agreements into a unified approach aimed at modernizing water and wastewater systems across south-east England, including London and the Thames Valley. By supporting Thames Water’s 2025–2030 Asset Management Plan Period 8 (AMP8), the framework seeks to address critical challenges, including reducing leaks, preventing pollution, and enhancing environmental outcomes.Beverley Stinson, chief executive of AECOM’s global Water business, emphasized the company’s pivotal role, stating, “With our technical expertise and track record, we’re proud to help transform infrastructure serving 16 million customers.”Shares of AECOM lost 1.1% during the trading session but gained 0.4% in the after-hour trading session yesterday.AECOM Strengthening a Strategic PartnershipAECOM has secured the role of lead consultant on three lots under FA1980, with Arcadis and GHD acting as subconsultants. Additionally, AECOM has been designated as a subconsultant for a fourth lot, in collaboration with Arcadis, which will serve as the lead consultant. This new framework is set to span five years, with the possibility of a three-year extension.This new agreement builds on AECOM’s history with Thames Water, which includes seconding 20 staff members under the previous FA1300 framework. Colin Wood, AECOM’s Europe and India CEO, noted that the expanded scope under FA1980 allows the firm to bring a more comprehensive range of expertise to Thames Water’s asset and capital delivery programs. “This appointment reinforces our long-standing partnership and provides an opportunity to deliver resilient and impactful solutions,” Wood remarked.AECOM Driving Innovation for a Sustainable FutureThe FA1980 framework is designed to drive innovation and efficiency, with Thames Water emphasizing the importance of collaboration to achieve its goals. Preetinder Dhanoa, Capital Procurement Business Partner at Thames Water, highlighted that the new arrangement will “drive value through innovation and partnership working,” ensuring the success of AMP8.AECOM’s expanded role in this critical initiative strengthens its position as a leader in sustainable infrastructure. It is poised to deliver significant improvements to the UK’s water sector and ensure a more resilient future for millions of customers.AECOM's involvement in high-growth initiatives, such as the UK's Great Grid project and Australia's transmission grid expansion, highlights its expertise in tackling urbanization challenges. Additionally, the increasing focus on energy efficiency and electrification—fueled by rising demand for artificial intelligence and data center support—creates new opportunities for AECOM in grid modernization and energy storage solutions.AECOM’s Share Price PerformanceImage Source: Zacks Investment ResearchShares of this solutions provider for supporting professional, technical and management solutions have gained 17.4% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 4.1% growth. 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 in the market seem encouraging.As of the fourth quarter of fiscal 2024-end, the total backlog was $23.86 billion compared with $23.16 billion in the prior-year period. The current backlog level includes 50.8% contracted backlog growth. 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.ACM’s Zacks Rank & Other Key PicksAECOM currently carries a Zacks Rank #2 (Buy).Here are some other top-ranked stocks from the Construction sector.Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.It has a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have risen 56.7% in the past three months. The Zacks Consensus Estimate for STRL’s 2025 sales and earnings per share (EPS) implies an increase of 7.3% and 8.1%, respectively, from the prior-year levels.Louisiana-Pacific Corporation LPX currently flaunts a Zacks Rank of 1. LPX delivered a trailing four-quarter earnings surprise of 30.7%, on average. The stock has gained 25.8% in the past three months.The Zacks Consensus Estimate for LPX’s 2025 sales indicates an increase of 4.3% but a decline of 7.3% in EPS from a year ago.MasTec, Inc. MTZ presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has gained 24.4% in the past three months.The Zacks Consensus Estimate for MTZ’s 2025 sales and EPS indicates an increase of 8.6% and 45.5%, respectively, from a year ago.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AECOM (ACM): Free Stock Analysis Report Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks