AECOM’s ACM joint venture (“JV”) with STV has been selected by Amtrak to manage the Sawtooth Bridges Replacement Project in New Jersey. The project is a key part of Amtrak’s Gateway Program, addressing critical repair needs and doubling train capacity on the most congested 10-mile section of the Northeast Corridor (“NEC”).

Constructed in 1907, the Sawtooth Bridges support more than 400 daily trains, including those operated by Amtrak and NJ TRANSIT. Their age and structural deficiencies limit train speeds to 60 mph, causing significant bottlenecks. The project will deliver three new bridges. Among them one will be a 1.9-mile stretch between Newark Penn Station and Secaucus Junction.

AECOM’s JV to Manage Key Rail Upgrades Along NEC

AECOM continues its long-standing partnership with Amtrak to support the transit upgrade, which is part of a broader federal investment in the nation's rail infrastructure. The company’s experience with NEC bridge replacement projects enables it to provide safe and resilient rail connectivity, addressing both current and future demands.

The AECOM-led JV will adopt a multi-phased approach to project planning and the delivery of new and upgraded structures. As project manager, the JV will coordinate design efforts and manage relationships with railroads, utilities and third parties. The team includes engineers specializing in civil, geotechnical, structural and environmental disciplines.

The company will use its extensive transportation resources, site knowledge and experience with large-scale projects along the NEC to provide innovative solutions that improve rail reliability. As a leading firm in Mass Transit and Rail, AECOM will support Amtrak in upgrading tracks and bridges to enhance connectivity along a busy transportation corridor.

AECOM’s Role in Amtrak's Major Infrastructure Projects

With funding from the Federal Railroad Administration, Amtrak has been advancing several megaprojects to modernize infrastructure, improve station facilities and accommodate future ridership growth. AECOM is involved in key projects, including the Frederick Douglass Tunnel Program, the Connecticut River Bridge Replacement and the Susquehanna River Rail Bridge Project.

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 fourth quarter of fiscal 2024, 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.

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Shares of this solutions provider for supporting professional, technical and management solutions have gained 16.8% in the year-to-date period, outperforming the Zacks Engineering - R and D Services industry’s 9% growth. With $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.

AECOM’s Zacks Rank & Other Key Picks

Currently, AECOM 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 delivered a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have gained 48.9% in the past six months. The Zacks Consensus Estimate for STRL’s 2025 sales and EPS implies an increase of 7.3% and 8.1%, respectively, from the prior-year levels.

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 25.8% in the past six months.

The Zacks Consensus Estimate for MTZ’s 2025 sales and EPS indicates an increase of 8.8% and 43.4%, respectively, from a year ago.

Comfort Systems USA, Inc. FIX currently sports a Zacks Rank of 1. FIX delivered a trailing four-quarter earnings surprise of 14.7%, on average. The stock has gained 35.5% in the past six months.

The consensus estimate for FIX’s 2025 sales and EPS indicates an increase of 7.9% and 20.8%, respectively, from a year ago.

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