The trusted global infrastructure leader, AECOM ACM, has secured major wins in the U.K. water sector under the new Asset Management Period 8 ("AMP8") framework. The company maintained a 100% success rate in recompeting for contracts, with the expected value of these frameworks more than double the value of the previous AMP7 period. Additionally, AECOM has been awarded several new positions on other AMP8 frameworks, which are expected to drive further growth in its U.K. Water business.
The AMP8 framework, managed by Ofwat, U.K.’s water services regulation authority, will run from 2025 to 2030 and is valued at approximately £104 billion, 77% higher than the AMP7 program. It will focus on improving the reliability, sustainability and digitalization of water infrastructure in England and Wales.
AECOM strengthens its position as the world’s leading water design firm with recent successes in AMP8 framework contracts. The company aims to double its water practice in the next five years and is focused on partnering with U.K. water utilities to achieve infrastructure goals, delivering safe and sustainable water to millions.
Recent wins include key appointments to professional service frameworks for Thames Water and Southern Water, as well as an additional role in Southern Water’s $4.8 billion capital delivery program. AECOM's strong technical expertise and leadership involvement have been central to these achievements.
AECOM has been a trusted partner to the U.K.’s major water utilities for decades, supporting critical water infrastructure upgrades. The company continues this legacy by strengthening its relationships with water clients to meet Ofwat’s goals for high-quality water infrastructure.
This contract further enhances AECOM's position as the No. 1 water design firm by Engineering News-Record. With access to sustainable technologies, AECOM delivers comprehensive solutions across markets, ensuring safe water, flood protection, water treatment, nutrient control and desalination.
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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.
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.
Currently, AECOM carries a Zacks Rank #2 (Buy).
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