AECOM ACM, a global leader in infrastructure, secured a long-term partnership with Sydney Water, Australia’s largest water utility, as a Design Development Partner.

The company will support a major capital investment program planned over the next 10 years to address Sydney’s rapid growth. The program also focuses on improving climate resilience and renewing aging infrastructure. AECOM will help to deliver key developments to ensure a reliable and sustainable water system.

AECOM to Support Sydney Water’s 2050 Infrastructure Vision

Sydney Water’s capital investment program is a long-term plan through 2050. It supports the New South Wales Government’s vision for Greater Sydney. The program addresses population growth, ageing infrastructure and environmental pressures while supporting economic growth and community needs.

The contract marks a key step for the company in supporting one of Australia’s largest water infrastructure programs with Sydney Water. It builds on recent project wins and allows the company to bring global expertise to improve water reliability and climate resilience in Greater Sydney.

As Design Development Partner, the company will support planning and design across a wide range of water projects. This includes early-stage design work and helping to manage cost and time risks for assets like pipelines, pumps, treatment plants and related facilities.

AECOM Strengthens Strategic Partnership With Sydney Water

The contract strengthens the company’s long-standing partnership with Sydney Water. The company has previously supported major projects such as the Sydney Desalination Plant, upgrades at the Rouse Hill water recycling plant and the Western Sydney Regional Master Plan.

With this continued partnership, the company is expected to apply its global capability and local experience to deliver sustainable and efficient solutions for Greater Sydney’s water infrastructure.

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 first quarter of fiscal 2025, the total backlog was $23.88 billion compared with $23.32 billion in the prior-year period. The current backlog level includes 55.2% contracted backlog growth. AECOM’s ability to consistently secure large, complex projects underpins its competitive advantage. In the fiscal first quarter, the company gained market share at a record pace, achieving a 100% win rate in its largest and most strategic pursuits.

ACM’s Price Performance

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Shares of this solutions provider for supporting professional, technical and management solutions have lost 18.6% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s 25.6% decline. Although its shares have trended downward, the company is poised to benefit from strength across end-markets and client exposure, reflected by solid organic growth in net service revenues or NSR. In the first quarter of fiscal 2025, NSR grew 5.5% on an adjusted basis. AECOM expects the new U.S. administration’s policies to drive infrastructure investment and support growth in fiscal 2025 and beyond.

AECOM’s Zacks Rank & Key Picks

Currently, AECOM carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. STRL, EMCOR Group, Inc. EME and Gibraltar Industries, Inc. ROCK.

Sterling presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has increased 13.3% in the past year. The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a decrease of 4.1% and the same for earnings implies an increase of 35.6% year over year.

EMCOR currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 29%, on average. The stock has increased 2.4% in the past year.

The consensus estimate for EMCOR’s 2025 sales and EPS implies an increase of 12.8% and 8.6%, respectively, from a year ago.

Gibraltar currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has lost 30.9% in the past year.

The Zacks Consensus Estimate for Gibraltar‘s 2025 sales and EPS implies an increase of 9.8% and 15.5%, respectively, from a year ago.

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This article originally published on Zacks Investment Research (zacks.com).

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