AECOM Selected to Support Southern Water's $4.8B Program

AECOM ACM is all set to support Southern Water's $4.8 billion capital delivery program.

Per the contract, ACM, along with Pell Frischmann, has been chosen by Kier to provide detailed design services on Lot 1 for non-infrastructure water and Lot 2 for wastewater projects within a Strategic Delivery Partner Framework. This initiative, running from 2025 to 2030, focuses on improving water and wastewater infrastructure across the UK during the AMP8 regulatory period.

Also, Morrison Water Services, the second contractor, has asked AECOM to be its sole design partner for SDP Lot 3 Framework for infrastructure projects and Low Complexity Delivery Route Lot 2 (Wastewater) Framework. These frameworks are for seven and five years, respectively, with the option to extend for an additional five years.

AECOM will contribute to project design, management, and implementation, ensuring Southern Water's long-term environmental and community goals are met. This collaboration marks a major step in AECOM's continued work with Southern Water, positioning the company as a vital partner in delivering these ambitious upgrades.

ACM's Strong Backlog & Global Demand Drive Growth

Currently, this global leader in water infrastructure has been ailing from labor shortages, particularly in skilled trades. Inflationary pressures, particularly in raw materials and energy, could also be bothering margins. This apart, broader economic uncertainties, such as fears of a recession or global economic slowdown, are likely to have been impacting major players like Sterling Infrastructure, Inc. STRL, Jacobs Solutions Inc. J and KBR Inc. KBR within the infrastructure sector.

Mitigating these headwinds, ACM has been experiencing robust growth across its segments, backed by strong pipeline visibility for the upcoming quarters. Healthy state and local budgets, along with increased private sector investments in water and energy transitions, have contributed to this upward trend.

Global demand for infrastructure development is rising, further increasing the need for AECOM's services. As of the fiscal third-quarter end, the total backlog was $23.36 billion compared with $23.21 billion in the prior-year period. The current backlog level includes 54.8% contracted backlog growth.

Ongoing contract wins are expected to boost prospects. Global infrastructure spending trends remain strong, providing further opportunities for AECOM's continued expansion.

A Brief About Above-Mentioned Stocks

Sterling specializes in e-infrastructure, transportation, and building solutions, primarily operating in the U.S. Its recent stock performance has been impressive, with shares rising significantly in the last year, outperforming its industry peers.

Jacobs, Dallas, TX-based company, is one of the leading providers of professional, technical and construction services to industrial, commercial and governmental clients.

KBR is a global engineering, construction and services firm supporting the market segments of global energy and international government services.

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