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DALLAS - AECOM (NYSE:ACM), a prominent player in the Construction & Engineering industry with a market capitalization of $14.94 billion and an overall "GOOD" financial health rating according to InvestingPro, has been appointed as an ecosystem delivery partner for VolkerRail as part of Network Rail’s Southern Renewals Enterprise (SRE), according to a company press release.
The infrastructure firm will provide multidisciplinary design services including topographical surveys, track engineering, electrical track engineering design, and project management services for VolkerRail, which serves as the track delivery partner for the SRE. AECOM’s strong market position is reflected in its impressive 27.5% stock return over the past year, with InvestingPro analysis showing 12 key insights about the company’s performance and outlook.
Network Rail’s Southern Region hosts approximately 700 million passenger journeys annually across parts of Greater London and southern England. The region covers about 3,300 miles of track, 544 stations, and connects to channel routes to Europe, major ports, and airports.
The SRE model was introduced by Network Rail in April 2024 to deliver its £9 billion renewals portfolio planned between 2024 and 2034. The approach is based on the Institution of Civil Engineers’ Project 13 principles, focusing on increased collaboration and long-term planning.
"Our integrated expertise across railway design, maintenance and delivery positions us to realize these major improvements for millions of travelers," said Mark Southwell, chief executive of AECOM’s global Transportation business.
Network Rail’s Southern Region encompasses three routes - Wessex, Sussex and Kent - and includes infrastructure such as 4,986 bridges, 895 level crossings and 7,990 signals.
AECOM reported revenue of $16.1 billion in fiscal year 2024 and is listed on the Fortune 500. The company maintains healthy profitability with a return on equity of 28% and is currently trading near its InvestingPro Fair Value. For deeper insights into AECOM’s financial performance and future prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which provides detailed analysis of this Fortune 500 company’s market position and growth potential.
In other recent news, AECOM has reported several significant developments. AECOM announced a $1 billion senior notes offering to refinance its debt, with plans to use the proceeds to purchase outstanding senior notes due in 2027. The company also secured an $81.3 million contract from the U.S. Army Corps of Engineers to provide environmental remediation services at Vandenberg Space Force Base. This decade-long contract will involve remediation and management operations across 60 sites within the base. Additionally, AECOM has been appointed as a technical advisor for VicGrid in Australia, collaborating with partners to support Victoria’s transition to renewable energy. In the realm of competitive contracts, AECOM is among several firms vying for a $3 billion contract focused on energy and water conservation services. Furthermore, KeyBanc has raised its price target for AECOM to $129, maintaining an Overweight rating and citing the company’s diversified market exposure. KeyBanc anticipates AECOM will continue to see growth in net service revenue and margin expansion. These developments underscore AECOM’s active role in infrastructure and environmental projects globally.
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