AECOM appointed as technical advisor for Victoria’s energy grid

DALLAS - AECOM (NYSE:ACM), a $14.5 billion market cap construction and engineering leader with annual revenue of $16 billion, has been appointed as technical advisor and lead consultant for VicGrid, a newly established Victorian government agency in Australia, according to a company press release.

The infrastructure firm will partner with GHD as a key subconsultant and a team of specialist contractors to provide technical advice and support for VicGrid’s energy infrastructure program. Services will include engineering, land planning, and environmental approvals, with participation from First Nations subcontractors. According to InvestingPro, AECOM is a prominent player in the Construction & Engineering industry, operating with moderate debt levels and maintaining healthy profit margins.

VicGrid is responsible for planning and developing energy infrastructure to ensure a reliable and efficient electricity grid in Victoria. The agency will coordinate the planning, development, and delivery of the state’s Renewable Energy Zones and transmission infrastructure as Victoria transitions to renewable energy.

The agency will also lead investments in projects to strengthen Victoria’s energy grid, including the delivery of transmission infrastructure required to connect new offshore wind resources.

"We are excited to work with our partners to support VicGrid in delivering the energy transition and providing safe and affordable power for Victorians," said Mark McManamny, chief executive of AECOM’s Australia and New Zealand region.

AECOM, a Fortune 500 firm with revenue of $16.1 billion in fiscal year 2024, provides professional services in water, environment, energy, transportation and buildings sectors.

The appointment comes as Victoria undergoes a significant transformation to build a next-generation power grid that can support the state’s transition to renewable energy sources.

In other recent news, AECOM has been awarded an $81.3 million contract by the U.S. Army Corps of Engineers Los Angeles District for environmental remediation services at Vandenberg Space Force Base. This decade-long contract involves overseeing remediation and management operations across 60 sites, utilizing advanced digital tools to optimize the process. Additionally, AECOM is partnering with the Saudi Ministry of Sport to provide consultancy services for the renovation of King Fahd Sport City in Riyadh, aligning with Saudi Arabia’s preparations for upcoming global sports events. In terms of financial performance, AECOM reported revenues of $16.1 billion for fiscal year 2024. RBC Capital Markets recently raised its price target for AECOM to $126, citing strong second-quarter results and increased guidance for fiscal year 2025. The company’s adjusted EBITDA and EPS exceeded expectations, despite some shifts in U.S. federal government contracts. Truist Securities maintains a Buy rating on AECOM, emphasizing the firm’s resilience and strategic focus on markets with strong growth prospects. AECOM is also competing for a $3 billion energy and water conservation contract, which involves multiple U.S. companies and is overseen by the U.S. Army Corps of Engineers’ Engineering and Support Center in Huntsville, Alabama.

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