AECOM joint venture wins consultancy for Hong Kong-Shenzhen rail link

Published 22/07/2025, 12:02
AECOM joint venture wins consultancy for Hong Kong-Shenzhen rail link

HONG KONG - AECOM (NYSE:ACM), a prominent player in the Construction & Engineering industry with a market capitalization of $14.8 billion, announced Tuesday that its joint venture with AtkinsRéalis has secured a consultancy agreement from Hong Kong’s Highways Department for the Hong Kong Section of the Hong Kong-Shenzhen Western Rail Link. According to InvestingPro data, the company’s stock has delivered an impressive 25.5% return over the past year.

The project covers the design and construction of a 7.3-kilometer section connecting Hung Shui Kiu to the Shenzhen boundary. The complete railway will span approximately 18.1 kilometers, including 10.8 kilometers in Shenzhen. With annual revenues of $16 billion and a strong financial health score rated as "GOOD" by InvestingPro, AECOM demonstrates the financial capability to handle large-scale infrastructure projects.

This cross-boundary railway is a key component of Hong Kong’s Northern Metropolis Development Strategy and aims to enhance connectivity across the Greater Bay Area. When completed, travel time between Hung Shui Kiu and Qianhai will be reduced to approximately 15 minutes.

"Our teams have delivered some of Hong Kong’s most transformative railway projects," said Mark Southwell, chief executive of AECOM’s global Transportation business, in the press release.

The project will utilize a unified Building Information Modeling platform and Common Data Environment across all project stages to maximize efficiency and collaboration.

The rail link is among the strategic initiatives highlighted in Hong Kong’s 2023 Major Transport Infrastructure Development Blueprint. AECOM previously contributed to the development of this long-term vision through its involvement in strategic studies on railways and major roads beyond 2030.

AECOM has previously delivered other railway projects in Hong Kong, including Hong Kong West Kowloon Station and Shatin to Central Link.

The company did not disclose the financial terms of the agreement in its announcement. Analysts maintain a bullish outlook on AECOM’s prospects, with a consensus recommendation of 1.5 (Strong Buy). For deeper insights into AECOM’s financial health and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s performance metrics and future outlook.

In other recent news, AECOM has reported several significant developments. The company announced a private offering of $1 billion in senior unsecured notes due in 2033, with plans to use the proceeds to refinance its existing 5.125% Senior Notes due 2027. This move aligns with AECOM’s ongoing cash tender offer for these notes, priced at $1,008.76 per $1,000 principal amount. Additionally, AECOM secured three contracts from the U.S. Army Corps of Engineers Honolulu District, valued at over $400 million, to provide various design and planning services. The firm has also been appointed as an ecosystem delivery partner for Network Rail’s Southern Renewals Enterprise in the UK, supporting rail infrastructure projects. In the financial sector, KeyBanc has increased its price target for AECOM to $129 from $120, maintaining an Overweight rating due to the company’s diversified market exposure. These developments reflect AECOM’s strategic initiatives and continued expansion in both domestic and international markets.

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