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DALLAS - AECOM (NYSE: ACM), a global infrastructure consulting firm, has been selected to provide program management services as well as design and engineering expertise to assist the Los Angeles County Metropolitan Transportation Authority (Metro) with its Zero Emission Buses (ZEB) transition project. This move aligns with Metro's commitment to environmental sustainability and is bolstered by federal funding from the Infrastructure Investment and Jobs Act.
Under the contract, AECOM will be responsible for the conceptual design of the ZEB and charging infrastructure, along with the specification and procurement support. The company will also offer strategic advice on the implementation process to ensure a smooth transition to zero-emission operations.
Mark Southwell, chief executive of AECOM’s global Transportation business, expressed pride in the company's role in advancing Metro’s vision for a sustainable transit system. He emphasized AECOM's suitability for the task, given its Sustainable Legacies strategy and technical expertise.
Matt Crane, chief executive of AECOM’s U.S. West region, highlighted the project's potential to serve as a national model for how transit agencies can effectively move to zero-emission buses and update their facilities to accommodate new fleet technologies.
AECOM, a Fortune 500 company, has reported $14.4 billion in revenue from its Professional Services business in the fiscal year 2023. The firm is recognized for its comprehensive services across various sectors, including transportation, buildings, water, new energy, and the environment.
This announcement contains forward-looking statements regarding AECOM's future operations and performance. While the company believes these projections are based on reasonable assumptions, actual outcomes could vary significantly from these predictions.
The information for this news article is based on a press release statement.
In other recent news, global infrastructure consulting firm AECOM has been selected as the primary design consultant for Wessex Water's Capital Delivery Framework, a significant initiative aiming to enhance water and wastewater services for nearly 3 million customers in South West England. The firm also secured a lead role in managing improvements for the San Diego International Airport, overseeing the modernization of its terminals. Additionally, AECOM was awarded a contract by the New York Power Authority to manage energy transition projects, a key step towards a carbon-free New York.
In terms of financial performance, AECOM announced an 8% increase in its third-quarter net service revenue, leading to an upward adjustment of earnings guidance for the second consecutive quarter. The company anticipates a 21% boost in adjusted earnings per share for fiscal year 2024.
Recent analyst notes from RBC Capital and Citi maintained positive ratings on AECOM's stock. RBC Capital upheld an Outperform rating, citing the firm's effective strategic initiatives and increased infrastructure spending in key markets. Citi reiterated a Buy rating, highlighting AECOM's potential for long-term earnings visibility and strong cash flow generation.
Other developments include AECOM's appointment as the Lead Designer for the replacement of two aging bridges along the Bronx River Parkway, a New York State Department of Transportation initiative. These recent developments underline AECOM's ongoing commitment to enhancing infrastructure and delivering sustainable projects worldwide.
InvestingPro Insights
AECOM (NYSE: ACM) has taken a significant step in the sustainable transportation arena by securing a contract with the Los Angeles County Metropolitan Transportation Authority for its Zero Emission Buses (ZEB) project. As investors consider the implications of this development for AECOM's financial health and future prospects, InvestingPro data and tips provide valuable insights.
InvestingPro data indicates that AECOM has a market capitalization of $13.54 billion, reflecting its substantial presence in the infrastructure consulting sector. The company's Price-to-Earnings (P/E) ratio stands at 54.04, suggesting a premium valuation that investors are willing to pay for its earnings. However, when adjusted for the last twelve months as of Q3 2024, the P/E ratio becomes more attractive at 23.41. This adjustment is in line with AECOM's expected net income growth, an InvestingPro Tip that underlines the company's potential for increased profitability in the coming year.
Another noteworthy InvestingPro Tip is that AECOM has successfully raised its dividend for three consecutive years, a testament to its commitment to returning value to shareholders. This is coupled with a dividend growth of 22.22% over the last twelve months as of Q3 2024, reinforcing the company's financial stability and confidence in its future cash flows.
While AECOM's gross profit margins appear weak at 6.58%, the company's role as a prominent player in the Construction & Engineering industry, along with its moderate level of debt, suggests a strategic positioning that could leverage opportunities like the ZEB project to improve margins over time. The firm's strong return over the last five years, as highlighted by an InvestingPro Tip, further cements its reputation as a solid investment in its sector.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which can offer further guidance on AECOM's financial health and stock performance. To explore these insights, visit https://www.investing.com/pro/ACM.
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