AECOM partners with Saudi logistics zone developer to boost kingdom’s trade

DALLAS - AECOM (NYSE:ACM), a prominent player in the Construction & Engineering industry with a market capitalization of $15.2 billion, announced Monday a strategic partnership with Special Integrated Logistics Zones Company (SILZ) to advance Saudi Arabia’s logistics infrastructure development, supporting the kingdom’s Vision 2030 economic diversification goals. According to InvestingPro data, AECOM maintains a robust financial health score, positioning it well for major infrastructure projects.

Under the agreement, AECOM will provide project management consultancy and strategic advisory services for Riyadh Integrated, SILZ’s flagship logistics zone located eight kilometers from King Khalid International Cargo Village.

The Riyadh Integrated logistics zone is designed to serve high-growth sectors including information and communications technology, pharmaceuticals, and aerospace. The facility offers warehouses, build-to-suit units, land plots, offices, and showrooms with direct access to key transport corridors.

"This strategic partnership with AECOM marks a pivotal moment for SILZ Company and for Saudi Arabia’s ambitious journey to become a global integrated logistics powerhouse," said Dr. Fadi Al-Buhairan, CEO of SILZ Company, in a press release statement.

Hamed Zaghw, chief executive of AECOM’s Middle East and Africa region, noted that the collaboration "marks the foundation of a long-term relationship built on shared ambition and innovation."

The Riyadh Integrated zone offers incentives including 50-year tax relief and 100% foreign ownership opportunities, according to the announcement.

AECOM, a Fortune 500 infrastructure consulting firm that reported $16.1 billion in revenue for fiscal year 2024, will leverage its transportation design expertise to help position Saudi Arabia as a global logistics hub. The company’s stock is trading near its 52-week high of $118.56, reflecting strong market confidence. InvestingPro subscribers can access detailed analysis and 12 additional expert tips about AECOM’s performance and outlook.

The partnership aligns with Saudi Vision 2030 objectives of economic diversification, sustainable development, and enhanced global trade integration as the kingdom works to reduce its dependence on oil revenues. With a solid diluted earnings per share of $4.67 and positive analyst consensus, AECOM appears well-positioned to execute this strategic initiative. Discover more comprehensive insights and detailed financial metrics in AECOM’s Pro Research Report, available exclusively on InvestingPro.

In other recent news, AECOM has reported significant developments across various regions. The company has secured three contracts from the U.S. Army Corps of Engineers Honolulu District, with a combined ceiling exceeding $400 million. These contracts will involve providing architectural, civil design, and environmental planning services to aid in infrastructure modernization and mission readiness for the U.S. Army in the Pacific region. Additionally, AECOM’s joint venture with AtkinsRéalis has won a consultancy agreement for the Hong Kong Section of the Hong Kong-Shenzhen Western Rail Link, covering a 7.3-kilometer stretch. In financial moves, AECOM has set the tender offer price for its 5.125% Senior Notes due in 2027 at $1,008.76 per $1,000 principal amount. Furthermore, AECOM has been appointed as an ecosystem delivery partner for VolkerRail as part of Network Rail’s Southern Renewals Enterprise in the UK, providing multidisciplinary design services. Analyst firm KeyBanc has raised AECOM’s stock price target from $120 to $129, maintaining an Overweight rating due to the company’s diversified market and geographic exposure. KeyBanc also noted that AECOM’s outlook remains stable this year.

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