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DALLAS - AECOM (NYSE: ACM), a global infrastructure firm with a market capitalization of $12.55 billion and a prominent position in the Construction & Engineering industry, has been awarded a significant contract as part of a joint venture to oversee the design and construction of a key section of Hong Kong’s Northern Metropolis development. According to InvestingPro data, the company maintains a GOOD financial health score and has demonstrated strong returns over the last five years. The project, known as the San Tin / Lok Ma Chau Development Node, is expected to be a hub for innovation and technology, ultimately supporting around 2.5 million people. This contract adds to AECOM’s robust revenue stream, which reached $16.2 billion in the last twelve months, with an 8.9% growth rate.
The joint venture, which includes AECOM and AtkinsRéalis, will provide a suite of services for Package 3 of the project. These services encompass design, tender and construction supervision, site formation, engineering infrastructure works, urban-rural integration, nature-based solutions, open space design and landscaping, digital solutions, and environmental monitoring and mitigation. The development spans approximately 190 hectares and aims to balance modern development with nature and cultural conservation.
Ian Chung, AECOM’s Asia region chief executive, expressed pride in the company’s ongoing partnership with the Civil Engineering and Development Department (CEDD) of the HKSAR Government. AECOM’s approach will feature integrated, multi-disciplinary teams to deliver a community-focused innovation and technology hub, emphasizing technical excellence and digitalized, nature-positive strategies.
The project, targeting completion by 2038, is set to include housing, community, and commercial spaces, designed with climate resilience and innovative construction methodologies. AECOM’s design emphasizes urban-rural integration and includes features such as revitalized rivers, a cultural and recreational complex, and a landscaped deck for pedestrians and cyclists.
In line with the Government’s Smart City strategy, AECOM will develop and implement a unified digital twin platform for the entire San Tin Technopole project, enhancing planning and delivery efficiency. This platform is expected to align with initiatives like the Common Spatial Data Infrastructure (CSDI) and Integrated Capital Works Platform (iCWP).
Bane Gaiser, chief executive of AECOM’s global Buildings + Places business, highlighted the company’s legacy in designing complex urban environments and its commitment to creating sustainable, resilient communities.
AECOM’s engagement in the Northern Metropolis builds on its current work on Package 1 of the San Tin project and the company’s selection to conduct an Investigation Study for the Sam Po Shue Wetland Conservation Park, which will be the first of its kind in Hong Kong.
The announcement is based on a press release statement from AECOM, a Fortune 500 firm with a reported revenue of US$16.1 billion in fiscal year 2024, and over 40 years of experience in new town development in Hong Kong. Currently trading at $94.60, analysts have set price targets ranging from $102 to $140, reflecting confidence in the company’s growth potential. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.
In other recent news, AECOM reported better-than-expected results for its first fiscal quarter, posting adjusted earnings per share of $1.31, surpassing analyst estimates of $1.11. The company’s revenue reached $4.01 billion, significantly exceeding the consensus forecast of $1.79 billion. AECOM raised its fiscal year 2025 guidance, with adjusted EPS now expected to be between $5.05 and $5.20, and adjusted EBITDA projected at $1,175 million to $1,210 million. The company highlighted strong growth in its Americas segment and record backlog levels, which increased 4% year-over-year to $23.9 billion.
In addition, RBC Capital Markets raised its price target for AECOM to $125, maintaining an Outperform rating. The firm cited the company’s favorable first quarter results and updated guidance as factors contributing to this decision. AECOM’s board of directors was re-elected, and Ernst & Young LLP was ratified as the independent accounting firm for the fiscal year ending September 30, 2025. The company also approved an amendment to its Certificate of Incorporation, aligning with Delaware General Corporation Law. However, a proposal concerning severance compensation was not approved by shareholders.
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