AECOM secures NYPA energy transition program contract

Published 28/08/2024, 12:04
AECOM secures NYPA energy transition program contract

DALLAS - AECOM (NYSE:ACM), a global infrastructure consulting firm, has been awarded a program management services contract by the New York Power Authority (NYPA), the United States' largest state public power utility. AECOM's role will include overseeing capital improvement projects that are part of NYPA's VISION2030 strategic plan, which focuses on transitioning to affordable, clean, and reliable electricity in New York.

The contract involves AECOM providing services for engineering, design, and procurement to assist NYPA in executing their capital projects. The company, accredited by the National Association of Energy Service Companies (NAESCO), is set to deliver energy-efficient improvements across NYPA's facilities.

NYPA's VISION2030 includes key priorities such as enhancing hydropower, decarbonizing natural gas plants, leading transmission development and operation, achieving energy goals, and reimagining the New York State Canal System for economic and recreational benefits. AECOM's efforts will align with this plan, aiming to support the transition to a carbon-free New York through innovative energy solutions.

AECOM's chief executive of its U.S. East & Latin America region, Bane Gaiser, and chief executive of AECOM's Program Management global business line, Drew Jeter, both expressed their commitment to advancing a carbon-free and economically vibrant New York. They emphasized the company's integrated approach to project delivery and global leadership in energy transition.

The company's Sustainable Legacies strategy aims to achieve net zero carbon emissions, improve social outcomes, and embed sustainable development and resilience into its work. AECOM's Professional Services business reported $14.4 billion in revenue for the fiscal year 2023.

This partnership between AECOM and NYPA is set to contribute to New York's ambitious goals for a sustainable energy future. The information for this article is based on a press release statement.

In other recent news, AECOM, a global infrastructure consulting firm, reported an 8% increase in net service revenue in its third quarter, leading to raised earnings guidance for the second consecutive quarter. The company expects a 21% surge in adjusted earnings per share for fiscal year 2024. RBC Capital maintained an Outperform rating on AECOM's stock, citing the firm's effective strategic initiatives and increased infrastructure spending in key markets.

On a similar note, Citi reiterated its Buy rating on AECOM, highlighting the company's potential for long-term earnings visibility and strong cash flow generation. The firm anticipates strong growth for AECOM's Americas segment and expects continued revenue growth in the International segment driven by solid backlog levels.

In other developments, AECOM has been appointed as the Lead Designer for the replacement of two aging bridges along the Bronx River Parkway. This project, initiated by the New York State Department of Transportation, is part of a broader effort to improve infrastructure resilience and connectivity in the region, with over $200 million allocated to the initiative. These are among the recent developments for AECOM.

InvestingPro Insights

AECOM (NYSE:ACM) has recently garnered attention with its new contract to manage key projects for the New York Power Authority's VISION2030 initiative. As investors consider the potential impact of this development on the company's performance, real-time data and insights from InvestingPro can provide a deeper understanding of AECOM's current financial health and market position.

InvestingPro data reveals that AECOM boasts a market capitalization of $13.63 billion, reflecting its significant presence in the infrastructure sector. The company's Price/Earnings (P/E) ratio, as of the last twelve months leading up to Q3 2024, stands at 23.55, suggesting a valuation that is potentially more attractive when aligned with its near-term earnings growth. Furthermore, AECOM's Price/Book ratio during the same period is at 5.93, which might be considered high, indicating that the market values the company's assets quite robustly.

Revenue growth is also a strong point for AECOM, with a 13.43% increase over the last twelve months as of Q3 2024. This indicates a healthy expansion in the company's operations, which could be bolstered by the new NYPA contract. Moreover, the company has delivered a strong return over the last three months, with a price total return of 17.87%, showcasing investor confidence in its market performance.

Among the InvestingPro Tips, two particularly relevant insights for potential and current investors are:

  • Net income is expected to grow this year, aligning with AECOM's strategic initiatives such as the NYPA contract, which could drive future profitability.
  • The company is a prominent player in the Construction & Engineering industry, which may benefit from the increasing focus on sustainable and resilient infrastructure.

For those seeking more in-depth analysis, InvestingPro offers additional tips on AECOM, providing a comprehensive outlook on the company's financial health and market prospects. With 15 more InvestingPro Tips available, investors can access a wealth of knowledge to inform their investment decisions.

As AECOM continues to navigate the evolving landscape of infrastructure consulting and project management, these insights can help stakeholders better understand the company's potential for growth and the risks it may face. For more detailed information and tips on AECOM, interested parties can visit https://www.investing.com/pro/ACM.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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