AECOM to provide technical services for Hong Kong highway

DALLAS - AECOM (NYSE: ACM), a prominent player in the Construction & Engineering industry with a market capitalization of $12.5 billion, has announced its joint venture’s engagement by the Highways Department of the Hong Kong Special Administrative Region Government to deliver technical services for the Northern Metropolis Highway (NMH). According to InvestingPro data, the company maintains good financial health with annual revenue exceeding $16.2 billion. This project is part of a significant development aimed at improving connectivity in Hong Kong’s Northern Metropolis, a region poised for economic growth and innovation in research and technology sectors.

The joint venture, which includes AECOM and its partner Atkins Réalis, will undertake the assessment of engineering feasibility, preliminary design, and various impact assessments for the NMH. The initiative will leverage AECOM’s expertise in transportation design and its familiarity with Hong Kong’s New Development Areas. The company’s stock has shown strong momentum recently, with an impressive 8.17% return over the past week, as reported by InvestingPro. Advanced technologies such as digital twins, Building Information Modeling (BIM), and Design for Manufacturing and Assembly (DfMA) will be employed to ensure cost-effective and efficient project delivery.

Spanning approximately 23 kilometers, the NMH will connect Tin Shui Wai in the west to the New Territories North New Town near Ping Che in the east. The highway is expected to alleviate congestion on existing roads and support the development of transport infrastructure in the region. It will feature dual three-lane sections and at least eight major interchanges to link existing roads with new development areas.

Mark Southwell, chief executive of AECOM’s global Transportation business, expressed pride in partnering with the Highways Department to create a smarter and more connected region. Ian Chung, chief executive of AECOM’s Asia region, emphasized the company’s commitment to supporting the Highways Department in delivering a strategic corridor that will benefit residents for years to come.

The NMH project is one of three major road initiatives announced as part of the Strategic Studies on Railways and Major Roads beyond 2030, where AECOM had previously played a key role.

AECOM is a Fortune 500 firm that reported revenue of US$16.1 billion in fiscal year 2024. The company’s services span advisory, planning, design, engineering, and construction management across various sectors, including transportation. Analysts maintain a bullish outlook on AECOM, with targets reaching as high as $140 per share. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks including AECOM.

This announcement is based on a press release statement, and all forward-looking statements within it are subject to various factors that could cause actual results to differ from projected outcomes.

In other recent news, AECOM reported impressive first-quarter results, significantly surpassing analyst expectations. The company achieved adjusted earnings per share of $1.31, exceeding the anticipated $1.11, and recorded revenue of $4.01 billion, well above the consensus forecast of $1.79 billion. Following these results, AECOM raised its fiscal year 2025 guidance, projecting adjusted EPS in the range of $5.05 to $5.20, and adjusted EBITDA between $1,175 million and $1,210 million. In addition to financial updates, AECOM was selected as a partner for Sydney Water’s infrastructure revamp, aiming to enhance the city’s water system in response to rapid population growth and environmental pressures.

The company also secured a contract for a major development in Hong Kong’s Northern Metropolis, focusing on creating a sustainable innovation and technology hub. AECOM’s shareholders recently re-elected its Board of Directors and ratified the appointment of Ernst & Young LLP as the independent accounting firm for the fiscal year ending in 2025. RBC Capital Markets raised AECOM’s stock price target to $125, maintaining an Outperform rating, following the company’s favorable first-quarter results and updated guidance. Analysts at RBC noted AECOM’s strong start to the fiscal year, highlighting the company’s alignment with its initial projections and stable demand environment.

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