AECOM Increases Project Pipeline, Looks to Future Growth

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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering and design-build firm AECOM (NYSE:ACM) (Los Angeles, California) increased its project backlog 5% in first-quarter fiscal 2022, led by growth in its design and construction management businesses. The company expects future growth to be buoyed by the recently passed U.S. bipartisan infrastructure law and global environmental, social and governance (ESG) initiatives. Industrial Info is tracking $34.6 billion in projects across the world involving AECOM, including $24.3 billion in the U.S. and Canada, that have a medium or high probability (70-99%) of moving forward as planned.

Click on the image at right for a breakdown of AECOM's project activity in the U.S. and Canada, by industry.

The company saw a backlog of $38.8 billion in the just-ended quarter, and expects double-digit pipeline growth across all segments in fiscal 2022. Net income from continuing operations increased 41% year over year to $118 million.

In the company's earnings conference call, AECOM Chief Executive Officer Troy Rudd said, "Our federal, state, and local clients are gearing up for several years of sustained increases in infrastructure investment, which includes the expected benefits of the $1.2 trillion bipartisan infrastructure law." The company expects the new law to support "multiple years of growth visibility."

In regards to ESG initiatives, he said, "Today, nearly every project proposal has an element of ESG in its scope and our clients are demanding more holistic thinking and a broader advisory relationship to help them achieve that multi-decade ambition." He added, "As leaders in the transportation, water, environment and facilities markets, we are better positioned than ever to fully capitalize on a global infrastructure renaissance and growing demand for ESG services."

AECOM's active projects are led by the Industrial Manufacturing Industry's transportation systems sector and the Power Industry. The company is providing design-engineering services for a $6 billion Phase II 2nd Avenue subway expansion in New York City, which is part of an 8.5-mile project and involves constructing a new, 2.25-mile line section and three new stations. The kickoff is expected in October. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the project report.

Another major transportation project involving AECOM is the $2 billion Green Line light rail extension project in Minneapolis, Minnesota. The project entails adding 14.5 miles of double-track rail along with 15 stations, which will serve surrounding communities. AECOM is providing architectural services on the project, which kicked off in 2019 and is expected to be completed in early 2023. Subscribers can click here for the project report. The company is involved in other rail projects in locations such as Honolulu, Hawaii; Phoenix, Arizona; and Ontario.

On the ESG and power-generation front, AECOM is providing consulting services for the 150-megawatt (MW) Cranberry Point battery energy storage system (BESS) project in Carver, Massachusetts, about 50 miles southeast of Boston. The system will utilize Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) Megapack lithium-ion technology. Construction was moved out a year and now is planned to begin in October 2023. Subscribers to Industrial Info's GMI Power Project Database can click here for more information.

In Canada, AECOM is providing engineering services for Hydro-Quebec's (Montreal, Quebec) $2.2 billion Champlain Hudson Power Express Transmission Line. The high-voltage, direct-current underground and underwater line will run 333 miles, delivering 1,000 MW of power from Hydro-Quebec's existing Hertel Substation in Montreal, Quebec, to the Harlem River in New York. The route includes traveling underneath Lake Champlain and the Hudson River. The kickoff is expected in July, with completion in December 2023. Subscribers can click here for more information.

"AECOM is committed to playing a major role in the upgrade of energy infrastructure around the world," AECOM Chairman and Chief Executive Officer John M. Dionisio said in a press release announcing the company's engagement on the project. "We are delighted to play a key role in a marquee project that will lower costs, increase reliability and reduce emissions as we bring to bear our extensive experience on assignments that encompass alternative energy, transmission and distribution, power generation and energy management."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.