DALLAS - AECOM (NYSE: ACM), a global infrastructure firm with a market capitalization of $14.3 billion and a "GOOD" financial health rating according to InvestingPro, has been selected in a joint venture with STV to manage the Sawtooth Bridges Replacement Project in New Jersey, a critical part of the Gateway Program aimed at repairing and expanding the Northeast Corridor (NEC), the company announced today.
The Sawtooth Bridges, built in 1907, are a vital component of the NEC, accommodating over 400 daily trains operated by Amtrak, NJ TRANSIT, PATH, and Conrail freight trains. Due to their age and structural limitations, current train speeds are restricted to 60 mph, causing bottlenecks that affect both intercity and commuter rail services. The replacement project will construct three new bridges across a 1.9-mile stretch in Kearny, between Newark Penn Station and Secaucus Junction.
Mark Southwell, chief executive of AECOM's global Transportation business, expressed pride in continuing their partnership with Amtrak to support the transit upgrade. He highlighted AECOM's successful track record on similar NEC bridge projects and their readiness to deliver reliable and resilient rail connectivity.
The joint venture will employ a multi-phased alternative delivery approach, managing the project planning and overseeing the construction of the new bridges. As project manager, the venture will coordinate design and manage interactions with railroads, utilities, and third parties. The team includes engineers across multiple disciplines, including civil, geotechnical, structural, and environmental engineering.
Bane Gaiser, chief executive of AECOM's U.S. East and Latin America region, emphasized the firm's commitment to leveraging their transportation resources and experience with large-scale NEC projects to provide innovative solutions that enhance rail reliability.
The project is part of Amtrak's broader efforts, supported by Federal Railroad Administration funding, to modernize the NEC's infrastructure, improve station facilities, and cater to future ridership growth. AECOM is also involved in other significant NEC projects, including the Frederick Douglass Tunnel Program, the Connecticut River Bridge Replacement, and the Susquehanna River Rail Bridge Project.
AECOM, a Fortune 500 company with reported revenue of $16.1 billion in fiscal year 2024, is known for delivering professional services across various sectors such as water, environment, energy, transportation, and buildings. The information about the joint venture's selection by Amtrak is based on a press release statement.
In other recent news, AECOM, a global infrastructure firm, has seen significant developments. The company reported a robust increase in contract wins in the UK water sector under the new Asset Management Period 8 (AMP8), doubling the expected framework value compared to the previous period. AECOM's recent achievements include securing major professional service frameworks for Thames Water and Southern Water.
In other developments, AECOM has been chosen by the Austin Transit Partnership to oversee the first phase of Austin's inaugural light rail transit system. This project aims to enhance regional transportation connectivity.
On the financial front, AECOM's fourth-quarter earnings for fiscal year 2024 outperformed expectations, due to significant margin performance. However, revenue fell slightly short of predictions. In response to these results, Baird increased their stock price target for AECOM from $113.00 to $122.00, maintaining an Outperform rating. Goldman Sachs (NYSE:GS) also initiated coverage on AECOM stock with a Buy rating, indicating potential for double-digit earnings per share growth in the medium term.
AECOM is projecting adjusted earnings per share ranging from $5.00 to $5.20 for fiscal 2025, significantly above Wall Street's estimate of $4.52. These projections are based on a healthy level of contracted work, indicated by a book-to-bill ratio greater than 1.0x, and a project pipeline that grew by 10% compared to the previous year.
Finally, AECOM board member Lydia Kennard has decided not to seek reelection at the company's 2025 Annual Meeting of Stockholders for personal reasons.
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