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ACM Stock Gains on Optimized Remediation Contract Win From USACE
ZACKSยท 2025-05-28 16:16
Core Viewpoint - AECOM has secured a 10-year Optimized Remediation Contract valued at $81.3 million from the U.S. Army Corps of Engineers, enhancing its position in environmental remediation services [1][2]. AECOM's Work Scope Under ORC - The contract involves providing environmental remediation services at Vandenberg Space Force Base, covering 60 sites and utilizing advanced digital tools for data collection and analysis [2][3]. Strong Backlog Growth - AECOM's total backlog reached $24.27 billion as of the end of Q2 fiscal 2025, reflecting a 3% increase from $23.74 billion year-over-year, with 54.9% of this backlog contracted [5]. - The company maintains a win rate of over 50% for large projects, which increases for contracts exceeding $25 million, indicating a strong competitive advantage [5]. Market Performance - AECOM's shares have increased by 2.4% year-to-date, outperforming the Zacks Engineering - R and D Services industry's decline of 0.6% [7]. - The company is well-positioned to benefit from the $1.2 trillion IIJA funding in the U.S. and infrastructure investments in the U.K., particularly in transportation and water markets [7].