Yahoo Finance AECOM (ACM) Wins FEMA Contract for Public Assistance Program
AECOM ACM secured a single-award professional services contract from the U.S. Department of Homeland Security’s (DHS) Federal Emergency Management Agency (FEMA).
AECOM will provide advisory and program management services to FEMA's four Consolidated Resource Centers (CRCs) located in Winchester, VA (East); Denton, TX (Central); Sacramento, CA (West); and Guaynabo, Puerto Rico (Atlantic).
Per the contract, ACM will support FEMA's Public Assistance grant program aimed at repairing and/or replacing damaged public infrastructure after catastrophic disasters. This support includes aiding in project validation, consolidation and review, ensuring efficient and effective allocation of resources for community recovery efforts. The contract includes a one-year base period with two one-year option periods that can be exercised at the government's discretion.
Additionally, it will provide technical support for Environmental Planning and Historical Preservation, as well as assistance with insurance matters. This will help FEMA fulfill equity commitments and deliver disaster support to underserved communities.
The company has engaged with FEMA for more than 40 years on resilience projects. AECOM is well-positioned to improve the delivery and processing of federal grants through its highly skilled technical staff. Many of them have dedicated their careers to supporting FEMA's mission. This will enhance infrastructure nationwide to be better, stronger and more resilient.
Increasing Backlog Bodes Well
AECOM is witnessing robust prospects in each of its segments. Currently, it has a good visibility of a strong backlog and pipelines for the upcoming quarters. Owing to the improving global scenario, which is fostering infrastructural demand around the globe, there has been an increase in demand for ACM’s services. This improving trend is reflected in the company’s backlog levels.
As of the fiscal second-quarter end, the total backlog was $23.74 billion compared with $22.98 billion reported in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. The design business backlog grew 6.3% to $22.29 billion. The metric was driven by a near-record win rate and continued strong end-market trends.
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AECOM’s shares have gained 4.4% in the past year compared with the Zacks Engineering - R and D Services industry’s growth of 43.4%. Although the stock has underperformed the industry in the past year, the ongoing contract wins are likely to boost prospects in the forthcoming quarters. Also, increasing infrastructural spending trends across the world are encouraging for ACM.
Zacks Rank & Key Picks
ACM currently carries a Zacks Rank #3 (Hold).
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The Zacks Consensus Estimate for GTES’ 2024 sales indicates a 0.2% decline but EPS growth of 2.9% from the prior-year levels.
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