AECOM Secures Strategic Role in U.K. National Highways Framework

AECOM ACM has strengthened its U.K. footprint after being awarded a place on National Highways’ Specialist Professional and Technical Services 3 (SPaTS3) framework. Partnering with Arup, the firm joins a six-supplier consortium to provide advisory and technical expertise for England’s motorway and major road networks.

The framework, valued at up to £495 million across its six-year duration, runs until 2031 and underscores AECOM’s role as a trusted partner in the modernization of critical transportation infrastructure.

AECOM’s Work Scope in the New Win

The framework offers technical and consulting services to National Highways, which oversees and upgrades England's major A-roads and motorways, in order to improve the safety and resilience of the country's 4,500-mile strategic road network.

Additionally, the company's extensive track record of success with National Highways and its U.K.-specific expertise will help to deliver sustainable, efficient transport networks that enhance connectivity and drive economic growth. To achieve the substantial infrastructure goals of the framework, AECOM and Arup will use their global advising experience with engineering advice experience to help National Highways improve the network's resilience, safety and efficiency.

Reinforcing Government Relationships

AECOM’s long-standing partnerships with the Department for Transport and National Highways highlight its credibility and execution capabilities. Being reappointed under SPaTS3 not only provides visibility into recurring revenues but also strengthens its standing as a go-to partner for government-backed transport projects. This credibility could translate into further opportunities as the U.K. accelerates its infrastructure modernization efforts.

Focus on Investments in Infrastructure Modernization to Fuel Growth

The demand for AECOM’s expertise across transportation, water, environment, energy and facilities is rising as global, multi-decade investments in infrastructure modernization and sustainability accelerate. Supportive government policies, including initiatives like the “Big Beautiful Bill,” are further fueling growth in clean energy and resilience projects.

At the end of third-quarter fiscal 2025, backlog reached a new all-time high, growing both sequentially and year over year, while the book-to-burn ratio remained above 1 for the 19th consecutive quarter. For the third consecutive quarter, AECOM increased its full-year guidance, with adjusted EBITDA and EPS up 10% and 16% year to date, respectively, and free cash flow up 27%. Supported by multi-decade megatrends in global infrastructure, sustainability and resilience, management anticipates sustainable growth in the future and is still optimistic about further margin expansion and shareholder value creation.

AECOM’s stock has gained 17.1% year to date compared with the Zacks Engineering - R and D Services industry’s 11.2% growth. Despite near-term budgetary constraints, long-term megatrends such as infrastructure investment, sustainability and resilience are expected to drive sustainable growth.

ACM’s Zacks Rank & Key Picks

AECOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Construction sector are Everus Construction Group Inc. ECG, Tutor Perini Corporation TPC and Great Lakes Dredge & Dock Corporation GLDD.

Everus Construction Group presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 42.7%, on average. ECG stock has jumped 16.9% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ECG Group’s 2025 sales and earnings per share (EPS) indicates growth of 18% and 3.9%, respectively, from the year-ago period’s levels.

Tutor Perini sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 387.2%, on average. Tutor Perini stock has jumped 144.4% year to date.

The Zacks Consensus Estimate for Tutor Perini’s 2025 sales and EPS indicates growth of 20.6% and 187%, respectively, from the prior-year levels.

Great Lakes Dredge & Dock flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 45.3%, on average. Great Lakes Dredge & Dock stock has gained 4.7% year to date.

The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s 2025 sales and EPS indicates growth of 9% and 21.4%, respectively, from the prior-year levels.

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