AECOM Secures Major Infrastructure Contracts in Hong Kong With JV

AECOM ACM, a global leader in infrastructure, has been selected to support the Northern Metropolis Highway (“NMH”) project in Hong Kong. The company, through a joint venture, has been engaged by the Highways Department of the HKSAR Government and will provide technical services for this major development.

The project is expected to improve east-west connectivity across the Northern Metropolis. It also aims to drive economic growth and support the region’s technology and research sectors.

AECOM Strengthens Presence With New Hong Kong Contract

Following a recent contract awarded by the Civil Engineering and Development Department of the HKSAR Government, ACM has now secured another major project in the region. The new contract further strengthens the company’s presence in Hong Kong’s infrastructure space.

Under the latest engagement, the company and its joint venture partner, AtkinsRéalis, will carry out feasibility studies and explore alternative alignment options. The scope contains preliminary design and assessments related to traffic, land use and environmental impact. This also includes exploring other route options, preparing preliminary designs and conducting studies on traffic flow, environmental concerns and land acquisition needs.

Leveraging its knowledge of Hong Kong’s New Development Areas, the company will use advanced technologies such as BIM, digital twins and DfMA. These tools are expected to support cost-effective designs and help speed up the overall project timeline.

AECOM to Support Key Northern Metropolis Highway Development

AECOM is fully committed to supporting the Highways Department in delivering NMH, a key project for Hong Kong’s future mobility. The company brings extensive experience in transportation improvements across Hong Kong and will contribute to the development of a world-class strategic corridor.

NMH, part of the HKSAR Government's Strategic Studies on Railways and Major Roads beyond 2030, will feature dual three-lane sections and at least eight major interchanges. The project includes four sections, Tin Shui Wai, San Tin, Kwu Tung and New Territories North New Town, forming a vital east-west corridor to support future transport infrastructure in new development areas.

ACM’s Price Performance

Shares of this solutions provider for supporting professional, technical and management solutions have declined 12.1% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s 17.6% decline. Although its shares have trended downward, the company is poised to benefit from strength across end-markets and client exposure, reflected by solid organic growth in net service revenues (“NSR”). In the first quarter of fiscal 2025, NSR grew 5.5% on an adjusted basis. AECOM expects the new U.S. administration’s policies to drive infrastructure investment and support growth in fiscal 2025 and beyond.

AECOM’s Zacks Rank & Key Picks

Currently, AECOM carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. STRL, EMCOR Group, Inc. EME and Gibraltar Industries, Inc. ROCK.

Sterling presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has increased 40.8% in the past year. The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a decrease of 4.1% and the same for earnings implies an increase of 34.6% year over year.

EMCOR currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 29%, on average. The stock has increased 15% in the past year.

The consensus estimate for EMCOR’s 2025 sales and EPS implies an increase of 12.8% and 8.6%, respectively, from a year ago.

Gibraltar currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has lost 25.4% in the past year.

The Zacks Consensus Estimate for Gibraltar‘s 2025 sales and EPS implies an increase of 9.8% and 15.5%, respectively, from a year ago.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research