AECOM Secures Key Role in Seattle's $1B Transit Modernization

AECOM ACM has secured a multi-faceted role in the massive expansion of the Seattle region’s public transportation system through three Multiple-Award Task Order Contracts (MATOCs) with Sound Transit. Under these agreements, the company will deliver integrated design, planning and environmental services alongside comprehensive project and construction management (PMCM).

This collaboration is strategically designed to accelerate the next phase of planning, design and delivery for the Seattle region’s expanding light rail, commuter rail and bus network. By providing a comprehensive suite of technical services, AECOM further strengthens its position as a key partner in advancing the complex, large-scale transit infrastructure programs that are vital to regional mobility.

AECOM’s Work Scope in the New Win

As the lead firm on the five-year Design MATOC, AECOM will oversee the delivery of civil and structural engineering work — spanning from preliminary engineering to full design development — as part of Sound Transit’s regional mobility expansion. The partnership is aimed at advancing a next-generation transit network for Seattle — one designed to enhance system capacity, strengthen operational reliability and broaden accessibility across the metropolitan area.

This specific contract is a cornerstone of Sound Transit’s broader regional mobility expansion, which includes a total of 19 MATOCs issued under the program. Collectively, these agreements are expected to generate approximately $1 billion in engineering services over the performance period. The work will support the expansion and modernization of transit infrastructure across the Seattle metropolitan area, including construction of new facilities, system upgrades and state-of-good-repair improvements to maintain and enhance existing assets.

Beyond its lead design role, AECOM will serve as a specialized subconsultant on the Environmental MATOC, providing the essential planning studies and environmental clearance activities required to move new infrastructure and renewal projects through the regulatory process. Additionally, the firm will provide critical support on the PMCM MATOC, where it will oversee project and construction management for a wide range of Sound Transit initiatives.

Focus on Investments in Infrastructure Modernization to Fuel Growth

AECOM continues to anchor its growth strategy in the accelerating global demand for infrastructure modernization, a market underscored by an estimated $3.7 trillion U.S. infrastructure investment gap over the next decade. This structural shortfall, combined with long-term priorities around resilience, sustainability and capacity expansion, provides a durable foundation for multiyear growth.

At the end of the first quarter of fiscal 2026, AECOM’s backlog reached a new all-time high, increasing 9% year over year. Notably, the book-to-burn ratio remained above 1.0 for the 21st consecutive quarter, reflecting sustained demand and technical leadership. In the first quarter, adjusted operating margins reached a record 16.4%, up 100 basis points, while adjusted EPS of $1.29 exceeded expectations. Backed by powerful global megatrends in infrastructure renewal and digital transformation, management has increased full-year guidance, maintaining confidence in the company’s ability to deliver a 20% margin exit rate by fiscal 2028 and enhance long-term shareholder value.

AECOM’s stock has gained 2.7% year to date compared with the Zacks Engineering - R and D Services industry’s 24.8% growth. While near-term macroeconomic uncertainty, elevated costs and currency headwinds remain overhangs, the company’s long-term outlook is underpinned by powerful structural tailwinds. Sustained demand across transportation, water, environmental, energy and advanced facilities markets — bolstered by government-backed infrastructure spending — positions AECOM for durable, long-term growth.

ACM’s Zacks Rank & Other Key Picks

AECOM currently carries a Zacks Rank #2 (Buy).

Here are some other top-ranked stocks from the Construction sector:

Comfort Systems USA, Inc. FIX flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 35.2%, on average. FIX stock has surged 104% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Comfort Systems’ fiscal 2026 sales and EPS indicates growth of 20.3% and 28.2%, respectively, from the prior-year levels.

Fluor Corporation FLR sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 17.6%, on average. FLR stock has climbed 22% in the past six months.

The Zacks Consensus Estimate for Fluor’s 2026 sales and EPS indicates growth of 3.4% and 23.3%, respectively, from the prior-year levels.

MasTec, Inc. MTZ carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 17.4%, on average. MTZ stock has gained 66% in the past six months.

The Zacks Consensus Estimate for MasTec’s 2026 EPS indicates growth of 27.3% from the year-ago period’s levels.

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

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