AECOM appointed to Southern Water’s Professional Services Framework

Rhea-AI Summary

AECOM (NYSE: ACM) has been appointed to Southern Water's Professional Services Framework, providing asset management, program, and project management services for the UK water utility's AMP8 regulatory period from 2025-2030. Under the framework, AECOM will focus on water resilience, wastewater treatment, customer service, and environmental protection. The contract includes asset management, advisory services, PMO, and technical services. AECOM will collaborate with partners Arcadis and AliumBlue to deliver these services. This appointment supports Southern Water's largest business plan to date, aiming to improve efficiency and mitigate supply chain risks.

Positive

• AECOM secured a significant contract with Southern Water, indicating strong business growth.
• The contract spans five years, ensuring long-term revenue and stability.
• Collaboration with Arcadis and AliumBlue enhances AECOM's service capabilities.
• Focus on water resilience and environmental protection aligns with sustainability goals.
• AECOM's technical expertise in water programs is recognized, strengthening its market position.

Negative

• Dependence on a single client for a significant portion of revenue poses risks if the partnership falters.
• Potential challenges in meeting the ambitious goals set by Southern Water, which could impact performance.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, has been appointed by Southern Water, a major UK water utility, to deliver asset management, program and project management services on its Professional Services Framework. The Company has been appointed to two lots on the Framework, which will realize Southern Water’s largest and most ambitious business plan to date in preparation for the UK’s Asset Management Plan Period 8 (AMP8) regulatory period from 2025-2030.

“We’re excited to support Southern Water’s next generation of infrastructure investments, extending our role as a key enabler of utilities’ expected substantial growth in AMP8 investments,” said Beverley Stinson, chief executive of AECOM’s global Water business. “Through our number one-ranked global Water capabilities, we’re well positioned to deliver sustainable solutions that help Southern Water achieve its business, customer and environmental outcomes in the AMP8 period and beyond.”

Southern Water’s business plan will address AMP8 provisions aimed at improving efficiency and mitigate supply chain risk, and will focus on water resilience, wastewater treatment, customer service, and environmental protection and enhancement. Overall, AECOM will support Southern Water with strategy & planning, asset information management including data visualisation and digital tools, asset intelligence including modelling and geospatial analysis, as well as technical services and system monitoring.

Under Lot 1 of the Framework, AECOM will deliver asset management and advisory services for a period of five years, collaborating with its sub-consultant partners Arcadis and AliumBlue. Under Lot 2 of the Framework, AECOM will provide PMO, program and project management services, as well as supporting technology insight to drive capability and efficiency.

“We are excited to utilize our global and local expertise to meet Southern Water’s comprehensive plan for AMP8 compliance,” said Colin Wood, chief executive of AECOM's Europe and India region. “Our technical experts continue to play a critical role in delivering the world’s largest water programs, and their track record of timely, effective implementation of state-of-the-art treatment technologies sets us apart as a valued delivery partner.”

As one of England’s largest water utilities and a key water supplier for much of South East England, Southern Water delivers 535 million liters of drinking water daily and treats and recycles 1,371 million liters of wastewater daily at 368 treatment works. AECOM’s appointment by Southern Water follows an extensive pipeline of work for the AMP8 across the UK water market, delivering a broad range of capabilities including Asset Management, Design, Environment and Sustainability, Digital, and Programme Cost and Commercial services.

About AECOM

AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

Forward-Looking Statements

All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; potential government shutdowns or other funding circumstances that may cause governmental agencies to modify, curtail or terminate our contracts; losses under fixed-price contracts; limited control over operations that run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs, geopolitical events, and conflicts; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; managing pension costs; AECOM Capital real estate development projects; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240612068640/en/

Media Contact:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor Contact:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What services will AECOM provide for Southern Water in the AMP8 period?

AECOM will provide asset management, program and project management services, including water resilience, wastewater treatment, customer service, and environmental protection.

How long is AECOM’s contract with Southern Water?

The contract spans five years, covering the AMP8 regulatory period from 2025-2030.

Who are AECOM's partners in delivering services to Southern Water?

AECOM will collaborate with Arcadis and AliumBlue to deliver asset management and advisory services.

What are the key focus areas for Southern Water's AMP8 business plan?

The key focus areas include water resilience, wastewater treatment, customer service, and environmental protection and enhancement.

How does the Southern Water contract impact AECOM's business?

The contract strengthens AECOM's market position, secures long-term revenue, and aligns with sustainability goals, though it also introduces dependency risks.