AECOM awarded contract from the U.S. Army Environmental Command for environmental remediation services

Rhea-AI Summary

AECOM (NYSE: ACM) has secured a five-year, multiple-award contract from the U.S. Army Environmental Command for comprehensive environmental remediation services. The agreement covers the investigation and remediation of per- and polyfluoroalkyl substances (PFAS) at numerous locations across the contiguous United States, Puerto Rico, Hawaii, and Alaska. AECOM's extensive experience with PFAS at over 600 global sites makes it well-equipped for this task. This contract augments AECOM's existing U.S. government partnerships and reinforces its role in addressing regulatory demands for hazardous compounds. The initiative aims to protect water resources, public health, and the environment.

Positive

• AECOM awarded a five-year contract from the U.S. Army Environmental Command.
• Contract includes environmental remediation for PFAS, a significant emerging contaminant.
• Project locations span the contiguous U.S., Puerto Rico, Hawaii, and Alaska.
• AECOM has over 20 years of PFAS experience at more than 600 sites globally.
• Positions AECOM strongly within U.S. government contracts, including Army, Navy, FEMA, and NASA.
• Strengthens AECOM's market position in environmental and water resource services.

Negative

• No specific financial figures or contract value disclosed in the announcement.
• Potential risks of operational challenges across multiple and varied locations.
• Dependence on government contracts may pose risks if regulatory or budgetary priorities shift.

Insights

Environmental Analyst

The awarding of this contract to AECOM illustrates the growing importance of addressing environmental and water safety issues, particularly with contaminants like per- and polyfluoroalkyl substances (PFAS). PFAS are a group of man-made chemicals that are very persistent in the environment and human body, meaning they don't break down and can accumulate over time, potentially causing adverse health effects. This contract reinforces AECOM's position as a leader in this niche, enhancing their reputation and expertise.

For retail investors, it's important to note that securing a contract from the U.S. Army Environmental Command not only brings in revenue but also solidifies AECOM's standing within federal environmental remediation work. This provides a stable and reliable revenue stream over the next five years, which is advantageous given the increasing regulatory demands surrounding PFAS. This stability can be particularly appealing in a market characterized by volatility.

Moreover, this contract aligns with the growing trend of governments and organizations worldwide prioritizing environmental sustainability and water safety, potentially leading to more similar contracts and opportunities for AECOM moving forward.

Financial Analyst

From a financial perspective, this contract enhances AECOM's revenue visibility and backlog, which are important metrics in the infrastructure consulting sector. Knowing that AECOM has secured a five-year, multiple-award contract, investors can expect a predictable revenue stream, which reduces uncertainty and financial risk. This is especially valuable in the current economic climate where predictability is scarce.

Additionally, AECOM’s existing portfolio of government contracts, including those with the U.S. Army, Navy, FEMA and NASA, further solidifies their financial stability and credibility. These contracts not only ensure steady cash flows but also improve AECOM’s competitive edge in securing future contracts, both within the U.S. and internationally. Retail investors should see this as a positive signal of the company's health and growth potential.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced that it has been awarded a five-year, multiple-award contract from the U.S. Army Environmental Command to provide environmental remediation services, including investigation and remediation services for per- and polyfluoroalkyl substances (PFAS), at various locations throughout the contiguous United States, Puerto Rico, Hawaii and Alaska.

“We are proud to continue leveraging our leading environmental expertise in partnership with the U.S. Army on their environmental remediation challenges across the U.S.,” said Frank Sweet, chief executive of AECOM’s global Environment business. “Importantly, we now hold a series of key environmental remediation contracts across our U.S. government clients, including for the U.S. Army, Navy, FEMA and NASA, which positions us well to support our clients on the regulatory demands for emerging constituents like PFAS.”

AECOM’s scope encompasses the investigation and remediation hazardous and toxic waste throughout the United States, including persistent compounds such as PFAS. With more than two decades of PFAS experience at more than 600 sites globally, AECOM is uniquely suited to support the U.S. Department of Defense PFAS responses.

“The remediation of PFAS is not just an environmental challenge — but one related to protection of water as a resource,” said Beverley Stinson, chief executive of AECOM’s global Water business. “As the number one Water design practice as ranked by Engineering News-Record, we look forward to supporting the U.S. Army through this contract and continuing our work with federal agencies to protect human health, the environment and our water supply.”

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 US$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/20240529907900/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 contract did AECOM receive from the U.S. Army Environmental Command?

AECOM received a five-year, multiple-award contract for environmental remediation services, including the investigation and remediation of per- and polyfluoroalkyl substances (PFAS).

What is the significance of AECOM's contract with the U.S. Army Environmental Command?

The contract enhances AECOM's role in addressing regulatory demands for hazardous compounds, particularly PFAS, and strengthens its market position in environmental services.

How experienced is AECOM in dealing with PFAS contamination?

AECOM has over 20 years of experience managing PFAS at more than 600 sites globally, making it well-equipped for the U.S. Army Environmental Command contract.

What areas will AECOM's environmental remediation services cover for the U.S. Army?

AECOM's services will cover various locations throughout the contiguous United States, Puerto Rico, Hawaii, and Alaska.

How does this contract impact AECOM’s relationship with U.S. government clients?

The contract solidifies AECOM's strong partnerships with multiple U.S. government clients, including the Army, Navy, FEMA, and NASA, enhancing its ability to meet regulatory demands.