AECOM renews place on Wessex Water’s Capital Delivery Framework

Rhea-AI Summary

AECOM (NYSE: ACM) has been awarded first place on the design consultant lot of Wessex Water's new Capital Delivery Framework. This appointment supports Wessex Water's planned £3.7 billion investment between 2025-2030 for improvements across the South West of England. AECOM's role includes providing multidisciplinary design services for water and wastewater infrastructure.

The framework is initially for six years with an option to extend for five more years. AECOM will offer services from optioneering to detailed design and construction support throughout the next regulatory period, AMP8. The company will collaborate with other framework suppliers to support Wessex Water's '8 Outcomes', including net zero carbon, biodiversity improvements, and effective sewerage systems.

Positive

• Awarded first place on Wessex Water's Capital Delivery Framework
• Supporting £3.7 billion investment plan for 2025-2030
• Six-year contract with potential five-year extension
• Opportunity to provide multidisciplinary design services across water and wastewater assets
• Collaboration on key outcomes including net zero carbon and biodiversity improvements

Negative

• None.

Insights

Financial Analyst

AECOM's renewal on Wessex Water's Capital Delivery Framework is a positive development for the company's long-term revenue stability. The £3.7 billion investment planned by Wessex Water between 2025-2030 represents a significant opportunity for AECOM to secure steady income over an extended period. The initial six-year appointment with a potential five-year extension aligns well with AECOM's strategy for sustained growth in the water sector.

Importantly, this contract positions AECOM favorably in the UK's water infrastructure market, which is seeing increased investment due to regulatory requirements and environmental concerns. The company's leading role in this framework could potentially lead to similar opportunities with other water utilities, supporting its ambitious goal of doubling its water business organically over the next five years.

While the exact financial impact isn't disclosed, the scale of Wessex Water's investment suggests this contract could materially contribute to AECOM's revenue in the coming years. Investors should monitor AECOM's future financial reports to gauge the contract's impact on the company's water segment growth and overall financial performance.

Environmental Expert

AECOM's involvement in Wessex Water's Capital Delivery Framework signifies a strong commitment to sustainable water management. The focus on improving wastewater treatment, enhancing the environment and ensuring water availability aligns with growing global emphasis on water sustainability and environmental protection.

Key aspects of the project, such as net zero carbon goals and biodiversity improvements, demonstrate a forward-thinking approach to water infrastructure. This positions AECOM at the forefront of sustainable water solutions, potentially enhancing its reputation and competitive edge in the global water market.

The emphasis on environmental outcomes in this project reflects the increasing integration of sustainability into core infrastructure development. For investors, this indicates AECOM's alignment with evolving industry trends and regulatory requirements, which could provide a competitive advantage and open up new market opportunities in the rapidly growing sustainable infrastructure sector.

The Company will provide multidisciplinary design services for the water utility’s water and wastewater infrastructure

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced it has been awarded first place on the design consultant lot of Wessex Water’s new Capital Delivery Framework. The appointment will support Wessex Water in delivering its planned £3.7 billion investment between 2025-2030 in a wide range of improvements for its 2.9 million customers across the South West of England, including improved wastewater treatment, enhancing the environment and ensuring the availability of water.

“We’re delighted to continue our long-standing partnership with Wessex Water, supporting significant investments in sustainable waterways and reliable water service for millions of customers across the UK,” said Colin Wood, chief executive of AECOM’s Europe and India region. “We’re already putting our technical capability and innovation to work with Wessex Water, and our teams are delivering transformative projects that will ensure the resilience of existing infrastructure.”

AECOM’s re-appointment to Lot 2 – Design Consultants is for an initial six years with the option to extend for a further five years. Through the design framework, AECOM will provide multidisciplinary design services from optioneering to detailed design and construction support across Wessex Water's water and wastewater asset base throughout the next regulatory period, AMP8 (Asset Management Period).

“As UK utilities accelerate their AMP8 investments, we’re proud to take the leading role in Wessex Water’s next round of capital improvements, which will deliver a new generation of sustainable water projects,” said Beverley Stinson, chief executive of AECOM’s global Water business. “Our team’s success on major modernization programs has established us as the industry’s leading water firm across the globe, and that expertise will prepare us to meet our target of doubling our water business organically over the next five years.

AECOM will be working collaboratively with other framework suppliers to support Wessex Water in delivering its '8 Outcomes', including net zero carbon, biodiversity improvements, safe and reliable water, great river and coastal quality, and an effective sewerage system.

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, capital allocation strategy including stock repurchases, 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/20240920585322/en/

Media:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What is AECOM's role in Wessex Water's Capital Delivery Framework?

AECOM has been awarded first place on the design consultant lot, providing multidisciplinary design services for Wessex Water's water and wastewater infrastructure improvements.

How much is Wessex Water planning to invest between 2025-2030?

Wessex Water is planning a £3.7 billion investment between 2025-2030 for improvements across the South West of England.

What is the duration of AECOM's contract with Wessex Water?

AECOM's contract is for an initial six years with the option to extend for a further five years.

What services will AECOM provide under the Wessex Water framework?

AECOM will provide multidisciplinary design services from optioneering to detailed design and construction support across Wessex Water's water and wastewater asset base.

What are some of Wessex Water's '8 Outcomes' that AECOM will support?

AECOM will support outcomes including net zero carbon, biodiversity improvements, safe and reliable water, great river and coastal quality, and an effective sewerage system.