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AECOM selected as designers to support major capital project delivery for Southern Water

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AECOM (NYSE: ACM) has been selected to support Southern Water's $4.8 billion capital delivery program for the AMP8 period (2025-2030). The company will serve as a detailed design partner to Kier on non-infrastructure water and wastewater projects, and as the sole design partner to Morrison Water Services for infrastructure projects and low complexity wastewater projects.

This selection builds on AECOM's existing appointments to Southern Water's AMP8 Professional Services Framework. The company will provide design engineering services, including optioneering, outline, and detailed design across water and wastewater projects. The frameworks run for seven and five years, respectively, with options for extension.

AECOM's involvement underscores its market sector leadership and technical expertise in water infrastructure modernization and sustainability. The collaboration aims to address challenges posed by population growth, climate change, and environmental protection needs.

AECOM (NYSE: ACM) è stata selezionata per supportare il programma di investimento di $4,8 miliardi di Southern Water per il periodo AMP8 (2025-2030). L'azienda fungerà da partner per il design dettagliato con Kier su progetti idrici e fognari non infrastrutturali, e come partner esclusivo per il design con Morrison Water Services per progetti infrastrutturali e progetti di fognatura a bassa complessità.

Questa selezione si basa sugli incarichi esistenti di AECOM nell'ambito del Framework dei Servizi Professionali di Southern Water per AMP8. L'azienda fornirà servizi di ingegneria di design, inclusi optioneering, design preliminare e dettagliato per progetti idrici e fognari. I framework hanno una durata di sette e cinque anni, rispettivamente, con opzioni di estensione.

Il coinvolgimento di AECOM sottolinea la sua leadership di mercato e la sua expertise tecnica nella modernizzazione e sostenibilità delle infrastrutture idriche. La collaborazione mira a affrontare le sfide poste dalla crescita della popolazione, dai cambiamenti climatici e dalle esigenze di protezione ambientale.

AECOM (NYSE: ACM) ha sido seleccionada para apoyar el programa de entrega de capital de $4.8 mil millones de Southern Water durante el periodo AMP8 (2025-2030). La compañía actuará como sociedad de diseño detallado con Kier en proyectos de agua y aguas residuales no infraestructurales, y como socio exclusivo de diseño con Morrison Water Services para proyectos de infraestructura y proyectos de aguas residuales de baja complejidad.

Esta selección se basa en los nombramientos existentes de AECOM en el marco de servicios profesionales de AMP8 de Southern Water. La empresa proporcionará servicios de ingeniería de diseño, incluyendo optioneering, diseño preliminar y detallado para proyectos de agua y aguas residuales. Los marcos tienen una duración de siete y cinco años, respectivamente, con opciones de extensión.

La participación de AECOM subraya su liderazgo en el sector y su experiencia técnica en modernización y sostenibilidad de infraestructuras hídricas. La colaboración tiene como objetivo abordar los desafíos planteados por el crecimiento poblacional, el cambio climático y las necesidades de protección ambiental.

AECOM (NYSE: ACM)은 AMP8 기간(2025-2030)을 위한 Southern Water의 48억 달러 자본 전달 프로그램을 지원하기 위해 선택되었습니다. 이 회사는 Kier와 함께 비인프라수자원 및 폐수 프로젝트에 대해 상세 설계 파트너 역할을 하고, Morrison Water Services와는 인프라 프로젝트 및 저복잡도 폐수 프로젝트에 대해 단독 설계 파트너로 활동할 것입니다.

이번 선택은 Southern Water의 AMP8 전문 서비스 프레임워크에서 AECOM의 기존 임명에 기반합니다. 이 회사는 수자원 및 폐수 프로젝트에 걸쳐 설계 엔지니어링 서비스, 옵션 결정, 개요 및 상세 설계를 제공할 것입니다. 프레임워크는 각각 7년 및 5년 동안 운영되며 연장 옵션이 있습니다.

AECOM의 참여는 수자원 인프라 현대화와 지속 가능성에 대한 시장 부문 리더십과 기술 전문성을 강조합니다. 이 협력은 인구 증가, 기후 변화 및 환경 보호 필요성이라는 도전 과제를 해결하는 것을 목표로 합니다.

AECOM (NYSE: ACM) a été sélectionnée pour soutenir le programme d'investissement de 4,8 milliards de dollars de Southern Water pour la période AMP8 (2025-2030). L'entreprise agira en tant que partenaire de conception détaillée avec Kier sur des projets d'eau et d'eaux usées non infrastructurels, et comme partenaire de conception exclusif avec Morrison Water Services pour des projets d'infrastructure et des projets d'eaux usées de faible complexité.

Cette sélection repose sur les nominations existantes d'AECOM dans le cadre des Services Professionnels AMP8 de Southern Water. L'entreprise fournira des services d'ingénierie de conception, y compris l'optioneering, la conception préliminaire et détaillée pour des projets d'eau et d'eaux usées. Les cadres ont une durée de sept et cinq ans, respectivement, avec des options d'extension.

L'implication d'AECOM souligne son leadership sur le marché et son expertise technique dans la modernisation et la durabilité des infrastructures hydrauliques. La collaboration vise à relever les défis posés par la croissance démographique, le changement climatique et les besoins de protection de l'environnement.

AECOM (NYSE: ACM) wurde ausgewählt, um das 4,8 Milliarden Dollar große Kapitalbereitstellungsprogramm von Southern Water für den AMP8-Zeitraum (2025-2030) zu unterstützen. Das Unternehmen wird als detaillierter Designpartner für Kier bei Infrastruktur-freien Wasser- und Abwasserprojekten fungieren und als alleiniger Designpartner für Morrison Water Services bei Infrastrukturprojekten und Projekten mit geringer Komplexität im Bereich Abwasser.

Diese Auswahl basiert auf den bestehenden Ernennungen von AECOM im AMP8 Professional Services Framework von Southern Water. Das Unternehmen wird Gestaltungsingenieurdienste anbieten, einschließlich Optionen, Grob- und Detailentwurf für Wasser- und Abwasserprojekte. Die Rahmenverträge laufen jeweils sieben und fünf Jahre mit Verlängerungsoptionen.

Die Beteiligung von AECOM unterstreicht die Marktführerschaft und technische Expertise im Bereich der Modernisierung und Nachhaltigkeit von Wasserinfrastrukturen. Die Zusammenarbeit zielt darauf ab, Herausforderungen zu bewältigen, die durch Bevölkerungswachstum, Klimawandel und Umweltenschutzbedürfnisse entstehen.

Positive
  • Selected for a $4.8 billion capital delivery program with Southern Water
  • Appointed as detailed design partner for non-infrastructure water and wastewater projects
  • Chosen as sole design partner for infrastructure and low complexity wastewater projects
  • Frameworks run for 7 and 5 years with potential for 5-year extensions
  • Builds on existing appointments to Southern Water's AMP8 Professional Services Framework
Negative
  • None.

Insights

Southern Water's $4.8 billion capital delivery program represents a significant investment in UK water infrastructure. This multi-year project, spanning from 2025 to 2030, aims to address critical challenges such as population growth, climate change and environmental protection. AECOM's selection as a design partner for multiple lots demonstrates the company's strong position in the water infrastructure sector.

The scope of work, including non-infrastructure water and wastewater projects, as well as infrastructure modernization, highlights the comprehensive nature of the program. This presents substantial revenue opportunities for AECOM over an extended period, potentially up to 12 years if all extensions are exercised.

For investors, this contract win signifies AECOM's continued success in securing long-term, high-value projects in a critical sector. It reinforces the company's market leadership in water infrastructure and positions AECOM for stable, recurring revenue streams. The focus on sustainability and environmental commitments aligns with growing ESG trends, potentially enhancing AECOM's appeal to socially conscious investors.

This contract win is a significant positive for AECOM's financial outlook. While the exact value of AECOM's portion isn't disclosed, the overall $4.8 billion program size suggests substantial revenue potential over the next 5-12 years. For context, AECOM's current market cap is about $14 billion, so even a small percentage of this program could materially impact earnings.

Key financial implications include:

  • Enhanced revenue visibility and backlog growth
  • Potential for margin expansion due to the high-value nature of design services
  • Strengthened competitive position in the UK water market
  • Diversification of revenue streams across multiple project types

Investors should monitor AECOM's backlog and book-to-burn ratio in upcoming quarters for indications of how this and similar contracts are impacting future revenue projections. The long-term nature of the contract also provides a buffer against short-term economic fluctuations, potentially reducing earnings volatility.

AECOM will partner with Kier and Morrison Water Services to provide design engineering services on the multi-billion dollar program.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced it has been selected by two contractors to support Southern Water’s $4.8 billion capital delivery program. The selection is the latest from Southern Water, a major UK water utility, as it readies the supply chain to deliver a range of infrastructure and wastewater programs across the AMP8 period, between 2025 and 2030.

AECOM will serve as a detailed design partner to Kier, alongside Pell Frischmann, in its recent selection to Southern Water’s Strategic Delivery Partner (SDP) Framework, working with Kier on Lot 1 for non-infrastructure water projects and Lot 2 for non-infrastructure wastewater projects.

“Our ongoing involvement in AMP8 upgrades for Southern Water and major utilities across the UK underscores our market sector leadership and the technical expertise of our teams,” said Beverley Stinson, chief executive of AECOM’s global Water business. “As the industry’s leading water firm, we bring extensive experience in infrastructure modernization and sustainability, helping our clients meet their environmental commitments and deliver long-term value to their communities.”

Following their selection to Southern Water’s SDP Lot 3 Framework for infrastructure projects, and Low Complexity Delivery Route Lot 2 (Wastewater) Framework, Morrison Water Services has also asked AECOM to be its sole design partner on both the frameworks. The frameworks run for seven and five years, respectively, with the option to extend for an additional five years.

AECOM will support optioneering, outline and detailed design across water and wastewater projects that help advance positive outcomes for customers, communities and the environment. This builds on AECOM's successful appointment to two Lots under the AMP8 Professional Services Framework for Southern Water, providing asset management and program/project management services.

“Collaboration across the supply chain will be critical to delivering the services and infrastructure needed to meet Southern Water’s robust plans,” said Colin Wood, chief executive of AECOM’s Europe and India region. “We are delighted to partner with Kier and Morrison Water Services to provide design engineering services to support project delivery, building on our well-established relationships with both groups, and through that continue our long-standing work with Southern Water to help deliver its ambitions over the next control period.”

“We are delighted to appoint AECOM, who will provide design services for Southern Water’s framework. Together, our combined expertise will play a vital role in addressing the significant challenges posed by population growth, climate change, and the need for enhanced environmental protection,” said Iain Sutherland, Managing Director of M Group Water Division. “Our solutions will contribute to improvements to the wastewater network and the long-term reliability of water supplies, ensuring Southern Water can meet the needs of customers and the environment long into the future. We look forward to the positive outcomes this will deliver as we support Southern Water in executing its ambitious capital program.”

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.

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 is AECOM's role in Southern Water's $4.8 billion capital delivery program?

AECOM will serve as a detailed design partner to Kier for non-infrastructure water and wastewater projects, and as the sole design partner to Morrison Water Services for infrastructure and low complexity wastewater projects.

How long are the framework agreements for AECOM's work with Southern Water?

The frameworks run for seven and five years, respectively, with the option to extend for an additional five years.

What services will AECOM provide for Southern Water's AMP8 program?

AECOM will provide design engineering services, including optioneering, outline, and detailed design across water and wastewater projects.

What challenges will AECOM's work with Southern Water address?

The collaboration aims to address challenges posed by population growth, climate change, and the need for enhanced environmental protection in water infrastructure.

How does this selection impact AECOM's (ACM) position in the water infrastructure market?

This selection underscores AECOM's market sector leadership and technical expertise in water infrastructure modernization and sustainability, reinforcing its position as a leading water firm.

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