AECOM to support transformed mobility across Austin, Texas by delivering the city’s first light rail system

Rhea-AI Summary

AECOM (NYSE: ACM) has been selected as the delivery partner for Austin Transit Partnership's Phase 1 light rail transit system project. The company will provide program management oversight, environmental services, design management, rail activation, and operational readiness for Austin's first light rail system. The project encompasses approximately 10 miles with 15 stations, connecting key locations including Lady Bird Lake, downtown Austin, and the University of Texas at Austin.

As delivery partner, AECOM will lead a technical team including Disadvantaged Business Enterprise (DBE) firms to promote socially and economically disadvantaged individuals' participation. The project is part of the broader Austin Strategic Mobility Plan, with future expansions planned to extend north to major hubs and south to Austin's airport.

Positive

• Secured major infrastructure contract for Austin's first light rail system
• Project strengthens AECOM's position in U.S. transportation infrastructure
• Partnership includes DBE firms, expanding business opportunities

Negative

• None.

Insights

Infrastructure Development Analyst

This contract win represents a major strategic victory for AECOM in the rapidly growing urban mobility sector. The Austin Light Rail project, spanning 10 miles with 15 stations, positions AECOM to capture a significant share of the $20+ billion U.S. light rail market. The scope encompasses critical elements like program management, environmental services and operational readiness, indicating substantial long-term revenue potential.

The project's integration with Austin's Strategic Mobility Plan and future expansion possibilities to the airport suggest multiple phases of work, potentially extending AECOM's revenue stream for 5-10 years. The DBE partnership component enhances the company's competitive positioning for future federal infrastructure projects, which increasingly emphasize social equity requirements.

Austin's rapid population growth (2.5% annually) and strong economic fundamentals make this a particularly valuable reference project. The contract strengthens AECOM's market leadership in transportation infrastructure, especially as other major U.S. cities plan similar transit expansions.

Urban Planning Expert

The Austin Light Rail project represents a transformative urban development catalyst. Looking beyond basic transit metrics, this system will unlock significant real estate value appreciation within the corridor, particularly around the 15 planned stations. Similar light rail projects have historically driven 20-30% premiums in commercial and residential property values within a half-mile radius.

The strategic routing through major nodes like downtown Austin, Lady Bird Lake and UT Austin maximizes ridership potential while creating new economic development zones. For AECOM, this translates to potential follow-on contracts in transit-oriented development planning and infrastructure expansion. The project's environmental and sustainability focus aligns with federal funding priorities, positioning AECOM favorably for future infrastructure bill allocations.

The Company will serve as delivery partner for the Austin Transit Partnership, providing program management and an array of technical services on the first phase of an approximately 10-mile light rail system in Texas’s capital.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the trusted global infrastructure leader, today announced its selection as the delivery partner by Austin Transit Partnership (ATP) for the transformative Phase 1 delivery of Austin’s first light rail transit system. AECOM’s responsibilities will include program management oversight and initiation, environmental services, design management, rail activation, and operational readiness. Phase 1 of this landmark project will introduce an approximately 10-mile light rail system to Austin with 15 stations to enhance regional connectivity and mobility for communities in the region.

“We are the global leader in transportation, and we are proud of our partnership with ATP for Austin’s first light rail transit system,” said Lara Poloni, AECOM’s president. “Cities across the U.S. continue to make unprecedented investments in rail infrastructure, and Austin is no exception. This critical project will transform how Austinites navigate their city, with the promise of stimulating economic growth, protecting the existing environment and promoting a sustainable future for generations to come.”

As delivery partner, AECOM will also lead a robust technical team of subconsultants, including Disadvantaged Business Enterprise (DBE) firms. By collaborating with DBE firms, AECOM seeks to provide opportunities for socially and economically disadvantaged individuals to engage in and benefit from the project's development.

“As Austin continues to grow into one of the most vibrant and dynamic metro areas in the U.S., Austin Light Rail holds immense promise for the City and its residents in transforming local transit connectivity,” said Drew Jeter, chief executive of AECOM’s Program Management global business line. “Our outcome-driven program management approach will leverage our expertise in global large-scale transit programs to meet the growing demand for reliable and accessible transportation benefiting the City of Austin and connecting communities.”

The Austin Light Rail is a key part of the City’s larger Austin Strategic Mobility Plan (ASMP), which aims to enhance the accessibility, reliability, and connectivity of Austin’s transportation network. The new rail system will link major destinations across the city, such as Lady Bird Lake, downtown Austin, and the University of Texas at Austin. Future expansions are planned to extend north to major hubs and south to Austin’s airport.

“We are thrilled to partner with AECOM on this landmark project that will significantly enhance Austin's transportation infrastructure and support the city's growing population,” said Greg Canally, Executive Director of Austin Transit Partnership. “After a thorough vetting and evaluation process, AECOM’s selection reflects our organization’s shared values and collaborative spirit.”

About AECOM

AECOM (NYSE: ACM) is the global infrastructure leader, committed to delivering a better world. As a trusted professional services firm powered by deep technical abilities, we solve our clients’ complex challenges in water, environment, energy, transportation and buildings. Our teams partner with public- and private-sector clients to create innovative, sustainable and resilient solutions throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. AECOM is a Fortune 500 firm that had revenue of $16.1 billion in fiscal year 2024. Learn more at aecom.com.

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/20241219826130/en/

Media Contact:

Brendan Ranson-Walsh

Senior Vice President, Global Head of 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 the scope of AECOM's (ACM) Austin light rail project?

AECOM will manage a 10-mile light rail system with 15 stations, providing program management oversight, environmental services, design management, rail activation, and operational readiness.

Which key locations will the ACM-managed Austin light rail connect?

The light rail system will connect major destinations including Lady Bird Lake, downtown Austin, the University of Texas at Austin, with future expansions planned to major northern hubs and Austin's airport.

How is AECOM (ACM) promoting diversity in the Austin light rail project?

AECOM is collaborating with Disadvantaged Business Enterprise (DBE) firms, providing opportunities for socially and economically disadvantaged individuals to participate in the project's development.

What is the strategic importance of the Austin light rail project for AECOM (ACM)?

The project reinforces AECOM's position as a global leader in transportation infrastructure and expands its presence in the growing U.S. rail infrastructure market.

How does the AECOM (ACM) light rail project fit into Austin's broader transportation plan?

The light rail system is a key component of the Austin Strategic Mobility Plan (ASMP), aimed at enhancing the accessibility, reliability, and connectivity of Austin's transportation network.