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AECOM (ACM) to Oversee VSP Expansion Delivery With Chemours

AECOM ACM received a contract from The Chemours Company to supervise the delivery of its Villers-Saint Paul (VSP), France-based green hydrogen production facility expansion.

AECOM’s global asset delivery expertise will help Chemours increase capacity and advance the technology of its Nafion Ion Exchange materials platform. Nafion Ion Exchange is a key component for electrolysers to produce green hydrogen, which will support the growing market demand for clean hydrogen generation.

ACM has already provided project management services for Chemours in the United States. Its environment team has also supported Chemours at VSP with permission assistance.

The company has been supporting French clients with environmental, engineering and project management services for various public and private sectors and project types.

The recent expansion is expected to benefit the local economy, as it will create new jobs and provide opportunities for other companies to collaborate with AECOM and Chemours. Also, the collaboration will solidify AECOM’s status as a leading partner in the development of green hydrogen.

Zacks Investment Research
Zacks Investment Research

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In the year-to-date period, shares of the company have declined 1.8% against the Zacks Engineering - R and D Services industry’s 15.4% growth. Nonetheless, earnings estimates for fiscal 2023 have moved two cents north in the past seven days, reflecting analysts’ optimism in the company’s growth potential.

Solid Project Execution & Strategic Initiatives Aid the Business

AECOM is a leading solutions provider supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and environmental, energy and water businesses.

At the beginning of 2023, AECOM announced a strategic agreement with the Spanish infrastructure group — URBAS — to develop green hydrogen, green ammonia and biofuels projects. It is also part of a framework working on ATOME Energy’s green hydrogen and ammonia facility in Villeta, which is being supported by Paraguay’s National Electricity Commission.

AECOM has been trying to transform the company into a pure-play professional services firm to improve profitability and de-risk the business profile. To that end, it is exiting more than 30 countries globally to prioritize investments in markets with higher prospects and competitive advantages. After divesting the Management services and Power construction businesses, the company intends to exit at-risk construction and non-core oil and gas markets.

Management is focused on leveraging scale and technical leadership by simplifying the operating model to drive greater collaboration across the business and push digital innovation.

Further, improved profitability enables accelerated investments in organic growth and expanded digital capabilities through Digital AECOM, the company’s digital brand that includes a portfolio of products to better serve clients in their digital transformations. This will be a key contributor toward achieving the 17% longer-term margin target.

Zacks Rank & Key Picks

AECOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Construction sector are Willdan Group, Inc. WLDN, Sterling Infrastructure, Inc. STRL and Howmet Aerospace, Inc. HWM.

Willdan Group is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry. WLDN’s expected earnings growth rate for 2023 is 39.8%.

Willdan Group presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sterling, currently carrying a Zacks Rank #2 (Buy), provides transportation, e-infrastructure and building solutions.

STRL’s expected earnings growth rate for 2023 is 11.4%.

Howmet, presently holding a Zacks Rank #2, is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and ease of supply chains in the transportation market. Importantly, share gains in the titanium aerospace market are expected to act as a major growth tailwind.

HWM’s earnings for 2023 are expected to grow by 20.7%.


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