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Should AECOM’s (ACM) Scottish Water Alliance Design Role Reshape Its Infrastructure Consulting Investment Narrative?

Simply Wall St · 2d ago
  • AECOM announced it has been selected as a preferred bidder and one of two Primary Designers for Scottish Water’s multi-billion-dollar Enterprise Alliance, a program running from 2026 with core activities between 2027 and 2033 to upgrade water and wastewater infrastructure across Scotland, with potential extension for six more years.
  • This long-duration, high-value water infrastructure role reinforces AECOM’s position in sustainable, climate-resilient design and deepens its exposure to essential government-backed utility projects.
  • Next, we’ll examine how this long-term Scottish Water Enterprise Alliance design role could reshape AECOM’s investment narrative around infrastructure consulting.

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AECOM Investment Narrative Recap

To own AECOM, you need to believe in sustained demand for complex infrastructure consulting, especially government backed water, transport and climate resilience projects. The Scottish Water Enterprise Alliance win adds long term visibility to that narrative, but does not materially change the key near term swing factor, which is how consistently AECOM can convert its record pipeline into profitable backlog while managing cost inflation. The biggest current risk remains its dependence on public spending priorities and budget decisions.

This Scottish water program sits alongside other recent wins such as the Unite32 joint venture appointment for the Brisbane 2032 Games infrastructure program, reinforcing AECOM’s role in large, multi year government sponsored projects. Together, these awards speak to the same core catalyst: higher value consulting and program management work tied to sustainability, climate resilience and essential services, which could be important for how investors think about the quality and duration of AECOM’s earnings.

Yet behind these long contracts, one risk investors should be aware of is how exposed AECOM still is to shifts in government spending priorities and...

Read the full narrative on AECOM (it's free!)

AECOM's narrative projects $18.8 billion revenue and $955.0 million earnings by 2028. This requires 5.4% yearly revenue growth and about a $280 million earnings increase from $674.7 million today.

Uncover how AECOM's forecasts yield a $142.83 fair value, a 44% upside to its current price.

Exploring Other Perspectives

ACM 1-Year Stock Price Chart
ACM 1-Year Stock Price Chart

Five fair value estimates from the Simply Wall St Community span about US$83.63 to US$151.14 per share, underlining how far opinions can diverge. Against that backdrop, the Scottish Water Enterprise Alliance highlights how much AECOM’s future performance may hinge on government backed infrastructure programs, so it is worth weighing several different views before deciding what that means for your own expectations.

Explore 5 other fair value estimates on AECOM - why the stock might be worth as much as 53% more than the current price!

Build Your Own AECOM Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your AECOM research is our analysis highlighting 5 key rewards that could impact your investment decision.
  • Our free AECOM research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AECOM's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.