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BUSINESS NEWS AECOM AWARDED PROGRAM MANAGEMENT CONTRACT FOR SAN DIEGO INTERNATIONAL AIRPORT EXPANSION PROJECT AECOM, the world’s trusted infrastructure consulting firm, announced it has been selected by the San Diego County Regional Airport Authority to provide program management services supporting the Capital Improvement Plan and other projects at the San Diego International Airport. Once complete, the projects will improve critical infrastructure, access, and sustainability features to meet the needs of the airport’s current and future demand for travel. This includes management of the $3.8 billion New Terminal 1 program and the modernization of Terminal 2 East that will transform the traveling experience at SAN. “We are thrilled to help deliver the revitalized San Diego International Airport and support the Authority’s vision for the future,” said Mark Southwell, chief executive of AECOM’s global Transportation business. “Recognized by Engineering News-Record as the number one transportation design firm, we look forward to collaborating with the Authority on this transformative program.”
In its role, AECOM will provide a full range of program, project and construction management services, as well as diversified specialized services. NT1, the airport’s biggest project ever, will include a new, on-airport entrance road to provide travelers with a faster route to the airport. New bicycle lanes and a pedestrian path will connect the airport to San Diego’s surrounding communities. NT1 also secures space outside the terminals to accommodate a future direct connection to the region’s public transit network. “AECOM has worked closely with the Authority since 2005 and we look forward to building on that legacy to deliver this set of long-awaited upgrades,” said Drew Jeter, chief executive of AECOM’s Program Management global business line. “These improvements, guided by our program management expertise, will enhance passenger experience, safety, and airport design, while also boosting the regional economy through job creation and increased tourism. This program serves as a shining example of AECOM’s ongoing commitment to fostering sustainable and thriving communities.” AECOM’s past support of major capital development projects at SAN
includes the “Green Build,” the airport’s 494,000-square-foot, three-story addition to Terminal 2 West; a new Federal Inspection Services facility to accommodate growing international service; a consolidated rental car facility; and a new parking plaza for T2E/W. The Company has also contributed to numerous small to mid-sized capital projects necessary to improve terminal, airside, and landside facilities across the airport campus. AECOM 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.
of this. Any company in our business can be profitable in the short-term. All you have to do is cut costs and stop investing in people, R&D, and marketing. You should be profitable! But at what cost? And how long will that last? And what are you giving up in terms of value creation that you could have achieved had you been more focused on growth? The truth is it takes balance. You need enough profitability that you have positive cash flow and don’t have to constantly raise more equity to stay in business. But you also need a viable growth strategy and patient investors with a long-term perspective who understand why reinvesting in growth is where the real opportunity lies. So what is your strategy in 2025? Growth? Or profitability? What is your goal for combined growth rate and profit percentage? Are you being ambitious enough? Do you and your partners understand how growth rate impacts the value of your company? Or are you letting the nickel get so big it hides the dime sitting behind it? Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
MARK ZWEIG , from page 5
are going to be looking at financials that show the company lost money in 2024. A multiple of EBIT valuation would give us a value of zero. Yet the company grew by more than 30 percent in 2024 and has a forecast to grow by 50 percent in 2025, all while operating in a flat market for what they sell. At the same time, the balance sheet improved significantly from 2023 over the course of 2024 because of new equity injections and debt reductions. On top of it, lots of money was spent on research and development that will lead to new revenue sources. So the valuation has to reflect this performance. While not profitable, it’s heading in the right direction. At some point when revenue is high enough, the firm should become very profitable. Will that (high profitability) happen in the coming year? Probably not. Will the revenue increase (if it happens) get the firm in the black? It probably will. Does that set the stage for more growth and even greater profits in 2026? I think it will. So the value is there as long as the investors have a long range perspective. So much of success in the AEC business – or any privately- held company – depends on the owners having a long-range perspective. A fixation on short-term profitability is the opposite
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THE ZWEIG LETTER JANUARY 13, 2025, ISSUE 1568
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