Executives called out a range of sectors during public construction firms’ earnings calls in recent weeks, most notably environmental and data center work.
The hit parade was led by projects that focus on aging infrastructure and emerging water regulations, which are driving a surge in environmental projects for firms including Jacobs and WSP. Major AEC companies have recently increased focus on cleaning up per-and polyfluoroalkyl substances, or PFAS — so-called forever chemicals — in the U.S. water supply following an April EPA ruling that designated two types of PFAS as hazardous substances.
Data center construction was another high note, with Fluor CEO David Constable reiterating his firm’s positive outlook on the vertical, spotlighting strong demand due to rapid growth in cloud technology and artificial intelligence. Constable added that these multibillion-dollar data centers are so massive and complex, there are only a few contractors in the country “who can really take on these really large projects.”
“We’ll be right in the mix for the data center buildout that’s coming,” said Constable. “So, we’re very bullish on data centers.”
And as has been the case for several years, construction execs said they are feeling positive about infrastructure work backed by the Infrastructure Investment and Jobs Act. Around 60% of IIJA funds have been appropriated, with just 30% already spent, Jacobs CEO Bob Pragada said.
At WSP, “the flow is great” on the firm’s pipeline of federal work in the U.S., said CEO Alexandre L’Heureux, adding that he doesn’t anticipate that the presidential election will interrupt that momentum, particularly since the IIJA still has another few years of funding to dole out.
Read on for all the highs and lows from recent earnings calls.