{"id":28980,"date":"2025-02-08T00:15:01","date_gmt":"2025-02-08T08:15:01","guid":{"rendered":"https:\/\/essential.construction\/news\/aecom-ceo-says-trumps-permitting-reform-outweighs-agency-cuts\/"},"modified":"2025-02-08T00:15:01","modified_gmt":"2025-02-08T08:15:01","slug":"aecom-ceo-says-trumps-permitting-reform-outweighs-agency-cuts","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/aecom-ceo-says-trumps-permitting-reform-outweighs-agency-cuts\/","title":{"rendered":"AECOM CEO says Trump\u2019s permitting reform outweighs agency cuts"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">5 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1738854770\/news\/text_to_speech\/aecom-permitting-trump-funding-cuts-infrastructure_aqqcib.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>The benefits of deregulation outweigh the harm of any potential funding cuts coming out of Washington, at least for one infrastructure contractor.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>On AECOM\u2019s latest earnings call on Feb 4., CEO Troy Rudd addressed the concerns on many industry watchers\u2019 minds surrounding President Donald Trump\u2019s <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-tips-trump-compliance-civil\/738918\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>slash-and-burn approach toward federal bureaucracy<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in his administration\u2019s first weeks.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"Headshot of a man with grey hair in a suit.\" data-imagemodel=\"91105\" src=\"https:\/\/imgproxy.divecdn.com\/0oNzXArM8N9tmYMHGnER1hMoPTfp0I-LU9Bho3ZtnYo\/g:ce\/rs:fit:1600:0\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9TY3JlZW5zaG90XzIwMjAtMDktMDlfYXRfMTEuMzkuMjlfQU0ucG5n.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Troy Rudd<\/p>\n<p>Permission granted by AECOM<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>Kicking off the Dallas-based <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/investors.aecom.com\/news-releases\/news-release-details\/aecom-reports-first-quarter-fiscal-2025-results\" target=\"_blank\"><span><span><span><span><span><span><span><span>contractor\u2019s fiscal first quarter earnings<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> report, Rudd alluded to Elon Musk\u2019s recent steps to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.pharmavoice.com\/news\/usaid-shutdown-global-health-pharma-medicine\/739088\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>dissolve the U.S. Agency for International Development<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, as well as the administration\u2019s push to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.wastedive.com\/news\/federal-funding-pause-confusion-hits-environmental-program-funding\/738993\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>eviscerate the Environmental Protection Agency<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, both of which AECOM counts as clients.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cOur business is highly diverse, eliminating reliance on any single market or client,\u201d Rudd said. \u201cThe EPA and USAID together account for only 50 basis points of our trailing 12 months revenue and reflect a similar proportion in our pipeline and backlog.\u201d By contrast, he said most of the firms\u2019 government work comes from the Department of Defense, where he anticipates strong funding growth under the new regime.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Infrastructure momentum continues<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Rudd also addressed Trump\u2019s push to pause funding for both the Infrastructure Investment and Jobs Act, as well as the Inflation Reduction Act. Trump\u2019s executive orders to suspend funding for federal grants have been blocked in court, at least for now.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Rudd said projects tied to the IRA, which funds many clean energy initiatives that were a priority of former President Joe Biden, weren\u2019t a material part of the firm\u2019s business. And despite <span><span>confusion over continued funding of IIJA<\/span><\/span> projects, Rudd expressed confidence in the infrastructure sector\u2019s future under the new administration, particularly given Trump\u2019s pledges of permitting reform.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cOver the last two weeks, there certainly has been a lot to digest,\u201d Rudd said. \u201cBut\u2026 there still are investments being made in infrastructure in the U.S.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He urged investors to take a step back and consider the macro environment.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIf you look at the current administration\u2019s goals, they&#8217;re looking at economic development in the United States,\u201d Rudd said. \u201cAnd if your agenda is economic development in the long term in the United States, that means that it&#8217;s going to be supported by infrastructure, whether that\u2019s energy infrastructure, water infrastructure [or] transportation infrastructure.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He continued to say Trump\u2019s pledge to cut government red tape would not only incentivize more projects to come to market, but that it was also likely to speed them along.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIf there is environmental permitting reform, there certainly is going to be more work to be done because that should accelerate projects,\u201d Rudd said. \u201cSo, we look broadly in the U.S., and we see that we&#8217;re aligned with the objectives around infrastructure.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Higher profits, revenue and backlog<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>That optimistic outlook was reflected in the firm\u2019s financial results, as well.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>AECOM reported $167 million in profits for the three months ended Dec. 31, up 77% from a year ago. Those earnings came on higher revenue of $4.01 billion, a 3% increase from the same period in 2023. Backlog was also higher at $23.9 billion, a 2.3% gain from a year earlier.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cLooking ahead, we anticipate opportunities arising from the new administration\u2019s commitments to our robust economy supported by a prudent deregulation and push for energy independence that positions the U.S. as an attractive destination for capital investment and growth,\u201d Rudd said. \u201cWorld-class infrastructure is at the heart of these objectives.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Analysts asked whether the company had landed any new business in the wake of the Palisades and Eaton wildfires in Los Angeles, as AECOM has long focused on disaster recovery projects. It was also among a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/disaster-recovery-contractors-la-wildfire-damage\/737492\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>handful of contractors identified as equipped<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> to help rebuild early in the tragedy.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Rudd replied that while he couldn\u2019t speak for his clients, his firm stood ready to assist.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe don\u2019t call out individual projects \u2026 and certainly not without discussion with our customers,\u201d Rudd said. \u201cBut \u2026 over the last decade, we\u2019ve participated in the recovery from over 700 climate disasters. So, this is really kind of part of our business, which is continuing to support communities as they recover.\u201d\u00a0\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/aecom-permitting-trump-funding-cuts-infrastructure\/739376\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 5 min This audio is auto-generated. Please let us know if you have feedback. The &#8230; <a title=\"AECOM CEO says Trump\u2019s permitting reform outweighs agency cuts\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/aecom-ceo-says-trumps-permitting-reform-outweighs-agency-cuts\/\" aria-label=\"Read more about AECOM CEO says Trump\u2019s permitting reform outweighs agency cuts\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-28980","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=28980"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/28980\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=28980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=28980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=28980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}