Executives singled out several sectors during earnings calls from public construction companies in recent weeks, most notably environmental and data center work.
The parade was led by projects that focus on aging infrastructure and emerging water regulations, which are driving an increase in environmental projects for companies like Jacobs and WSP. Major AEC companies have recently increased their focus on cleaning up polyfluoroalkyl substances, or PFASs (the so-called forever chemicals) from the US water supply after an EPA ruling April that designated two types of PFAS as hazardous substances.
Data center construction was another highlight, with Fluor CEO David Constable reiterating his company’s positive outlook on the vertical, highlighting strong demand due to the rapid growth of cloud technology and artificial intelligence. Constable added that these multibillion-dollar data centers are so massive and complex that there are only a few contractors in the country “that can really take on these big projects.”
“We’ll be in the mix for the next data center build,” Constable said. “So we’re very bullish on data centers.”
And as has been the case for several years, construction executives said they feel positive about the infrastructure work supported by the Infrastructure Investment and Jobs Act. About 60 percent of the IIJA funds have been earmarked, with only 30 percent already spent, said Jacobs CEO Bob Pragada.
At WSP, “the flow is great” in the company’s federal work portfolio in the US, said CEO Alexandre L’Heureux, adding that he does not expect the presidential election to interrupt that momentum, especially as the IIJA still has another few years of funding to hand out.
Read on for all the highs and lows of recent earnings calls.
