Executives at publicly listed construction companies have cited a variety of areas, from environmental issues to data center construction, during earnings calls in recent weeks.
Driving the hit parade were projects focused on aging infrastructure and new water regulations, with a surge in environmental projects for companies like Jacobs and WSP. Large AEC companies have recently shifted their focus to removing per- and polyfluoroalkyl substances (PFAS, so-called forever chemicals) from U.S. tap water following the EPA’s April ruling that designated two types of PFAS as hazardous substances.
Data center construction was also in the spotlight, with Fluor CEO David Constable reiterating the company’s positive outlook for the sector, noting strong demand driven by the rapid growth of cloud technology and artificial intelligence. Constable added that multi-billion-dollar data centers are so large and complex that there are only a few contractors in the country “who can actually take on these very large projects.”
“We’re going to be first in on the data center buildout that’s coming up,” Constable said, “so we’re very bullish on data centers.”
And as in recent years, construction industry executives said they are optimistic about infrastructure projects backed by the Infrastructure Investment and Jobs Act. Jacobs & Co. CEO Bob Pragada said about 60 percent of the IIJA funds are allocated, with only 30 percent already spent.
WSP CEO Alexandre Roux said the firm’s pipeline of federal business in the US is “progressing well”, adding that he does not expect the presidential election to disrupt that momentum, especially as IIJA has several more years of funding remaining.
Read on for all the highs and lows from the recent earnings call.
