Federal spending programs aimed at upgrading the country's infrastructure are helping AECOM and Jacobs, two global firms that specialize in that type of work, win new jobs and fill project pipelines.

The two Dallas-based consulting and services companies released their earnings this week. Each touted an increased pipeline of construction work and said their business has been fueled partly by stimulus spending tied to the Infrastructure Investment and Jobs Act that President Biden signed into law in November 2021.

"Across the company, we see exciting opportunities ahead of us, specifically in the areas of climate response and especially in energy transition," Jacobs CEO Bob Pragada said during an earnings call. The company, with its headquarters in downtown Dallas, counts NASA, Shell Pipeline Co. and the Department of Defense among its clients.

As for AECOM, it reported that its pipeline of potential projects hit an all-time high in the first quarter of 2023.

Jacobs and AECOM reported their quarterly earnings ahead of rival Fluor, which is scheduled to discuss its fourth-quarter and year-end earnings on Feb. 21. The companies' earnings offer outsiders a glimpse into some of the drivers shaping the global infrastructure industry.

Pragada, who served as a U.S. Navy officer and began his role as chief executive on Jan. 24, told investors the company plans to focus on four key growth sectors, including critical infrastructure, energy and environment, advanced facilities and national security. Each of these growth sectors are driven by a government-fueled catalyst, he said, such as the federal stimulus from the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and the CHIPS and Science Act.

In the last quarter, Jacobs said, it helped clients secure more than $350 million of grant money from the Infrastructure Investment and Jobs Act since its passing. The grant money is expected to fund the first phase of one of the largest water treatment plants in the U.S., a major port infrastructure development grant in Alaska and the design of a sustainable battery recycling facility. There is also robust funding for the U.S. infrastructure climate for the years to come, Pragada said.

In the coming months, Jacobs also expects to see funds from the $369 billion earmarked to fund the green economy transition as part of the Inflation Reduction Act and funds from the semiconductor investment outlined in the CHIPS.

"Before the end of the calendar year, we fully expect to have all three bills firing at full strength and funding critical projects sponsored by local governments, the federal government and the semiconductor industry," Pragada told investors. "This overlap of spending will continue for four or five consecutive fiscal quarters and drive growth across the infrastructure and energy markets."

He added, " As evidenced by double digit pipeline growth in each of these sectors, our industry position continues to grow, and we see this being a long-term secular trend."

As for AECOM, the firm said its record pipeline includes a nearly 30% increase in proposals and bids submitted in the first quarter of fiscal 2023. That is up from a 20% growth clip in the prior quarter, CEO Troy Rudd told investors during the company's earnings call.

"We are confident that our design backlog will continue to increase as the year progresses," he said.

In the fourth quarter, AECOM, with the help of a collaboration between its water and program management practice, won a water program management contract in Southern California. Rudd said the contract helps position AECOM to "benefit as the billions of planning investments to address persistent drought and water supply challenges increase."

In Canada, AECOM has been selected as the technical adviser on a light rail project during the quarter.

In the U.S., Rudd said the initial wave of the Infrastructure Investment Jobs Act was materializing in the company's pipeline, with benefits from these funds expected to accelerate in the coming years. AECOM is also experiencing similar momentum in adding backlog and pipeline growth in Canada, the United Kingdom, Australia and the Middle East as the countries seek to upgrade their infrastructure, he added.

"There's just really strong underpinning for the long-term investment that's been set aside for infrastructure, there certainly is demand for it," Rudd told investors, adding he sees this not only in the United States but throughout the globe.

"While there certainly is some softness in residential and commercial markets and the businesses in the United States, we are still seeing a great pipeline of opportunities," he added. "We have almost four years of work and some large projects that will create great long-term visibility for us to build upon."