LOS ANGELES — (BUSINESS WIRE) — August 9, 2016 — AECOM (NYSE: ACM), a premier, fully integrated global infrastructure firm, today reported third-quarter revenue of $4.4 billion. Net income1 and earnings per share1 were $67.4 million and $0.43 in the third quarter, respectively. On an adjusted basis, diluted earnings per share2 was $0.81.
($ in millions, except
|Revenue||$4,409||-||(3)%||4.1% growth in Americas Design and 14% growth in Building Construction|
|EPS (Fully Diluted)||$0.431||$0.812||10%|
|Operating Cash Flow||$260||-||69%|
|Free Cash Flow4||-||$191||27%||On track with $600 million to $800 million guidance; $177 million of debt reduction|
|Backlog||$38,411||-||(5)%||Strength across our diverse portfolio|
|Wins||$4,500||-||(6)%||Wins of $4.5 billion driven by substantial Power wins|
Note: All comparisons are year over year unless otherwise noted, and use adjusted or Non-GAAP figures where available.
“Our third quarter results were highlighted by accelerating growth in the Americas Design business, the eighth consecutive quarter of double-digit growth in Building Construction, a 3x book-to-burn5 in our Energy & Industrial Construction business, $191 million of free cash flow, and $177 million of debt reduction,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “The distinct advantages of our design, build, finance, and operate capabilities are becoming more apparent in the type of work we pursue and win, including $1.1 billion of power projects we won in the third quarter and the L.A. Rams stadium we and our joint-venture partner were selected to build after the quarter closed.”
"Our performance in the third quarter reflects the benefits of our diverse mix of geographies and end markets,” said Stephen M. Kadenacy, AECOM’s president. “From this diversity, and through consistent execution, we are able to generate consistent results and deliver value for our stockholders.”
Wins and Backlog
Wins in the quarter of $4.5 billion resulted in a book-to-burn ratio5 of 1.02. Wins were driven primarily by two large contracts to construct combined cycle gas power plants in the U.S., and strength in our Asia Pacific design markets. Total backlog declined slightly to $38.4 billion, due primarily to changes in foreign currency rates.
In addition to providing consolidated financial results, AECOM reports separate financial information for its three segments: Design & Consulting Services, Construction Services and Management Services.
Design & Consulting Services (DCS)
The DCS segment delivers planning, consulting, architectural and engineering design services to commercial and government clients worldwide in markets such as transportation, facilities, environmental, energy, water and government.
Revenue in the third quarter was $1.9 billion. Constant-currency organic6 revenue was largely unchanged, highlighted by 4.1% growth in the Americas, 6.3% growth in the U.K., and 1.6% growth in Australia, offset by a decline in the Middle East. Adjusted operating income3 increased to $150 million compared to $145 million in the year ago period.
Construction Services (CS)
The CS segment provides construction services for energy, sports, commercial, industrial, and public and private infrastructure clients.
Revenue in the third quarter was $1.7 billion, which was largely unchanged, with double-digit growth in the Building Construction business offset by weakness in oil and gas that was exacerbated by the fires in Fort McMurray, Canada. Adjusted operating income3 was $23 million compared to $11 million in the year ago period. The increase included a strong contribution from our building and stadium construction business.