AECOM reports second quarter fiscal year 2018 results

LOS ANGELES — (BUSINESS WIRE) — May 8, 2018 — AECOM (NYSE: ACM), a premier, fully integrated global infrastructure firm, today reported second quarter revenue of $4.8 billion. Net loss and diluted loss per share were $120 million and $0.75 in the second quarter, respectively, which includes a $168 million non-cash charge on non-core Oil & Gas assets held for sale. On an adjusted basis, diluted earnings per share1 was $0.67.

($ in millions, except EPS)  

As Reported




As Reported
YoY % Change


YoY %

Revenue   $4,791   -   8%   -
Operating (Loss) Income   ($44)   $1791   NM   (5%)
Net (Loss) Income   ($120)   $1091   NM   (23%)
EPS (Fully Diluted)   ($0.75)   $0.671   NM   (25%)
Operating Cash Flow   $118   -   NM   -
Free Cash Flow   -   $952   -   NM
Backlog   $49,936   -   18%3   -

Second Quarter 2018 Accomplishments:

  • Organic4 revenue increased by 5%, which was led by growth in the higher-margin DCS and MS segments and marked the sixth consecutive quarter of positive organic growth.
  • Wins of $6.9 billion were highlighted by a greater than 1 book-to-burn5 ratio in all three segments; in addition, the Company has already delivered more than $6 billion of wins in April in MS, which will be added to backlog in the fiscal third quarter.
  • Total backlog reached a new record of $50 billion, an 18%3 increase over the prior year, which includes a continued favorable margin mix shift in backlog to the DCS and MS segments.
  • Free cash flow2 of $95 million contributed to $129 of free cash flow for the first half of fiscal 2018; the Company continues to expect annual free cash flow within its guidance range of between $600 million and $800 million.

Strategic Decisions and Financial Outlook:

  • Following management’s strategic review of the Company’s risk profile and due to unfavorable market conditions, the Company will no longer pursue fixed-price combined-cycle gas power plant EPC projects.
  • Importantly, construction of Alliant’s Riverside combined-cycle gas plant, AECOM’s only such project currently underway, is expected to be completed profitably and on schedule in 2019.
  • The Company also intends to sell and exit certain non-core Oil & Gas operations.
  • The Company is reducing its adjusted EBITDA1 guidance from $910 million to $880 million, primarily from the removal of two combined cycle gas power plant EPC projects from backlog that were expected to positively contribute to earnings this year.

“Our revenue growth and $6.9 billion of wins reflect the competitive advantages of our diversified mix of geographies and leading capabilities, strong presence as a leading government services contractor, and strengthening markets in the Americas,” said Michael S. Burke, AECOM’s chairman and chief executive officer. “Our backlog is at a new high of $50 billion, which is an 18% year-over-year increase with the fastest growth in our higher-margin DCS and MS segments. Importantly, this momentum is continuing into the third quarter, including more than $6 billion of wins since early April in MS. Furthermore, with our intention to sell and exit certain non-core Oil & Gas operations and our decision to no longer pursue fixed price gas power plant EPC work, we are positioning the business to deliver consistent operational and financial performance for our shareholders. As a result, we are confident in reiterating our industry-leading five-year financial targets through fiscal 2022, including a 5%+ organic revenue CAGR, a 7%+ adjusted EBITDA CAGR, a 12 – 15% adjusted EPS CAGR and at least $3.5 billion of free cash flow.”

“We are pleased with our cash flow performance through the first half of the year,” said W. Troy Rudd, AECOM’s chief financial officer. “During the quarter, we undertook a refinancing of our credit facility, including the repayment of our 2022 Senior Notes, which improved the cost and extended the maturity profile of our debt. With this transaction and our progress through the first half of the fiscal year, we are positioned to operate the business and execute our capital allocation policy with a great degree of certainty.”

Wins and Backlog

Wins were $6.9 billion, and resulted in a book-to-burn ratio5 of 1.4. Wins were highlighted by strength across the business, including greater than 1 book-to-burn ratios in the DCS, CS and MS segments. Total backlog increased 18%3 over the prior-year period to $50 billion, and continued to reflect a favorable mix shift to the higher-margin DCS and MS segments.

Business Segments

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 second quarter was $2.0 billion. Constant-currency organic4 revenue increased by 5% and included strong performance in the Company’s transportation and water markets in the Americas, which are benefiting from improved levels of funding and a solid backlog position.

1 | 2 | 3 | 4  Next Page »

Review Article Be the first to review this article

Featured Video
Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
Upcoming Events
11th National Conference on Earthquake Engineering 2018 at Westin Bonaventure Hotel and Suites Los Angeles CA - Jun 25 - 29, 2018
GI_Forum 2018 at Salzburg Austria - Jul 3 - 6, 2018
NASTO 2018 at Gaylord Hotel, National Habor MD - Jul 9 - 11, 2018
Kenesto: 30 day trial
Bentley: -Rail and Transit Video - Countless CAD add-ons, plug-ins and more.

Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise