EPC Firm AECOM Grows Backlog to More Than $54 Billion

Researched by Industrial Info Resources (Sugar Land, Texas)--Global engineering, procurement and construction (EPC) firm AECOM (NYSE:ACM) (Los Angeles, California) reported that its project backlog for the quarter ended September 30 (the company's fourth fiscal quarter) was $54.07 billion, an increase of 14% from the prior-year quarter. In the company's earnings conference call, AECOM Chief Executive Officer Michael Burke said the company added $6.1 billion in projects in the just-passed quarter. Industrial Info is tracking projects valued at $58.8 billion involving AECOM, including more than $42.8 billion in the U.S.

Click on the image at right for a breakdown by industry of projects involving AECOM.

Despite the growth in backlog, the company's quarterly income left something to be desired. AECOM reported quarterly net income of $84 million compared with $88.5 million in the prior-year quarter. In a press release, Burke said, "Our adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] for the fourth quarter and full year was below our expectations due to the timing of AECOM capital assets sales, which we now expect in 2019, and execution challenges in the Construction Services segment."

Among the largest projects involving AECOM being tracked by Industrial Info is the expansion and renovation of terminals at the Chicago O'Hare International Airport in Illinois. The project involves renovating three terminals, constructing 35 new gates and replacing the existing Terminal 2 with a new global terminal to make way for larger international aircraft. AECOM is performing architectural and engineering services for the project, which has an estimated total investment value (TIV) of $8.54 billion. Construction could begin late next year, taking more than five years to complete. For more information, see Industrial Info's project report.

AECOM also is involved with the Power Industry. In Virginia, AECOM is the engineer for Balico LLC's (Herndon, Virginia) planned 1,650-megawatt (MW) natural gas-fired, combined cycle power plant near Charles City. Construction is set to begin in the first half of next year, taking about three years to complete. The facility will use General Electric (NYSE:GE) equipment. The project has an estimated TIV of $1.3 billion. For more information, see Industrial Info's project report.

In Wisconsin, AECOM is providing EPC for the 700-MW West Riverside combined-cycle power plant near Beloit. Construction began in the first half of last year and is expected to wrap up in the first half of 2020. Burke said, "I am pleased to report that we are continuing to make strong progress on the Alliant (NYSE:LNT) (Madison, Wisconsin) gas power plant. We are approximately 80% complete and remain on schedule and on budget." For more information, see Industrial Info's project report and November 8, 2018, article - Alliant Energy Expands Wind, Gas Facilities, Retires Coal.

Industrial Info is tracking several rail projects in which AECOM has a hand. AECOM is taking a role in the construction of the Green Line Southwest light rail extension in Minnesota. The project involves constructing 14.5 miles of a double-track light rail line and 15 stations from downtown Minneapolis through outlying communities. Construction on the project recently began and is expected to be completed in early 2023. The project has an estimated TIV of $1.9 billion. For more information, see Industrial Info's project report.

In Tennessee, AECOM is underway with engineering services for a brownfield data center for Google's parent company, Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California). The facility is being built on the site of a former semiconductor plant in Clarksville. Construction began in the first quarter of 2018 and is expected to be completed by the end of 2019. The project has an estimated TIV of $600 million. For more information, see Industrial Info's project report.

AECOM also is involved in projects in the oil and gas sector. Among these is HollyFrontier Corporation's (NYSE:HFC) (Dallas, Texas) planned refined products pipeline, which will run 117 miles between Orla and Midland in Texas. AECOM is performing design engineering on the project, which has an estimated TIV of $120 million. The project is expected to start and wrap up next year. For more information, see Industrial Info's project report.

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