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Released February 04, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) firm AECOM (NYSE:ACM) (Los Angeles, California) is staying busy, as the company added $3.3 billion in projects in the just-passed fourth-quarter 2019 (the company's first fiscal 2020 quarter) to a near-record $36.5 billion. According to Industrial Info's Global Market Intelligence (GMI) database, the leading sectors for AECOM are transportation systems and power generation.
AECOM reports its business results by geography: Americas, which includes the U.S., Canada and Latin America; International, which includes Europe, the Middle East and the Asia-Pacific region; and AECOM Capital, which invests in and develops real estate projects. The company reported revenue of $2.5 billion in its Americas segment, a year-over-year reduction, primarily because of an expected reduction in disaster recovery activity in the U.S. Virgin Islands, which it was performing in late 2018. Despite the reduction in revenue, AECOM's adjusted operating income in the segment was $151 million, compared with $128 million in the year-prior quarter.
In the company's recent earnings conference call with analysts, AECOM Chief Executive Officer Michael Burke said, "In the Americas, nearly every end market we serve grew in the quarter. Continued strong support for public infrastructure investments and strong client budgets support our expectation for growth this year."
Industrial Info is tracking more than $31 billion in projects in the transportation systems sector in which AECOM has a hand, primarily in the form of light rail and airport projects. Among the largest of these projects underway is a light rail extension project in Minnesota. The project, which kicked off early last year, entails constructing 14.5 miles of double-track light rail line with 15 stations from downtown Minneapolis through various suburb communities. In addition, 29 new bridges will be built and seven existing bridges modified. AECOM is providing architectural duties on the $2 billion project, which is expected to be completed in early 2023. For more information, see Industrial Info's project report.
On the books for AECOM is Metrolinx's (Toronto, Ontario) grassroot light rail transit line in Mississauga, Ontario, which involves constructing a 12-mile rail line along with 22 stations and a maintenance and storage facility. AECOM is the engineer on the project, which will kick off later this year and is expected to last about four years. For more information, see Industrial Info's project report.
Among AECOM's U.S. power projects is the 1,650-megawatt (MW) Chickahominy power plant in Charles City, Virginia, for which the company is providing engineering services. Construction on the combined--cycle plant is expected to kick off this summer, with completion set for mid-2023. Gemma Power Systems (Glastonbury, Connecticut) is providing primary construction services on the project, which has an estimated total investment value of $1.3 billion. For more information, see Industrial Info's project report.
While projects at coal-fired power stations in the U.S. are grinding to a halt, environmental projects involving the Coal Combustion Residuals (CCR) rule remain active. AECOM is acting as environmental consultant on one such project for Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) in Chester, Virginia, which entails constructing an ash landfill for units 3,4,5 and 6 at the Chesterfield Power Station. An ash pond will be constructed on a 112-acre site that will be capped with a linear low-density polyethylene geomembrane and will eventually be covered with an 18-inch protective soil cover layer. Closure of an existing ash pond also will be performed to comply with CCR regulations. The $480 million project is expected to kick off in the second quarter of this year and be completed in the summer of 2022. For more information, see Industrial Info's project report.
While not as prominent in its portfolio as the power and transportation sectors, AECOM is involved in the university sciences sector. Among the projects on which the company is at work is the expansion of a physics research plant at Cambridge University in England. A new 344,500-square-foot facility is being constructed to accommodate the university's department of physics. Construction on the $396 million project kicked off early last year and is expected to be completed in 2022. For more information, see Industrial Info's project report.
AECOM expects the trend of backlog growth to continue this year. In the conference call, Chief Financial Officer W. Troy Rudd said, "The pipeline in the construction management business remains strong, and we are pursuing sizable opportunities across our core building, stadia and aviation markets. This includes large expected wins in the second quarter that underpin our expectation for growth in 2021 and beyond." The company expects to grow its backlog to a new record level this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
AECOM reports its business results by geography: Americas, which includes the U.S., Canada and Latin America; International, which includes Europe, the Middle East and the Asia-Pacific region; and AECOM Capital, which invests in and develops real estate projects. The company reported revenue of $2.5 billion in its Americas segment, a year-over-year reduction, primarily because of an expected reduction in disaster recovery activity in the U.S. Virgin Islands, which it was performing in late 2018. Despite the reduction in revenue, AECOM's adjusted operating income in the segment was $151 million, compared with $128 million in the year-prior quarter.
In the company's recent earnings conference call with analysts, AECOM Chief Executive Officer Michael Burke said, "In the Americas, nearly every end market we serve grew in the quarter. Continued strong support for public infrastructure investments and strong client budgets support our expectation for growth this year."
Industrial Info is tracking more than $31 billion in projects in the transportation systems sector in which AECOM has a hand, primarily in the form of light rail and airport projects. Among the largest of these projects underway is a light rail extension project in Minnesota. The project, which kicked off early last year, entails constructing 14.5 miles of double-track light rail line with 15 stations from downtown Minneapolis through various suburb communities. In addition, 29 new bridges will be built and seven existing bridges modified. AECOM is providing architectural duties on the $2 billion project, which is expected to be completed in early 2023. For more information, see Industrial Info's project report.
On the books for AECOM is Metrolinx's (Toronto, Ontario) grassroot light rail transit line in Mississauga, Ontario, which involves constructing a 12-mile rail line along with 22 stations and a maintenance and storage facility. AECOM is the engineer on the project, which will kick off later this year and is expected to last about four years. For more information, see Industrial Info's project report.
Among AECOM's U.S. power projects is the 1,650-megawatt (MW) Chickahominy power plant in Charles City, Virginia, for which the company is providing engineering services. Construction on the combined--cycle plant is expected to kick off this summer, with completion set for mid-2023. Gemma Power Systems (Glastonbury, Connecticut) is providing primary construction services on the project, which has an estimated total investment value of $1.3 billion. For more information, see Industrial Info's project report.
While projects at coal-fired power stations in the U.S. are grinding to a halt, environmental projects involving the Coal Combustion Residuals (CCR) rule remain active. AECOM is acting as environmental consultant on one such project for Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) in Chester, Virginia, which entails constructing an ash landfill for units 3,4,5 and 6 at the Chesterfield Power Station. An ash pond will be constructed on a 112-acre site that will be capped with a linear low-density polyethylene geomembrane and will eventually be covered with an 18-inch protective soil cover layer. Closure of an existing ash pond also will be performed to comply with CCR regulations. The $480 million project is expected to kick off in the second quarter of this year and be completed in the summer of 2022. For more information, see Industrial Info's project report.
While not as prominent in its portfolio as the power and transportation sectors, AECOM is involved in the university sciences sector. Among the projects on which the company is at work is the expansion of a physics research plant at Cambridge University in England. A new 344,500-square-foot facility is being constructed to accommodate the university's department of physics. Construction on the $396 million project kicked off early last year and is expected to be completed in 2022. For more information, see Industrial Info's project report.
AECOM expects the trend of backlog growth to continue this year. In the conference call, Chief Financial Officer W. Troy Rudd said, "The pipeline in the construction management business remains strong, and we are pursuing sizable opportunities across our core building, stadia and aviation markets. This includes large expected wins in the second quarter that underpin our expectation for growth in 2021 and beyond." The company expects to grow its backlog to a new record level this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
