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Researched by Industrial Info Resources (Sugar Land, Texas)--Low prices have hindered expansion plans for many leaders in the energy industry, which in turn has led to dimmer prospects for their service providers. But AECOM Technology Corporation (NYSE:ACM) (Los Angeles, California) has more than offset those factors with strong performances from its Building Construction, Power and Management Services segments, and boasts a growing backlog that covers the power-generation and infrastructure sectors. Industrial Info is tracking more than $53 billion in projects involving AECOM.
New order wins in its fiscal third quarter for 2017 totaled $9 billion, a stunning 164% increase from the same period last year; the total backlog stood at $46.4 billion, up 13%. AECOM's capital expenditures stood at $19.8 million for the quarter, down from $68.8 million; full-year 2017 expenditures are expected to total $115 million.
AECOM's revenues from power generation-related projects have grown by more than 40% in each of the past two quarters, and it is part of three such projects that are set to kick off before the end of the year: Indeck Energy Services Incorporated's (Buffalo Grove, Illinois) $1 billion Niles Power Station in Niles, Michigan, which will generate 1,076 megawatts (MW) from two gas turbine generators and a steam turbine generator; Nigig Power Corporation's (Pickerel, Ontario) $600 million Henvey Inlet Windfarm in Sudbury, Ontario, which would generate 300 MW from 130 turbines; and Hydro-Quebec's (Montreal, Quebec) $180 million Luyster Creek Convertor Station in Astoria, New York, which will accommodate the planned Champlain Hudson Power Express Transmission Line. For more information, see Industrial Info's project reports on the Niles station, Henvey Inlet Windfarm and Luster Creek station.
Since 2013, revenues in AECOM's Construction Services segment have increased fivefold, and backlog has increased fourfold. Two such projects are under construction: Stony Brook University's $318 million addition to its Medical & Research Translation Building in Stony Brook, New York, which involves adding two buildings for laboratories and hospital beds, and FedEx Corporation's (NYSE:FDX) (Memphis, Tennessee) $118 million distribution center in Houston, Texas. Both projects are expected to wrap up before the end of the year. For more information, see Industrial Info's reports on the Stony Brook and FedEx projects.
"In 2013, the New York vertical construction market accounted for over 90% of our business," said Michael S. Burke, the chief executive officer of AECOM, in a quarterly earnings-related conference call. "Today, despite continued growth in the New York market, more than 50% of our backlog is outside of New York. This diversification reflects the geographic expansion of our vertical construction business where today we are constructing over $5 billion of projects across California, Florida, New England, and Texas and have expanded internationally."
On the international side, AECOM reported double-digit backlog growth in the U.K., where Industrial Info is tracking more than $2 billion in active projects. The company is serving as consultant for two proposed power-generation projects: EP Holding's (Brno, Czech Republic) $649.5 million Eggborough Power Station near Goole, England, a natural gas-fired, combined-cycle plant that is designed to generate 2,000 MW; and E.ON SE's (Düsseldorf, Germany) $259.8 million Dalchork Windfarm in Lairg, Scotland, which, as currently designed, would generate 135 MW from 45 turbines. For more information, see Industrial Info's reports on the Eggborough and Dalchork projects.
Last month, AECOM acquired Shimmick Corporation, which performs heavy civil construction in the Western U.S. markets, including California. Among Shimmick's active projects are Honolulu Rapid Transportation's $1.04 billion commuter rail line extension near Honolulu International Airport in Hawaii, which is in its site-preparation stage, and Seattle City Light's $173 million Denny Distribution Substation in Seattle, Washington, which will have a capacity of 115 kilovolts. For more information, see Industrial Info's project reports on the Honolulu line and the Denny Substation.
"With Shimmick, we are now well-positioned to capitalize on the more than $230 billion of approved infrastructure funding measures in our core markets," Burke said in the conference call.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
New order wins in its fiscal third quarter for 2017 totaled $9 billion, a stunning 164% increase from the same period last year; the total backlog stood at $46.4 billion, up 13%. AECOM's capital expenditures stood at $19.8 million for the quarter, down from $68.8 million; full-year 2017 expenditures are expected to total $115 million.
AECOM's revenues from power generation-related projects have grown by more than 40% in each of the past two quarters, and it is part of three such projects that are set to kick off before the end of the year: Indeck Energy Services Incorporated's (Buffalo Grove, Illinois) $1 billion Niles Power Station in Niles, Michigan, which will generate 1,076 megawatts (MW) from two gas turbine generators and a steam turbine generator; Nigig Power Corporation's (Pickerel, Ontario) $600 million Henvey Inlet Windfarm in Sudbury, Ontario, which would generate 300 MW from 130 turbines; and Hydro-Quebec's (Montreal, Quebec) $180 million Luyster Creek Convertor Station in Astoria, New York, which will accommodate the planned Champlain Hudson Power Express Transmission Line. For more information, see Industrial Info's project reports on the Niles station, Henvey Inlet Windfarm and Luster Creek station.
Since 2013, revenues in AECOM's Construction Services segment have increased fivefold, and backlog has increased fourfold. Two such projects are under construction: Stony Brook University's $318 million addition to its Medical & Research Translation Building in Stony Brook, New York, which involves adding two buildings for laboratories and hospital beds, and FedEx Corporation's (NYSE:FDX) (Memphis, Tennessee) $118 million distribution center in Houston, Texas. Both projects are expected to wrap up before the end of the year. For more information, see Industrial Info's reports on the Stony Brook and FedEx projects.
"In 2013, the New York vertical construction market accounted for over 90% of our business," said Michael S. Burke, the chief executive officer of AECOM, in a quarterly earnings-related conference call. "Today, despite continued growth in the New York market, more than 50% of our backlog is outside of New York. This diversification reflects the geographic expansion of our vertical construction business where today we are constructing over $5 billion of projects across California, Florida, New England, and Texas and have expanded internationally."
On the international side, AECOM reported double-digit backlog growth in the U.K., where Industrial Info is tracking more than $2 billion in active projects. The company is serving as consultant for two proposed power-generation projects: EP Holding's (Brno, Czech Republic) $649.5 million Eggborough Power Station near Goole, England, a natural gas-fired, combined-cycle plant that is designed to generate 2,000 MW; and E.ON SE's (Düsseldorf, Germany) $259.8 million Dalchork Windfarm in Lairg, Scotland, which, as currently designed, would generate 135 MW from 45 turbines. For more information, see Industrial Info's reports on the Eggborough and Dalchork projects.
Last month, AECOM acquired Shimmick Corporation, which performs heavy civil construction in the Western U.S. markets, including California. Among Shimmick's active projects are Honolulu Rapid Transportation's $1.04 billion commuter rail line extension near Honolulu International Airport in Hawaii, which is in its site-preparation stage, and Seattle City Light's $173 million Denny Distribution Substation in Seattle, Washington, which will have a capacity of 115 kilovolts. For more information, see Industrial Info's project reports on the Honolulu line and the Denny Substation.
"With Shimmick, we are now well-positioned to capitalize on the more than $230 billion of approved infrastructure funding measures in our core markets," Burke said in the conference call.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
