Engineering giant AECOM’s fiscal second-quarter revenue dipped by 3%, from $4.51 billion in 2015 to $4.38 billion this year, according to earnings numbers released Tuesday. However, adjusted earnings per share were up by half on a year-over-year basis, from $0.58 to $0.87.
Net income for the latest quarter was $42 million, on operating income of $141 million.
“We made steady progress against our key strategic and financial objectives, most notably the return to growth in the Americas, continued strong cash generation, and additional debt reduction,” AECOM Chairman and CEO Michael S. Burke said in a press release. “We have a vastly diverse business and remain confident in our ability to capitalize on the momentum we see building across our end markets.”
Among numerous business lines, AECOM is a major player in nuclear cleanup and operations contracts for the Department of Energy and its semiautonomous National Nuclear Security Administration. It is a partner in the consortiums that manage the Los Alamos National Laboratory in New Mexico and the Nevada National Security Site, and leads the group of companies that provide liquid waste remediation at the Savannah River Site in South Carolina and transuranic waste storage at the Waste Isolation Pilot Plant in New Mexico.
Organic revenue in the company’s Management Services segment, which encompasses the DOE and NNSA contracts, rose 5 percent, while revenue overall hit $869 million. The company has $12 billion worth of bids under consideration in this segment, divided between new offers and contracts that are being recompeted, Burke said during the company’s earnings conference call. That includes a $5 billion contract in which AECOM is seeking to move from subcontractor to prime contractor, he said: “Because of new capabilities in size and scale of our organization, we can compete as a prime instead of going at it for a sub.” The company did not identify the customer for the contract.
AECOM reaffirmed its projection for full-year adjusted earnings per share of $3 to $3.40.
