AECOM, a near-ubiquitous presence on the Energy Department’s legacy nuclear cleanup sites, saw operating income at its Management Services division sink 55 percent year over year to slightly more than $50 million in the quarter ended March 31, the company reported Tuesday.
The segment’s earnings from joint ventures — including some of AECOM’s partnerships for DOE nuclear remediation work — fell about 70 percent to about $10.5 million.
Quarterly revenue at Management Services fell more than 8 percent to about $827 million, the company reported. However, it noted that the business branch secured a $3.6 billion contract early in the subsequent quarter.
Overall, the Los Angeles-based engineering services giant’s earnings soared in the quarter even as revenue remained basically flat.
AECOM’s net income for the fiscal second quarter ended March 31 was about $102 million, or almost one-and-a-half times its take for the comparable period of 2016. Diluted earnings per share landed at $0.65.
Revenue rose about 1 percent year over year to roughly $4.4 billion.
Late in April, about a month into the company’s third fiscal quarter, DOE extended for six months a liquid waste management contract at the Savannah River Site held by the AECOM-led Savannah River Remediation. The pact was set to expire June 30 and now will remain in effect through Dec. 31. Neither DOE nor AECOM has disclosed the value of that modification. Before the modification, and including options, the eight-year contract would have been worth roughly $4 billion.
AECOM also leads the Nuclear Waste Partnership, management and operations contractor for the Waste Isolation Pilot Plant in New Mexico and is principal subcontractor to Bechtel National for the Waste Treatment Plant at the Hanford Site in Washington state, among other roles across the DOE complex.
Editor’s Note, 05/11/2017, 1:00 p.m. Eastern time: the story was corrected to show equity in earnings of joint ventures in AECOM’s Management Services segment declined in the second quarter.
