Two major engineering and infrastructure companies, one a central player in the Energy Department nuclear cleanup business and another having just exited it, report earnings this week for the first three months of 2020.
AECOM, the former parent company of Energy Department contractor Amentum, has scheduled its earnings conference for noon Eastern time Tuesday. Jacobs will discuss its results at 4:45 p.m. ET Wednesday.
Los Angeles-based AECOM completed the $2.4 billion sale of its Management Services business on Jan. 31 to affiliates of New York-based investment firms Lindsay Goldberg and American Securities LLC. The new owners rechristened the government contractor as Amentum. The AECOM earnings will be released before the market opens Tuesday.
During its last earnings period, which ended Dec. 31, 2019, AECOM Management Services brought in $9.7 million in earnings net income, down from $19.5 million a year before. The Management Services branch accounted for $0.06 per share of earnings during the quarter, compared to $0.12 for the period ended Dec. 31, 2018. Add the top-line overall AECOM numbers.
Amentum, which is not publicly traded, controls the former AECOM Management Services contracts with DOE’s Office of Environmental Management and semiautonomous National Nuclear Security Administration (NNSA).
One of the newest contracts, the Energy Department’s December award of a potential 10-year, $10 billion contract for cleanup of the Central Plateau at the Hanford Site in Washington state, was upheld last week by the Government Accountability Office.
Dallas-based Jacobs will release its earnings report after the market closes Wednesday. Management said the 4:45 p.m. conference call time is in reaction to an unusually large number of such calls for Wall Street analysts that day.
Jacobs generated $3.1 billion in revenue during the quarter ended Dec. 31, 2019, well above the $1.8 billion reported for the same time period a year earlier.
During the last three months of 2019, Jacobs recorded quarterly net earnings of $124 million and earnings per share of $0.86, a big jump from $2 million and $0.02 EPS for the same period in 2018. The operating profit of $113 million for the last quarter of 2019 also represented a significant improvement over a $4.6 million loss during the same period a year earlier.
Jacobs’ Aerospace, Technology, Environmental, and Nuclear segment reported an operating profit of $72.1 million for the quarter, up from $61 million on a year-over-year basis. The segment reported revenue of $1 billion, compared to $710 million during the first quarter of fiscal 2018.
A Jacobs subsidiary, CH2M Hill Plateau Remediation, is the incumbent that lost the Central Plateau contract to a team of Amentum, Fluor, and Atkins. However, a CH2M-BWX Technologies venture was recently awarded a 39-month contract extension for cleanup at the West Valley Demonstration Project in New York.