Aecom accelerates

In the fourth quarter of 2017, US-based infrastructure firm Aecom recorded what it said was the highest quarterly revenue growth rate in several years.

Increasing by 9% organically, the company’s revenue in the fourth quarter of 2017 came to US$4.86 billion. For the full year, revenue was $18.2 billion, compared to $17.4 billion in the previous year.

Within this, Aecom’s construction services businesses recorded a 21% growth in revenue in the fourth quarter of 2017 to $2 billion, and an 11% increase in full-year revenue to $7.3 billion.

This growth was said to be highlighted by a third-consecutive year of double-digit growth in the company’s building construction business and strong growth in its power business.

Meanwhile, fourth-quarter operating income for the construction services came to $38 million, and $115 million for the full year.

Pre-tax profits for Aecom as a whole jumped by 241.8% to $429 million in 2017, from $125.6 million in 2016, when they were dampened by acquisition charges and losses incurred on sold businesses.

Net income came to $88 million in the fourth quarter, while for the full year it was $339 million.

Strong operating cash flow of $697 million and free cash flow of $618 million were recorded, which were said to be within Aecom’s guidance range for the year.

The company’s backlog at the end of September stood at $47.55 billion, representing an 11% increase on the prior-year period.

Aecom achieved record full-year wins of $23.2 billion, including the San Onofre nuclear decommissioning project in the US and a global design-build win in the fourth quarter for a multi-national pharmaceutical company.

Michael Burke, Aecom’s chairman and chief executive officer, said, “Our performance in fiscal 2017 was highlighted by strong cash flow, record backlog, and accelerating revenue growth, which serve as clear evidence that our diverse business and design, build, finance and operate vision are delivering results.”

The company’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) guidance for 2018 is $910 million.

Aecom has forecast a strong cash performance in 2018, with free cash flow expected to be between $600 million and $800 million.