International infrastructure company AECOM expects to be in the running for perhaps a half-dozen contracts from the Energy Department’s Office of Environmental Management in the next couple years.
AECOM Chief Financial Officer Troy Rudd made the observation Monday during the company’s quarterly earnings call. The company expects to bid on five DOE cleanup contracts in fiscal 2020 and one in fiscal 2021. With other sectors, such as electric power plants, not doing as well, AECOM is focusing more on fixed-price government contracts these days.
AECOM is still waiting for the Energy Department to reissue a 10-year, multibillion-dollar award for liquid waste management at the Savannah River Site in South Carolina.
While DOE awarded a BWX Technologies-led team the initial $4.7 billion contract in October 2017, a venture comprised of AECOM and CH2M won a bid protest before the Government Accountability Office in February. The Energy Department then allowed all three bidding teams, including a Fluor-Westinghouse partnership, to submit updated proposals this spring.
The site’s current liquid waste manager, AECOM-led Savannah River Remediation, now has an extended contract through March 2019.
Elsewhere in the DOE complex, AECOM is also lead partner in the $2.2 billion, five-year contract to manage the Waste Isolation Pilot Plant (WIPP) in New Mexico, which could run through September 2022 with extensions. It is also the lead partner in the $2.7 billion decontamination and decommissioning contract at Oak Ridge Site’s East Tennessee Technology Park, an agreement which lasts through July 2020.
AECOM reported $5.3 billion in revenue for the quarter ended Sept. 30, which marks the end of its 2018 fiscal year. The revenue is up more than 9 percent from $4.9 million in the same quarter in 2017. The Los Angeles-based company reported operating income of $177 million in the quarter, which improved upon the year-ago figure of $162 million by 9.4 percent.
Net income of $84 million was down more than 5 percent from $88 million a year ago. Diluted earnings per share were $0.52 for the quarter, down from $0.55 on a year-over-year basis.
AECOM’s Management Services division, which includes work from its Energy Department joint ventures, reported $1 billion in revenue and $50 million in operating income for the quarter, rising moderately from $890 million and $48 million for the quarter ended Sept. 30, 2017.
The recent quarter marks the end of the company’s 2018 fiscal year and AECOM is projecting earnings per share for fiscal 2019 in the range of $2.60 to $2.90. That compares to $0.84 per share for the just completed year.
For the 12 months ended Sept. 30, the company recorded about $20.2 billion in revenue, up more than 10 percent from the $18.2 billion in fiscal 2017. Companywide operating income for the year, however was down sharply from $654 million to $425 million. Likewise, net income was also down dramatically for the year, from $339 million to $136 million.
Management Services revenue for the year was $3.7 billion which is up from $3.3 billion in fiscal 2017. The segment’s operating income for the year was $200 million, down from $241 million in 2017.
