AECOM released its 2Q18 financial report on May 8, showing an increase in total revenue of 8.2 percent to US$4.8 billion from US$4.4 billion in 2Q17. The consulting, construction and management company reported a US$107.8 million net loss in comparison to the same period in 2017 where it reported a US$115.8 million net income.
Even though the company’s revenues increased, the net loss could be accredited to a decreasingly competitive market and a 131.3 percent loss in the company’s income from operations during the quarter. In 2Q18, income from operations was reported at US$44.1 million income loss from operations, dropping significantly from US$140.9 million in 2Q17.
“Our revenue growth and US$6.9 billion of wins reflect the competitive advantages of our diversified mix of geographies and leading capabilities, strong presence as a leading government services contractor, and strengthening markets in the Americas,” said Michael S. Burke, AECOM’s chairman and CEO.
AECOM’s 2Q18 report also showed a backlog of US$49.9 million thanks to a boom in its Design and Consulting services as well as in its Management Services division. “Our backlog is at a new high of $50 billion, which is an 18 percent year-over-year increase with the fastest growth in our higher-margin DCS and MS segments,” said Burke.
Nevertheless, AECOM plans to cut some projects to deliver better results to investors and maintain momentum in 3Q18. “With our intention to sell and exit certain non-core Oil & Gas operations and our decision to no longer pursue fixed price gas power plant EPC work, we are positioning the business to deliver consistent operational and financial performance for our shareholders,” said Burke.