(May 5, 2020)—Contracting giant AECOM reported its Q2 fiscal year 2020 results this week, which included a record-high backlog of $42 billion. The Los Angeles, California-based firm also reported near-record new project awards, totaling $8.6 billion in value. Project backlog increased 14% year over year. Revenue totaled $3.2 billion, a 5% increase from the same time last year.
The positive results are made even more impressive as many companies are seeing declining profits due to project disruptions, delays and cancellations due to the coronavirus pandemic. The company noted it expects to see 10% year over year growth at fiscal yearend. See comments from Chairman and Chief Executive Officer Michael S Burke below. In an earnings call this week, Burke said the company had seen only 18 cancellations out of its 50,000 projects worldwide.
“I am proud of AECOM’s strong second quarter and first half financial performance, which was highlighted by our sixth-consecutive quarter of substantial margin improvement in our Professional Services business, continued double-digit adjusted EBITDA growth, a record $9 billion of wins in the quarter and a new all-time high backlog level,” said Burke. “Our organization has responded well to the challenges posed by COVID-19 and I am thankful for our entire workforce’s devotion to our business and focus on delivering for our clients. As we look to the future, there are many uncertainties about the duration and long-term impacts from COVID-19. Importantly, with respect to what is within our control, the business has never been stronger or more resilient. In the near-term, our focus is on the health and safety of our people, on protecting jobs and on delivering for our clients. This is apparent in our industry-leading share of federal spending on COVID-19 related work thus far. Longer-term, we are engaging with our clients to help prepare for substantial planned stimulus, including an emphasis on infrastructure in our largest markets.”
“Our results over the past six quarters and, in particular the first half of this year, reinforce the value of our transformation to a higher-margin and lower-risk Professional Services business model,” said W. Troy Rudd, AECOM’s chief financial officer. “Our financial position is solid. We deployed the proceeds from the MS sale to repay all of our secured debt, resulting in substantially reduced net leverage of 1.2x. Today, we have a record level of liquidity and no substantial debt maturities for several years. We expect strong cash flow in the second half of the year to further enhance liquidity, providing us with additional flexibility as we navigate unprecedented market uncertainty with confidence.”