RALEIGH, N.C. (November 29, 2012) – FMI, a provider of management consulting and investment banking to the engineering and construction industry, announced the release of its Third Quarter Engineering and Technical Professional Services Update. The Design Index has been slowly rising since April. As of September, the index is in the black. Gross revenues for the top 19 publicly traded design firms exceeded $30.6 billion, with combined earnings before interest, taxes, depreciation and amortization topping $1.9 billion. Only one firm had a negative EBITDA, and only three reported negative income for Q3 2012. The median debt-to-cash ratio is positive at $282 million in debt to $398 million in cash. However, the mean ratio still lags, with debt exceeding cash at $726 million in debt compared to $630 in cash and short-term investments.
M&A activity continues at a steady pace, with 16 notable transactions from July through September. However, Q3 has been somewhat slower than the first two quarters. Over the last few years, there appears to be a continuing trend toward architectural, engineering and construction firms coming together to become, in effect, AEC firms.
As part of the report, Steve Isaacs, P.E., consulting division manager for FMI, shares the first in a two-part series of articles addressing “The Consilience of Design and Construction.” In addition, five notable C-suite executives share views about their companies and the future of the marketplace.
To download a copy of the full report, click here. For more information, contact Sarah Vizard Avallone at 919.785.9221 or savallone@fminet.com.
