Earnings roundup: High interest rates catch up to construction | Dump Trucks Charlotte NC
There was a time when construction seemed insulated from the economic malaise hitting other industries, especially during the COVID-19 pandemic. When officials deemed building as an “essential” sector and exempted it from lockdowns early in the crisis, crews could keep working, largely uninterrupted.
But now, even as inflation has eased and supply chain struggles have been largely smoothed out, it’s become clear that construction isn’t immune to the ultimate business equalizer: higher interest rates over a sustained period.
That was the main takeaway from the first round of earnings reports from public construction companies in 2024. While infusions of cash from public funding have helped the sector immensely — backlogs at most of the eight firms we covered rose — continued challenges from the capital markets also put up roadblocks to sustained prosperity.
Just look at Skanska, where impairment charges for lower real estate values weighed on results. Or AECOM, whose otherwise upbeat profits were marred by two deals being pulled from its pipeline. Then there was Granite, whose small-ball approach seems to be paying dividends, if it can only exorcize the ghosts of past legacy projects.
Read on for details about each of the public firms that Construction Dive covers.
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Jacobs profits, backlog jump amid advanced manufacturing boost
By Sebastian Obando • Feb. 6, 2024The Dallas-based columbus oh dump truck company continues to add notable wins in its water infrastructure projects, according to the firm’s first quarter results. Read the full article ➔
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AECOM Q1 revenue, profits up as backlog dips
By Julie Strupp • Feb. 7, 2024CEO Troy Rudd cited strength in water, resilience and other infrastructure markets, but the firm pulled two previously announced deals from its development pipeline. Read the full article ➔
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Skanska’s Q4 profits tumble 73% due to property market
By Zachary Phillips • Feb. 9, 2024As U.S. construction helped bolster the Swedish builder’s balance sheet, the states’ poor commercial property market and return-to-office rates had negative impacts. Read the full article ➔
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Lendlease losses continue amid strategy shift
By Zachary Phillips • Feb. 21, 2024The contractor and developer has narrowed the kind of U.S. projects it will take on, targeting certain East Coast sectors above a specific cost. Read the full article ➔
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Fluor reports $21M loss, higher backlog
By Sebastian Obando • Feb. 21, 2024Strong awards and cash generation were countered by a large negative charge, according to one financial research analyst. Read the full article ➔
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Granite posts profit for 2023, earns $26M in Q4
By Joe Bousquin • Feb. 23, 2024The California-based road builder’s pivot to small jobs is paying off, but charges from outstanding legacy projects left a blot on its quarterly results. Read the full article ➔
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Tutor Perini posts $171M loss for 2023 on legal disputes
By Joe Bousquin • Feb. 29, 2024The megaproject contractor said most of the charges related to settlements on legacy projects have been resolved. Read the full article ➔
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WSP profits up 27% in 2023
By Julie Strupp • March 4, 2024The Montreal-based firm also posted higher revenue and backlog, and said it’s well positioned to take advantage of infrastructure opportunities in the U.S. and beyond. Read the full article ➔
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