Engineering & Construction
We believe the combination of gradually improving business confidence, aggressive government policy actions to combat global deflation and recent low growth economic performance, longer-term product and energy requirements of emerging economies and likely healthy levels of infrastructure-driven obligations should allow engineering and construction service providers an ability to target generate earnings, backlog and cash generation growth during 2017-2019. We believe the market may be discounting 2H16-1H17 as a bottom in new orders, project deferrals and earnings. We continue to expect multiple expansions during this cycle. US corporate tax reform, Congressional efforts to further boost civil infrastructure activity and global developed and emerging economies shifting towards fiscal measures, E&C client confidence should improve.
- AECOM (ACM)
- Chicago Bridge & Iron Co NV (CBI)
Michael S. Dudas
November 14, 2017
ACM: ROBUST PIPELINE AND FREE CASH GENERATION TO DRIVE GROWTH AND RECAPITALIZATION
End Markets Ready to Drive Continued Organic Growth