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EBJ News for August 8, 2019

Waste Management reports volume growth counters decline in recycling revenues

Waste Management Inc. (Houston) grew organic revenues in its collection and disposal business by more than 7% in the second quarter ended June 30, 2019, with strong yield and volume growth contributing $230 million of incremental revenue. This result was partially offset by a $38 million year-over-year decline in recycling revenues; however, operating EBITDA in recycling improved by $6 million despite a 33% drop year-over-year in blended average commodity price. The company says it remains “focused on changing the business model for recycling with improved MRF technology and contract structures that recoup processing costs and protect us from commodity price downside.” Total revenues in the second quarter were $3.95 billion compared with $3.74 billion for the same 2018 period. Net income for the second quarter was $381 million compared with $499 million in the prior year period.

 

Republic Services sees revenue growth driven by strong pricing

Solid waste company Republic Services Inc. (Phoenix, Ariz.) reported net income of $251.5 million for the three months ended June 30, 2019 versus $234.9 million for the comparable 2018 period; net income was $254.1 million versus $239.6 million. The company has been “de-risking the recycling business model” and affirmed its 2019 guidance “despite additional headwinds from lower recycled commodity prices.” During the quarter, Republic Services invested $129 million in acquisitions, and expects to invest a total of $550 million for the full year.

 

Tetra Tech reports record quarterly results

Tetra Tech (Pasadena, Calif.) exceeded $800 million in quarterly revenues for the first time ever in its third quarter ended June 30, 2019. Revenues of $826 million for the quarter rose 8% year-over-year, and operating income was $65 million, up 17%.  The record performance was led by U.S. state and local revenues, which were up 52%, generating 19% of overall business and driven by water infrastructure, disaster response, and long-term disaster recovery management and mitigation. International net revenue rose 12% driven by industrial clients in Canada, including environmental permitting, geotechnical analysis and renewable and conventional energy programs. Total backlog also stood at a quarterly record of $2.8 billion, up 16% year-over-year. Environmental awards in the quarter included the next phase of a major restoration program for the Anacostia River. Revenue for the nine-month period was $2.3 billion, and net revenue was $1.8 billion.

 

Arcadis results led by strong performance in North America

Arcadis (Amsterdam, The Netherlands) announced net revenues totaling €647 million for the second quarter ended June 30, 2019, with organic growth of 2%. In the Americas, organic growth was 11%, and 1% in Europe, while the Middle East decreased by 23% due to continued selectivity in acquiring work. In the first half of the year Arcadis reported organic net revenue growth of 10% in both North America and Latin America. Operating EBITA margin improved significantly from 7.7% to 8.7%, with North America delivering 9.6%, driven by a strong performance in environmental consultancy and continued solid results in Water and Infrastructure.

 

Climate risk consultancy acquired by Moody’s

Moody’s Corporation (New York, N.Y.) has acquired a majority stake in Four Twenty Seven Inc. (Berkeley, Calif.), a provider of market intelligence on the economic risk of climate change. Four Twenty Seven measures storms, drought, sea level rise, and other climate related trends, tracking how they impact companies and countries. Emilie Mazzacurati founded Four Twenty Seven in October 2012 after Hurricane Sandy demonstrated how lack of planning for climate impacts could affect even the biggest financial institutions. Moody’s said the new addition underscores its work to advance global standards for assessing environmental and climate risk. The acquisition “could signify the beginning of a major shift in how markets price risks related to climate change,” Bloomberg reported.

 

Corporate solar investments surge in United States

Apple is now the leading procurer of corporate solar in the United States with nearly 400 megawatts (MW) of total installed capacity, according to the Solar Energy Industries Assn.’s latest “Solar Means Business” report. The report includes 2018 data from both on-site and off-site installations, tracking more than 7,000 MW of installed solar capacity across 35,000 projects, up from 2,500 MW and 7,000 projects in the 2017 report.  “When global brands go solar, the rest of the world takes note, and this report puts the power of corporate solar investment on full display,” said Abigail Ross Hopper, SEIA president and CEO.

 

Fund to stabilize California’s electric utilities

California’s three investor-owned electric utilities are contributing $10.5 billion combined to a new fund to cover the costs of future catastrophic wildfires caused by power company equipment. The amount required of each utility will depend on its wildfire risk and safety history. According to news reports, Pacific Gas & Electric will pay the most and San Diego Gas & Electric the least. The new model to pay for wildfire damage was championed by Gov. Gavin Newsom, who in July signed a law requiring major utilities to contribute to a fund for paying claims resulting from wildfires. Utilities can use the fund to pay for wildfire damages that exceed insurance coverage.

 

Pritzker acquires Valicor Environmental

Pritzker Private Capital has acquired Valicor Environmental Services (Monroe, Ohio), a provider of non-hazardous wastewater treatment services. Pritzker is investing alongside Valicor’s management team. Leveraging its fleet of tankers and a network of centralized wastewater treatment facilities, Valicor transports and processes wastewater streams from the industrial and consumer goods industries. Valicor has 23 facilities and more than 350 employees.

 

CBC Engineers becomes a KBJW company

CBC Engineers (Centerville, Ohio) has joined forces with Koontz Bryant Johnson Williams (Henrico, Va.). Formed in 1995, CBC Engineers initially provided mining engineering services to the coal industry and today provides geotechnical, geo-structural, and environmental services to municipal and private clients throughout the United States and Canada. CBC has personnel in Ohio, West Virginia, Kentucky, Illinois, and Wisconsin. KBJW is a full service civil engineering and consulting firm serving Virginia and North Carolina for 28 years.

Northwest Consultants joins Fishbeck

Northwest Consultants Inc. (NCI, Toledo, Ohio) has joined Fishbeck, Thompson, Carr & Huber Inc. (Grand Rapids, Mich.). NCI is a multi-disciplinary engineering firm established in 1985 with 37 employees in four offices in the tri-state area, including Ohio, Michigan and Indiana. Services include brownfields remediation, environmental compliance, water/wastewater engineering, bridge design, construction management and civil engineering. Fishbeck provides engineering, environmental sciences, architecture, and construction management. The combined company will have 475 employees and 15 offices.

Stormwater firm expands footprint into Southeast

Restoration + Recovery (R+R, Durham, N.C.), a portfolio company of DFW Capital Partners and a national provider of stormwater preventative maintenance and corrective action, has acquired DGC Environmental Services Inc. (Crestview, Fla.), a stormwater services firm. The transaction expands R+R’s presence across DGC’s footprint in the southeast. In the last 24 months, R+R has expanded throughout the United States and is focused on broadening its services in the most critical watershed areas, aiming to become the country’s leading stormwater services firm.

 

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