Bechtel's Latest Revenue Decline Is Part of Familiar Up-and-Down Pattern

In a joint venture with Enka Insaat, Bechtel is building the Kosovo Motorway, connecting Kosovo’s capital, Pristina, with FYR Macedonia.

PHOTO COURTESY OF BECHTEL

Bechtel Corp. reported that its revenue in COVID-19-plagued 2020 fell to $17.6 billion, down from $21.8 billion in 2019 and less than half the $39.4 billion recorded at a high point in 2013.

Backlog also fell, to $36.7 billion, down from $38.3 billion in 2019—just 35% of the $104.4 billion noted on the company's books in 2010.

The decline is part of a familiar gradual up-and-down pattern in Bechtel's annual revenue total. Bechtel's overseas work includes numerous projects for oil-producing Middle East countries, which are subject to price risks. But the company also has substantial operations in the rest of the world's infrastructure, mining and petrochemical markets.

In a statement released March 31 with the contractor's annual report, CEO Brendan Bechtel termed last year "the toughest in our company’s history," but he also said the company "stood with our customers to drive progress, and achieved one of the best safety records ever."

Privately held, Bechtel does not disclose information about profit or net income.

Bloomberg reported this week that Bechtel and its subcontractors are owed "billions" by the government of Saudi Arabia for work on the nearly operational metro project in Riyadh, its capital. Said to be the world's largest single-phase rail network project, the 176-km system's cost is estimated at more than $22.5 billion. According to reports, the first part of the system of six lines is set to operate by the fourth quarter.

Bechtel did not confirm the Bloomberg report, which was attributed to sources familiar with the project.

In its annual report, Bechtel President and COO Craig Albert said the Reston, Va.-based construction giant in 2020 had "brought our cost structure down considerably, making us more competitive."

Gradual dips and crests have been a part of Bechtel's revenue cycles since at least 2006.

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Deputy Editor Richard Korman helps run ENR's business and legal news and investigations, selects ENR's commentary and oversees editorial content on ENR.com. In 2023 the American Society of Business Publication Editors awarded Richard the Stephen Barr Award, the highest honor for a single feature story or investigation, for his story on the aftermath of a terrible auto crash in Kentucky in 2019, and in 2015 the American Business Media awarded him the Timothy White Award for investigations of surety fraud and workplace bullying. A member of Investigative Reporters and Editors, Richard has been a fellow on drone safety with the McGraw Center for Business Journalism at the Craig Newmark Graduate School of Journalism at CUNY. Richard's freelance writing has appeared in the Seattle Times, the New York Times, Business Week and the websites of The Atlantic and Salon.com. He admires construction projects that finish on time and budget, compensate all team members fairly and record zero fatalities or serious injuries.

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