ACS Group says it is integrating its North American civil engineering and construction businesses by combining Dragados with Flatiron Construction into a single operation. In announcing the combination July 30, Madrid-based ACS said that Flatiron-Dragados would become the second-largest civil engineering firm in the U.S.

"The operation aims to simplify the group's structure of the civil engineering activity in North America, facilitate the relationship with different stakeholders and promote administrative and financial synergies," ACS stated.

There had already been close links between the companies. ACS owns Dragados and is also the majority owner of Hochtief, the Essen, Germany-based contracting company that owns Turner Construction.

Flatiron and Dragados have also been joint venture partners and are currently the prime contractor for the Harbor Bridge in Corpus Christi, Texas, and Construction Package 2-3 of the California High Speed Rail project.

ACS and Hochtief stated that they had agreed to terms under which ACS Group would own 61.8% and Hochtief 38.2% of Flatiron-Dragados.

Broomfield, Colo.-based Flatiron and New York City-based Dragados had a combined $6.4 billion in 2023 revenue and ranked 49 and 37, respectively, on the ENR Top 400 Contractors.

The newly formed entity will be led by Dragados CEO Javier Sevilla. Peter Davoren, CEO of Turner, will be the new company's chairman.

A spokesman for Turner said that Davoren will also remain CEO, president and chairman of Turner Construction Co.

Turner 2024 Operating Results

Separately, ACS reported results for the first half of 2024 of $450 million in net after-tax profit, up 8.1% over the prior year first half, on $20.2 billion in sales, due to solid performance, "especially Turner in North America."

ACS further reported that Turner had first half sales of $9.35 billion, up 13.5% from the prior year first half, and pre-tax profit of $267 million, up 38.5%.