The sound of hammers may have slowed to a thud in the United States, but there is no shortage of building booms worldwide. With a global construction market estimated at $4.8 trillion in 2008, Hill International (NYSE:HIL) has benefited from a highly diverse group of customers, from Europe to the Middle East, and North Africa to the Asia/Pacific region.

At a market cap of $583 million, the New Jersey-based company provides project management and construction claims services to a worldwide base of clients. Founded in 1976 by the company’s current CEO, Irvin E. Richter, Hill does business with the U.S. federal government, state and local governments, foreign governments and the private sector. It has also provided consulting services on major projects that have included the construction of the Comcast Center in Philadelphia, Penn. and the modernization of the U.S. Supreme Court Building in Washington, D.C.

But its international presence is really where Hill’s efforts have paid off. The company has emerged from a slowdown in the United States largely unscathed due to the global diversity built into its portfolio of clients. The company does a significant amount of work in Iraq and other Middle Eastern countries and has allowed it to cash in on economies such as Dubai, which have been experiencing rapid growth in recent years. Among Hill’s recent wins is a project with the Dubai Department of Civil Aviation. The Middle East and North Africa now account for approximately 37.5% of the company’s consulting fee revenue.

In terms of an operational breakdown, Hill’s project management business accounted for approximately two-thirds of the company’s consulting fee revenue in 2007. Its construction claims services accounted for the other third. The project management segment aims to help its clients identify, avoid and correct potential difficulties that might arise in a construction project. It also helps clients manage all phases of construction projects from the pre-design phase up through completion.

The construction claims business has slightly higher margins and has been growing in size. In 2006, the company made acquisitions that tripled the size of the construction claims business segment. This segment assists its clients in preventing and resolving disputes that arise over the course of the construction process such as delays or cost overruns. 

For Hill’s fiscal year ended Dec. 31, 2007, the company checked in with net earnings of $14.1 million on total revenue of $290.3 million. These figures marked 64.8% and 48.7% respective increases when compared with Hill’s 2006 numbers. Hill ended 2007 with a backlog of $416 million which was 68.4% above the $247 million backlog that it had amassed at the end of 2006.

These striking improvements have been driven both by organic growth as well as acquisitions. In 2007, the company acquired KJM & Associates, a project management company that serves the education and transportation markets. In 2008, Hill has shown no signs of let up along its path of expansion. It has already moved to acquire one project management company based in London and another based in Spain.

Tim McHugh, an analyst for William Blair & Company, is optimistic about the future for Hill. “It is a well-run company with significant growth opportunities both domestically and internationally,” he said in an interview with SmallCapInvestor.com. “The company has an attractive business model and its backlog gives Hill good visibility into future periods.”

The company’s impressive results in 2007 are consistent with its past performance of achieving strong year-over-year revenue growth. The results have also played a major role in pushing the company’s stock price to new highs. Hill has seen its stock appreciate more than 200% since the summer of 2004. The stock closed at $14.30 on Friday, with shares ranging between $6.65 and $14.91 over the last 52 weeks.

Analysts are expecting Hill to continue to grow its revenue at a healthy clip for the foreseeable future. The consensus expectation is for Hill to answer with 10% revenue growth in 2008, or $319.4 million in total revenues. Analysts are then expecting the company to grow revenue by close to 20% in 2009. 

Along with Hill’s fast-paced expansion comes the need for it to continue to grow its base of intellectual capital. “One of the company’s challenges that I keep an eye on is its ability to recruit and hire a high number of quality employees to meet its growing demand,” McHugh said. Other risks for potential investors to keep in mind are economic and political risk overseas. In 2007, Hill’s international operations contributed 58.1% of the firm’s total revenue.

Overall, the big picture for Hill is promising going forward. Richter will continue to look for organic growth opportunities overseas as well as potential strategic acquisition targets, beckoning investors to enter the houses that Hill built.