Financial Performance - Q1 2025 revenue of $4.0 billion, up 7% year-over-year[6] - GAAP net loss attributable to Fluor of $241 million, impacted by $477 million in mark-to-market losses on NuScale investment[6] - Adjusted EBITDA of $155 million, up 76% year-over-year[6] - Adjusted net earnings for the three months ended March 31, 2025, were $125 million, with an adjusted EPS of $0.73, compared to $81 million and $0.47 in 2024[24] - The company reported a net loss attributable to Fluor of $(241) million for the three months ended March 31, 2025, compared to a net income of $59 million in 2024[24] - Net earnings excluding amounts attributable to equity method loss for the three months ended March 31, 2025, were $88 million, with an effective tax rate of 19%[22] - The effective tax rate attributable to equity method loss was also 19%[22] Awards and Backlog - New awards totaled $5.8 billion, down 17% year-over-year, with 87% being reimbursable[11] - Backlog decreased to $28.7 billion, down 12.3% year-over-year, with 79% being reimbursable[11] - Q1 revenue book to burn ratio of 1.5x, indicating strong project pipeline[5] Cash Flow and Capital Expenditures - Operating cash flow for the three months ended March 31, 2025, was $(286) million, compared to $(111) million in the same period of 2024[23] - Capital expenditures for the three months ended March 31, 2025, were $(11) million, down from $(34) million in 2024[23] - Cash and cash equivalents at the end of the period were $2,433 million, an increase from $2,335 million in the same period of 2024[23] Shareholder Returns - Accelerated share repurchases of $142 million in Q1, targeting $600 million for 2025[5] - The company repurchased $142 million of common stock during the three months ended March 31, 2025[23] Segment Performance - Urban Solutions segment reported a profit of $70 million, with revenue increasing to $2.2 billion[12] - Energy Solutions segment reported a profit of $47 million, with revenue decreasing to $1.2 billion[13]

Financial Performance - Revenue for the three months ended March 31, 2025, was $3,982 million, an increase of 6.6% compared to $3,734 million for the same period in 2024[10] - Gross profit for the same period was $140 million, up from $99 million, reflecting a gross margin improvement[10] - Operating profit increased to $91 million from $52 million year-over-year, indicating a significant operational efficiency gain[10] - Net earnings attributable to Fluor for Q1 2025 were a loss of $241 million, compared to a profit of $59 million in Q1 2024[10] - Basic and diluted EPS for Q1 2025 were both $(1.42), compared to $0.35 in Q1 2024[10] - Total revenue for the 2025 Quarter was $3,982 million, an increase of 6.6% compared to $3,734 million in the 2024 Quarter[33] - Urban Solutions segment revenue increased to $2,157 million in the 2025 Quarter from $1,479 million in the 2024 Quarter, reflecting a growth of 46%[33] - Energy Solutions segment profit declined by $21 million to $47 million in the 2025 Quarter, impacted by reserves taken for a joint venture project[34] - Mission Solutions segment profit decreased by $17 million to $5 million in the 2025 Quarter, due to an additional reserve of $28 million related to a long-standing claim[35] - The effective tax rate for the 2025 Quarter was (49)%, a decrease from 56% in the 2024 Quarter[39] Assets and Liabilities - Total assets decreased to $8,423 million as of March 31, 2025, down from $9,143 million at the end of 2024[16] - Total liabilities decreased to $4,773 million from $5,151 million, indicating improved financial leverage[16] - Cash and cash equivalents at the end of the period were $2,433 million, down from $2,829 million at the beginning of the period[18] - Total debt as of March 31, 2025, was $1,087 million, a slight decrease from $1,104 million on December 31, 2024[55] - As of March 31, 2025, letters of credit outstanding under the credit facility totaled $465 million, with a borrowing capacity of $856 million remaining[56] Cash Flow and Investments - Operating cash flow for Q1 2025 was $(286) million, compared to $(111) million in Q1 2024, reflecting challenges in cash generation[18] - The company repurchased $142 million of common stock during the quarter, indicating a commitment to returning value to shareholders[18] - The investment in NuScale was valued at $1,790 million as of March 31, 2025, down from $2,266 million at the end of 2024, reflecting a pre-tax loss of $477 million for the quarter[60] Contractual Obligations and Performance - As of March 31, 2025, contract assets totaled $1,310 million, up from $1,138 million on December 31, 2024, with unbilled receivables increasing to $1,265 million[51] - Contract liabilities included revenue recognized of $367 million as of January 1, 2025, compared to $278 million at the end of 2024[51] - Revenue associated with claims recorded was $230 million as of March 31, 2025, down from $244 million as of December 31, 2024[53] - Remaining Unsatisfied Performance Obligations (RUPO) totaled $27,221 million, with $15,166 million expected to be satisfied within one year[54] - The maximum potential future payments under outstanding performance guarantees were estimated at $15 billion as of March 31, 2025[43] Legal and Settlement Matters - Fluor Australia completed a project for Santos Ltd. involving natural gas facilities, with Santos seeking damages of AUD $1.47 billion[50] - The Court's Panel recommended judgment for Fluor on one claim valued at approximately AUD $700 million, while recommending judgment for Santos on other claims valued at approximately AUD $790 million[50] - Fluor recognized an $84 million impact to earnings related to a settlement from a $415 million judgment in favor of the North Texas Tollway Authority[48] Performance-Based Awards - Performance-based awards granted in 2025 totaled 145,904 units, with a weighted average grant date fair value of $37.12 per share[65] - Performance-based award units granted in 2025 totaled 273,564, slightly up from 272,844 in 2024[64]

Company Overview - Fluor (FLR) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.50, reflecting a change of +6.4% [3] - Revenues are anticipated to reach $4.25 billion, marking a 13.8% increase from the previous year [3] Earnings Expectations - The upcoming earnings report is scheduled for May 2, and the stock may rise if the actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -8.39% for Fluor, suggesting a bearish outlook from analysts [10] - Fluor currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Fluor's actual earnings of $0.48 per share fell short of the expected $0.78, resulting in a surprise of -38.46% [12] - Over the past four quarters, Fluor has only surpassed consensus EPS estimates once [13] Industry Context - In the Zacks Engineering - R and D Services industry, Quanta Services (PWR) is expected to report earnings of $1.67 per share, reflecting a year-over-year change of +18.4% [17] - Quanta Services has a current Earnings ESP of -1.18% and a Zacks Rank of 3, making it difficult to predict an earnings beat [18]

Group 1 - The article discusses a value investing approach focusing on classical value ratios such as low P/B, P/FCF, Owner Earnings discounting, PEG ratios, and the Graham Number [1] - It emphasizes the importance of tracking earnings growth versus price appreciation as a key element in evaluating investment quality [1] - The author advocates for self-indexing using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula for tax efficiency [1] Group 2 - The author has a background in private credit and CRE mezzanine financing, having worked with notable developers like The Witkoff Group and Fortress Investment Group [1] - The author is fluent in Mandarin and has experience working in China and Asia, which may provide insights into those markets [1]

Group 1 - Emeren Group Ltd (SOL) is a solar energy company with a Zacks Consensus Estimate for its current year earnings revised 88.9% downward over the last 60 days [1] - Fluor Corporation (FLR) is an engineering and construction company with a Zacks Consensus Estimate for its current year earnings revised 13.8% downward over the last 60 days [1] - Harley-Davidson, Inc. (HOG) is a motorcycle company with a Zacks Consensus Estimate for its current year earnings revised 5.8% downward over the last 60 days [2]

Core Viewpoint - The article emphasizes the importance of investing in high-quality growth and momentum stocks that are reasonably priced, with a focus on long-term performance and market outperformance [1]. Group 1: Investment Strategy - The investment strategy involves focusing on growth and momentum stocks that are expected to outperform the market over the long term [1]. - The analyst has a history of advising investors to buy at market lows, specifically mentioning a recommendation in March 2009 during the financial crisis, which led to significant market gains [1]. Group 2: Market Performance - From 2009 to 2019, the S&P 500 increased by 367%, while the Nasdaq saw an increase of 685%, highlighting the potential for substantial returns in the stock market [1]. Group 3: Investor Guidance - The article aims to assist investors in making money through investments in high-quality growth stocks, indicating a commitment to guiding investment decisions [1].

Group 1: Core Insights - Fluor Corporation has secured a letter of intent from a leading pharmaceutical maker, marking its second multi-billion-dollar contract win in 2023 [1] - The project involves providing engineering, procurement, and construction management (EPCM) services for a facility in Lebanon, IN, dedicated to manufacturing peptide-based drugs for Type 2 diabetes and weight control, representing the largest investment in an active pharmaceutical ingredient facility [2][3] - Fluor's president highlighted the project as one of the largest life science initiatives ever undertaken, reinforcing the company's leadership in the EPCM sector [3] Group 2: Business Strategy and Performance - Fluor has been implementing a "Building a Better Future" strategy for over four years, focusing on growth outside traditional oil and gas sectors, pursuing fair commercial contracts, and maintaining financial discipline [4] - The company's backlog reached $28.5 billion at the end of 2024, with 80% being reimbursable contracts, indicating a strong demand for its services moving into 2025 [5] - Despite a year-to-date decline of 24.6% in shares, Fluor's diversified business portfolio is expected to position it well for future opportunities [7]

Core Viewpoint - Fluor Corporation has secured a $671 million construction contract from the Texas Department of Transportation for the State Highway 6 project, highlighting its commitment to infrastructure development in Texas and strengthening its long-term partnership with TxDOT [1][3]. Group 1: Contract Details - The contract involves reconstructing and widening a 12-mile stretch of SH 6 between College Station and Bryan, expanding the highway from two lanes to three in each direction to accommodate increased commuter traffic [4]. - Construction is expected to start in summer 2025, with substantial completion anticipated by spring 2030, and the contract will be recorded in the first quarter of 2025 [1][4]. Group 2: Company Strategy and Market Position - Fluor has been implementing its "Building a Better Future" strategy for over four years, focusing on growth by expanding into markets beyond traditional oil and gas, while prioritizing fair commercial terms and financial discipline [5]. - The total backlog at the end of 2024 was $28.5 billion, a decrease from $29.4 billion in the previous year, attributed to softness in the Energy and Mission Solutions segments; however, the company remains optimistic about demand trends moving into 2025 [6]. Group 3: Performance and Challenges - Shares of Fluor have decreased by 27.3% over the past three months, compared to an 18.3% decline in the Zacks Engineering - R and D Services industry, facing challenges such as foreign currency risks and project delays [8]. - The company is likely to benefit from its diversified business portfolio, allowing it to focus on stable markets while capitalizing on cyclical opportunities [9].

Group 1 - Fluor Corporation (NYSE: FLR) reported its full-year results, indicating a slowdown in sales and margins [1] - The company is analyzed in terms of its operations and future outlook, with a focus on long-term investment strategies [1] Group 2 - The article emphasizes a preference for a portfolio that includes a mix of growth, value, and dividend-paying stocks, with a particular focus on value [1]

Core Viewpoint - Fluor's shares have decreased by approximately 3.3% since the last earnings report, although this performance has outpaced the S&P 500 [1] Group 1: Earnings Report and Estimates - The consensus estimate for Fluor has shifted downward by 28.13% over the past month, indicating a negative trend in estimates revisions [2] - The stock has received a Zacks Rank of 5, categorized as a Strong Sell, suggesting expectations of below-average returns in the upcoming months [4] Group 2: VGM Scores - Fluor currently holds a Growth Score of B, but has a low Momentum Score of F, while also receiving a B grade for value, placing it in the second quintile for this investment strategy [3] - The aggregate VGM Score for Fluor is B, which is relevant for investors not focused on a single strategy [3]