Financial Data and Key Metrics Changes - For Q1 2022, revenue was $3.1 billion, which was lighter than anticipated due to seasonality and COVID-related slowdowns [23] - Segment profit nearly doubled to $115 million compared to 2021, driven by a favorable settlement related to a contract in Puerto Rico and increased execution activity on energy solution projects [23] - Diluted adjusted earnings per share for the quarter were $0.16, with tax expenses impacted by jurisdictional earnings recognition [24] Business Line Data and Key Metrics Changes - Urban Solutions reported segment profit of $15 million, affected by cost growth on an advanced manufacturing project and timing of a P3 transaction [8] - Mining and Metals has over $6 billion in new work opportunities, including projects in South America and a decarbonization program for a steel company [9] - Mission Solutions reported segment profit of $58 million, benefiting from a favorable resolution of a U.S. Army Corps of Engineers project [12] - Energy Solutions achieved a segment profit of $54 million, reflecting increased execution activities and a reduction in overhead costs [14] Market Data and Key Metrics Changes - The overall energy market has shifted, with clients assessing capital allocation needs for energy security and transition, despite rising oil prices [16] - Significant prospects include a large international petrochemical facility and additional refinery work in Mexico [16] Company Strategy and Development Direction - The company is focused on executing current road and bridge projects, with optimism regarding federal infrastructure funding supporting future opportunities [10] - Advanced Technologies and Life Sciences are seeing increased interest in semiconductor manufacturing and data centers, with multiple projects for Intel and discussions on multibillion-dollar opportunities [11] - The company aims to maintain a strong, flexible balance sheet to support EBIT-generating activities and is on track to capture $97 million in ongoing savings through its cost optimization program [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new awards, with Q1 new awards totaling $1.9 billion and expectations for significant improvement in the second quarter [7] - The pipeline for new awards is strong, with broad-based opportunities across various sectors, including government, mining, and energy transition [38][39] - Management remains confident in achieving the 2024 guidance of $2.50 to $2.90 per share, supported by strong execution and a healthy backlog [21] Other Important Information - The company has made the decision to cease operations in Russia and is winding down current projects there due to the ongoing crisis in Ukraine [7] - Fluor's ownership in NuScale Power is now 57%, with significant investor interest following its recent listing on the NYSE [18] Q&A Session Summary Question: Can you elaborate on the booking margins and pipeline? - Management noted a strong pipeline with booking margins exceeding expectations by 470 basis points, indicating a positive outlook for the year [37][39] Question: What are the opportunities in the semiconductor business? - Management highlighted strong relationships with key manufacturers and a competitive edge in delivering large-scale semiconductor facilities [42][43] Question: How is the LNG Canada project progressing? - The LNG Canada project is over 60% complete, with good progress on module deliveries despite some COVID-related challenges [53][55] Question: What is the outlook for new awards and backlog? - Management expects to see a book-to-burn ratio above 1.0 by the end of Q2, with several significant projects anticipated to contribute to backlog [68] Question: How are terms and conditions shaping up for new projects? - Management reported favorable terms and conditions in negotiations, allowing for a balanced risk profile in contracts [83]

Revenue and Earnings - Revenue for the three months ended March 31, 2022, was $3,122 million, a decrease of 6.7% from $3,347 million in the same period of 2021[10] - Net earnings from continuing operations were $56 million, a recovery from a loss of $53 million in the previous year[12] - Basic earnings per share (EPS) from continuing operations was $0.27, compared to a loss of $0.61 in the same quarter of 2021[10] - Net earnings for Q1 2022 were $56 million, a significant improvement from a net loss of $54 million in Q1 2021[20] - Total segment profit for the 2022 Quarter was $115 million, compared to $60 million in the 2021 Quarter, representing a 91.7% increase[35] - Basic EPS from continuing operations was $0.27 in Q1 2022, recovering from a loss of $0.61 in Q1 2021[33] Profitability and Cash Flow - Gross profit for the same period was $123 million, compared to $93 million in the prior year, reflecting a significant improvement[10] - The company reported an operating profit of $96 million, a significant improvement from an operating loss of $32 million in the prior year[10] - Operating cash flow for Q1 2022 was $(188) million, compared to $(230) million in Q1 2021, indicating a reduced cash outflow[20] - The company reported a foreign currency translation adjustment of $29 million in Q1 2022, compared to $3 million in Q1 2021[12] Assets and Liabilities - Total assets decreased to $6,492 million as of March 31, 2022, down from $7,089 million at the end of 2021[17] - Total current liabilities decreased to $3,195 million from $3,614 million at the end of 2021, indicating improved liquidity[17] - Total debt as of March 31, 2022, was $1,196 million, a decrease from $1,192 million as of December 31, 2021[69] - The company reported contract assets totaling $1,011 million as of March 31, 2022, down from $1,066 million as of December 31, 2021[65] Segment Performance - Energy Solutions segment revenue increased to $1,174 million, up 18.5% from $991 million in the previous year[35] - Urban Solutions segment revenue decreased to $959 million, down 19.7% from $1,194 million in the previous year[35] - North America generated $1,908 million in revenue, a decrease of 7.7% from $2,068 million in the 2021 Quarter[41] Impairments and Adjustments - The company experienced a $63 million impairment reversal related to its Stork business, which was previously recorded[29] - Impairment for the 2022 Quarter was $63 million, compared to $47 million in the 2021 Quarter[42] Cash Management and Dividends - Cash and cash equivalents were $1,913 million, down from $2,209 million at the end of 2021, reflecting cash flow management challenges[17] - The company paid $10 million in dividends on CPS during Q1 2022, with no dividends paid in Q1 2021[20] - Cumulative cash dividends on preferred stock are payable at an annual rate of 6.5%, with $10 million paid in February 2022 and another $10 million approved for May 2022[74] Other Comprehensive Income - The total Other Comprehensive Income (OCI) attributable to Fluor for the first quarter of 2022 was $28 million, compared to $1 million for the same period in 2021[91] - The balance of OCI attributable to Fluor as of March 31, 2022, was $(337) million, compared to $(366) million as of December 31, 2021[94] - The foreign currency translation adjustments contributed $29 million to OCI for the first quarter of 2022, compared to $3 million in the same quarter of 2021[91] Future Commitments and Investigations - The maximum potential amount of future payments under outstanding performance guarantees was estimated to be $14 billion as of March 31, 2022[49] - The company is involved in ongoing investigations by the SEC and DOJ related to project accounting and financial reporting matters[64]

Fluor Corporation (NYSE:FLR) Q4 2021 Earnings Conference Call February 22, 2022 8:30 AM ET Company Participants Jason Landkamer - Head of Investor Relation David Constable - Chief Executive Officer Joe Brennan - Executive Vice President & Chief Financial Officer Conference Call Participants Jamie Cook - Credit Suisse Michael Dudas - Vertical Research Sean Eastman - KeyBanc Capital Markets Andy Kaplowitz - Citi Andrew Wittmann - Baird Michael Feniger - Bank of America Zane Karimi - D. A. Davidson Operator Go ...

Financial Performance & Outlook - Fluor's adjusted earnings per share for Q3 2021 was $023, excluding certain adjustments[14] - The company is raising its adjusted EPS guidance for 2021 to a range of $085 to $100 per diluted share[18] - Q3 segment profit was $110 million, representing 35% of revenue[15] Excluding certain items, the segment profit margin was 32%[15] - Fluor reduced its total debt by $509 million, a 30% decrease from $17 billion at the end of June[14] The current debt to capitalization ratio is 37%[14] New Awards & Projects - Mission Solutions secured new awards totaling $16 billion, including $789 million for a DOE contract extension and $495 million for Operation Allies Welcome[4] - Urban Solutions: Infrastructure received $316 million in new awards for the TXDOT I-35E Phase 2 expansion project[6] - Energy Solutions' new awards totaled $644 million, including refining and LNG work in Mexico[8] Cost Savings & Portfolio Management - Fluor has identified over $150 million in annual cost savings, with overhead savings expected to reach $100 million in 2022[17] - The company plans to fully realize these run-rate savings by 2024[17]