Financial Data and Key Metrics Changes - Fluor reported revenue of $16.3 billion for 2024, marking a 5.4% increase from 2023 [13] - Net income for the year was $2.1 billion, equating to $12.30 per diluted share [40] - Adjusted EBITDA for the year was $530 million, with segment profit totaling $635 million [42] - Cash and cash equivalents, along with marketable securities, increased by 14% to $3 billion [44] Business Line Data and Key Metrics Changes - Urban Solutions segment reported a profit of $81 million for the quarter, down from $147 million a year ago, with new awards totaling $1.4 billion [20] - Energy Solutions reported a fourth quarter segment profit of $63 million, significantly up from $26 million in 2023 [28] - Mission Solutions reported a segment profit of $45 million in the fourth quarter, compared to $31 million a year ago [36] Market Data and Key Metrics Changes - The ending backlog for Urban Solutions grew by 20% to $17.7 billion, while Energy Solutions' backlog decreased to $7.6 billion from $9.7 billion a year ago [29][20] - The company noted a healthy book-to-burn ratio of just under 1 for new awards in 2024, with 85% of new awards being reimbursable [14] Company Strategy and Development Direction - The company is transitioning to a "grow and execute" strategy, focusing on revised growth targets and project delivery [11] - Fluor is tracking opportunities in various sectors, including domestic energy, key minerals production, and AI infrastructure development, which are seen as favorable for its business segments [16] - The company aims to leverage its expertise in power generation to support the growing demand from data centers [80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong cash flow and a robust capital structure [10] - The company anticipates a significant increase in demand for data centers and related power generation solutions [81] - Management highlighted the importance of maintaining strong relationships with clients and adapting to market demands [19] Other Important Information - The company plans to target an additional $300 million in share repurchases during 2025 [46] - Fluor's investment in NuScale was deconsolidated, resulting in a $1.6 billion pretax gain [49] Q&A Session Summary Question: Outlook for 2025 and book-to-bill ratio - Management indicated a book-to-bill ratio significantly above 1 for 2025, with strong opportunities in Urban Solutions and Energy Solutions [66][69] Question: Data center cycle compared to life sciences - Management noted they are in the early phases of the data center cycle, with significant investments expected from major players [74][79] Question: Update on NuScale monetization - Management confirmed ongoing negotiations for monetization, emphasizing the importance of getting the process right for long-term success [87][90] Question: Federal government contracts and spending freezes - Management reassured that critical government contracts, particularly in national security and energy, are expected to continue despite spending freezes [93][96] Question: LNG Canada project cost increases - Management acknowledged additional resources were expended on insulation work but confirmed the project remains on track for first cargo delivery [105][106] Question: Energy Solutions margins and cash flow guidance - Management explained that the guidance reflects a pivot from legacy projects to demand-driven growth, with expectations for improved margins in the latter half of the year [108][111]

Revenue and Earnings - Total revenue for 2024 was $16,315 million, an increase of 5.4% from $15,474 million in 2023[215]. - Net earnings attributable to Fluor were $2,145 million in 2024, compared to $139 million in 2023, representing a significant increase[215]. - Equity method earnings for 2024 were $2,105 million, with a net effective tax rate of 18% on these earnings[219]. - Operating cash flow for 2024 was $828 million, a significant increase from $212 million in 2023, driven by decreased working capital and customer payments[257][259]. - The company received $367 million in distributions from joint ventures and $169 million in tax refunds from the IRS during 2024[259]. Segment Performance - Urban Solutions segment revenue increased to $7,239 million in 2024, up 37.6% from $5,262 million in 2023[215]. - The Urban Solutions segment's profit margin was 4.2% in 2024, compared to 5.1% in 2023[215]. - Mission Solutions revenue declined slightly in 2024 due to the cancellation of a project in late 2023[232]. - Segment profit and profit margin improved in 2024, driven by the recognition of a $30 million charge in 2023 for a completed weapons facility project[233]. - Segment profit in 2024 declined primarily due to inflation-adjusted variable consideration and cost growth, totaling $66 million in charges from a construction subcontract in Mexico[230]. - Segment profit in the fourth quarter of 2024 increased significantly, reflecting $33 million for cost growth on a completed large upstream legacy project[231]. Backlog and Awards - Total backlog as of December 31, 2024, was $28,484 million, a decrease from $29,441 million in 2023[215]. - New awards in 2024 totaled $15,123 million, down from $19,528 million in 2023[215]. - New awards and backlog decreased in 2024, with backlog at $665 million compared to $2.7 billion in 2023, reflecting a slowdown in new award activity[234]. - The company reported a backlog of $702 million for ongoing legacy projects in a loss position as of December 31, 2024, compared to $1.3 billion in 2023, with estimated unfunded losses of $237 million[258]. Financial Position - Cash and cash equivalents combined with marketable securities increased to $3.0 billion in 2024 from $2.6 billion in 2023[253]. - As of December 31, 2024, letters of credit totaling $483 million were outstanding under a $1.8 billion credit facility, which was amended to $2.2 billion[252]. - As of December 31, 2024, letters of credit totaling $483 million were outstanding under committed lines of credit, and $944 million under uncommitted lines of credit[269]. - The maximum potential future payments under outstanding performance guarantees were estimated to be $16 billion as of December 31, 2024[270]. Capital Expenditures and Asset Sales - Capital expenditures in 2024 totaled $164 million, primarily for improvements to a new office lease in Houston[257][261]. - Proceeds from the sale of assets in 2024 included $67 million from the sale of Stork's European business[261]. Stock Repurchase and Corporate Actions - In December 2024, the company repurchased and canceled 2,353,280 shares of common stock for $125 million, with over 28 million shares remaining available for repurchase as of December 31, 2024[255][263]. - The company has a stock repurchase program authorized to purchase shares in the open market, with an additional 20 million shares authorized in November 2024[263]. - The company incurred a $7 million severance charge related to the closure of Stork operations in Trinidad and Tobago[213]. - A pre-tax gain of $1.6 billion was recognized in Q4 2024 from the deconsolidation of NuScale[214]. - The company expects the results of the Stork segment to be immaterial in 2025 following the completion of its U.K. operations sale[237].

Core Viewpoint - Fluor Corporation (FLR) is set to report its fourth-quarter 2024 results on February 18, with expectations of revenue growth driven by its primary segments despite recent earnings misses [1][2]. Financial Performance - In the last reported quarter, Fluor's adjusted earnings per share (EPS) and revenues missed the Zacks Consensus Estimate by 34.6% and 14.6%, respectively, with a year-over-year revenue growth of 3.3% and a 50% decline in the bottom line [2]. - The Zacks Consensus Estimate for the upcoming fourth-quarter EPS has decreased to 78 cents from 79 cents, indicating a 14.7% year-over-year growth from 68 cents, while the revenue estimate is $4.72 billion, reflecting a 23.6% increase from $3.82 billion reported in the same quarter last year [4]. Revenue Drivers - Revenue growth is expected to be supported by increased contributions from the Energy Solutions, Urban Solutions, and Mission Solutions segments, driven by demand for traditional energy, energy transition, low-carbon power projects, and defense projects [5]. - The Energy Solutions segment is estimated to generate $1.64 billion in revenues, up from $1.42 billion a year ago, while Urban Solutions is expected to reach $2.06 billion, an increase from $1.42 billion [7]. - The Mission Solutions segment is projected to report revenues of $711 million, up from $646 million, while the Other segment is expected to decline to $315 million from $332 million [7][8]. Margin Analysis - Fluor's bottom line is anticipated to have improved year-over-year due to effective execution of its "Building a Better Future" strategy and a focus on cost-plus/low-risk bookings, despite facing higher costs and macroeconomic challenges [9]. - The profit estimates for the Energy Solutions and Mission Solutions segments are $52 million and $50 million, respectively, showing growth from $26 million and $31 million year-over-year [10]. - The Urban Solutions segment profit is expected to decline to $70 million from $147 million, while the Other segment is projected to report a loss of $25 million, significantly improved from a loss of $119 million in the previous year [11]. Earnings Prediction - The current Zacks model indicates that Fluor does not have a strong prediction for an earnings beat, with an Earnings ESP of -8.09% and a Zacks Rank of 4 (Sell) [12][13].

Core Insights - Fluor Corporation has secured a joint venture contract with Hatch for BHP's Olympic Dam Smelter & Refinery Expansion Project, which is a significant opportunity to enhance its mining and metals business [1] - The project is contingent on BHP's final investment decision expected in the first half of 2027, with Fluor recognizing its share of the contract value in Q4 2024 [2] - The expansion aligns with rising global copper demand, with BHP aiming to increase refined copper cathode production to over 500,000 tonnes by the early 2030s and potentially 650,000 tonnes by the mid-2030s [3] Company Growth Potential - Fluor's involvement in the Olympic Dam expansion positions the company to benefit from sustained mining infrastructure spending, particularly as copper is essential for electric vehicles and renewable energy [4] - The contract enhances Fluor's pipeline of high-value projects, potentially leading to substantial revenue growth if BHP proceeds with full-scale expansion [5] - The strategic partnership with BHP may drive long-term shareholder value, especially given the increasing importance of copper in a decarbonizing world [5] Financial Performance - Fluor's shares have gained 27.7% over the past year, outperforming the Zacks Engineering - R and D Services industry's growth of 13.4% [8] - The company secured new awards worth $2.7 billion in Q3 2024, with a consolidated backlog of $31.32 billion, reflecting a 20.5% increase from $26 billion a year ago [10] - Strong demand for Fluor's services has pushed new award margins above its strategic segment margin range of 4-6% [11]

Company Overview - Fluor Corporation (NYSE: FLR) is a prominent global EPC (Engineering, Procurement, and Construction) player with exposure to attractive end-markets such as datacenter, nuclear, metals & mining, life sciences, and Federal sectors [2] Industry Exposure - The company operates in a wide range of high-growth and strategic end-markets, positioning it well for future opportunities [2] - Key sectors include datacenter infrastructure, nuclear energy, metals & mining, life sciences, and Federal projects [2]

Fluor Corporation (FLR) has been facing mounting challenges that raise concerns about its near-term performance and strategic direction. Recently, the company noticed tepidness in its Energy Solutions business, which compelled it to reduce earnings and EBITDA guidance for the year.Despite efforts to streamline its operations and diversify its portfolio, the company’s persistent execution issues, foreign currency risks, and project delays diminish its attractiveness.Although FLR’s shares have outperformed th ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $4.1 billion, with consolidated new awards of $2.7 billion, leading to a total backlog of $31.3 billion, of which 80% is reimbursable [7][18] - Adjusted EBITDA for Q3 was $124 million, down from $216 million a year ago, and adjusted EPS was $0.51 compared to $1.02 in Q3 2023 [18][23] - G&A expenses decreased to $37 million from $56 million a year ago, reflecting a reduction in anticipated incentive compensation [19] Business Segment Data and Key Metrics Changes - Urban Solutions reported segment profit of $68 million with new awards of $828 million and a backlog increase of 72% over the past year [8] - Mining and Metals received a $289 million award for a rare Earth minerals refinery in Australia, with a focus on large EPC projects [9] - Mission Solutions reported segment profit of $45 million, driven by increased activities on two DOE contracts, with a backlog of $3.1 billion [12] - Energy Solutions had a segment profit of $50 million, impacted by lower contributions from a large project and $18 million in cost growth [14] Market Data and Key Metrics Changes - The demand picture remains strong, with top clients expected to spend $195 billion in CapEx in 2024, up from $164 billion in 2023 [36] - Energy transition projects are expected to be lighter in the US, while Europe shows significant activity in this area [37] Company Strategy and Development Direction - The company is focusing on a diversified portfolio and is taking a holistic view of markets to align resources and project delivery [17] - The strategic planning cycle will emphasize growth in Urban Solutions and Mission Solutions, particularly in environmental remediation and nuclear sectors [15][16] - The company aims to return capital to shareholders through increased share repurchase programs and potential dividend reinstatement [22][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term segment margins of 4% to 6% despite short-term challenges [26] - The company is optimistic about future growth opportunities, particularly in urban and mission solutions, and anticipates a strong CAGR for revenue and EBITDA through 2028 [16][33] Other Important Information - The company is developing innovative cooling processes and modularization designs for data centers to enhance competitive advantages [10] - The NuScale investment is expected to recognize a gain of $1.6 billion in Q4 2024, reflecting the strong market potential for SMRs [21] Q&A Session Summary Question: Concerns about revenue guidance and margin implications - Management acknowledged challenges with project delays impacting revenue recognition and assured that long-term margin expectations remain unchanged [26][32] Question: Share repurchase and dividend reinstatement potential - Management indicated plans to discuss a holistic shareholder return plan in Q4, with confidence in returning capital to shareholders [29] Question: Outlook for 2025 and strategic planning - Management is finalizing strategic plans and remains optimistic about growth in various segments, particularly urban solutions and energy transition projects [32][33] Question: Demand strength and selectivity in bookings - Management confirmed the ability to remain selective in bookings while achieving growth objectives, with a strong demand outlook from top clients [36] Question: Energy Solutions segment performance and future growth - Management highlighted ongoing front-end work in Energy Solutions and the expectation of significant contributions from upcoming projects [50][52]

FLUOR. Q3 2024 RESULTS November 8, 2024 © 2024 Fluor Corporation. All Rights Reserved. Fluor is a registered service mark of Fluor Corporation. LNG CANADA EXPORT FACILITY // KITIMAT, B.C., CANADA 1 SAFE HARBOR STATEMENT This presentation contains forward-looking statements (including without limitation statements to the effect that the Company or its management "will," "believes," "expects," "plans," "intends," "continue," "anticipates," is "positioned" or other similar expressions). These forward-looking s ...

Fluor (FLR) shares rallied 8.2% in the last trading session to close at $54.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.2% gain over the past four weeks. Investors are gaining confidence in Fluor's market standing and outlook as the company consistently lands new contracts and meets its strategic goals. This engineering, construction and operations company is expected to post quarterly earnings of $ ...

Core Insights - Zacks Premium offers tools to enhance investor confidence and market engagement through daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, providing complementary indicators to the Zacks Rank [2][3] - Stocks are rated from A to F, with A indicating the highest potential for market outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3][4] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [4] VGM Score - The VGM Score combines all three Style Scores, offering a comprehensive indicator for selecting stocks with attractive value, growth potential, and momentum [5] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [6][9] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [8][9] Company Spotlight: Fluor Corporation - Fluor Corporation, based in Irving, TX, provides engineering, procurement, construction, and maintenance services [10] - Currently rated 3 (Hold) with a VGM Score of A and a Value Style Score of B, Fluor has a forward P/E ratio of 16.37 [10][11] - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate to $2.88 per share, with an average earnings surprise of 29.7% [11]