Fluor Corporation (NYSE:FLR) Q1 2022 Earnings Conference Call May 6, 2022 8:30 AM ET Company Participants Jason Landkamer – Head-Investor Relations David Constable – Chairman and Chief Executive Officer Joe Brennan – Chief Financial Officer Conference Call Participants Michael Dudas – Vertical Research Andy Wittmann – Baird Jamie Cook – Credit Suisse Sean Eastman – KeyBanc Capital Markets Steven Fisher – UBS Andy Kaplowitz – Citi Operator Please stand by, we are about to begin. Good morning and welcome to F ...

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]