Fluor(FLR) - 2025 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2025, was $3,982 million, an increase of 6.6$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$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)$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]