Fluor(US:FLR)2025-02-18 12:05Revenue 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].