Fluor(FLR) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenue was $3.4 billion, down 18% year-over-year, primarily due to a $653 million reversal related to the Santos ruling[9] - GAAP net loss attributable to Fluor was $697 million, including a $653 million charge for the Santos ruling and a $401 million reduction in NuScale's share price[9] - Adjusted EBITDA for Q3 2025 was $161 million, up 29% year-over-year[9] - Total revenue for Q3 2025 was $3,368 million, a decrease of 17.7% compared to $4,094 million in Q3 2024[19] - The company reported a net loss attributable to Fluor of $697 million in Q3 2025, compared to a profit of $54 million in Q3 2024[22] - Adjusted net earnings for the nine months ended September 30, 2025, were $306 million, compared to $318 million for the same period in 2024, a decrease of 3.8%[22] - Operating cash flow for the nine months ended September 30, 2025, was $(21) million, a significant decline from $501 million in the same period of 2024[21] - The company had cash and cash equivalents of $2,776 million at the end of Q3 2025, down from $2,912 million at the end of Q3 2024[21] Awards and Backlog - New awards in Q3 totaled $3.3 billion, representing a 21% increase year-over-year, with 99% being reimbursable[4][9] - Backlog at the end of Q3 was $28.2 billion, down 10% year-over-year, with 82% being reimbursable[4][9] - Total backlog decreased to $28,236 million in Q3 2025 from $31,319 million in Q3 2024, a decline of 9.9%[20] - New awards totaled $3,253 million in Q3 2025, an increase of 20.5% compared to $2,699 million in Q3 2024[19] Segment Performance - Urban Solutions revenue increased to $2,343 million in Q3 2025 from $1,931 million in Q3 2024, representing a growth of 21.4%[19] - Energy Solutions reported a significant decline in revenue, dropping to $262 million in Q3 2025 from $1,428 million in Q3 2024, a decrease of 81.7%[19] Cash Flow and Guidance - Operating cash flow for Q3 was $286 million, compared to $330 million year-over-year, with full-year guidance increased to $250 - $300 million[9] - Adjusted EPS guidance for 2025 was revised to $2.10 to $2.25 per share, up from the previous range of $1.95 to $2.15[8] Corporate Actions - The company announced a share repurchase of $70 million in Q3, targeting an additional $800 million through February 2026[4] - General and administrative expenses increased by 16% year-over-year to $43 million, including $12 million in restructuring costs[9] Investment and Monetization - NuScale investment is expected to be fully monetized by the end of Q2 2026, with net proceeds of $605 million received for 15 million shares converted in Q3[4][9] International Exposure - The backlog related to projects located outside of the U.S. was 41% in Q3 2025, down from 56% in Q3 2024[20]