Fluor's (FLR) Q2 Earnings Beat, Revenues Miss Estimates

Core Viewpoint - Fluor Corporation reported mixed results for Q2 2024, with earnings exceeding estimates while revenues fell short, driven by strong performance in the Urban Solutions segment [1][2]. Financial Performance - Adjusted EPS was 85 cents, beating the Zacks Consensus Estimate of 68 cents by 25%, and increased 11.8% from 76 cents a year ago [2]. - Quarterly revenues totaled $4.23 billion, missing the consensus mark of $4.35 billion by 2.9%, but grew 7.3% from $3.94 billion in the previous year [2]. Segment Analysis - Segment profit was $194 million, slightly up from $191 million a year ago, with a segment margin of 4.6%, down from 4.8% [3]. - Adjusted EBITDA decreased to $165 million from $181 million in the prior year [3]. - New awards in the quarter were $3.1 billion, down from $3.71 billion a year ago, while the consolidated backlog increased to $32.3 billion from $29.4 billion [3]. Energy Solutions Segment - Revenues declined 7.3% year over year to $1.6 billion, with a margin of 4.7%, down from 5.2% [4]. - New awards were $582 million, down from $753 million a year ago, and backlog increased to $8.53 billion from $7.65 billion [4]. Urban Solutions Segment - Revenues rose 52.3% year over year to $1.83 billion, with a margin of 5.7%, down from 6.3% [5]. - New awards increased to $2.42 billion from $2.28 billion, and backlog surged to $19.6 billion from $11.7 billion [5]. Mission Solutions Segment - Revenues were $704 million, nearly unchanged from $705 million a year ago, with a margin improvement to 5.8% [6]. - New awards decreased to $63 million from $339 million, and backlog fell to $3.78 billion from $4.9 billion [6]. Other Segment - Revenues dropped to $97 million from $311 million, with a loss of $27 million compared to a $14 million loss a year ago [7]. - New awards were $37 million, down from $336 million, and backlog decreased to $427 million from $1.24 billion [7]. Guidance - For 2024, Fluor expects adjusted EPS in the range of $2.50-$3.00 and narrowed adjusted EBITDA guidance to $625-$675 million from $600-$700 million [8].