Fluor(US:FLR)2026-02-17 14:32Financial Data and Key Metrics Changes - Consolidated new awards for 2025 were $12 billion, with 87% being reimbursable, and the backlog ended at $25.5 billion, with 81% reimbursable [9][10] - Adjusted EBITDA for 2025 was $504 million, compared to $530 million in 2024, and adjusted EPS was $2.19, down from $2.32 in 2024 [24][30] - The company ended 2025 with $2.2 billion in cash and marketable securities, down from $3 billion a year ago [25] Business Segment Data and Key Metrics Changes - Urban Solutions reported a profit of $205 million for 2025, down from $304 million in the previous year, with new awards totaling $8.7 billion [10][11] - Energy Solutions reported a segment loss of $414 million for 2025, compared to a profit of $256 million in 2024, with new awards totaling $1.4 billion [12][13] - Mission Solutions reported a profit of $94 million for the year, down from $153 million a year ago, with new awards totaling $1.8 billion [16][17] Market Data and Key Metrics Changes - The company is seeing improved confidence across its client base, with expectations for new awards in 2026 to be significantly higher than in 2025 [7][8] - The company anticipates a Book-to-Burn Ratio in excess of 1 for 2026, indicating strong demand for new projects [8][30] Company Strategy and Development Direction - The company has transitioned to a "Grow and Execute" strategy, focusing on growth, project delivery, and returning value to shareholders [4][5] - The company is actively pursuing opportunities in LNG, mining, advanced technologies, and nuclear fuels, with a focus on diversifying its revenue mix [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential for 2026, citing a strong backlog and improved execution on existing projects [35][37] - The company expects to spend approximately $1.4 billion on share repurchases in 2026, indicating a commitment to returning value to shareholders [28][30] Other Important Information - The company has implemented AI across its project lifecycle to enhance planning, execution, and decision-making [19][20] - The company completed the sale of Stork and is in the process of monetizing its investment in NuScale, with $2 billion received since September 2025 [5][27] Q&A Session All Questions and Answers Question: Initial guidance for 2026 seems better than expected, what changed? - Management noted improved confidence from clients and a strong backlog, with a significant portion of expected awards coming in the second half of the year [35][36] Question: What percentage of business could be power in the next three years? - Management indicated that the power market has evolved, and they expect to execute multiple large projects simultaneously, making it a significant growth engine [41][42] Question: Can you provide more color on the conversion rates by segment for 2026? - Management expects that 50%-60% of the backlog will convert to revenue in the next 12 months, depending on execution and client materials [80]