-
Q3 2024 revenue of
$4.1 billion and new awards of$2.7 billion -
Strong Q3 operating cash flow of
$330 million ; 2024 cash flow guidance increased to approximately$700 million -
Q3 2024 diluted earnings per share (EPS) of
$0.31 ; adjusted diluted EPS of$0.51 -
NuScale deconsolidation will result in
$1.6 billion gain in Q4 -
Fluor Board
____________________ |
1 Non-GAAP Financial Measure. See “Non-GAAP Financial Measures” for additional information. |
“I’m pleased that we are starting to see a robust and sustainable generation of cash that will drive our capital allocation plans,” said
Third quarter new awards were
Outlook
We are not providing forward-looking guidance for
Fluor is tightening its full year adjusted EPS guidance from a range of
Adjusted EPS and adjusted EBITDA guidance exclude items similar to those outlined in the reconciliation table at the end of this release.
Business Segments
Energy Solutions reported a profit of
Urban Solutions reported a profit of
Mission Solutions reported a profit of
The Other segment, which includes Stork and Fluor’s ownership in NuScale, reported revenue of
Conference Call
Fluor will host a conference call at
A replay of the webcast will be available for 30 days.
Non-GAAP Financial Measures
This news release contains discussions of consolidated segment profit (loss), adjusted net earnings, adjusted EPS and adjusted EBITDA that are non-GAAP financial measures under
About
Forward-Looking Statements: This release may contain forward-looking statements (including without limitation statements to the effect that the Company or its management "will," "believes," "expects," “anticipates,” "plans" or other similar expressions). These forward-looking statements, including statements relating to strategic and operation plans, future growth, new awards, backlog, earnings, capital allocation plans and the outlook for the company’s business.
Actual results may differ materially as a result of a number of factors, including, among other things, the cyclical nature of many of the markets the Company serves; the Company's failure to receive new contract awards; cost overruns, project delays or other problems arising from project execution activities, including the failure to meet cost and schedule estimates; intense competition in the industries in which we operate; the inability to hire and retain qualified personnel; failure of our joint venture or other partners to perform their obligations; the failure of our suppliers, subcontractors and other third parties to adequately perform services under our contracts; cyber-security breaches; possible information technology interruptions; foreign economic and political uncertainties; client cancellations of, or scope adjustments to, existing contracts; failure to maintain safe worksites and international security risks; risks or uncertainties associated with events outside of our control, including weather conditions, pandemics, public health crises, political crises or other catastrophic events; the use of estimates in preparing our financial statements; GAAP earnings volatility due to recurring fair value measurements of our investment in NuScale; client delays or defaults in making payments; uncertainties, restrictions and regulations impacting our government contracts; the potential impact of certain tax matters; the Company's ability to secure appropriate insurance; liabilities associated with the performance of nuclear services; foreign currency risks; the loss of one or a few clients that account for a significant portion of the Company's revenues; failure to adequately protect intellectual property rights; climate change, natural disasters and related environmental issues; increasing scrutiny with respect to sustainability practices; risks related to our indebtedness; the availability of credit and restrictions imposed by credit facilities, both for the Company and our clients, suppliers, subcontractors or other partners; possible limitations on bonding or letter of credit capacity; failure to obtain favorable results in existing or future litigation and regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure by us or our employees, agents or partners to comply with laws; new or changing legal requirements, including those relating to environmental, health and safety matters; and restrictions on possible transactions imposed by our charter documents and
SUMMARY OF FINANCIALS AND |
||||||||||||||||||||||||||
|
Three Months Ended
|
|
|
Nine Months Ended
|
||||||||||||||||||||||
(in millions) |
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|||||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Energy Solutions |
$ |
1,428 |
|
|
$ |
1,553 |
|
|
$ |
4,456 |
|
|
$ |
4,886 |
|
|||||||||||
Urban Solutions |
|
1,931 |
|
|
|
1,431 |
|
|
|
5,240 |
|
|
|
3,842 |
|
|||||||||||
Mission Solutions |
|
635 |
|
|
|
655 |
|
|
|
1,940 |
|
|
|
2,009 |
|
|||||||||||
Other |
|
100 |
|
|
|
324 |
|
|
|
419 |
|
|
|
917 |
|
|||||||||||
Total revenue |
$ |
4,094 |
|
|
$ |
3,963 |
|
|
$ |
12,055 |
|
|
$ |
11,654 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Segment profit (loss) $ and margin % |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Energy Solutions |
$ |
50 |
3.5 |
% |
$ |
177 |
11.4 |
% |
|
$ |
193 |
4.3 |
% |
|
$ |
355 |
7.3 |
% |
||||||||
Urban Solutions |
|
68 |
3.5 |
% |
|
|
66 |
4.6 |
% |
|
|
223 |
4.3 |
% |
|
|
121 |
3.1 |
% |
|||||||
Mission Solutions |
|
45 |
7.1 |
% |
|
|
38 |
5.8 |
% |
|
|
108 |
5.6 |
% |
|
|
84 |
4.2 |
% |
|||||||
Other |
|
(46) |
NM |
|
|
|
(5) |
NM |
|
|
|
(95) |
NM |
|
|
|
(108) |
NM |
|
|||||||
Total segment profit (loss) $ and margin % |
$ |
117 |
2.9 |
% |
|
$ |
276 |
7.0 |
% |
|
$ |
429 |
3.6 |
% |
|
$ |
452 |
3.9 |
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
G&A |
|
(37) |
|
|
|
(56) |
|
|
|
(147) |
|
|
|
(177) |
|
|||||||||||
Foreign currency gain (loss) |
|
(2) |
|
|
|
23 |
|
|
|
58 |
|
|
|
(62) |
|
|||||||||||
Interest income (expense), net |
|
37 |
|
|
|
42 |
|
|
|
114 |
|
|
|
120 |
|
|||||||||||
Earnings (loss) attributable to NCI |
|
(29) |
|
|
|
(25) |
|
|
|
(63) |
|
|
|
(42) |
|
|||||||||||
Earnings before taxes |
|
86 |
|
|
|
260 |
|
|
|
391 |
|
|
|
291 |
|
|||||||||||
Income tax expense |
|
(61) |
|
|
|
(79) |
|
|
|
(172) |
|
|
|
(172) |
|
|||||||||||
Net earnings |
$ |
25 |
|
|
$ |
181 |
|
|
$ |
219 |
|
|
$ |
119 |
|
|||||||||||
Less: Net earnings (loss) attributable to NCI |
|
(29) |
|
|
|
(25) |
|
|
|
(63) |
|
|
|
(42) |
|
|||||||||||
Net earnings attributable to Fluor |
$ |
54 |
|
|
$ |
206 |
|
|
$ |
282 |
|
|
$ |
161 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
New awards |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Energy Solutions |
$ |
1,541 |
|
|
$ |
3,252 |
|
|
$ |
2,840 |
|
|
$ |
4,718 |
|
|||||||||||
Urban Solutions |
|
828 |
|
|
|
1,033 |
|
|
|
8,117 |
|
|
|
5,090 |
|
|||||||||||
Mission Solutions |
|
274 |
|
|
|
345 |
|
|
|
1,481 |
|
|
|
1,015 |
|
|||||||||||
Other |
|
56 |
|
|
|
346 |
|
|
|
377 |
|
|
|
1,097 |
|
|||||||||||
Total new awards |
$ |
2,699 |
|
|
$ |
4,976 |
|
|
$ |
12,815 |
|
|
$ |
11,920 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
New awards related to projects located outside of the |
|
68% |
|
|
|
86% |
|
|
|
36% |
|
|
|
65% |
|
(in millions) |
|
|
|
|
|
||
Backlog |
|
|
|
|
|
||
Energy Solutions |
$ |
8,824 |
|
|
$ |
9,159 |
|
Urban Solutions |
|
19,006 |
|
|
|
11,051 |
|
Mission Solutions |
|
3,095 |
|
|
|
4,563 |
|
Other |
|
394 |
|
|
|
1,231 |
|
Total backlog |
$ |
31,319 |
|
|
$ |
26,004 |
|
|
|
|
|
|
|
||
Backlog related to projects located outside of the |
|
56% |
|
|
|
52% |
|
Backlog related to reimbursable projects |
|
80% |
|
|
|
70% |
|
(1) Certain amounts in tables may not total or agree back to the financial statements due to immaterial rounding differences. |
SUMMARY OF CASH FLOW INFORMATION |
||||||
|
|
Nine Months Ended
|
||||
(in millions) |
|
|
2024 |
|
|
2023 |
OPERATING CASH FLOW |
|
$ |
501 |
|
$ |
(96) |
|
|
|
|
|
||
INVESTING CASH FLOW |
|
|
|
|
||
Proceeds from sales and maturities (purchases) of marketable securities |
|
|
(22) |
|
|
10 |
Capital expenditures |
|
|
(133) |
|
|
(71) |
Proceeds from sale of assets |
|
|
69 |
|
|
23 |
Investments in partnerships and joint ventures |
|
|
(66) |
|
|
(13) |
Other |
|
|
23 |
|
|
5 |
Investing cash flow |
|
|
(129) |
|
|
(46) |
|
|
|
|
|
||
FINANCING CASH FLOW |
|
|
|
|
||
Purchase and retirement of debt |
|
|
(44) |
|
|
(249) |
Proceeds from issuance of 2029 Notes, net of issuance costs |
|
|
— |
|
|
560 |
Capped call transaction related to 2029 Notes |
|
|
— |
|
|
(73) |
Dividends paid on CPS |
|
|
— |
|
|
(29) |
Make-whole payment on conversion of CPS |
|
|
— |
|
|
(27) |
Distributions to NCI (net of capital contributions) |
|
|
(8) |
|
|
(36) |
Proceeds from NuScale share issuance (net of issuance fees) |
|
|
80 |
|
|
— |
Other |
|
|
(6) |
|
|
(15) |
Financing cash flow |
|
|
22 |
|
|
131 |
|
|
|
|
|
||
Effect of exchange rate changes on cash |
|
|
(1) |
|
|
(7) |
Increase (decrease) in cash and cash equivalents |
|
|
393 |
|
|
(18) |
Cash and cash equivalents at beginning of period |
|
|
2,519 |
|
|
2,439 |
Cash and cash equivalents at end of period |
|
$ |
2,912 |
|
$ |
2,421 |
|
|
|
|
|
||
Cash paid during the period for: |
|
|
|
|
||
Interest |
|
$ |
41 |
|
$ |
46 |
Income taxes (net of refunds) |
|
|
(42) |
|
|
129 |
RECONCILIATION OF |
|||||||||||
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
||||||||
(In millions, except per share amounts) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net earnings attributable to Fluor |
$ |
54 |
|
$ |
206 |
|
$ |
282 |
|
$ |
161 |
Less: Dividends on CPS |
|
— |
|
|
10 |
|
|
— |
|
|
29 |
Less: Make-whole payment on conversion of CPS |
|
— |
|
|
27 |
|
|
— |
|
|
27 |
Net earnings available to Fluor common stockholders |
$ |
54 |
|
$ |
169 |
|
$ |
282 |
|
$ |
105 |
Exclude: Stork and AMECO businesses marketed for sale |
|
6 |
|
|
(11) |
|
|
14 |
|
|
48 |
Net earnings (loss) from core operations |
|
60 |
|
|
158 |
|
|
296 |
|
|
153 |
Add (less): |
|
|
|
|
|
|
|
||||
Dividends on CPS |
$ |
— |
|
$ |
10 |
|
$ |
— |
|
$ |
29 |
Make-whole payment on conversion of CPS |
|
— |
|
|
27 |
|
|
— |
|
|
27 |
NuScale (profit) loss |
|
38 |
|
|
16 |
|
|
95 |
|
|
63 |
ICA Fluor embedded derivatives |
|
(20) |
|
|
(24) |
|
|
(47) |
|
|
23 |
Tax expense (benefit) on ICA Fluor embedded derivatives |
|
6 |
|
|
7 |
|
|
14 |
|
|
(6) |
Foreign currency (gain) loss |
|
2 |
|
|
(23) |
|
|
(58) |
|
|
62 |
Tax expense (benefit) on foreign currency gain/loss |
|
3 |
|
|
4 |
|
|
18 |
|
|
(14) |
G&A: Reserve for legacy legal claims |
|
— |
|
|
3 |
|
|
— |
|
|
3 |
G&A: NuScale marketing costs borne by Fluor |
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
|
— |
|
|
2 |
|
|
— |
|
|
12 |
Adjusted Net Earnings |
$ |
89 |
|
$ |
177 |
|
$ |
318 |
|
$ |
357 |
|
|
|
|
|
|
|
|
||||
Diluted EPS available to Fluor common stockholders |
$ |
0.31 |
|
$ |
1.15 |
|
$ |
1.63 |
|
$ |
0.72 |
Adjusted EPS |
$ |
0.51 |
|
$ |
1.02 |
|
$ |
1.83 |
|
$ |
2.07 |
|
|
|
|
|
|
|
|
||||
Weighted average diluted shares outstanding |
|
174 |
|
|
144 |
|
|
173 |
|
|
143 |
Assumed conversion of CPS |
|
— |
|
|
26 |
|
|
— |
|
|
27 |
Adjusted weighted average diluted shares outstanding |
|
174 |
|
|
170 |
|
|
173 |
|
|
170 |
|
|
|
|
|
|
|
|
||||
(1) Certain amounts in tables may not total or agree back to the financial statements due to immaterial rounding differences. |
|||||||||||
|
|
|
RECONCILIATION OF |
|||||||||
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
||||||
(in millions) |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
|
|
|
|
||||
Net earnings (loss) attributable to Fluor |
$ |
54 |
$ |
206 |
|
$ |
282 |
$ |
161 |
Interest income |
|
(37) |
|
(42) |
|
|
(114) |
|
(120) |
Tax expenses |
|
61 |
|
79 |
|
|
172 |
|
172 |
Depreciation & amortization |
|
19 |
|
19 |
|
|
53 |
|
57 |
EBITDA |
$ |
97 |
$ |
262 |
|
$ |
393 |
$ |
270 |
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
||||
Other: NuScale, Stork and AMECO earnings |
$ |
45 |
$ |
(1) |
|
$ |
88 |
$ |
100 |
Energy Solutions: Embedded foreign currency derivative (gains)/losses |
|
(20) |
|
(24) |
|
|
(47) |
|
23 |
G&A: Foreign currency (gain) loss |
|
2 |
|
(23) |
|
|
(58) |
|
62 |
G&A: Reserve for legacy legal claims |
|
— |
|
— |
|
|
— |
|
3 |
G&A: |
|
— |
|
2 |
|
|
— |
|
12 |
Adjusted EBITDA |
$ |
124 |
$ |
216 |
|
$ |
376 |
$ |
470 |
(1) Certain amounts in tables may not total or agree back to the financial statements due to immaterial rounding differences. |
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