Fluor Corp (FLR) Q3 2024 Earnings Call Highlights: Strong Revenue and Backlog Growth Amid Challenges

GuruFocus News
4 min read

In This Article:

  • Revenue: $4.1 billion for the third quarter.

  • New Awards: $2.7 billion in the third quarter.

  • Total Backlog: $31.3 billion, with 80% reimbursable.

  • Urban Solutions Segment Profit: $68 million.

  • Urban Solutions Backlog: $19 billion, a 72% increase over the past 12 months.

  • Mission Solutions Segment Profit: $45 million for the third quarter.

  • Mission Solutions Backlog: $3.1 billion.

  • Energy Solutions Segment Profit: $50 million for the third quarter.

  • Adjusted EBITDA: $124 million compared to $216 million a year ago.

  • Adjusted EPS: $0.51 compared to $1.02 in Q3 of 2023.

  • Cash and Marketable Securities: $2.9 billion.

  • Operating Cash Inflows: $330 million for the third quarter.

  • Adjusted EPS Guidance: Tightened to a range of $2.55 to $2.75 for 2024.

  • Adjusted EBITDA Guidance: Lowered to a range of $525 million to $575 million for 2024.

  • Cash Flow Guidance: Increased to approximately $700 million for the full year.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Fluor Corp (NYSE:FLR) reported a strong revenue of $4.1 billion for the third quarter, with a total backlog of $31.3 billion, 80% of which is reimbursable.

  • The Urban Solutions segment saw a significant increase in backlog, up 72% over the past 12 months, driven by advanced technology and life sciences projects.

  • Fluor Corp (NYSE:FLR) is making progress in the nuclear sector, with new projects in Romania and involvement in the US domestic uranium enrichment program.

  • The company has a strong cash position, with $2.9 billion in cash and marketable securities, and plans to return capital to shareholders through an increased share repurchase program.

  • Fluor Corp (NYSE:FLR) is strategically positioned for growth in the data center market, leveraging modularization and innovative cooling processes to secure programmatic opportunities with large tech companies.

Negative Points

  • The Energy Solutions segment experienced lower-than-expected contributions due to delays in revenue recognition and cost growth on a subcontract in Mexico.

  • Fluor Corp (NYSE:FLR) faced challenges with a large manufacturing facility project for Intel, which was canceled, impacting their semiconductor business.

  • The company's adjusted EBITDA for the third quarter was $124 million, down from $216 million a year ago, reflecting a higher effective tax rate and lower segment profits.

  • Fluor Corp (NYSE:FLR) is experiencing delays in converting front-end engineering design (FEED) packages to EPC awards, particularly in the energy transition sector.

  • The company is dealing with a $1 billion breach of contract lawsuit related to the Mario M. Cuomo Bridge project, which could impact future financials.

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