Fluor Corporation’s FLR backlog growth underscores the growing demand in the chemicals sector, closely followed by energy transition, fuel production, as well as mining and metals and big data. The ongoing strength in demand can be substantiated by its recent award win in Romania.

Recently, the Fluor-led joint venture (JV), which includes AtkinsRealis, Sargent & Lundy and Ansaldo Nucleare, won a limited notice to proceed (LNTP) for the design phase of Units 3 & 4 at the Cernavoda Nuclear Power Plant in Romania.

Following the announcement, FLR stock gained 2.2% during the trading hours and 2.1% in the after-hours on Friday.

Sneak Peek at FLR’s New Contract

The contract was signed by EnergoNuclear S.A., a subsidiary of SN Nuclearelectrica S.A., during a ceremony at the United Nations COP29 climate change conference in Baku, Azerbaijan.

Per the LNTP contract, the Fluor JV will offer the required information for making the final investment decision before the construction of Units 3 and 4. The process includes the development of engineering or construction plans, an updated cost estimate and schedule and preliminary nuclear safety assessment reports and engineering documents.

The addition of Units 3 & 4 will almost double the power output of the Cernavoda Nuclear Power Plant, which currently produces about 1.4 gigawatts of electricity with two operational units.

Fluor’s Growing Backlog Bodes Well

Fluor has been witnessing business prospects and a demand uptrend in various sectors, including the chemicals sector, energy transition, fuel production, as well as mining and metals, and big data. This growing trend is reflected in the solid uptick in new awards and backlog value.

During the third quarter of 2024, the company secured new awards worth $2.7 billion. At the end of Sept. 30, 2024, the consolidated backlog was $31.32 billion, up 20.5% from $26 billion a year ago. This substantial backlog underscores the continued strong demand for Fluor's services and the recognized value it brings to its clients. The company continues to witness strong demand for its services, pushing new award margins above its strategic segment margin range of 4-6%.

Image Source: Zacks Investment Research

Shares of FLR have gained 32.8% in the past six months against the Zacks Engineering - R and D Services industry’s 0.7% decline. The ongoing backlog strength, market diversity and the Building a Better Future strategy are positioning the company well for an outperformance in the upcoming period.

FLR’s Zacks Rank & Key Picks

Fluor currently carries a Zacks Rank #5 (Strong Sell).

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