Fluor Corporation’s FLR shares dipped 12.3% in the pre-market trading session on Friday. Investors’ sentiments got hurt after it reported lower-than-expected results for third-quarter 2024.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Earnings missed the Zacks Consensus Estimate and declined from the prior year with lower-than-expected contributions from the Energy Solutions segment. Revenues also missed the consensus mark but increased from the previous year.

FLR noted that since the beginning of October, its ownership of NuScale no longer meets the qualifications for consolidation by Fluor. As a result, it will deconsolidate NuScale in the fourth quarter and recognize a gain of $1.6 billion for its 126 million shares. Also, it expects to complete the sale of Stork’s U.K. operations by the first quarter of 2025, pending regulatory approval.

Inside the Headlines

Fluor reported adjusted earnings per share (EPS) of 51 cents, which missed the Zacks Consensus Estimate of 78 cents by 34.6%. The reported figure decreased 50% from an EPS of $1.02 a year ago.

Fluor Corporation Price, Consensus and EPS Surprise

Fluor Corporation price-consensus-eps-surprise-chart | Fluor Corporation Quote

Quarterly revenues of $4.09 billion missed the consensus mark of $4.79 billion by 14.6%. The figure grew 3.3% from the year-ago quarter’s level of $3.96 billion.

The company’s segment profit was $117 million, down from $276 million a year ago. The segment margin was 2.9%, down from 7% in the year-ago period. Adjusted EBITDA in the reported period was $124 million, down from $216 million in the prior-year period.

Fluor's total new awards in the quarter were $2.7 billion compared with $4.98 billion in the year-ago period. The consolidated backlog at the third-quarter end was $31.32 billion, up from $26 billion a year ago.

Segmental Discussion

The Energy Solutions segment’s revenues declined 8% year over year to $1.43 billion in the quarter. The segment’s margin was 3.5% in the quarter, significantly down from 11.4% a year ago.

New awards were $1.54 billion, down from $3.25 billion a year ago. The backlog at the quarter-end was $8.82 billion, down from $9.16 billion a year ago.

Revenues in the Urban Solutions segment totaled $1.93 billion, up 34.9% on a year-over-year basis. The segment’s margin was 3.5% in the quarter, down from 4.6% a year ago.

New awards were $828 million in the quarter, down from $1.03 billion a year ago. The backlog at the quarter-end was $19.01 billion, up from $11.05 billion a year ago.

Revenues in the Mission Solutions segment totaled $635 million, down 3.1% from the year-ago level of $655 million. Nonetheless, the segment’s margin improved to 7.1% from the previous year’s 5.8%.

It booked new awards worth $274 million, down from $345 million a year ago. The backlog at the quarter-end was $3.1 billion, down from $4.56 billion a year ago.

The Other segment, which comprises Stork and Fluor’s ownership in NuScale, generated revenues of $100 million in the quarter, down from $324 million in the year-ago period. The segment generated a loss of $46 million compared with a $5 million loss a year ago.

It booked new awards worth $56 million, significantly down from the year-ago level of $346 million. The backlog at the quarter-end was $394 million, down from $1.23 billion a year ago.