Fluor Reports Third Quarter 2024 Results
Fluor (NYSE: FLR) reported Q3 2024 financial results with revenue of $4.1 billion and net earnings of $54 million, or $0.31 per diluted share. The company posted adjusted diluted EPS of $0.51 and strong operating cash flow of $330 million. New awards totaled $2.7 billion, with ending consolidated backlog of $31.3 billion. The company's cash position stood at $2.9 billion. Notable developments include an expected $1.6 billion gain from NuScale deconsolidation in Q4 and an increase in the share repurchase program authorization to 30.5 million shares.
Fluor (NYSE: FLR) ha riportato i risultati finanziari del terzo trimestre del 2024 con ricavi di 4,1 miliardi di dollari e utili netti di 54 milioni di dollari, pari a 0,31 dollari per azione diluita. L'azienda ha registrato un utile per azione diluita rettificato di 0,51 dollari e un forte flusso di cassa operativo di 330 milioni di dollari. I nuovi contratti ammontano a 2,7 miliardi di dollari, con un backlog consolidato finale di 31,3 miliardi di dollari. La posizione di cassa dell'azienda si è attestata a 2,9 miliardi di dollari. Sviluppi significativi includono un guadagno previsto di 1,6 miliardi di dollari dalla deconsolidazione di NuScale nel quarto trimestre e un aumento nell'autorizzazione del programma di riacquisto azioni a 30,5 milioni di azioni.
Fluor (NYSE: FLR) reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 4.1 mil millones de dólares y ganancias netas de 54 millones de dólares, o 0.31 dólares por acción diluida. La compañía informó un EPS diluido ajustado de 0.51 dólares y un robusto flujo de efectivo operativo de 330 millones de dólares. Los nuevos contratos totalizaron 2.7 mil millones de dólares, con un backlog consolidado final de 31.3 mil millones de dólares. La posición de liquidez de la empresa fue de 2.9 mil millones de dólares. Entre los desarrollos notables se incluye una ganancia esperada de 1.6 mil millones de dólares por la deconsolidación de NuScale en el cuarto trimestre y un aumento en la autorización del programa de recompra de acciones a 30.5 millones de acciones.
플루어 (NYSE: FLR)는 2024년 3분기 재무 결과를 보고하였으며, 매출은 41억 달러이고, 순이익은 5400만 달러, 즉 희석된 주당 0.31달러입니다. 회사는 조정된 희석 EPS가 0.51달러이며, 강력한 운영 현금 흐름인 3억 3천만 달러를 기록하였습니다. 새로운 수주 총액은 27억 달러였고, 종료된 통합 백로그는 313억 달러였습니다. 회사의 현금 보유는 29억 달러로 나타났습니다. 주요 발전 사항으로는 4분기에 NuScale 비연결에 대한 16억 달러의 예상 이익과 3050만 주의 자사주 매입 프로그램 승인 증가가 포함됩니다.
Fluor (NYSE: FLR) a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 4,1 milliards de dollars et un bénéfice net de 54 millions de dollars, soit 0,31 dollar par action diluée. L'entreprise a enregistré un BPA dilué ajusté de 0,51 dollar et un flux de trésorerie opérationnel solide de 330 millions de dollars. Les nouvelles commandes totalisent 2,7 milliards de dollars, avec un carnet de commandes consolidé final de 31,3 milliards de dollars. La position de trésorerie de l'entreprise s'est élevée à 2,9 milliards de dollars. Parmi les développements notables, on constate un gain prévu de 1,6 milliard de dollars provenant de la déconsolidation de NuScale au quatrième trimestre et une augmentation de l'autorisation du programme de rachat d'actions à 30,5 millions d'actions.
Fluor (NYSE: FLR) hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 4,1 Milliarden Dollar und einem Nettogewinn von 54 Millionen Dollar, was 0,31 Dollar pro verwässerter Aktie entspricht. Das Unternehmen meldete einen adjustierten verwässerten Gewinn pro Aktie von 0,51 Dollar und einen starken operativen Cashflow von 330 Millionen Dollar. Die neuen Aufträge beliefen sich auf 2,7 Milliarden Dollar, mit einem Endbestand an konsolidierten Aufträgen von 31,3 Milliarden Dollar. Die liquide Mittel des Unternehmens lagen bei 2,9 Milliarden Dollar. Zu den bemerkenswerten Entwicklungen gehören ein erwarteter Gewinn von 1,6 Milliarden Dollar aus der De-Konsolidierung von NuScale im 4. Quartal und eine Erhöhung der Genehmigung des Aktienrückkaufprogramms auf 30,5 Millionen Aktien.
- Strong Q3 operating cash flow of $330 million
- 2024 cash flow guidance increased to approximately $700 million
- Expected $1.6 billion gain from NuScale deconsolidation in Q4
- Increased share repurchase program authorization to 30.5 million shares
- Backlog growth to $31.3 billion from $26 billion year-over-year
- Reduced G&A expenses to $37 million from $56 million year-over-year
- Q3 consolidated segment profit declined to $117 million from $276 million year-over-year
- New awards decreased to $2.7 billion from $5.0 billion year-over-year
- Lower than expected contributions from Energy Solutions segment
- Project delays and cancellations impacting quarterly earnings
Insights
Fluor's Q3 results present a mixed picture with some concerning trends.
The upcoming NuScale deconsolidation with a
The infrastructure and engineering sector context makes these results particularly significant. While Fluor maintains a healthy backlog of
The Energy Solutions segment underperformance is concerning given the current global energy transition initiatives and infrastructure spending trends. This could impact Fluor's competitive positioning in key growth markets.
-
Q3 2024 revenue of
and new awards of$4.1 billion $2.7 billion -
Strong Q3 operating cash flow of
; 2024 cash flow guidance increased to approximately$330 million $700 million -
Q3 2024 diluted earnings per share (EPS) of
; adjusted diluted EPS of$0.31 $0.51 -
NuScale deconsolidation will result in
gain in Q4$1.6 billion - Fluor Board of Directors approves increase in share repurchase program to 30.5 million shares authorized for repurchase in support of management’s capital allocation program
____________________ |
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 David E. Constable, chairman and chief executive officer of Fluor. “While earnings in the quarter were less than planned due, in part, to certain project delays and cancellations, it does not change our focus on pursuing demand-driven growth opportunities in the markets we serve and on returning cash to shareholders.”
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 8:30 a.m. Eastern on Friday, November 8, which will be webcast live and can be accessed by logging onto investor.fluor.com. The call will also be accessible by telephone at 888-800-3960 (
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 SEC rules. Segment profit (loss) is calculated as revenue less cost of revenue and earnings attributable to noncontrolling interests. The company believes that segment profit (loss) provides a meaningful perspective on its business results as it is the aggregation of individual segment profit measures that the company utilizes to evaluate and manage its business performance. Adjusted net earnings is defined as net earnings from core operations excluding NuScale profit (loss) and the impacts of foreign exchange fluctuations and certain items that management believes are unrelated to actual normalized operational performance. Net earnings from core operations is net earnings attributable to Fluor excluding the results of our remaining Stork and AMECO businesses that are no longer classified as discontinued operations but that continue to be marketed for sale or that have been sold. Adjusted EPS is defined as adjusted net earnings attributable to Fluor divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding assumes the conversion of our convertible preferred stock. Adjusted EBITDA is defined as net earnings from operations before interest, income taxes, depreciation and amortization (EBITDA), further adjusted by the same items excluded from adjusted net earnings. The company believes adjusted net earnings, adjusted EPS and adjusted EBITDA allow investors to evaluate the company’s ongoing earnings on a normalized basis and make meaningful period-over-period comparisons. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation from or a substitute for measures of financial performance prepared in accordance with
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s nearly 34,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of
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 September 30, |
|
|
Nine Months Ended September 30, |
||||||||||||||||||||||
(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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
September 30,
|
|
|
September 30,
|
|
||
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 |
|
|
|
|
|
|
|
Backlog related to reimbursable projects |
|
|
|
|
|
|
|
(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 September 30, |
||||
(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 |
SEC investigation |
|
— |
|
|
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: SEC investigation |
|
— |
|
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. |
#corp
View source version on businesswire.com: https://www.businesswire.com/news/home/20241108904032/en/
Fluor Corporation
6700 Las Colinas Blvd
469.398.7000 main tel
Brett Turner
Media Relations
864.281.6976 tel
Jason Landkamer
Investor Relations
469.398.7222 tel
Source: Fluor Corporation
FAQ
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