Fluor Unveils New Strategic Priorities and Goals to Support Building a Better Future

Rhea-AI Summary

Fluor Corporation (NYSE: FLR) announced its new strategy at the 2021 Strategy Day event, aiming to lead professional and technical solutions while enhancing shareholder value. CEO David Constable emphasized a focus on sustainable outcomes. The strategy includes four priorities: driving growth from non-traditional sectors, improving backlog quality, maintaining financial discipline, and fostering a diverse, high-performance culture. Fluor aims for 70% of revenue from non-oil and gas segments by 2023, with plans for a debt-to-capitalization ratio of 20-40% by 2024, targeting earnings per share of $3.00 to $3.50.

Positive

• Fluor expects 70% of revenue from non-traditional oil and gas sectors by 2023.
• Plans for backlog to be over 75% reimbursable by 2024, aligning with historical norms.
• Targeting a debt-to-capitalization ratio of 20-40% by 2024.
• Aiming for return on invested capital exceeding 20% and top quartile shareholder returns.
• Earnings per share target set at $3.00 to $3.50 for 2024.

Negative

• None.

Fluor Corporation (NYSE: FLR) unveiled today its new strategy to become the preeminent leader of professional and technical solutions at its 2021 Strategy Day called “Building a Better Future.”

“My top priority since being named Fluor’s CEO has been to work closely with the Board and the management team to develop a strategy that addresses the mega trends that are impacting how we do business,” said David Constable, chief executive officer. “With an emphasis on sustainable outcomes and creating shareholder value, our new strategy leverages our world-class expertise and rewards Fluor for the value we provide while improving our financial position and creating a fit-for-purpose organization.”

At the Strategy Day event, Fluor’s leadership team outlined the four strategic priorities for driving value creation:

Drive growth across Fluor’s portfolio – By 2023, Fluor expects 70 percent of revenue will come from non-traditional oil and gas segments.

Pursue contracts with fair and balanced terms – Fluor will improve the quality of its backlog by only pursuing and executing work with fair and balanced terms. Fluor’s backlog will be more than 75 percent reimbursable by 2024, which is similar to historical norms.

Reinforce financial discipline – By 2024, Fluor plans to lower and maintain a debt to capitalization ratio corridor between 20 to 40 percent, generate return on invested capital in excess of 20 percent, secure investment grade credit ratings and deliver top quartile shareholder returns. Fluor is targeting a 2024 earnings per share range of $3.00 to $3.50.

Foster a high-performance culture with purpose – Fluor is committed to increasing women and diversity in leadership roles and creating a positive and inclusive culture that can drive strong individual and collective performance. In addition, the company has committed to achieve Net Zero for scopes 1 and 2 CO2 equivalent emissions by the end of 2023.

Fluor’s new strategic priorities build upon the previously announced realigning of its operations into three new business segments: Urban Solutions, Mission Solutions and Energy Solutions. The updated organizational and reporting structure aligns Fluor’s business with identified growth markets, and will be implemented in the first quarter of 2021.

Webcast Replay

To access the replay of today’s virtual strategy day event and presentation materials, visit the company’s website at investor.fluor.com.

About Fluor Corporation

Fluor Corporation (NYSE: FLR) is building a better future by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s 45,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor is ranked 181 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than 100 years. For more information, please visit www.fluor.com or follow Fluor on Twitter, LinkedIn, Facebook and YouTube.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210128005842/en/

FAQ

What is Fluor Corporation's new strategy for 2021?

Fluor Corporation announced a strategy focusing on sustainable outcomes, increasing revenue from non-traditional sectors, improving backlog quality, and fostering a diverse culture.

What revenue percentage does Fluor expect from non-traditional sectors by 2023?

Fluor expects 70% of its revenue to come from non-traditional oil and gas sectors by 2023.

What are Fluor's financial targets for 2024?

Fluor aims for a debt-to-capitalization ratio of 20-40%, return on invested capital exceeding 20%, and earnings per share between $3.00 and $3.50.

How will Fluor enhance its backlog quality?

Fluor plans to improve backlog quality by pursuing and executing contracts with fair and balanced terms, targeting over 75% reimbursable backlog by 2024.

What is Fluor's commitment towards diversity in leadership?

Fluor is committed to increasing women and diversity in leadership roles to create a positive and inclusive culture.