Fluor Reports Fourth Quarter and Full Year 2024 Results
-
Full year new awards of
$15.1 billion 85% reimbursable -
Ending backlog of
$28.5 billion 79% reimbursable -
Strong operating cash flow for 2024 of
$828 million -
Q4 share repurchases of
$125 million $300 million -
$1.6 billion
2024 quarter and full year results include equity method earnings of
“Our results for 2024 reflect our four-year journey of building a robust reimbursable backlog across diverse end markets, strengthening our capital structure, developing strong engineering and project execution teams, and commencing our capital allocation program,” said David Constable, chairman and chief executive officer of Fluor. "These efforts have positioned Fluor to deliver significant value and opportunities for our clients, employees and shareholders."
Full year new awards were
____________________ |
[1] Non-GAAP Financial Measure. See “Non-GAAP Financial Measures” for additional information. |
Fourth Quarter Results
Fourth quarter 2024 results include net earnings attributable to Fluor of
Revenue for the quarter was
Including the adjustments outlined in the reconciliation table at the end of this release, the company recognized adjusted EBITDA of
Outlook
We are not providing forward-looking guidance for
In consideration of the timing of new awards and the pace of execution on the existing backlog, we are establishing an adjusted EBITDA guidance for 2025 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
Urban Solutions profit improved to
Energy Solutions reported a profit of
Mission Solutions profit improved to
The Other segment, which includes the operations of NuScale prior to deconsolidation and the Stork and AMECO business prior to their sale, reported full year revenue of
Conference Call
Fluor will host a conference call at 8:30 a.m. Eastern Time on Tuesday, February 18, which will be webcast live and can be accessed at 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. A replay of the call will be available by telephone for one week.
Non-GAAP Financial Measures
This news release contains discussions of consolidated segment profit (loss) and margin, 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 equity method earnings and the impacts of foreign exchange fluctuations, impairments 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 equipment 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 divided by adjusted weighted average diluted shares outstanding. For prior period comparisons, adjusted weighted average diluted shares outstanding assumed 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 27,000 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 resolution of outstanding claims or lawsuits, 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; risks related to the use of artificial intelligence and similar technologies; 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; restrictive covenants contained in the agreements governing our debt; 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
Additional information concerning these and other factors can be found in the Company's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Item 1A. Risk Factors" in the Company's Form 10-K filed on February 18, 2025. Such filings are available either publicly or upon request from Fluor's Investor Relations Department: (469) 398-7222. The Company disclaims any intent or obligation other than as required by law to update its forward-looking statements in light of new information or future events.
SUMMARY OF FINANCIALS AND |
||||||||||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||||||||||
(in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Urban Solutions |
$ |
1,999 |
|
|
|
$ |
1,420 |
|
|
|
$ |
7,239 |
|
|
|
$ |
5,262 |
|
|
|||||
Energy Solutions |
|
1,520 |
|
|
|
|
1,422 |
|
|
|
|
5,976 |
|
|
|
|
6,307 |
|
|
|||||
Mission Solutions |
|
654 |
|
|
|
|
646 |
|
|
|
|
2,594 |
|
|
|
|
2,655 |
|
|
|||||
Other |
|
87 |
|
|
|
|
332 |
|
|
|
|
506 |
|
|
|
|
1,250 |
|
|
|||||
Total revenue |
$ |
4,260 |
|
|
|
$ |
3,820 |
|
|
|
$ |
16,315 |
|
|
|
$ |
15,474 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Segment profit (loss) $ and margin % |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Urban Solutions |
$ |
81 |
|
4.1 |
% |
|
$ |
147 |
|
10.4 |
% |
|
$ |
304 |
|
4.2 |
% |
|
$ |
268 |
|
5.1 |
% |
|
Energy Solutions |
|
63 |
|
4.1 |
% |
|
|
26 |
|
1.8 |
% |
|
|
256 |
|
4.3 |
% |
|
|
381 |
|
6.0 |
% |
|
Mission Solutions |
|
45 |
|
6.9 |
% |
|
|
31 |
|
4.8 |
% |
|
|
153 |
|
5.9 |
% |
|
|
116 |
|
4.4 |
% |
|
Other |
|
17 |
|
19.5 |
% |
|
|
(119 |
) |
NM |
|
|
|
(78 |
) |
NM |
|
|
|
(228 |
) |
NM |
|
|
Total segment profit $ and margin % |
$ |
206 |
|
4.8 |
% |
|
$ |
85 |
|
2.2 |
% |
|
$ |
635 |
|
3.9 |
% |
|
$ |
537 |
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
G&A |
|
(55 |
) |
|
|
|
(55 |
) |
|
|
|
(203 |
) |
|
|
|
(232 |
) |
|
|||||
Foreign currency gain (loss) |
|
34 |
|
|
|
|
(36 |
) |
|
|
|
92 |
|
|
|
|
(98 |
) |
|
|||||
Interest income (expense), net |
|
35 |
|
|
|
|
49 |
|
|
|
|
150 |
|
|
|
|
168 |
|
|
|||||
Earnings (loss) attributable to NCI |
|
3 |
|
|
|
|
(19 |
) |
|
|
|
(61 |
) |
|
|
|
(60 |
) |
|
|||||
Earnings before taxes |
|
223 |
|
|
|
|
24 |
|
|
|
|
613 |
|
|
|
|
315 |
|
|
|||||
Income tax expense |
|
(463 |
) |
|
|
|
(64 |
) |
|
|
|
(634 |
) |
|
|
|
(236 |
) |
|
|||||
Net earnings (loss) before equity method earnings |
|
(240 |
) |
|
|
|
(40 |
) |
|
|
|
(21 |
) |
|
|
|
79 |
|
|
|||||
Equity method earnings |
|
2,105 |
|
|
|
|
— |
|
|
|
|
2,105 |
|
|
|
|
— |
|
|
|||||
Net earnings (loss) |
|
1,865 |
|
|
|
|
(40 |
) |
|
|
|
2,084 |
|
|
|
|
79 |
|
|
|||||
Less: Net earnings (loss) attributable to NCI |
|
3 |
|
|
|
|
(19 |
) |
|
|
|
(61 |
) |
|
|
|
(60 |
) |
|
|||||
Net earnings (loss) attributable to Fluor |
$ |
1,862 |
|
|
|
$ |
(21 |
) |
|
|
$ |
2,145 |
|
|
|
$ |
139 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
New awards |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Urban Solutions |
$ |
1,376 |
|
|
|
$ |
5,052 |
|
|
|
$ |
9,493 |
|
|
|
$ |
10,141 |
|
|
|||||
Energy Solutions |
|
406 |
|
|
|
|
2,153 |
|
|
|
|
3,246 |
|
|
|
|
6,871 |
|
|
|||||
Mission Solutions |
|
429 |
|
|
|
|
40 |
|
|
|
|
1,910 |
|
|
|
|
1,055 |
|
|
|||||
Other |
|
97 |
|
|
|
|
363 |
|
|
|
|
474 |
|
|
|
|
1,461 |
|
|
|||||
Total new awards |
$ |
2,308 |
|
|
|
$ |
7,608 |
|
|
|
$ |
15,123 |
|
|
|
$ |
19,528 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
New awards related to projects located outside of the |
|
|
|
|
|
|
|
38 |
% |
|
|
|
76 |
% |
|
|||||||||
(in millions) |
December 31,
|
|
December 31,
|
|||||
Backlog |
|
|
|
|||||
Urban Solutions |
$ |
17,749 |
|
|
$ |
14,848 |
|
|
Energy Solutions |
|
7,605 |
|
|
|
9,722 |
|
|
Mission Solutions |
|
2,727 |
|
|
|
3,945 |
|
|
Other |
|
403 |
|
|
|
926 |
|
|
Total backlog |
$ |
28,484 |
|
|
$ |
29,441 |
|
|
|
|
|
|
|||||
Backlog related to projects located outside of the |
|
55 |
% |
|
|
62 |
% |
|
Backlog related to reimbursable projects |
|
79 |
% |
|
|
76 |
% |
|
(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 |
||||||||
|
|
Year Ended
|
||||||
(in millions) |
|
2024 |
|
2023 |
||||
OPERATING CASH FLOW |
|
$ |
828 |
|
|
$ |
212 |
|
|
|
|
|
|
||||
INVESTING CASH FLOW |
|
|
|
|
||||
Proceeds from sales and maturities (purchases) of marketable securities |
|
|
(60 |
) |
|
|
(141 |
) |
Capital expenditures |
|
|
(164 |
) |
|
|
(106 |
) |
NuScale cash deconsolidated |
|
|
(131 |
) |
|
|
— |
|
Proceeds from sales of assets (net of cash divested) |
|
|
82 |
|
|
|
(5 |
) |
Investments in partnerships and joint ventures |
|
|
(93 |
) |
|
|
(33 |
) |
Return of capital from partnerships and joint ventures |
|
|
34 |
|
|
|
8 |
|
Other |
|
|
(1 |
) |
|
|
— |
|
Investing cash flow |
|
|
(333 |
) |
|
|
(277 |
) |
|
|
|
|
|
||||
FINANCING CASH FLOW |
|
|
|
|
||||
Repurchase of common stock |
|
|
(125 |
) |
|
|
— |
|
Proceeds from issuance of 2029 Notes, net of issuance costs |
|
|
— |
|
|
|
560 |
|
Capped call transactions related to 2029 Notes |
|
|
— |
|
|
|
(73 |
) |
Purchases and retirement of debt |
|
|
(57 |
) |
|
|
(249 |
) |
Proceeds from sale of NuScale interest |
|
|
80 |
|
|
|
— |
|
Dividends paid on CPS |
|
|
— |
|
|
|
(29 |
) |
Make-whole payment on conversion of CPS |
|
|
— |
|
|
|
(27 |
) |
Distributions paid to NCI |
|
|
(14 |
) |
|
|
(53 |
) |
Capital contributions by NCI |
|
|
— |
|
|
|
10 |
|
Other |
|
|
— |
|
|
|
(12 |
) |
Financing cash flow |
|
|
(116 |
) |
|
|
127 |
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
(69 |
) |
|
|
18 |
|
Increase in cash and cash equivalents |
|
|
310 |
|
|
|
80 |
|
Cash and cash equivalents at beginning of year |
|
|
2,519 |
|
|
|
2,439 |
|
Cash and cash equivalents at end of year |
|
$ |
2,829 |
|
|
$ |
2,519 |
|
|
|
|
|
|
||||
Cash paid during the year for: |
|
|
|
|
||||
Interest |
|
$ |
42 |
|
|
$ |
53 |
|
Income taxes (net of refunds) |
|
|
13 |
|
|
|
169 |
|
RECONCILIATION OF |
||||||||||||||||
|
Three Month Ended
|
|
Year Ended
|
|||||||||||||
(In millions, except per share amounts) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net earnings (loss) attributable to Fluor |
$ |
1,862 |
|
|
$ |
(21 |
) |
|
$ |
2,145 |
|
|
$ |
139 |
|
|
Less: Dividends on CPS |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
|
Less: Make-whole payment on conversion of CPS |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
Net earnings (loss) available to Fluor common stockholders |
$ |
1,862 |
|
|
$ |
(21 |
) |
|
$ |
2,145 |
|
|
$ |
83 |
|
|
Exclude: Stork and AMECO businesses marketed for sale |
|
(19 |
) |
|
|
93 |
|
|
|
(4 |
) |
|
|
141 |
|
|
Net earnings from core operations |
|
1,843 |
|
|
|
72 |
|
|
|
2,141 |
|
|
|
224 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Dividends on CPS |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
|
Make-whole payment on conversion of CPS |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
Equity method earnings |
|
(2,105 |
) |
|
|
— |
|
|
|
(2,105 |
) |
|
|
— |
|
|
Tax expense on equity method earnings |
|
376 |
|
|
|
— |
|
|
|
376 |
|
|
|
— |
|
|
NuScale expenses |
|
— |
|
|
|
32 |
|
|
|
95 |
|
|
|
94 |
|
|
ICA Fluor embedded derivatives |
|
1 |
|
|
|
(6 |
) |
|
|
(46 |
) |
|
|
17 |
|
|
Tax expense (benefit) on ICA Fluor embedded derivatives |
|
— |
|
|
|
2 |
|
|
|
14 |
|
|
|
(5 |
) |
|
Foreign currency (gain) loss |
|
(34 |
) |
|
|
36 |
|
|
|
(92 |
) |
|
|
98 |
|
|
Tax expense (benefit) on foreign currency gain/loss |
|
3 |
|
|
|
(7 |
) |
|
|
22 |
|
|
|
(20 |
) |
|
G&A: Reserve for legacy legal claims |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
G&A: NuScale marketing costs borne by Fluor |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
SEC investigation |
|
— |
|
|
|
(12 |
) |
|
|
— |
|
|
|
— |
|
|
Adjusted net earnings |
$ |
84 |
|
|
$ |
117 |
|
|
$ |
405 |
|
|
$ |
472 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted EPS available to Fluor common stockholders |
$ |
10.57 |
|
|
$ |
(0.12 |
) |
|
$ |
12.30 |
|
|
$ |
0.54 |
|
|
Adjusted EPS |
$ |
0.48 |
|
|
$ |
0.68 |
|
|
$ |
2.32 |
|
|
$ |
2.73 |
|
|
Weighted average diluted shares outstanding |
|
176 |
|
|
|
173 |
|
|
|
174 |
|
|
|
153 |
|
|
Assumed conversion of CPS |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
Adjusted weighted average diluted shares outstanding |
|
176 |
|
|
|
173 |
|
|
|
174 |
|
|
|
173 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(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
|
|
YEAR ENDED
|
||||||||||
(in millions) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
||||||||
Net earnings (loss) attributable to Fluor |
$ |
1,862 |
|
$ |
(21 |
) |
|
$ |
2,145 |
|
$ |
139 |
|
Interest income |
|
(35 |
) |
|
(49 |
) |
|
|
(150 |
) |
|
(168 |
) |
Tax expenses |
|
463 |
|
|
64 |
|
|
|
634 |
|
|
236 |
|
Depreciation & amortization |
|
20 |
|
|
18 |
|
|
|
73 |
|
|
74 |
|
Equity method earnings |
|
(2,105 |
) |
|
— |
|
|
|
(2,105 |
) |
|
— |
|
EBITDA |
$ |
205 |
|
$ |
12 |
|
|
$ |
597 |
|
$ |
281 |
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
||||||||
Exclude: Stork and AMECO businesses marketed for sale |
$ |
(17 |
) |
$ |
83 |
|
|
$ |
(24 |
) |
$ |
115 |
|
Exclude: NuScale loss |
|
— |
|
|
32 |
|
|
|
95 |
|
|
94 |
|
G&A: NuScale marketing costs borne by Fluor |
|
— |
|
|
— |
|
|
|
— |
|
|
5 |
|
Add back: ICA Fluor embedded derivatives |
|
1 |
|
|
(6 |
) |
|
|
(46 |
) |
|
17 |
|
G&A: Foreign currency (gain) loss |
|
(34 |
) |
|
36 |
|
|
|
(92 |
) |
|
98 |
|
G&A: Reserve for legacy legal claims |
|
— |
|
|
— |
|
|
|
— |
|
|
3 |
|
G&A: SEC investigation |
|
— |
|
|
(12 |
) |
|
|
— |
|
|
— |
|
Adjusted EBITDA |
$ |
154 |
|
$ |
145 |
|
|
$ |
530 |
|
$ |
613 |
|
(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/20250218823650/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
