Fluor Corporation has released its financial results for the third quarter ending September 30, 2024. The company reported $4.1 billion in revenue, with net earnings of $54 million, or $0.31 per diluted share. Consolidated segment profit for the quarter was $117 million, down from $276 million in Q3 2023. Results were impacted by lower-than-expected contributions from the Energy Solutions segment. Adjusted earnings per diluted share were $0.51, excluding certain adjustments.
David E. Constable, Fluor’s chairman and CEO, highlighted the strong cash generation, which supports the company’s capital allocation plans. While project delays and cancellations affected earnings, Constable emphasized a continued focus on growth opportunities and returning cash to shareholders.
Financial Highlights:
- New Awards and Backlog: New awards for Q3 2024 totaled $2.7 billion, down from $5.0 billion in Q3 2023. Fluor’s consolidated backlog increased to $31.3 billion, compared to $26 billion a year ago.
- General and Administrative Expenses: Expenses decreased to $37 million, down from $56 million in Q3 2023, largely due to reduced performance-based compensation.
- Cash Position: Cash and marketable securities stood at $2.9 billion at quarter-end, excluding amounts held by NuScale.
Updated Guidance
Due to uncertainty in certain components, Fluor is not providing forward-looking guidance for GAAP net earnings or EPS. However, it has updated its full-year guidance for adjusted EPS to a range of $2.55 to $2.75 per share, from a prior range of $2.50 to $3.00. Full-year adjusted EBITDA guidance has also been lowered to $525 million to $575 million from the previous $625 million to $675 million range, reflecting project timing and cancellations.
Business Segment Performance
- Energy Solutions: Q3 profit was $50 million, down from $177 million a year ago, due to reduced contributions from a late-stage project and $18 million in cost increases on a subcontract in Mexico. Segment revenue fell to $1.4 billion from $1.6 billion. New awards were $1.5 billion, with an ending backlog of $8.8 billion.
- Urban Solutions: Q3 profit rose to $68 million from $66 million, with revenue increasing to $1.9 billion from $1.4 billion. The segment saw $828 million in new awards, including projects in Australia and the U.S., and ended the quarter with a $19 billion backlog.
- Mission Solutions: Q3 profit grew to $45 million from $38 million due to enhanced execution on DOE contracts. Segment revenue was $635 million, down from $655 million, with $274 million in new awards and an ending backlog of $3.1 billion.
- Other Segment: Includes Stork and Fluor’s stake in NuScale, reporting a $46 million loss on $100 million revenue. NuScale will be deconsolidated in Q4 2024, resulting in a $1.6 billion gain for Fluor’s 126 million shares. Fluor aims to complete Stork’s U.K. divestiture by Q1 2025, pending regulatory approvals.
Conference Call Information
Fluor will host a conference call on November 8 at 8:30 a.m. Eastern Time, accessible via webcast at investor.fluor.com or by phone at 888-800-3960 (U.S./Canada) and +1 646-307-1852 (International), conference ID 4438700. A replay will be available for 30 days.
Non-GAAP Financial Measures
This release includes non-GAAP measures such as consolidated segment profit, adjusted net earnings, adjusted EPS, and adjusted EBITDA, which offer additional insights into Fluor’s performance. Reconciliations are available in the release tables, with guidance based on adjusted metrics due to uncertainties in certain components that could impact GAAP results.
