Fluor (FLR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $4.2 billion, up 7% year-over-year, with consolidated segment profit of $194 million and adjusted EBITDA of $165 million, reflecting strong execution and margin improvement across key business lines.

• Net earnings attributable to Fluor were $169 million, a significant increase from $61 million in Q2 2023, with diluted adjusted EPS of $0.85 and diluted EPS of $0.97.

• Backlog grew to $32.3 billion, up from $29.4 billion at year-end, with 81% reimbursable and $3.1 billion in new awards, led by Urban Solutions.

• Operating cash flow was $282 million in Q2, a significant improvement from a $62 million outflow in Q2 2023.

• Management announced key leadership changes, including new COO, Group President Energy Solutions, CPO, and CLO effective August and October 2024.

Financial highlights

• Adjusted EPS was $0.85, up from $0.76 in Q2 2023, benefiting from a lower tax rate and increased revenue in tax-advantaged locations.

• G&A expenses declined to $50 million from $60 million a year ago; net interest income was $38 million.

• Cash and marketable securities at quarter-end were $2.6 billion, excluding NuScale holdings.

• Adjusted net earnings for Q2 were $148 million; adjusted EBITDA was $165 million.

• Operating cash flow for the first half of 2024 was $171 million, up from a $99 million outflow in the prior year period.

Outlook and guidance

• 2024 adjusted EPS guidance affirmed at $2.50–$3.00; adjusted EBITDA guidance narrowed to $625–$675 million.

• Revenue growth for 2024 expected at approximately 15%, with operating cash flow guidance raised to $500–$600 million.

• Segment margin expectations: ~5% for Energy Solutions, ~4% for Urban Solutions, ~6% for Mission Solutions.

• No GAAP EPS or net earnings guidance provided due to uncertainty in reconciling adjustments.

• Book-to-burn ratio expected to remain at 1 for the third consecutive year.