Fluor (FLR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $4.1 billion, with consolidated new awards of $2.7 billion and a backlog of $31.3 billion, 75% from non-traditional oil and gas projects.

• Adjusted EBITDA for Q3 was $124 million, with adjusted EPS of $0.51; net earnings attributable to Fluor were $54 million.

• Strong Q3 operating cash flow of $330 million, up from $3 million in Q3 2023, driven by JV distributions, customer payments, and IRS refunds.

• NuScale deconsolidation in Q4 2024 will result in a $1.6 billion gain; Board increased share repurchase authorization to 30.5 million shares.

• Backlog growth driven by large life sciences project awards and robust Urban Solutions performance.

Financial highlights

• Q3 consolidated segment profit was $117 million, with a margin of 2.9%, impacted by lower Energy Solutions results.

• General and administrative expenses dropped to $37 million from $56 million a year ago due to reduced incentive compensation.

• Cash and marketable securities at quarter-end were $2.9 billion (excluding NuScale).

• Adjusted EBITDA margin for Q3 was 3.0%.

• Net earnings for Q3 were $54 million, down from $206 million in Q3 2023.

Outlook and guidance

• 2024 adjusted EPS guidance narrowed to $2.55–$2.75; adjusted EBITDA guidance lowered to $525–$575 million.

• Full-year operating cash flow guidance raised to ~$700 million, up from $212 million in 2023.

• Revenue growth for 2024 expected at ~10%, with G&A expenses of $200 million and an effective tax rate of 35–40%.

• Segment margin guidance: ~4% for Energy Solutions and Urban Solutions, 6% for Mission Solutions.

• 2025 guidance and long-term value creation plans to be provided in February.