In This Article:
-
Revenue: $16.3 billion for the year, a 5.4% increase from 2023.
-
Net Income: $2.1 billion or $12.30 per diluted share.
-
New Awards: Totaled $15.1 billion for 2024.
-
Book to Burn Ratio: Just under 1 for new awards; net gross margin book to burn ratio at 107%.
-
Segment Profit: $635 million for the year.
-
Adjusted EBITDA: $530 million for 2024.
-
Cash and Cash Equivalents: $3 billion, a 14% increase from 2023.
-
Operating Cash Flow: $828 million for the year.
-
Urban Solutions Profit: $81 million for the quarter.
-
Energy Solutions Profit: $63 million for the fourth quarter.
-
Mission Solutions Profit: $45 million in the fourth quarter.
-
Ending Backlog: $17.7 billion for Urban Solutions; $7.6 billion for Energy Solutions; $2.7 billion for Mission Solutions.
-
Share Repurchase: $125 million or 2.3 million shares purchased in the fourth quarter.
-
2025 Guidance: EBITDA of $575 to $675 million; Operating cash flow of $450 to $500 million; EPS of $2.25 to $2.75 per diluted share.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Fluor Corp (NYSE:FLR) achieved a 5.4% increase in revenue for 2024, reaching $16.3 billion.
-
The company recorded new awards totaling $15.1 billion, with a healthy net gross margin book to burn ratio of 107%.
-
Fluor Corp (NYSE:FLR) has a strong cash flow and robust capital structure, supporting a backlog that is approximately 80% reimbursable.
-
The company is well-positioned in the data center market, having signed a master agreement with a leading technology provider.
-
Fluor Corp (NYSE:FLR) reported significant progress on major projects, including the LNG Canada project, which is over 95% complete.
Negative Points
-
Urban Solutions segment profit decreased to $81 million from $147 million a year ago.
-
Energy Solutions' pending backlog decreased to $7.6 billion from $9.7 billion a year ago.
-
The company recognized a $116 million provision related to a jury verdict against a Fluor joint venture on an infrastructure project.
-
Fluor Corp (NYSE:FLR) anticipates up to $200 million in funding required for late-stage legacy projects in 2025.
-
The timeline for monetization of NuScale has been slower than desired, requiring patience in the nuclear space.
Q & A Highlights
Q: Can you provide more details on the book-to-bill ratio and the outlook for Urban Solutions in 2025? A: David Constable, CEO, explained that the book-to-bill ratio is expected to be significantly above 1 in 2025. Urban Solutions has seen substantial growth, with a backlog of $17.7 billion. Jim Brewer, COO, added that there are strong opportunities in advanced technologies, semiconductors, data centers, and mining, which will drive growth in Urban Solutions.