Fluor Corporation FLR shares dipped 8.4% during yesterday’s trading session, post the earnings release. Investors’ sentiments got hurt after it reported lower-than-expected results for fourth-quarter 2024.
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Earnings missed the Zacks Consensus Estimate and declined from the prior year, due to a sharp drop in Urban Solutions' margin despite higher revenues. Revenues also missed the consensus mark but increased from the previous year. The top line of the company grew year over year on the back of solid contributions from the Urban Solutions and Energy Solutions business segments.
Fluor’s 2024 performance highlights the impact of its four-year strategy focused on expanding a reimbursable backlog, strengthening capital structure and improving project execution. The company also initiated a capital allocation program, which is expected to support long-term value creation for clients, employees and shareholders.
Inside the Q4 Results of FLR
Fluor reported adjusted earnings per share (EPS) of 48 cents, which missed the Zacks Consensus Estimate of 78 cents by 38.5%. The reported figure decreased 29.4% from 68 cents per share a year ago.
Quarterly revenues of $4.26 billion missed the consensus mark of $4.72 billion by 9.8%. Nonetheless, the figure grew 11.5% from the year-ago quarter’s level of $3.82 billion.
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation Price, Consensus and EPS Surprise
The company’s segment profit was $206 million, up from $85 million a year ago. The segment margin was 4.8%, up from 2.2% in the year-ago period. Adjusted EBITDA in the reported period was $154 million, up from $145 million in the prior-year period.
Fluor's total new awards in the quarter were $2.31 billion compared with $7.61 billion in the year-ago period. The consolidated backlog at the fourth-quarter end was $28.48 billion, down from $29.44 billion a year ago.
FLR’s Segmental Discussion
The Energy Solutions segment’s revenues increased 6.9% year over year to $1.52 billion in the quarter. The segment’s margin was 4.1% in the quarter, significantly up from 1.8% a year ago.
New awards were $406 million, significantly down from $2.15 billion a year ago. The backlog at the quarter-end was $7.61 billion, down from $9.72 billion a year ago.
Revenues in the Urban Solutions segment totaled $2 billion, up 40.8% on a year-over-year basis. However, the segment’s margin was 4.1% in the quarter, significantly down from 10.4% a year ago.
New awards were $1.38 billion in the quarter, down from $5.05 billion a year ago. The backlog at the quarter-end was $17.75 billion, up from $14.85 billion a year ago.
Revenues in the Mission Solutions segment totaled $654 million, up 1.2% from the year-ago level of $646 million. Nonetheless, the segment’s margin improved to 6.9% from the previous year’s 4.8%.
It booked new awards worth $429 million, significantly up from $40 million a year ago. The backlog at the quarter-end was $2.73 billion, down from $3.95 billion a year ago.
The Other segment, which comprises Stork and Fluor’s ownership in NuScale, generated revenues of $87 million in the quarter, significantly down from $332 million in the year-ago period. The segment generated a profit of $17 million against a $119 million loss a year ago.
It booked new awards worth $97 million, significantly down from the year-ago level of $363 million. The backlog at the quarter-end was $403 million, down from $926 million a year ago.
FLR’s 2024 at a Glance
In the full year, Fluor reported revenues of $16.32 billion, up 5.4% from $15.47 billion reported in 2023. The adjusted earnings during the year were $2.32 per share, down from $2.73 reported in 2023.
Adjusted EBITDA was also down 13.5% year over year to $530 million from $613 million.
Financial Details of FLR
As of Dec. 31, 2024, FLR had cash and cash equivalents of $2.83 billion, up from $2.52 billion at the end of 2023.
Cash provided by operating activities was $828 million in 2024 compared with $212 million in the year-ago period.
FLR’s 2025 Guidance
For 2025, Fluor expects adjusted EPS in the range of $2.25-$2.75. The full-year revenues are expected to grow approximately 15% year over year.
It expects adjusted EBITDA to be between $575 million and $675 million. For the year, G&A expenses are expected to be about $180 million.
For 2025, Fluor expects the margin percentage for its segments including Energy Solutions, Urban Solutions and Mission Solutions to be within 3.5-4.5%, 4-5% and 5-6%, respectively.
FLR’s Zacks Rank & Recent Construction Releases
Fluor currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Leggett & Platt, Incorporated LEG reported fourth-quarter 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, both metrics declined.
The quarterly results indicated weak demand in the company’s residential end markets, due to a challenging macro environment and soft consumer spending. Softening in Automotive and Hydraulic Cylinders further impacted its performance. Although LEG carried out its restructuring and operating efficiency improvement initiatives, the headwinds mentioned above overshadowed the prospects to a great extent.
Martin Marietta Materials, Inc. MLM reported mixed results for fourth-quarter 2024, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both top and bottom lines increased on a year-over-year basis.
Despite challenges in 2024, such as bad weather, reduced construction demand and tighter monetary policies, the company still achieved earnings growth and recorded profits in the fourth quarter. This was driven by $6 billion in strategic acquisitions and divestitures, reshaping the portfolio to focus more on aggregates, improving margins and maintaining a strong balance sheet. Looking ahead, MLM is confident that strong infrastructure and data center demand will help meet its 2025 adjusted EBITDA target of $2.25 billion.
Masco Corporation’s MAS fourth-quarter 2024 earnings topped the Zacks Consensus Estimate and grew year over year. Earnings topped expectations in six of the trailing seven quarters. On the other hand, net sales missed the consensus mark and tumbled year over year.
The quarter’s top-line results reflected lower sales volume for North America’s plumbing products, lower net selling prices of decorative architectural products and an unfavorable sales mix of plumbing products. However, the bottom line was favored by lower selling, general and administrative expenses, favorable net selling prices and strategic cost savings initiatives. Moving into 2025, the company aims to continue maintaining shareholder value through its top-tier repair and remodel-oriented product portfolio, strong balance sheet and disciplined capital allocation.
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