FLR - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Fluor's Fourth Quarter and Year-end 2020 Earnings Conference Call. Today's conference is being recorded. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management’s presentation. A replay of today's conference call will be available at approximately 10:30 a.m. on at accessible today, Time Fluor's investor.fluor.com. website Eastern available days. web replay XX be will The for replay also Fluor's telephone registration A will link, through seven also a days accessible on website investor.fluor.com. be at available for time, call to the this to Investor Director over for would Jason I At like remarks, turn of Landkamer, Relations. opening Mr. ahead, go Please Landkamer.

Jason Landkamer

Chief released Good you. With to Officer; today which earnings David are welcome making Joe us while we this Chief and fourth morning, Executive prepared We our will we XXXX slide are Thank Fluor's and Financial Brennan, earlier announcement streaming remarks. reference Fluor's website, Constable, our presentation morning, call. quarter Officer. Fluor's and conference on a

is I'd you to refer X. started, harbor to getting note like on statements, summarized Slide safe Before which our regarding forward-looking

which differ we'll current is an presentation, be our existing and results statements, actual materially. could that forward-looking making and information. reflect trends today's experience inherent There of analysis During risk

which discussion potentially You a today. can in to earlier such could contribute find of Form filed differences, risk our XX-K our factors,

section investor.fluor.com. we the the Constable, may to measures. our over of in financial Reconciliations discuss and in Chief Investor non-GAAP Fluor's at turn Officer. to earnings certain amounts posted the Relations call, Executive are website release GAAP these our I'll measures comparable now this reflected David of call During David?

David Constable

Thank morning, you, good and Jason, everyone.

was The and priority My structure. official strategy back months organizational immediate have reset our X extremely get first turn to slide busy. started. corresponding X, Let's at Fluor and the been longer-term to communicate

know, January. team the As in we Fluor management announced you new

identified changes have align earning Fluor suitable technical in expertise near The shareholders. where markets our return priorities Our right for the our for the to the clients, the our collective for focus end on around strategic implemented that have is add term. been business a value while we recent

review high-performance one, two, and culture pursue on terms; three, to: across contracts strategic a reminder, discuss drive are On foster balanced shaping and four, our financial today's XXXX and is Number a reinforce As fair we results with our views up. discipline. growth our will with XXXX priorities purpose; the portfolio; how call,

For month Day haven't we and chance yet. focus you in key had Fluor's last to Strategy off from to tune Strategy view longer-term our if view one a a areas, kicked of Day of opportunities it the by please between of strategic range more as growth exciting deliver areas that and will Fluor's are per $X.XX the And history. XXXX. in and long outlined confident directional change share a plan earnings $X

to full with slide ended $XX.X a awards billion year billion. of of to XXXX. We X. Please the turn backlog and Now year new $X

uncertainty the in we starting Based for expect waited see delay awards our clients New clients. the of positive spending and saw up subside. second to reflect strategy XXXX. our with impact our pick to from to pandemic end the Across pursuit to markets, are and on pressure new they awards we and pandemic stringent on its conversations criteria also risk. They see clearly of while our half reduce plans the clients, momentum reflected capital

scopes see across our and portfolio to work prospects good populate completing continue front-end We our backlog. to are future

awards lower a XXXX headwind However, for XXXX will earnings. in create

next into challenges adaptive, energy have all I we have and successfully with about that tackled reinforce XXXX, company its the more what believe talking for at was people challenges truly I is to that want unmatched. and resilience take to seeing forward the a us organization that Before are made chapter. XXXX the Fluor motivated of the These

turn the Now, and to lines business our let's how we opportunities ahead. are with our aligning priorities

slide to Turning X.

mining. are gaining Solutions our specifically momentum Urban XXXX, As we move markets in into end

XXXX that we as metals such significant project North awards well Chile. be relationship year, front-end proud convert had Spence in copper and completion Last project we follow-on successful project and will practical the American booked ore. copper achieved we completing BHP long-term another seeing them. year, are are last expect as supporting demand studies iron a to steel We to we BHP's for high We've a in for for as Late beyond. EPCM and capital late efforts, several

advanced We encouraged also are seeing in by opportunities we are the end and markets. life sciences our technologies

Here, America we life in and in semiconductor North major prospects Europe. are pursuing opportunities data centers and sciences

This in forward life has Fluor leverage technical that rare strategy to biotech at manufacturing for sharing and chain the XXXX, and our project end specifics arising full clients executive contract been of government's details expected on addition, projects. more This is for the support U.S. signature supply the to In are including awards. opportunities and EPC earth sciences Europe, time. large includes advanced that into front-end look and well-positioned Advanced we domestic pharmaceuticals from is to materials, order focused semiconductors, technologies selected by batteries, solutions critical for QX now. a finalizing elements. confirms we Contract is just our

infrastructure enhanced infrastructure, Moving slide In of federal infrastructure a and in we select introduction to with to the we the an well positioned Furthermore, urbanization believe are system. aging due opportunities these for U.S. opportunities X. spending could bill. be

projects XXXX. will infrastructure As the in year. our zero-margin will of come legacy XX% as and revenue from are infrastructure work previously, a be worked down under reminder pressure Approximately messaged margins zero-margin as through

selective we resources. the right scope, will the be As right right the size, right projects the the future. contract must in Day, pursuit in Strategy have very location, the right team right during the we client, we and the importantly, discussed terms, and Each infrastructure pursue execution

forward. earnings predictable especially our in be top Our going apparent goal is will chase pursuits infrastructure deliver line This and not growth. to

Solutions clients slide work is the the we supporting doing X. Mission The excited our team in and about are we in management going Turning see opportunities very to forward. government

Administration keenly infrastructure to Security operations. with intelligence, Nuclear security, on the Furthermore, operations mission-critical and growing and focused nuclear DOE remediation the As projects its you support energy we markets. presence we our and know, National environmental are cyber and in continue the and

be coming baseload in the strong work X. Fluor for expect Please to a We to turn years. slide that

at our we beyond. to resume are clients in capital Energy optimistic pace we and expect in While later our spending a XXXX about until Solutions meaningful in prospects don't XXXX,

are and their conversations are productive our meet clients well-positioned to needs. growing We having energy with

Importantly Fluor its world, pivot our continues an to here, ever-changing energy of we lower are toward clients in and economy. this a space. begin to enhance living as expect market the capabilities larger themselves in fully part transition prospect carbon pipeline We a

clients market, significant with ongoing clients future Also, chemicals where in and translating investments investment specialty market pursuits. additional to related continue see of into sectors is chemicals lithium in we client which are the consumer includes signs the with demand into battery existing key Next, of the our activity expenditures. associated positive to This with translate market, anticipated chemicals. recovery capital and battery our additional see

key Now, of LNG let me update Canada. starting on give our projects, you with some a brief

Strategy the X. Moving the the Earlier Project for Park slide gave Northern a and received project its at the our Health. At Canada on and to Officer construction Day, this Phil Kitimat. update of Public Office full ramp-up progress from approval Health month, Director, LNG good plan

summer with and we construction as government We increases, our on and on site are spring focus program. our authorities and workforce health coordinating

Moving on to Purple Line the project.

second month, filed design-build Tappan York the Authority Zee expect JV between in a for quarter Purple first call, a on Maryland payment As a the payment change quarter orders. our against reached was the for the XXXX. fourth Line settlement third in the and State the the We This Transit and mentioned lawsuit of team New half Thruway the second received unapproved Authority. bridge

team, a and agreed owed compensation. we As exhausted resolution we other all options had for we are believe

time a challenged project pleased progress. situation on Please overall report our continues these updated we slide for have to complete. don't we line we will have to With The respect X. the essentially resolution of I'm keep proceeds. our to two legal actions, F.E. we clients, While as the projects, you to that to the make steady government project, are XXX systems and Radford turned Warren turn

NuScale very capitalize remain encouraged the call investors over update. clean time. financial on for we evaluating I'll returns I'm we turn we now, reduce Fluor month, in and are of investment. can And provide are last this that sizable to interest our by looking to Joe the seeing ownership energy of stated the And Finally, as our initiative. and stake currently confident new NuScale and the Joe? levels for believe over viability

Joe Brennan

topic three, XXXX. four, our Thanks, morning, main everyone. an Yes. are: our XXXX I'll The on today initiatives; and update discuss of financial our and two, performance; on our for an David, and an update outlook overview one, good financial liquidity position;

Solutions, Mission aligned see today's discontinued to that XXXX expect includes our presenting and Stork and our old Solutions. time, report presented results, new Energy with with with part operations. we You'll our other that are continuing QX be reporting financials in Urban Starting as as segments: segments business Stork our of will alignment At we Solutions results operation. also

which NuScale. will represent We will principally maintain another segment

projects Radford into Our Warren and move Mission Solutions. F.E. will back

As is Warren turned complete David BAE, at systems completion. flow XXX said, while with over its will Radford to margin all zero until essentially through

XX. slide to Turning

reported per $XXX of continuing from $X.XX a to Fluor net XXXX, million a or loss attributable For of operations Fluor diluted loss share.

recorded investments and goodwill; included for positions as sale expenses associated expected project million & following for as During growth. of million, which clients; in operations, G&A one: most Corporate impairments $XXX tangible losses $XXX to to the well XXXX year impairments current in credit Energy a held million of cost assets, the significant forecast year, million of schedule quarter million from ago. with was which $XXX other associated due $XX up for recognized related $XXX goodwill $XX COVID-XX-related assets delay significant million were we and of revisions charges, discontinued for and for Chemicals assets; for

weakening full currency driven year, fees million dollar, the with was losses, to the the professional to due U.S. of XXXX predominantly internal exchange review. $XX attributable the was by million associated $XX foreign and the For

savings date year. of XXXX. to XXXX the million primarily actions these price spread due across Our impact as share of overhead. was rate savings expense business compensation our expenses increased increased price due and our that on the run to are the It's to important higher grant to lines in compensation in annually $XXX in of the a note end stock-based of overhead We corporate from estimated of an the the achieved taken

rationalize overhead we mentioned the As an to years million to additional shape business. the as of three month, expect we achieve savings of annual new over $XXX our next last I

two During investments million. our the fourth we European of approximately cash exited and $XX PX infrastructure of quarter, received

exit also American we ventures have later that North to joint XXXX. in We expect two

Moving slide XX. to

of cash up balance XX% total. from this ending available Domestic Our represented cash was XXXX. $X.X billion,

which We year, discussed have included we approximately for being in around $X the million, divestitures the to see legacy our flow fund to year projects. expect of by past. with improvement million holding the through debt offset our cash measures cash $XXX liquidity retirement was and billion cash steady full the $XXX Operating

As earnings into saw you the matures and which successfully our and renewed an of credit previous credit and billion and in morning, of $X.XX Fluor amended entered its facility, release replaces letter loan February restated XXXX of facilities. revolving in credit lines this

organization and to for we we we year, another around Fluor closed are our Stork. shift for this Please more to business facility requirement the Day process capacity amendment America as business, assess the was fit North current continued owned our Mexico XX. as the our slide and monetizing forward. strategy, XXXX, the rental debt-to-capitalization our In support purpose. on believe to the of equipment in as our sold our reviewing capital and appropriate expanded for to call that Strategy remaining now Jamaica, operations business. our the in borrowing of need AMECO on moving gives example flexibility which options by and intent needs efforts is America have Additionally, business. good We letter size our facility AMECO the our in received business in of sold operations announced we South us investment well given are X.XXx, Earlier turn our We making a we rental this equipment we make in

primarily structure, booking which a XXXX Our work financial divestitures, revised plan in criteria and that stabilizing pipeline our strategies. to priorities capital do we and pursuit and with two further of debt fits retirement our are our main

guidance of continuing We per are currency and impact impairments. share from being Stork or diluted expenses This any operation. foreign This NuScale-related excludes for gains losses, XXXX adjusted a EPS $X.XX restructuring or introducing discontinued reflects to $X.XX also operations. our

reflected awards higher we guidance, new give XXXX in begin said, As historically do quarterly have David with of see we to EPS not up expect the G&A half QX results these pick begin in work projects. significant growth XXXX to expenses. to we Though back as

restrictions still pandemic. While keep next for will of depressed we for effects down months. backlog our is Though to the are are slowed seeing the we at clients. green the by our our most business, awards are the to existing shoots few our Furthermore, pandemic the lingering able around online back government continue impacted the and the have part, which projects rate progress grow being

to Turning XX. slide

Our work and include X.X% remaining X% year These the progresses. and in XXXX; X% of quarter; decline of assumptions A million margins as $XX We slight through Solutions, and to Solutions for to zero-margin a of approximately XX%. XXXX X.X% X.X% in to approximately revenue tax $XX the to average year full in per include: expense of G&A rate Energy flowing adjusted in to compared of Urban Solutions margins anticipate margins million business. improving X% Mission impact as the

million capital We XXXX we also AMECO our this as $XXX anticipate divest below business year. be to expenditures

guidance maintain long-term $X.XX EPS XXXX. David we of As of $X to reaffirmed, our by

necessary We strengthening the growth the expansion. opportunities end where are balance for and sheet focusing first margin our taking by we best steps our on revenue markets and see

headwinds now, Operator, I'll first we to awards project With our the several the call for questions. the a And resumption drive starting of our over turn to will next over years. question. COVID see profits for we're ready subside,

Operator

We'll [Operator with with Fisher UBS. Instructions] you. start Thank Steven out

Steven Fisher

next be plant a by or end sense we give Can other milestones sciences the which give call, life you the days, really big what us your would of or want are you the just to things mentioned of XXX-plus kind months to round for of of You QX. in the out maybe looking should next up earnings the couple that first take? achieve

David Constable

I by Yes, award we Good world-scale question. in morning, like very the are facility said. finalizing Steven. encouraged now, just Thanks the a we're for that Europe, facility, big ATLS biotech

and our does value that on conceptual it's confirm into it front-end I very working then design and -- then was up move said and front-end and services. So, work encouraging customers moving the chain EPCM into because our with

So, encouraging. very that's

we've internally. well. about as far hard putting together I think as new We've set new Now, ourselves which that you and XXX the communicated strategy, on heard really in getting structure goes, externally also days been January, working up but

So, the lined and we're market communicating the for across up everyone segments. going on working hard to strategy getting business three

you we're with with making good matching customers, area with customers our now I focus and will strategic give as So, that well. had out. I the encouragement which think be front right the are engaging up, on and engaging what sure segments We've rolling that priorities can discussions across customers

think, Fluor's focus So, on be and in real sure that purpose I cost we've achievements to plan, addition those right now is off XXX-day got mentioned, I key costs focus to a And going make will the a area part fit optimize just for forward. kicked of optimization.

some previous we simplify efficient. and life. the drive we of I've exercise. to overhead big as more organization effective in a can leading specifically out my as go after that, much on we that where basically and that's experience So, feel And be can and had the some with we're complexity

execution. So, round runs Committee to the official Mark program. of for who the -- March. if to end Steering Fields, We're XXX days, XXX the the expecting me, product -- on am will, you going cost-optimization along I out that's the days is Joe that sponsor with executive at

those say that I'd right on, So, areas are we're the now focused critical Steven.

Steven Fisher

you mentioned bookings year. you about some some lead just have completing going of the the for that the then, to half And in growth? one? been incoming the of helpful. for planned strong the very be That's pace second talk backlog you scopes to work you front-end are those further will the do half the that, over second have year which and book-to-bill of think Can up enough scopes And a have set of to awards front-end

David Constable

again. Thanks

really here everything the just customers, at Day Strategy we've obviously prospects, But COVID in the in I've the If and on prepared estimates X.X% second XXXX. year, as bounce, and hangover strong. as you X growth -- said we this high you we the the -- our markets certainly, remarks, as our if and second the the half. but into see on the U.S. alone the based as company in half GDP seen talking look clients, got and second to as the X.X% in looks in will, a also at here comments far half

So, we're it's -- encouraged somewhat uncertain. by that. again, timing But the is

to XXXX. As the you've right, heard have projects in moved prospects in our the have -- our obviously, past,

in pickup we're half. second expecting so, a And the

we're variety on In we work also getting is projects. the with Specifically, working half. in fruition. DOE close Mission award the upstream, a mentioned. with upstream facility international potential close Even in Obviously, first the see that's already half, first to project biotech I've to Solutions, of the

a that have all Quite when nicely second half, cuts jobs front-end in reimbursable for a about We specifically across mining is a in UK. centers, in bit actually. work work. Asia, of in of data then, right the Africa project Solutions. couple you work, data asked and Energy shaping in of in say, and chemical And more lot now, in second to second work front-end and the the UK half the project another chemicals work A mining in EPCM that leading must the that half, centers Africa U.S., work I

the the of across the board segments, across kind half. So, second but three half definitely it's all more than focused first on

Joe Brennan

overhang that pushing by may to book burn, the and outlined. ratio of we that David of closer projects release of seeing and see if markets to burn that just would capital year. when obviously add, we're close burn your flat, X.X just book be of to this upon be That that to to David, end to in 'XX. our is But, around the end we be to some meaning that will the Steve, we I expect the from question of we'll continue contingent by to of jump start COVID in, X.X modeling, kind the looking back to book would some

Operator

move Credit we'll Cook with Suisse. next, to And Jamie

Jamie Cook

in Solutions, third following which for Energy margins X%. rate call, were questions. you the conference X.X% I I I the guess ES two -- margins XXXX potentially you One, in X%, think the implied think guide had run call we implied when of could quarter to

hoping we lower my driving what about I margin to if growth? want $X earnings terms growth, months get the just versus the much of I to the cost you that sort ago? of in the potential talking coming in space? assume base should market you in of is us of us better so, color then, help So, could of could sure was understanding given on And $X.XX And you takeouts versus you particular, XXXX, accelerated I'm Like, to particular, talked a versus in a Thanks. second about sort question, back understand that in any correctly. how bridge from guys you the we're power there sell-down that trajectory couple in help make what's bridge we think how in what last NuScale off earnings month, of earnings thought

Joe Brennan

our into and impacts itself, on how the the volume And drive to really we very them the in What's projects get we is stops, jump get couple overall to Jamie, volume X having being the to overhead large machine see on and guidance largest of got some volume Solutions. meaning margins impact relative still as of Solutions On today. that are $X.XX. cranked the are margins get our the our project, to to to occurring the 'XX maintaining folks in in years, first start Energy a is, and on outward well. those the specifically we'll to an middle fabrication see jump impacting get those revenues as as thanks. and site up in Energy COVID $X driving X back to we the year. in increase that we're We I'll able relative to to starts progress, drag seeing and question

a Solutions number quarter look closer two, towards that if work ramping new 'XX, in to that expect and you And year. quarter we out X.X% booking bidding would as in into and more to new back progress a as the to for So, range start see we Energy the significantly of X% one profitable and guidelines, that be then at more to 'XX. under up lower you we linear X.X% trajectory to X.X% that of would the approach X% the really end

Jamie Cook

no Okay, and -- or third where profitability Joe. projects relative core Joe, COVID but to no be were the for degradation when understanding clear. project just of just for we the clarification ES, whatever, on starts there's there's quarter there's in in that, to

David Constable

not all. No, at

Joe Brennan

clients, significant we've those to statement they That's they from relate there we've overall we're relative -- standpoint and to small the if you have some conservative listen, an that negotiating will, had relative impacts. bid to areas some not true positions, absolute the projects. total our percent taken that are But been to margin as still with impact

time. these at Now, having the discussion we backlog some in to return, to there's pipeline more impact can middle it the profitable year, a point over to markets as some of this going on conclusion not be see capital the we start the long we into and do an adding but of items, cross get

Jamie Cook

to And are the bridge Okay. us $X today? just Thanks. where to we help the $X.XX then, versus to

David Constable

level corridor in front-end the We've that higher X% And I that still said, the $X.XX, as that -- level. on still We're modeling remarks, Jamie, with we're prepared said blended that that that Joe type more comfortable we're got in So, to of range margin group we're the $X mix drive projection. work of is to on at as will level obviously our at X%. projecting. higher-margin to

how get I that revenues growth to there, in and about think to. type of should think it get So, you that's to

Jamie Cook

or do I'm game number assuming or be -- the that? benefit takeout of just savings? it is -- bridge the the cost of incremental implied X%, but early in from mean, I there like to the But, is some should just cost too some revenue I to understand implied X%

David Constable

that not million million One the after NuScale. But, questions on any NuScale, going are Joe spoke this $XXX at was all. we're obviously. earlier of about your savings that and into working upside I modeled is, of The about that is additional I on. $XXX

obviously. that is in that So mix,

And we so, how that's yes, there. get

Operator

move with to I next, Andy And Citi. Kaplowitz

Andy Kaplowitz

David, more can sort acceptance so, strategy to talk tell in their more 'XX, of you and cost risk? to the of about you projects? energy could parameters in X% win the reduce your if this in focusing customers, with later lower that conversations reimbursable to on satisfies risk, you cost-reimbursable projects risk X% mentioned you where can you 'XX but your initial margin in new could actually work, that record this or on Are

David Constable

through the Yes. ran Andy. data projects question, closed late GMAX little I low. risk that's game, with but a I those again, earlier, won we’ve those the all very and ATLS GMAX, the Thanks reimbursable All in And centers Steven were where is the mentioned. we for prospects very books in

a that it's to share up contracts with under-run. reimbursable of where in we comfortable contract maximum, we're and type a the So,

talking to So, encouraging. very customers, it's been

a good game, in from EPC for in first and a for the relieved around the is, in that think, terms. I -- us business, feedback in they world. to the and being and standpoint. that customers they're got the it's that We've we're And fair staying all around that our -- leader also grateful the for them engineering thing got really construction agree balance stay

well discussions different have the business all going been segments. So, in those

Solutions, we're know, you on And we'll the very go appropriate. talking look criteria road in negotiate multibillion-dollar Energy then been after we've And when I've customer road shoes. driving and next got that side this safety and as and quality again, purpose a out work fence about is are the selective, on other we get their projects, those oil-gas as get very, downstream blind having very returns heart-to-heart comfortable. to we're customer, and the rate we take track example, your chase bridge selective after a and to cost infrastructure having -- discussions -- have may possible with be for for what high and project so, as multiple in, at take pursuit been and And -- stringent in know bridge you petrochemicals FIDs on you the the regional I -- scope, record fit and marketplace, the internal where and But, FID of and projects you risks you when in your schedule. project because as thing

So, side talking cycle on the and their the need customers And obviously. about to to coverage you massive driving cost appropriately project the and to to way life lowest not is amounts of the your risk attention, that put fence than really for project of do pay share gets contractor more to.

good So, we're really having discussions, Andy.

Andy Kaplowitz

David. That's helpful,

into anything small of that's on maybe a know you accelerate And one. And what at working the mentioned or I imagine all, on a give just you're But, us $XXX program. top you million you're XXXX it 'XX? so, amount? for in what doing here update if XXXX? Joe, cost-out that on your I guidance it's through now, last it's and baked can an

Joe Brennan

Thanks for question. Yes. No. the

ramp into calling taking the our six we've David phase with within pushing a of somewhat to begin advisor. that this had is Day external process been kind phase of So, suggest business out laid during corporate implementation and the a the we're findings to or working then on there's plan the XX which And to little very across last lines. I we We've we're optimization methodology, I entire that fact $XXX is we organization the we XXX to phase, the through that over were -- diagnostic will conducted to are begin is that weeks, to think, up months. able four to I we're for separate period. get outlined, an looking that of for. million to would Strategy 'XX seven-week the this in due G&A of nominally identify We three as next the What the will David diagnostic of -- interviews. we that

aligning and the and is can the to more strategy that of users optimized lower So, the what and the and comes within two with marry need aligned footprint much really model. we're the back more get up all at now how to and new Company how the company how a closely the footprint looking suppliers a

of a saying, start very 'XX, the to probably So, that's of of in we're see first but start will that see that half way in, little to going 'XX. you to in kick really long-winded

Operator

And Goldman Jerry to with Revich next, I'll move Sachs.

Jerry Revich

of a the cadence today for can the sense for talk where just bookings stands I'm of could Just the contribution over course that your business about us 'XX? revenue look what and of 'XX the if capture you give it you on the you're 'XX? energy can course And at based you product the carbon -- of wondering expect green what like looking and size it now? over rough or 'XX,

David Constable

storage. right? well-positioned Yes. Fluor, got globally That's energy energy energy energy to transition meaning We've at cleaner sustainable transition, demand are challenge. the for the making growing towards it while driving We for working and and storage, including energy variety transition. energy a time, great And global energy with dual of same capture front-end is and right topic and support technology demand, our on capture in proprietary technology. affordable, the hence right carbon that economy in projects plus the And and we're term carbon now our a wheelhouse,

hydrogen in early but fuels, renewable all as carbon it's days. It's in biofuels, now, front-end work primarily So, well. capture, not in right work early some just

that's when I out far time, so, And say. programs drop, would as in further larger will the as projecting

this projects their a the on economy. well. transition, actually will watch very also you more generally ahead. that obviously out. jobs I will, again, development, see carbon early to are early on and been if which -- EPC customers days, the at that these they have some to speaking, development the to that we're customers to mentioned early the in think and little just the the days, of some shape. a have I And well in as it's have we're door first you have play But don't decarbonize can self-financed hopefully, working to we'll looking it's these more think, we as early past, I've and to more side take as from I But of come give say in work color in we client there big on calls lower energy on as how they're things Those we've in figure. got starting efficiency you perspective. the assets, I the color And decarbonization. exact give But pivot a

Jerry Revich

segment like should a run of third we a the as it there is and the bids through get at book size Is work? it scope margins. today, you zero today smaller top do Okay. with than folks? gears replace mentioned versus focus infrastructure for line addressable look in revenue good the to or And that margin about going? new change are the being Obviously, we talk now? infrastructure you the business just for with rate you we're about at a can thinking for is market and think What you is running business you then, of How that that the a shift third

David Constable

know, this next. Yes. as and most being year infrastructure remaining you portfolio, off our We're, in the zero-margin of projects legacy that working

nicely. successful projects, we're all transfer the really have make And infrastructure. So, Towle, we're along program will, our on out is real plus, contracting regional rights, where -- sure management a on that working force -- around the including on That there progress keeping on is for you the work where if Texas in project And our also with PMC our and and the asserted law on a close Solutions, Group also in potential that's we focus, going but majeure model is here and focus focused forward want eye on President primary here COVID coming making -- change basis. to clients our Terry plus be country. and we and Urban in business in our to roads in is will states other bridges on reimbursable on

as And and also in that's traction well infrastructure. on focused big the to as expect in we're So, know, headway, see infrastructure managing the in you and certainly we something that's forward, U.S., primarily getting Canada going programs. U.S. spend making more in these

you levels on scope back So, in of that's infrastructure. after, to But, get And somewhat obviously, additional right expect this in we're -- to that type revenues, and we're see it'll new can the historical at dip strategy. where drive come with going now. based back

Joe Brennan

predictable delivery… higher significantly a With

David Constable

Yes. yes. Sorry,

Operator

with on move we’ll Eastman to Markets. And Capital Sean KeyBanc

Sean Eastman

comment just facilities really I to get try seen could like advanced that shaping and is you for is in Fluor kind some market been tell where peaks? end -- relative advanced of business? facilities the sort to we've just And in wanted there in you of the perhaps 'XX pipeline could revenue from facilities, at up if much this advanced I'd interesting. it's in I mean, on prior perspective. that's roughly us to how baked peaks prospect historical how versus

David Constable

up, question, across Thanks, the it's for and -- heating really in ATLS. right, Sean,

So, advanced data the and ATLS. and obviously, technologies, so centers to just like gain facilities, manufacturing, and sciences work packaging, semiconductor are across life food pharmaceuticals contract and beverage, not but starting manufacturing, in only advanced biotech And you advanced say, and traction.

our order as forward. So, that further our trend which the we going supporting mega And saw right? addressing focusing target good week. -- shortage, Day, you you Strategy That's market. supply news, we that saw It during again administration X.X aligns the executive is mentioned on this Industry view is chain the with

advanced capacity So, the Urban centers, large Solutions that connects batteries to data with is electric physical along processing, technology for that well-positioned Fluor's and group and in is storage semiconductors, world. meet digital data for trend vehicles. -- demand And

early getting wheelhouse. So, and the supply into but that experience in there. It's U.S., capability chain we've in our U.S. right days localized plays here got the the

I'd our right But, and in projections that ATLS. now, growth. based built we're could in seeing got on the and that's that so, capabilities, plan. focus manufacturing say, we we've would the And I strategic -- we're into growth at attention upside we see say this where that expect And localize is to

Sean Eastman

a there you the that idea Could more And are at for weighted helpful really us weighted? I cadence of time fiscal 'XX model. within give rough the a a the $X.XX. we $X.XX great. $X 'XX lot to $X.XX. helpful. fiscal now to would more frame, sort of growth guidance, target? is front-end that growth be where of Okay, just XXXX that target of looking baked into A Obviously, That's on back-end versus mean, rough idea

David Constable

level the XXXX earnings you done for 'XX, as at 'XX. we've first to because half, -- we and really COVID in well. if a obviously, strategic of going much plan, impact talked in modeling we are about and as across the The a obviously, we're the Yes. flatness, the revenue-wise up will, here But then, pick by we're start XXXX. And see to -- higher things hangover

that there's cooking on by of change got I’d So, the accounting kind up the the way say, couple it we -- now really point. going you're progress. see projects, at 'XX, see along. And project you've That's in to to you last of years, coming start take things total with to it take how up

that obviously, pushes period. second to planning strategic also the the the half So, earnings of

Joe Brennan

basis. be that expect we're Yes. I cyclicality more I that on we would that where would we the at growth we diversification forward. are in moving our think on a investing strategy linear based year-to-year with booking see segments this There's just our a as add, to we across going looking to David, it from start not have

be a I cyclicality. with So, linear on basis to more expect less would that and probably

Operator

with on Partners. Dudas Michael Research move we'll And to Vertical

Michael Dudas

into would target to second the exceed revised lead one the of is get best Of depressed into further you have I I the from of as first the growth think -- and of could which times want think David, should -- half, do of the you flat your the away for Urban your three book-to-bill, you to an new XXXX, you have end business year are much and even business, which above lines and as ones outlook the half you the ones X a move three opportunity rank that or certainly surprise. X how in to there know time as organization, momentum XXXX? going don't

David Constable

Yes. choice. it, That's Urban probably probably to I where I lean would I'd Mike. That's on put Solutions. have guess, first the

they great However, hit. in some we've some Mission Solutions hopefully, got opportunities massive they -- if and opportunities

energy Solutions, So, by and followed then is Energy Urban doing -- Solutions of I lot in then transition. think, that's work Solutions Solutions probably again Mission Mission which sorry, a and front-end

so, probably will chemicals projects XXXX. third And Energy that also as that up But, here in Solutions we've follow will help in place. got

the projects So, of not more that year lot you is sizes, relative look and are assuming, in range. -- projects I to in to will. massive at size but smaller but medium-sized multibillion-dollar hopefully of not multi-hundred-million-dollar in These Energy -- if how think, projects, Solutions the more so this it. all going projects, that's smaller bring a can be a the they size

Michael Dudas

point up. follow good a That's to

-- medium or make your how you that announcements about think kind the achieve structure, see new the projects, the need forward? Fluor, new still in and going And project the of some business to on projects, it small the your or these of -- are medium the should book your targets? are size you how business book-to-burn -- we basis, work some focused work progress bit they multibillion-dollar to of that orders you So, cost much length side, a on we depend to is do as of to is work? model, your little more allow new model How

David Constable

return work out. oil demand oil we complex, definitely would forward. near and will we're in seeing, a footprint I coming is, on, organized future, a see say again, that we gas are Mike. to and if going the Thanks, upstream here reimbursable traditional going Yes. and be execute in still Hopefully, price as forecasts global projects to the downstream oil very, and based multibillion-dollar, large, that currently have the very are to

for to that. want ready we be So,

be are those large able clients Our depending projects. continue do to to on our to customers -- us

will. has will you must be manageable projects the think on with forward However, to I the going are follow. clients more the phased lot expansions say at that track us not that I in mega record, generally And their speaking, if same a work stellar, time, advising programs that been of

time, large can you expect time. to here, the midsized based But, to So, time at see I to what be hearing. on projects there'll mega think, from projects fruition the I'm come same

Joe Brennan

see in we go and over we projects quote Fluor XX to basis, that to if I on away have we're go shifted project me or XX% going but think, but optimization total execute in not go back more that to smaller just to and market. as always it more purpose, for We time. so, make today's fit are on has verify, focus new definition what a get talking been revenue, solution you perspective, don't my of just which said, may revenue a And that. look has always about Fluor's I'm I'd time, a on years Mike, medium-sized mid and last from David, through the in the the from -- notwithstanding parlance would we ourselves three this staple And profitability back project, in period. -- and got had we've numbers. over these But, that range. a four have and to that of integrated over size competitive it's you that

David Constable

million, through $XXX billion. more million, a million, $X.X $XXX million, with million, little $XXX that. can earlier, I on in $XXX firm just, total in range start arena the Mike, Those up. the is that TIC -- give just Well, color start revenue, in There's again, to a And back expect those. a million. cost, largest demand went $XXX takes for you I give see that XXXX. The the to mega on oil as to think, I installed some prospects Steven the that see CapEx fully off gas. the you'll and upstream, the I forecast of projects They're flowing coming traditional as And downstream price oil $XXX

Michael Dudas

on the little basis, percentage or no guide sense XXXX bit what the and profit quick been discontinued would been how maybe would basis of Stork, have have earnings, the just [indiscernible]? And you give revenue of In Stork, NuScale what [indiscernible]? include contributions zero-margin XXXX And work through it Joe. seeing relative follow-up the we've a P&L to going of in a Could final what so been already XXXX of is a doesn't for NuScale. the for much through

Joe Brennan

hearing. little A trouble

very last minimal. first -- the very Stork didn't have been the the minimal, I are question take me Let would contributions hear because

million dollar Let's say, digit single returns.

we're $X.X that I through million the 'XX in laid zero-margin are think, that and books. 'XX. of your that $XXX that push through flowing in projects of revenue last question Of was the nominally $XXX of going we've million billion terms about in out, to the another

we the those 'XX, have projects. will of of by for about XX% So, zero-margin XX% end accounted to

Michael Dudas

And was of other 'XX? been NuScale in question, the like part what have would

Joe Brennan

the -- NuScale the is rate expenses. run XX, $XX about same in nominally, the 'XX, somewhere million in in

side? You're the P&L talking about

Michael Dudas

in NuScale -- sorry, Right. the include I'm 'XX? that Is guidance does

Joe Brennan

It Sorry. have does not. I a little…

Michael Dudas

appreciate got guys. I I that. that. Yes, perfect. Thanks, you. Thank

David Constable

Thanks, Mike.

Operator

I At additional question-and-answer over will that for session. today's any would closing or like conclude to this the David Constable to time, And turn call back remarks.

David Constable

on you, all thanks of to operator, the industry. our XXXX year a Thank Company you participating and for the call for and Again, today. was challenging

growth plan portfolio, for value, on to profitable implement will and remain focused at projects delivering time, we shareholder increasing while strategic As we the our start and world-class clients. drive reliable the our across same

your thank Corporation, and you today. time appreciate your we in interest Fluor for So,

Operator

And participation. thank you conclude We call. that will your for today's

Fluor (FLR) 26 Feb 212020 Q4 Earnings call transcript