FLR - Earnings call transcript Q1 2022

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Operator

Please stand by, we are about to begin. Good morning and welcome to Fluor’s First Quarter 2022 Earnings Conference Call. This call is being recorded. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management’s presentation. conference be today’s XX:XX at of a.m. replay call available will approximately A accessible at Fluor’s Time on Eastern today website investor.fluor.com. The web XX for replay will be available days. through will for accessible replay be Fluor’s a days on investor.fluor.com. telephone also registration at A website link also seven available remarks opening Jason to to introductions I Head of Investor for turn time, would conference the this and At over Landkamer, like Relations. Please go ahead.

Jason Landkamer

Officer; and today and our reference while first will quarter and With us making are Thank Financial Constable, issued XXXX Chief Brennan, Officer. you, and presentation we conference our earlier Joe Fluor’s posted Executive Jake. Fluor’s remarks. Chief earnings on prepared welcome to a slide which Good this Chairman David morning have Fluor’s We website, call. morning release

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

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

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

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

David Constable

you morning Thank good Jason, for us thank Well, and everyone. today. joining you,

to a better on Before purpose building reinforce community Please that want start turn relations our we to by sharing get started our Slide an update operational on I results, of X. world. activities

Cares careers helped legacy program. or and XXXX, Fluor more science, giving through than students. Fluor technology, we education first in volunteering, part and STEM the awareness Also, our is XX,XXX As part of we raise about four based priority, our which of STEM importance accomplished months our of and to the engineering, math, of inspire of giving

efforts appropriate and We humanitarian to that for have say Russia. Our $X.X and program in a QX improvement Starting Ukraine, charitable causes projects billion, our We’ve Europe. crisis new More to drive down upswing Ukraine the share the determine operations world, pursue and decision around clients specifically, include and around we quarter with are Russia, connects by were millions forward in address in like pleased and I’d clients flood with we voices Along ongoing significant will with wind I’m fully momentum many the that awards path optimism for not this to from current South the world. of expectations. evaluate who in cease of charitable with affected been balance significant also Ukraine QX, the a deep support support. over new crisis. all employees to Eastern awards in and line resolution the our and XXXX. Recent new relief to conflict. those to in work seeing swift contributions African the of made the working all people we empathy the concern to to are respect in

the impact that Now is first transaction. an of the the please the closing complete quarter. timing for Results a turn X. segment Solutions with on of reflect quarter manufacturing project $XX profit Slide PX associated advanced to reported Urban the for cost million now of and growth

America. to next projects awards proceed is over are positive South the for some in this ahead, limited the few sizable new the Mining they Looking on working outlook and two Metals, cusp on is In quarters. for of Fluor increasingly currently segment as notices

the new you If work. over other in these billion $X in near-term, include prospects represent opportunities

first the Group a steel we actively our the for an efforts. see quarter, we program to program decarbonization and to and company agreement continue Metals Europe on management and Mining EPC industry-leading energy an partner addition, reached in In In Canada. support be transition

a We refinery also in see and earth mine United the over $X States. billion in lithium for a potential Australia awards in rare

infrastructure X. Slide to Moving on

on project, continue construction Mover six and current the the will bridge of over We of finished, projects Howe now our the bridge XX% recently And peers begun. XX% structures and project pylon mark. were in two The is pedestrian executing the were structure feet. mile LAX On head has legs Automated out successfully our been project X.XX the elevated When top quarter, at the our complete. the the completed during focus The slate portfolio. has Gordie guide road completed. XXX passed completion way People placed fourth and Tower of train

milestone complete of Boston. the project on is QX. Union Green handover branch on Extension infrastructure was the of to be by Another Line Construction the Square Line the Green in anticipated the end in project

are we road infrastructure and opportunities. to support Please future X. optimistic ahead, that focused regional funding federal Slide and Looking remain will bridge work turn on

Our to and Advanced Life this business is Technologies year. off good start also Sciences a

to capacity the quarter, continued of data expansion be interest well swell in centers around as discussed of a onshoring world. as there continues ground we the As last semiconductor manufacturing

a projects We dollar opportunities facilities. are new build currently are actively handful Intel engaged of executing near-term multiple in and to regarding for discussions multibillion

to biologics awarded new Life several In large-scale center we Fujifilm. quarter. were that for projects a year, the contract last Asia manufacturing a awarded Sciences, facility in Additionally, first in for Europe we mobilized us data have in on were

date a of at our this efforts project, to looking additional As this are with we expansion opportunities result on client.

pharmaceutical in looking United play We out is States. additional the a are that company facilities repeat these to build also seeing engagements with

for favorable Corps Mission profit was in of quarter. result reported XXXX with the first than turn higher the Puerto U.S. project a Solutions anticipated segment XX. This of Slide Rico. Army Engineers driven to of $XX primarily by me Now million resolution

extension on received is contract Solutions the The Starting award. for increasingly a year for extension two information the our we classified from supports wait assess the month from community. quarter, outlook with project of NNSA as project and the we robust. Ohio that the During Portsmouth, Mission a a Pantex/YXX, Department they further in six intelligence Energy

billion contract was favorable awarded reflected XXXX, in this year. its $XX base Presuming billion be we anticipate our NNSA not Fluor this a initial this five Although assessment. quarter year backlog fourth on completes the of later in project until period the will outcome, $XX the transitioning to

direction In new have see projects addition Solutions that with to we impact Mission significant very remain renewals, year. confident of of pleased the work. they of Pantex/YXX, strong recompete positive future will a the this and and success slate I’m

in activities please Segment in Solutions, XX. America to Moving of reflected on $XX a reduction costs. North and Slide projects to profit million overhead Energy increased turn execution

mid-scale a notice the chemical reimbursable NFE for to the facility awards included U.S. contract LNG for the allocation market construction Coast. Gulf overall Solutions Coast. facility This changed of contract energy proceed full New U.S. modular energy construction and needs countries energy quarter offshore The the self-performed project. reimbursable security is a to with a of in has assessing in for Energy months clients support capital in FAST transition. also received recent the contract for a and Gulf

oil being showing the a months, Mexico. increased large the their prices work in of of CapEx remainder international prices. include petrochemical have long-term Significant in and clients are and our cautious for few prospects additional drastically year oil facility discipline are assessment the last refinery Although

Slide Now XX. turning to

hydroxide progress the continues ongoing lithium weighs end last feet to I in impressive to make quarter Canada our over QX. sequestration work mentioned the facilities so call, Notable and first and monohydrate and and markets. the complete. across to in Deliveries China. includes module included capture North a XX% X,XXX during is decarbonize of advance The in transition height steady energy additional quarter XX As an train make delivery a project measures in modules in in the progress Dakota, far structure and our ISBL support one. efforts to various tons. work for with project in LNG clients ongoing continues number over now on carbon their continue to This the modules XX XXX quarter plant first

coordination implementing mitigation the impacts. to measures COVID-related in project to continue impacts the across track and client and We assess with are minimize

XX, quarter. interest the excitement Moving scale. There of to over and Slide bit past NuScale has new a been quite and in

consortium future Spring came big that first with redemption Let’s in New which ticker the the XX.X%, lower both demonstrated are Fluor only and of excited NuScale which XX%. coalition only NuScale. as shareholders SMR. generation on on traded start new is on The support but of Notably, the path. NuScale, zero for under in Fluor now news at NRC green with past carbon rate, approved XX% broad now in to SPAC of of Valley investors combination this company DOE to investor the was the rate business than milestone happened Fluor energy the week. and evident interest low average an the quite quarter a follow over listed redemption were power significantly another the York certification, and we the Stock a through see partnership by the Tuesday’s commercialization. Exchange not and surge its important to owns a interest listing was deliver

had NuScale XXXX. to addition, a active In start very

notable small NuScale’s with of pipe reactor signed $XX is NuScale signed Dairyland third, fourth, support combined position on with of Innovation the is and into project. on modular forged firstly, December $XXX of for week, Cooperation hand announced to added agreement Fluor. of Power XXXX Doosan They NuScale May Japan purchased expansion final a UAMPS the million equity of $XXX commercialization announcement; a in Fluor Cooperative million; modules. in SMR NuScale’s to start manufacturing second, start investment. through the with generating NuScale in technology; manufacturing amount used Forging Power, was agreement April Japan And for last more U.S. Doosan to X, full-scale the evaluate Bank SMR half accomplishments include: as for million Some an finalized second collaboration was Wisconsin Consortium manufacturing large we’ll was will International SPAC million of $XXX And the begin Xth, Power manufacturing production. since finally, Reactor in MOU cash of The equipment LLC, to approximately NuScale our Enerbility and materials get for preferred SMRs XXXX. the the SMR an set power

a year over turn bookings. award on Before me Joe, a the ago. touch pleased quality I’m little with Day call to over let we new XXXX of guidance very announced on the Strategy the I

above plan. In last update. over confident the Joe? now to the XXXX is turn were XXX I’ll remain were guidance XXX set per to mentioned margin for call bookings our that financial I expectations. quarter, share above $X.XX And gross we points quarter, achievable. $X.XX basis As our of points this our last year the Joe

Joe Brennan

divestitures our and Today Thanks, the go structure for to XXXX David. I assumptions morning, first support outlook plans Slide results XX. good quarter, and capital financial And on key our that turn review an provide the Please everyone. will over our guidance. update

some to revenue a effect doubled quarter lighter favorable with of of additional related execution Rico was Segment For as North on a contributions the energy saw Solutions. XXXX. contract an in project Puerto profit, in Solutions first was million $XXX from anticipated of Mission when America. to Also than costs and we projects associated activity included closeout from increased adverse for solution the seasonality XXXX impact compared included and billion advanced nearly in manufacturing Urban COVID-related of certain slowdowns. the This $X.X to settlement

expectations, the earnings $X.XX. expenses. except our Results diluted were quarter for consistent share adjusted per for with tax for quarter the were broadly Our

the U.S. not tax generation. is domestic will international recognition of that as to expense start are locations tax normalize revenue This jurisdictional Our increase certain benefited. the result in and we earnings

longer to quarter, Stork meant determined the As that discontinued business first as all requirements operations. be we no remaining a the we completed classified AMECO

operations We segment. operations under back have moved these into Other our continuing

the As carrying Since to re-measured these impairment turn XX. our we results. Please of have for excluded a are on moment. of $XX this result, I sale, in and recorded still value reversed a entities adjusted update from marked previously million we will provide them have Slide the businesses expenses. an

available. domestically the $X.X ending billion for with this Our cash of quarter XX% amount was

is reminder, anticipate cash We accounts. are a by projects tied end foreign our in XXXX. up in of rest of the the reach $X.X VIEs As cash and billion to our

XXXX outflow an in operating and was projects payments. timing the reflects of large capital incentive several and $XXX on increases Our cash the million flow for quarter working of

to For flat the flow operating slightly expect year be positive. we to cash

though controlling we level As million a of a Innovation April. we that from Note NuScale NuScale their a to even we will Japan since public will XX% interest. $XXX David received owner, continue remain lower mentioned, results in now is that here consolidate have company,

our past about this retirement as We of outstanding months, the extended Over made our including been we’ve million the of quarter over current debt. capital it XXXX. plans maturity past XX two relates and months, asked expanded the $XXX the improvements our credit structure. significant to we facility over In to

part increase billion outstanding, program, to expectations the existing and relates XXXX important it’s of we shares. use as in reduce As matures management liability also $X.X preferred our to on what we of million March cash believe an conversations about to have XXXX. to that Based from currently monetizing expect businesses operations, we retire intend Right for an in level. notes. appropriate non-core convertible it liquidity outstanding We’ve including had our debt to our now to $XXX our flow

convert common to We these have shares term near this at time. to no plans

conversion we improved shares, the XXXX at share including see dividends to generation, As share common repurchases. and notes, we the build reestablishing convertible of will quality in to of look start start earnings options, and cash of all preferred retirement backlog our an

For that activities. important maintain employees, we is a our EBIT to and supports clients, our sheet it shareholders, our generating that flexible believe balance extremely strong,

we great Project F.I.T. call our progress program, to which we make Finally, cost continue optimization on

Please on track expect to million goal. in we in ongoing to turn savings We be XXXX our well are And XX. XXXX. above to $XX Slide capture strategic

As transaction to pleased back I’m efforts success fail half America in and operations into have will quarter, our the initial have for to purchase other store. exclusivity entered of soon, AMECO, relates I to accelerate that at options. some our If need to are moves divestiture closing operations. look forward, multiple transactions Last we of monetize Stork’s South and Mozambique. continuing we report the to the interest, If agreement of European sufficient discussed XXXX. generate we in now bidder to we our it preferred an the we the anticipate

Stork’s, regions. for We continue opportunities to other review

pending we last sale quarter, Finally, mentioned a investment PX of the in Canada.

and approximately in to on have move terms will recognize quarter. of the We cash proceeds Please XX. agreement reached second $XX million Slide

$X.XX conversion We share year, pipeline. on to for is the our in per existing the projects earnings prospect are adjusted and of reaffirming $X.XX our on between projects strong full this target execution guidance dependent hitting timely

approximately the generated. XXXX may revenue XX%, million for increase a assumptions Our include in approximately an rate XX%. which expenses This G&A vary of $XX depending in approximately adjusted quarter per and of on country tax revenue is of

and approximately now our in Solutions X% maintaining also are We guidance Mission Solutions. Solutions, X.X% full Energy for XXXX year previous to up are we segment segment in margins in level our first expect X.X% Urban question. ready X% and Operator, approximately

Operator

Instructions] begin [Operator with will Research. We with Dudas Vertical Michael

Michael Dudas

gentlemen. morning, Good

David Constable

Good morning, Michael.

Joe Brennan

Michael. morning, Good

Michael Dudas

mentioned plan a the [indiscernible]? said from relative the response, First little Maybe you XXX plan quarters, are points out margins more through I your think, look And and that. how several as bit you the to the elaborate XXXX David, expectations. booking basis in you on to pipeline next booking XXXX about over those you can margins,

David Constable

very do beating basis were year we first with the your to and Yes, up beat nice our it’s year. morning. it guidance this pleased and going quarter in sets the XXX margin plan, to for it for certainly Good well the by Mike. for Thanks if points, you’re

I think that year burning that their the strong takeaway that’s margins extremely next. it’ll there were and be is and this

those convert good strong margins So business realize we to through continue see the execution. deal into segments, and us allowing those with margins really as-sold shaping to actual

and there broad It’s is being I is and the and I’ve through that’s through seen up strongest think sets here plan. It The also traditional energy awards and numbers When new about, term. Europe on near we’ve chemicals and landscape security our energy semiconductor point coming XXXX strong. quite are and in based big energy, new seeing work billion look traction us, right on So general, the their of traditional in our gas, strong in in in in energy good in XXXX. challenges CapEx very bit. about But and Mike. the pipeline its there. government in obviously to the customers the a front business think lot Energy coming for of oil that data very you oil obviously over facilities I a at in in And $X and increase CapEx the has are the up since if transition about mining, Mission going you said, gas and ATLS, talked Solutions numbers as centers continuing DOE. with Solutions

So now right lines. margins I’m business our very on the that at we’re looking pipeline pleased and across

Michael Dudas

much construction customers is the of type especially follow-up are advanced your frame in David. regarding could this semiconductor several Thank in And going next quarters the win or given where bit what, manufacturing and a maybe What how potential over And rate on? could the side, on you, there? opportunities? interest My investments be all competition and businesses, asking you about more your that’s a area is from? the opportunities

David Constable

Mike, Yes, on but business hear up. it’s side to think the semiconductor for I construction the competition a asking you’re of and the little the is state how about and also, hard Fluor, shaping but you,

Michael Dudas

Yes. Thank you.

David Constable

Yes thanks.

So four sure of we’re that working very And couple with right. the in a U.S. know manufacturers position years we with manufacturers are on times, exciting you of we’ve who the now. in think yes, one the key And key been strong are. they it’s coming I’m good over for a

environment, got working of more competition So just I We’ve history business These are there. now. been and good the have the the offsite the in they discussions considering modular up with $XX bring good locations we’ve understand that are on the Intel’s a manufacturing table, union we the experience will be on Samsung’s going multi-billion facilities good on the playbook leg the recently self-performing up We are the standpoint, some know to capability got from massive also that dollars model. one you got think as implementing. world billion chair site, U.S. right that delivery getting to into and a great of on the and We’ve but another. the We’ve in a environment,

to think mega-project are of experience these experience from We’ve room bringing our So types of years clean I applicable standpoint, to directly room XX bear that that our we’re clean facilities. over experience. got

side will, feel certainty, leg looking really offering, on And certainty And good we we the with opportunity, a if design through the on the even competition. only do that our as cost installation speed. the but Not our a tool they schedule so for can and cost you further. are bring to that we party construction also and have expertise into with modeling well improve up

lots So front. semiconductor things on of good happening the

Michael Dudas

you, David. Thank

David Constable

Thanks, Michael.

Operator

Baird. now with we’ll Wittmann And from hear Andy

Andy Wittmann

Hey a Good just I that my relevant. couple with pick think for great. morning, I today, Thanks several try Maybe starting I’ll questions saw guys. are NuScale to taking questions. but have here most the XX% on I showing equity ownership NuScale only are systems the wrong. and that’s filings all exactly shares, still aren’t and so they’re kind helpful. just clear the of SPAC guess,

shares total that can floor. value we percent many there so that per – for to that percentage how assign are of you XX So own proper

David Constable

have you. turn one that Joe, to I’ll to

Joe Brennan

so – we’re nominally we’re XXX No, Yes. million shares.

We’re XX% XXX is which of the shares, outstanding. million

XXX shares a XX%. would million do So about math XXX little million, there represent

Andy Wittmann

Okay.

SPAC there if million any just were XXX included. that count the to that of additive was total NuScale? if share is I the should didn’t be shares the that that So know pipe shares or was

Joe Brennan

that’s the power. overall NuScale of through going the to part count it’s AK relative Well, share out

Andy Wittmann

Canada you kind Okay. One be facets in with to as two that’s really the And today, give location and discussions provide and more may Phase Obviously any guess, when us in to just on and as a from on for update be prevent might that’s of anything broadly this thoughts having and for as the maybe of that there’s X. new or it out I just is Could interest that? customer to that X shutdowns then here. being here had Phase fab as bidding an ask And yard the has having. the you coming LNG world relief any on and if order Phase energy, the not your interested China may well your then that it wanted impact in I of if I’m wanted just been the comes. Thanks. curious just X given potential I for that headlines to lot project you see a to production would

David Constable

I is the like project Andy. as coming in remarks, Thanks, along Canada, Yes, said prepared nicely. the LNG

XX%, think XXX progress COOEC at good XX%, it’s if And over get I right heavy key the before we XX% I said think seeing CFHI, yards, China. various modules to modules industries the mentioned I’ve the complete at of yards yards. to need out now. from two coming fab and site on I fab there’s COOEC Fluor

quarter XX it in delivered add up and that modules of modules, we’ve should you full been and XXXX, so of the the quarter over to with brought modules all date over fourth of and If take first have up quarter second XX at we’ve us QX. in [indiscernible] end got to up QX, XXX the

that’s monitor a indication course, I that are minimum. think to a kept to COVID And good gives you to move. continue impacts and ensure that are sites So we things the of starting

Phase obviously have fab in situation that had that world, at as to getting continue challenges the our to expected On far I is expats over the obviously, that happening X, to physical but would be yards LNGC some progress. progress of say country as looking X. lockdown the and Trains with X everything that’s which venture good there, see install customer be to would with into the some We

mentioned think call I they’ve as actually their earnings in that well.

of forward X. a and very good that’s moving So chance X on

I be continuing. that’s of think interested very course, perspective, their what heard. from I’ve in we’d again, And

on knowledge our based there the and effectiveness up to I customer will X with capabilities and interactions and our and of a the and community local certainty think experience relationship. we bring lot efficiency Train cost schedule and X

come on well. X more support as stand but and ready to yes, X we to on So that, Thanks, Andy. Train

Operator

Now we’ll move to a with Suisse. question Cook from Credit Jamie

Jamie Cook

it’s guidance. do your release, you’re on But in pretty the new quarter. nice two One, it I in and morning dependent FYXXXX I say sounds you good confident like guess awards. Hi, think questions.

potential frame that players me. could of your on be So given you. just cycle of customers. positioned you’re if left another the just how interested Russia-Ukraine you then LNG David, support I’d be given energy about you’d Thank view and of to for And your one few talks sort sort

David Constable

Jamie. Good Thanks morning.

go, we about new As the we at last trough an on coming. where talked at Jamie, awards in backlog as quarter, as far awards as the far point were new and inflection

I in QX clearly Joe from in I the are QX think that’s the what and case forecast. and sales seeing QX,

So, fairly broad again, it’s based.

eco in As I awards said, we that really is job mining South We’ve I release that had into this on Asia broad are as really have good there well margins on for And kicking in job, big backlog awards, DoE prospects of few confidence QX and burn in chemicals, the that obviously over the another again Defense. through big be up what that’s more nice LNG and So copper Fluor. in aluminum year? to focusing – some healthy with really QX Community coupling well for the addition America facilities. to in to got QX, work above the we plan. that’s Mining, base here gives Department the with in need mid-scale the then big Intelligence

broad transition and again, in and into chemicals and QX fuels. based. So renewable also continues It QX energy

work semiconductor in the coupled half expect to with So and as see we that second work the obviously well. pharma all is that

Joe? see exciting it very to So in from my from XXXX. is prospect I like the think pipeline again, standpoint, –

Joe Brennan

decision. scopes there a just extended David, we’ve FID been number of FID not work add Jamie these prospects been going and their that working that working We’ve that projects pursuing are that on LTPs was to investment. under been thanks. supporting we’ve initial that are for and waiting I

in when that into we EPCM of So that’s we projects other the pursuing have to our convert a things. that going think and a a stage in robust lot from into detailed to of been design release relative full what in quite nature supporting terms we’re it’s

into will we higher when I believe it flip gives us to So think of a these level backlog. as much confidence,

David Constable

Yes.

On all the gas able stayed picking Jamie, there that LNG, energy they and up forward plans traditional you may add higher if the it’s for CapEx The the And CapEx be have this year, quarter with then the as very is and majors, and a that first of obviously for into will something, billion up north also start that we really heard energy just of jumps of in client stuck energy with CapEx gas, very petrochemicals front, calls have in pleased pace, little XXXX. and on our many Chevron, going quite well oil BP $XXX our history here and just recently. Shell. clients you to Exxon traditional oil up the

traditional to middle a lots the and are player that say preeminent very oil grace over, we but happy gas the in again, So right in and industry.

Jamie Cook

very you Thank Okay. much.

David Constable

Thanks, Jamie.

Operator

Now KeyBanc we’ll hear from Sean Eastman with Capital Markets.

Sean Eastman

Hi team. Thanks taking my questions.

the on following-up on the line activity. award Jamie’s there new sight question on Just of

like sounds above Are see communicating that the that near-term. backlog book to that it’ll stuff XQ. we’re starting going of bunch very one-time a in you listed translate to flip You guys bill

over cadence new quarters. to of that award of wanted expecting sort clarify the the Just next we’re couple translation

David Constable

point, but on I’ll I it. let color Yes, for question. a said, is And turning some give Joe really the it Thanks like

Joe Brennan

you the Thank question. Yes. for

burn, is be to book X.X. Pantex/YXX, our But would above book fall we believe significantly would at burn And of would the fall are of be that the things key here, we to – there X.XX above book to of our expectations that are way think David the by first, laid kind QX that’ll if burn. end we Our other out. a we has project I just opportunities, number which

Sean Eastman

project big of had quarter, this looks looks on advanced was Okay. big to Can you there walk moving And on guidance was not the trying some of manufacturing kind how just some the Thanks. there. in just what guidance. parse-out creep I Thanks. that pretty sure how back intact closeout other – then it, gets through us the into guess issues range? cost us like and side a the an like parts in in I’m what was, It And but MS. we before? changed the in contemplated I’m that

David Constable

Yes. I’ll take that question.

Joe Brennan

ahead. Go

David Constable

material exact, Thanks, It activities an the to call Joe. Puerto nominal would a don’t anticipated that amount of or for values that significant nail the we contract. with was and an were it was project The amount the achieve associated I not the quarter. was the able down through want a was I not settlement. And settlement closeout to – the that the existing Rico

look dealing in to of pretends when moving event, execution certainly as at clients new execution also and we a forward. I these some of with good we’re our a think So would as look the onetime for. we ability solid close approach as onetime out But event that contracts at how kind I and it

think under much of resolutions more – this those see we’re day. management starting the team of at I positively the those end out to that some come

So in it I one good at projects. onetime is event, solid look but execution could our as just closing how it a look at we’re out

Sean Eastman

of neutralized on to the real it? else over Or – so that in balance So year? other settlement the an there us settlement something the that just guidance does quick this of of kind to hit side the was give clarify, cushion you benefit getting onetime added terms that

Joe Brennan

ATLS have let’s we a did the it put it’s question. our challenged way, this in fair in did guidance and – have either. project Yes, not not We

Sean Eastman

Got it. helpful. Very Yes.

Joe Brennan

push. Yes. I call a net-net that would

Sean Eastman

helpful Very much. it turn very there. Okay. over guys. I’ll Thanks

Joe Brennan

Thanks.

Operator

has UBS with question. Fisher Steven the next

Steven Fisher

Good Thanks. morning.

from of an around $X.XX to hit you start that’s quarter the the year per range the EPS. to up a to on I average. ramp guidance midpoint $X.XX EPS to guess a nice your So $X.XX got to from

you your there And curious there then follow to I’m backend likely how kind that is that special majority of project guess onetime be embedded other I up is to based? question, on So Sean’s that. things have in are or that weighted items

David Constable

Yes, I’ll question. take that Steven

think is the Fluor. more of today to substantive I in seeing run seeing QX are some we that earnings fairly QX margin and And that’s think expect what be signaled call in release. back we being quarters booking our and We what we’re in up booking do this it’s signaling off a but really for have we’re rate kind generated QX, is phone I of events, through ramping forward. what up the the onetime moving of that through gross normalized And not ramping

Steven Fisher

that be above ramp, But likely somewhere the Right. clarify and the, to to follow QX average? just needs the on is $X.XX QX from or here I be kind average mean, something $X.XX of then sequentially EPS to that QX, below up builds to that’s to

Joe Brennan

yes, and negatives. to we that of of a as the some going Well in by assumption the fair came that a to, relative we offset positives it are QX that through take will is little the bit noise

should We that that not will moving – incorrect over start run of rate up how assumptions I you a forward time, the and see balance over will year. you’re ramp your the in view to don’t but

Steven Fisher

ready the on thought follow-up clarified like was booking mining to question comments in Okay. Alright, the sounds Urban projects are I the would backlog of a of be Pantex. something I I sort really and that. things, But that’s it on some I’ll surprised that based your earlier it bit in guess said cusp the first like go. on you these when to other the is, call the that was move sounds of and going it you Solutions,

bookings and those of in I’m how guess curious the then of one – some there might what there is in be, projects? Is later timing that the it sounded mining maybe much I was and another one point expected So like QX year? is

David Constable

the thanks again, So for Steven question.

lot quarters the next few for We’re mining, seeing of a sizable right. in work

just And but that limited it’s they’re two got so that I that in is Jamie across the billion the in precede another here number like its mining. – that not we’ve for drop told very near-term. mining $X yet get to a large guess should I working projects projects again of on international those got billion it’s Pantex rare and for Australia in bases. in business And couple notices our others refinery, then a – I no, one, they’ve to $X broad segments, very And then one U.S. three said. earth on

across lot the So in awards of those front mining QX QX, quarters. spread should has a QX, it work of be and

Steven Fisher

helpful. much. Okay. That’s Thanks so very

David Constable

Thanks Steven.

Operator

Citi. here morning, now Well everyone. Andy from with Kaplowitz Good

Andy Kaplowitz

everyone. morning, Good

David Constable

Good morning, Andy.

Andy Kaplowitz

general conditions you’re on get little and of obviously in projects assume Can do you’re could expecting but of work you seeing, about. quarter the terms to you manufacturing future, projects? terms hoping and to bunch of in talked you the about I types types and those talk fixed step these of and is a want David, you just this the back that bit advanced conditions a on book are lot this price? work risky near would of a noise how

David Constable

Well, and the ensures profile. our negotiations, a follow, risk – pursuit thanks got to We’ve we is in very And for right contract. process the question. we into deal the are party for the, continue with ability us to that the selective the risk that the stringent criteria play fortunately right seeing a and that balance shaping

we’re looking and some to some into conditions a convert fixed good I’m we’re hybrid if So And that, for we clients well project work negotiated not in projects we’ve addition price, where seeing where their and these in are we to it’s go been able some negotiate. seeing that terms that life. to, lump, to along it’s will model competition will that able

priorities the risk allows having mitigate having our as to the about CapEx talent to demand out labor and in So in, a about in lot contracts allows resources and terms, the fair place and drive before and which obviously, but demand one in past. generally what from like to data quotes you’ve engineering with that’s the having it’s with us down companies seeing and end for speaking we’re talk rates suppliers talked as of well solid we’ve But and key all through that our across services it spend vendors on vendor high and high to those full nail obviously back that a feels the us better such is different a construction conversion for we’re strategic along, that there – you’re balanced such of got productivity. And field. profile

on to and continue protect the that company. So focus

Andy Kaplowitz

but and terms up already you do conditions just talked the additional David, work the at of that, Fluor phases topic potential Can LNG on just about additional bigger you of LNG. LNGC, following LNGC? mentioned besides

David Constable

the would risk. LNG inordinate cover get a is that the not to of where goal place these be – spending So customer contingency to that’s amounts large the is to obviously projects

these places to and along that come in with the that risks LNG around are down. world interesting are very very nail of projects Some difficult the

we conversion So entering obviously in can again, procurement in a allowances collaborative exact with line risk moving in in the of field fashion fixing work estimate than at than customer services and reduce to a look services, for lump-sum things project. rather that or our indirect it the Or potential staff with, a together like rather an and items to where price. hybrid way nature. then say I – the put certain fixed attack that late naming And

Andy Kaplowitz

the maybe think expectation for Joe, like segment in it in was NCI the a the Could loss kind you’re the how going given overall revenue mass to kind listing. with just de-SPAC up, the similar QX, Is of that of as does QX, be then look follow then you the in us that and XXXX flattish that line will within you in forward? here trend NuScale And about SMR have. help quick other business segment reporting

Joe Brennan

Yes.

fully variation to from any consolidate and how we’ve continuing not be really will expect we do We significant reported.

and percentages – future over in change, But XXXX, NuScale to investment foreseeable and would equity least expect we’ll consolidating an relative then at balance how participation view view time, for of from XXXX a I in perspective. our we an ownership fully trajectory. the impact for similar have similar obviously the we the As it –

Andy Kaplowitz

guys. Thanks

David Constable

Thanks a lot.

Operator

question-and-answer to gentlemen, over this and turn call today. for the conclude will remarks. for David back your session Ladies closing We’ll

David Constable

can for to right? we appreciate build you thanks our of results for and to in you thank our a better in thanks represent Corporation, operator. another the a, Fluor as future a continue we Stay we good organization you of better again Many so here call participating on for clients all for stakeholders, Thank today. So time interest all and Today’s milestone build your can today. turn and your safe, our employees that

Operator

may gentlemen and and will forward for your for Thank you Ladies this conference you conclude participation today. disconnect. your now

Fluor (FLR) 6 May 222022 Q1 Earnings call transcript