Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to Fluor's Fourth Quarter 2022 Earnings Conference Call. Today's 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. A replay of today's conference call, will be available approximately 10:30 AM eastern time today, accessible on Fluor's website at investor.fluor.com. be XX will replay web available days. for The be seven accessible days telephone Fluor's replay a for also will also A through available registration at investor.fluor.com. website on link,

for Head of Relations. turn time At like Landkamer. ahead, Investor remarks, to Landkamer, over Please to this Jason the opening Mr. call go I'd

Jason Landkamer

Fluor Chief quarter XXXX Officer Joe and Brennan, reference release Chief Financial Thanks, Fluor's earnings remarks. morning slide David Officer; fourth Chris. and Welcome fourth Constable, making while on presentation Executive call. with issued us earlier this is today. are prepared quarter we'll earnings our to Fluor's its Chairman and a that website Fluor's posted

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

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

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

section investor.fluor.com. we the will to measures, our of in financial reconciliations discuss and in Investor non-GAAP at earnings certain amounts posted the Relations call are website release, GAAP these our measures comparable this reflected of During

With Fluor's Executive to Officer. now the David? David that, I'll Chairman call over turn Constable, and Chief

David Constable

Slide Thank and morning, us thank to everyone, please you, turn X. Good today. Jason. you for And joining

core values, always started operational is is on of results, it get we our top safety Before priority. as a one

X.XX Our X.XX. benchmark well industry total than under of X.XX, better Flour's corporate case rate and goal of was incident for XXXX the

commitment protect was established our is embody one One which another. to award, our to example who of safety commitment Medallion our recognize to employees vital Silver

the a and lifesaving one the employee, had emergency arrive. this a weeks face his the Rick employee XX the the child while prior Two taken a with Silver pulling incident, encountered of to for down took CPR, with charge fresh his Medallion performing During of an by and aid first received situation water family a onsite employees lake. (ph) in actions. successfully training to and In out company [Bobsar] nearby mind, for was assistance camping incident, particular XXXX, in waiting course, employee child the

to in incredibly has strategy been in targets discuss just progress our just proud goals. a Now I'll new moment. the X. the has years a long-term future Slide many launch turn our of surpassing since let's financial made strategic two instances, strategic It building I'm targets. over the reaching updated better and and in company our of

doubled by our I'm years Clients to Our year billion, our This X.X encourage reimbursable just new to ago. priority in disciplined Through were reimbursable. awards terms total now of $XX XX% reimbursable recognize two seeking market is backlog Fluor compares value of and our awards XXXX to fair new in XX% to of the XX% under our and continue with book-to-burn provides the contracts, industry. full contracts. balanced response pursuit the of times. a ratio in

Our optimism pipeline. a robust by is supported prospect further

packages study and represent quality billion prospects. cost high FEED completed installed that of recently or award estimated on working currently an are We $XXX new

our is be We a represent opportunities. for significant that billion Of element opportunity prospects months strategy, $XXX Fluor. next in are tracking transition represents than amount, capital that continues to the also This and design in more XX XX% expenditures. to front-end key related of energy

February until first XXXX. new awards million in back include not down million the for three for a segments, $XX from last in with from X. was was turn $XX $X partners issued for a Results Urban Moving in to in completed the with year million, to reflect quarters. significant joint non-cash $X.X Beginning segment are please on legacy excellent was the currently business high ruling total year. infrastructure cost billion with projects charge Results on in $X.X its that year XXXX. Denver for profit project Solutions, growth a billion our Solutions, three XXXX year Slide the the along Rail increase an reviewing this quality contracts, was decision. XXth, Urban Commuter Fluor Since venture a decision of of

these reimbursable, Solutions XX% Urban new With XX% to XXXX. awards, currently backlog is for compared in

now X. to Slide Turning

a $X.X the for in for mining project included mining metals a United quarter States awards New in billion metals Gold. Greece in Hellas and and the $XXX project fourth million

awards execution due some the continue geopolitical delayed been to reassured we're Although clients move have mining phase. concerns, into as to and inflation

gold demand is the limited client awaiting LNTP notice In has DOE. and working of one offered proceed approval work. to we're and on million the commitment presently lithium, the environmental awards, With been for copper, $XXX loan a the from ongoing $X billion of

off to a In for customer It's capital taking project addition, well we a repeat are in a business. mining positioned of our South concentrator expansion deployment book copper indication clear in America.

X. to Now please Slide turn

and strategic business Technologies to two support are priority Sciences Our Sciences and front-end gateways larger billion to work front-end $XXX were of Advanced including study semiconductors portfolio. for in packages Life million work biopharmaceuticals $X our the opportunities, across growth projects. These in Life in driving awarded continues We QX.

horizon economy. space, to project have in Asia, the of modern growth with for capacity phase. bidding including we The speed value a to billion US full and In market recent market shown and capability In $X.X this a expertise We unprecedented a expand $X a execution this another number in a States, currently although, facility these the opportunity company. semiconductor our significantly the for in the Europe the is has the clients, widespread shortage differentiator years billion has exposed in client. addition, leverage to to our on front-end pharmaceuticals with add reliance plan we components United technology specialized work, on

the quarter the Turning projects We’ve Netherlands. million completed in in have and with January region. we partner booked first project Fluor's maintenance in contract share into of number our the to to Slide XXXX. AXX construction entered perform projects and In multiple joint-venture $XXX was infrastructure, a motorway X. Dutch a in the executed for services design, of

risk we typically For by associated two project, phase the a contracting are fixed price approach. using this work with reducing

work future subcontractors popular second complete design vendors Here, projects. commercial become the This infrastructure for and and pattern before could is phase are packages negotiations with undertaken.

During the legacy moment. quarter, fourth on we made all Joe, a more provide three claims projects. details in on progress schedule on relief will this progress and

for Slide Solutions few XXXX. in of the These large XX. segment $XXX comparative Moving a $XXX Mission compared successful results on a year profit year conclusion to million the projects of a to reflect million reported ago.

US the Fluor Nuclear led Operations Energy billion for extension Aiken, Savannah the Carolina. Solutions South Department of LLC Management New awards River in XXXX included and the $X.X near with contract

result, jobs revenue and on contracts XXXX. provided been an bid bolster performance in outstanding, on several into as us increased and is Solutions the Our a opportunity XXXX for could intelligence segment community. to within Mission pipeline This

with and pursuit aligned their with our operations priority Tank Force pursue with terms see among of fair we US opportunities and opportunities. prospects, our reimbursable are recompete for some NuScale contracts nuclear other We're and ahead, services DOE. with Disposition Portsmouth here existing the to Looking great the also the of decontamination and Integrated a UAMPS the Air the with prospects exploring Hanford a dollar including engineering strategic balanced all Consistent our and criteria. continuation contract to facilities decommissioning contract of multibillion management

Moving We of the XXXX over XX% segment strong to $XXX Solutions, a Slide Energy finished XXXX. XX. million, to year increase turn with please profit

were New awards the the double new year for nearly year's previous $X.X billion, awards.

FAST quarter the market Fortress Our includes fourth grow Energy in an on and to proceed New award LNG opportunity to for a project. in LNG continues full notice the the third

We under joint project EPC for our and terminal ICA Fluor for received venture. in package the another Mexico BASF Integrated Ethane services the Braskem also in Storage Chemicals we're China awarded

are onsite the COVID with related the across Slide has to by project, modules our mid-XXXX work Canada venture client productive yards. XX. is By XXX December site regarding At been shipped and delivered. approaching resolution XXX XXX All end to Turning complete. the we impacts with scope job to primary the joint modules and of of continue conversations the expected have of XX% LNG fabrication be

Together growing initial management XXXX, with from procurement We complex. engineering, of the line positive work first chemicals start a as for Solutions, with prospects had supporting in have our construction business Dow LNG the Net-Zero Derivatives Ethylene award Energy world's to significant becoming chemical and a clients we well. and

major will chemical contract, taking oil in Middle is mid pre-FEED for initial for reimbursable a in barrels chemical anticipate this a We be more study XXX,XXX than that into we awarded award and expected award a an derivatives. complex EPCM client a per liquid to Eastern day For were XXXX. also of QX to convert to FEED release full significant late

on transition Now XX. Slide moving energy to

energy the [indiscernible] Fluor's We the segments. with our increased of transition We've across growth be in all opportunities direction business making space. and continue to

transition highlight for XX% to to Just Fluor's new electricity renewable increase one project first examples blend procurement contract in and an XX% clean be Overall, hydrogen of a how in This awards is SoCal is, pure Gas's the a show energy engineering form power aimed $X.X or home. recently XXXX. were a approximately in carbon-free in construction billion, US project system. can XXXX a used of from kind from to gas completed management energy of many services or

over update. let the Joe With call turn that, for financial to the me Joe?

Joe Brennan

progress financial divestitures. performance like I'd in made remaining an and good for strengthening we've capital and of Thanks, on to David, provide structure overview morning, our update and everyone. ownership the NuScale and expectations an our our discuss

provide for on We share will XXXX details then expectations into XXXX. our guidance insight and

Please XX. turn Slide to

operations million, or revenue of continuing diluted For Fluor reported billion XXXX, $XXX and income $X.XX of net from per $XX.X share.

this XXXX. GAAP Denver an per results a first full positive XXXX a $X.XX results for basis. share. we since Commuter include Results For Rail $X.XX on year is our were reported adjusted perspective, On the project, was ruling in completed diluted the which basis, have year on

in increase million moment. as we remaining $XXX a a profit year legacy in XXXX, year ago, we to More generate million work-off to segment ahead this in in zero the Segment path recognized charges from are the although for on significant years million infrastructure on $XXX backlog. profit we margin $XXX

with for margin XXXX. savings generates EBITDA to $XXX million the well in reported we in program are Adjusted compared improves $XXX consistent ago. million supports our G&A with million $XXX year our in XXXX. positively for million The was adverse the program, of million the expense optimization realized savings we a position. Results flow, our I impact million year ahead include $XXX year by the $XXX reported XXXX $XX and and $XXX mentioned. cash Under million savings our just for profile finish targeted Corporate this cost ruling, annual was competitive

AMECO. with reduce the right in the land excess our continue of sale and Netherlands, to During for XXXX, UK, various we California Texas and size in the estate real locations footprint footprints

the location move current initiated corridor. area to located result building a to also from the process the We fit-for-purpose cost will in our considerable in Houston energy in This savings.

Slide to Turn XX.

interest marketable was sheet cash, the NuScale. We that time. fund the over cash execution at as securities consolidated project domestically onto balance million to variable time. appropriate cash bit ventures, until amount quarter our come on XX% I cash consolidated Our view held is to with at and will a us entities not they distributed our activities convert provide can this cash do of billion, $X.X these of includes balance be the proportionally exclude cash includes significant, balances used and to cash our cash color although by available. referenced more readily available $XXX for Total total balance global To

I would rate interest $XX sufficient like income, million. that million out more generated cover global net $XX expense to in cash than fixed program interest our of our management point to

was of working in operating cash needs negatively on during for the impacted cash as large legacy by several as G&A. flow to $XX Approximately million projects, projects. capital increases fund was the cash year payments well $XXX million year Our higher on used flow of

are half flow see of XXXX. cash a similar for in projecting with and in Including to in currently XXXX modest outflow that payments, We we improvement beyond. expect roughly amount cash level XXXX, these

the in the cost Our The other in projects. change on schedule for we and supported cash view Gordie taken I-XXX developments. quarter are client on material with the aligned legacy Howe no clients is Gordie project Mover executing LBJ the consequence for for the was the relief, on People as fourth in a and requirements a Howe by of margin venture LAX Automated forward further projects on with have joint currently actions projects. schedule our path these two project relief discussions There and engaged

Slide to On XX.

December, of next profile few relates and was our outlook Moody's relative steps and reimbursable point an associated with deployment. upgraded pro to of project execution. the notes, from now more with based of February wanted at As ratio XXXX. risk end our capital retired the forma capital XX% improving facility, it last December our our to in XXXX. euro stands to structure, we on capital significantly And extended and additional debt At no improved our net our with this, I margin work XXXX matures negative In January, Their out to of to recent maturities highlights a consistent credit upgrade term stable. rating ending XXXX which week, we until

Regarding continued monetization Australia operations our represent with to we transactions and QX along the during Zealand Stork Stork in of These the our and AMECO, New of ongoing African refocus operations business. divested commitment AMECO.

in Stork respect for stage sale engaged operations our negotiations of operations the with party. are negotiations final interested an to in with Latin AMECO remaining late we are in and America European We

reminder, now called be into maintenance Urban in Fluor's and Services. under reflected have will we there business keep decided operations business, Facility line a As Solutions to beginning Plant This and long-established report and QX.

any that Finally, this We're looking investment continue supports measure, structure which shareholder asset-light and to committed business. of modular balance relative strategy small thesis timeline Clean monetization leading full our focus environment. receive to with position in now our significant I expectations any reinforcing value industry provided have majority NuScale. a believe of capital strategic are in that model, reactor on our we discipline that our interest at create investors economic we your generate an we around to Power service and ownership sheet, on stronger to should outperformed shareholders our in the our by

Before can open us to David? and XXXX. point to few call I take from recap journey moments to you the expect provide what we David Q&A, want this to details our and a in on

David Constable

Joe. Thanks,

Slide to turn Let's XX.

our the company launched technology Just and First, growth years new demand government traditional for driving strategy sciences, ago, energy around of markets our outside with portfolio together life the advanced transition, we chemicals, infrastructure sector, senior gas over growing centered and clients. solutions team across two priorities: the management that metals, high oil by the overarching four for including and

oil XX% non-traditional and XXXX for approximately awards New projects. included of gas

XX% way to terms on goal balanced year the more backlog risk well pursuing Second, on for that focusing we ended Fluor the contracts XXXX. with agreements with the We and fair by adjusted value reward by majority favorable XX% reimbursable deliver. our our

solid reinforcing sheet balance generating and discipline and financial cash Third, maintaining flow a predictable by earnings.

reduced we reduced As expenses. position Joe and mentioned, have cash significantly outstanding debt, solidified overhead our unnecessary

high inclusion a as advancing social progress, And well as fostering fourth, diversity, and with culture purpose, equity our promoting sustainability. and by performance efforts

means execution. a Importantly, in also high-performance culture excellence

value One of delivers cards which all key calling to Fluor's stakeholders. our

strategic now expanded by to Importantly, of meet and further X our net-zero groups for end chapters and priorities over have XX year to this that management the track we target will X to set global significant our DE&I, the several and to Fluor the four support we've continue on Scope’s gratifying remain foundation our years. see employee remain deliver across resource our and that team they the for results firmly It's to for next offices. intact

outlook Moving Slide on to XX. our

We EBITDA million are per our million to $XXX establishing at $X.XX to guidance diluted or XXXX $XXX share. adjusted $X.XX

we're per or introducing addition, EBITDA million $X.XX to diluted share. guidance of to term adjusted million, In $X.XX XXXX $XXX $XXX long

three the our on: prospect diverse based the and and first, third, over close out and contracts XXXX backlog; of underlying pipeline; remaining year; across projects. past the for new legacy XXXX reimbursable are existing guidance segments quality volume awards timely of and received the concentration Our fourth, robust second, of all a the of significant the

we guidance set guidance while XXXX, for are towards initial trend was to our on continue that our that basis. longer no in providing XXXX in Day share we Strategy a note Finally, diluted

the has evidenced all I'm our contributions proud work services and from created and the progress risk of hard to guidance for strategy leverages lower XXXX EPC predictable extremely to our employees our full As and technical offerings. to-date Fluor. model by XXXX, that a capture transform capability our of service

Joe our with out additional is some guidance. going to XXXX on details close

Joe Brennan

clarity, a approximately $XX for was countries on include assumptions revenue provide more our in million to approximately bit an of tax expense and rate XXXX XX%. may generated. This XX%, revenue David per growth of of the depending vary G&A quarter, approximately effective which Thanks,

our moderate advantage We revenue expect tax rates location and to tax as to increase. start

Our expectations Solutions, margins for approximately Urban Energy approximately in Solutions segment XXXX are Solutions. X% approximately X.X% in Mission in and X.X%

our ready for Operator, we now are question. first

Operator

from question Michael Vertical The [Operator Research. Thank Instructions] with first is Dudas you.

Your is line open.

Michael Dudas

morning, Good everyone.

David Constable

Hey, Michael.

Joe Brennan

Good morning, Michael.

Michael Dudas

margins in to your XXXX May what [Technical about the [indiscernible] of work you marketplace? translating competitive be that's the you nature Difficulty] seeing that could how And you're in talk

David Constable

Michael, that hear the question. again couldn't We for try you're up. you breaking Michael, Sorry, can us?

Operator

the just question on move Baird. for Wittmann from will we Perhaps, now, is with Andy next to which

open. Your is line

Andy Wittmann

maybe give Good Canada the relief attention Energy lots guys. here been were the maybe in that, are which quarter. you LNG the kind was margins got on of us could of Joe, looks on the quarter. were some I particular. Great. in relief Yeah. of a seeking COVID fact was particular. COVID thought, context I’d recognized like morning, last the relief COVID just here Solutions to guys in you that hoping segment little you above indicating there’s amount It very what you that quarter, of projects bit Certainly, in maybe, strong

address So maybe that? you could

understand bit you the just about that historical is then think margins that, So be us around relief, the suggestive projects little would I to which margins? got for how if COVID on just quarter be better PLC would better. still you And commentary remaining future talk your helpful any be much could than which a for would

Joe Brennan

some start I by the of I kind COVID would Andy. claims. of addressing guess, Thanks,

are our working but our margin, the you're of collaboratively portfolio. the process to suggest side I coming still deal of seeing the improved other of the the of improvement our Energy discussions. one kind way out some would of closed have results and on in We through across those we aspects Mexico of you LNGC, Solutions in operating

XXX% focused it's claims So out in not settling COVID quarter. some these of on the

I think I to it's Andy, driver across this. think improved different execution that's Energy within bigger of geographies a a number Solutions.

LBJ LAX if legacy the of think some the maybe really and our of to you and applied FPSO then, And And nominally across through have as Gordie Penguins arrived on for XX% where with we articles, approximately it's I has the COVID you Transit running XX%. most complete through or were yard. relief read projects closer for to look European

So Energy are progress out to significant making the fundamentally, margins But that geographies. into around of Solutions performance think in improvement get we I has improved North different couple the a Sea. in

Andy Wittmann

Well, I this you guess in of and super thing stood kind remarks. out context, your that Okay. prepared Joe. helpful that's mentioned other the

basically So line done have I on projects, legacy But that's make so so you've and to heard LAX LBJ in and just agreement relief I you how far gotten correctly. for you've accounted for what at want and sure these it that. is you've far

kind settled that you've basically is net you that to are for change where no that agreements Did assume with summarize the projects? come guys guys are I you And today So Did of we those that correctly? them. there -- should understand all you correctly? I on again, from are

Joe Brennan

Andy.

and taken around growth relief on I significant accepted indirect are risk and cost positions off I two schedule amount to to we at [indiscernible]. the mutually has the on able would think of a projects discussions those table schedules with it way, we relative and cost were in which agree look is,

of a where good formalization are it with Gordie LAX the and client and LBJ on process, terms very substantive around So, have I the we in dialog opened we as Howe to think very our we project. feel relates the of

characterize I if across a of lot that, and of I'm estimates progress looking projects. three the relative So, I guess amount way it, relative those comfort Andy, to completion stepping a back at legacy to significant would made additional our of we've getting

Andy Wittmann

Yeah.

Okay, great.

to going I'm a think Have day I it guys. leave there. great

David Constable

Andy. Thanks,

Joe Brennan

Andy. Thanks,

Operator

Jamie from is Cook Credit question with next Suisse. The

Your open. line is

Jamie Cook

morning. questions. good two guess I Hi,

a What help of your margins, Just table? are those clarification, for bridge originally to to a your get it then off you or just to the around you're one, you them, mean, like sort what numbers? going to more those expectations it expected. get And I if around implied sounds sounds the but assume new for revenues, XXX you little XXXX think you could XXX just approaching to targets not you're targets. provide backlog XXXX, of like

I those guess, questions. two Thanks. are So my

David Constable

last morning, XXXX Jamie. put one Good in the guidance that And that I on out we XXXX. take will first

remarks, I think said, good are a I the there. I on in like we pathway think

those that range -- XXX. are that on XXX mentioned We to you diluted inside a just basis

on take as So yeah, what given a I that seeing. we're based think, just

And know. XXXX And really margins, improved good and that on front. the backlog obviously, to so all the XXXX, through as bridge the we've you

we've I up ended talking but points basis think as XXX over bookings -- in we XXXX we all well. margins year, year think, and in we it the about XXXX the ended increasing been I year see plan in

very important you So, about healthy going ready consistent the still off X% corridor quarter and forward X% that quite think earnings provides certainty XXXX the the margin not we're come that to that bridge to and can yet. to a for a backlog

so say And segments. continued three financials business see front we're that booked a great equal, I'd all in to pipeline the robust place see three across just almost awards almost. we now. in So in in in A segments, going for third-third-third as of you stays pipeline all us, summary XXXX

showing. driving that remaining Joe time the more And our also we're we confident just on of to as XXXX that and that's projects to we're those XXXX more going that commented bridge legacy work-off and is few guidance getting be projects. So legacy

that So from standpoint..

Jamie Cook

of any trying over free a to way of about next legacy cash with flow projects complete conversion some think these there think cash XXXX. just couple by sorry, conversion flow question, And to last then Joe, one is the normalized about Thank years? I'm you.

Joe Brennan

our half to $XXX not approximately on outlook. this that an that legacy Thanks, million additional include current And is currently we cash Jamie. at reduce progress made our XXXX, are does EACs. any about value and for of around will projects reflecting claim in Yeah, things. positions other This based requirements

for So in of we're legacy projecting requirements terms projects. $XXX million cash for XXXX

Jamie Cook

but, asking target. the more No, I was around XXXX

Sorry.

Joe Brennan

Well.

So through as in sheet to progress to the our and cash be of off-balance that think Jamie, position a in earnings joint-ventures of talked we our flows. about, operating into begin in and very script, of as so a positive activities significant way, continue dividend do a we to I we've the lot flow we back will portion those a

would able for that -- expect of So, and XXXX, I back both dividends the into Mexico. in to suspect in fact portion in those not dividend books. back a coming from out Canada, And into in Canada only QX, and activities significant in of continue Fluor's that were US some into XXXX we into we but those to

Jamie Cook

you. Thank

Operator

The Dudas Michael question from Vertical next is Research. with

is Michael open. go open. your Please line Your ahead. Dudas, line is

Michael Dudas

Thank you. sorry. Can you hear me better now? I'm

David Constable

Go ahead, Mike. That's better

Joe Brennan

Yeah. got you. We

Michael Dudas

Great. when doesn't technology wonderful, work. is it Yeah,

questions. two So,

lot capital competitive talk nature like the First, marketplace, the board. budgets, clients David, and getting that of to XXX you XXXX? helping see comfortable, it is in we you about going seems confident, conditions your talked to your terms margins plan to XXXX that forth -- that the that Is to some the the about continue spending in and the of plan, put are more want certainly, over I across from improving

bit little that's my might investor be, how you talk it a going? more bit And you Joe, about about little environment. talked a more would the And strategic Thank leaning on question maybe what you're you. be? sounds Can expectations your second NuScale, like

David Constable

long-term that morning. over years these We don't out somewhat you recession Hey, CapEx really and some short-term Michael. so years talked in The we're clients. -- all and we've always Fluor plans by Right, about. just traction mentioned, and comments because immune large to and we've They our increasing here been it view around as CapEx across and being that by is our CapEx expenditure. short-term plans real of talking spread than XXXX clients a Good see, of our business made more CapEx cover on able beyond our are with about you've take guidance to segments.

oil I'm still CapEx. our LNG are as energy the mining that that very you oil that and transition firmly start Solutions across very [HLS] are traditional now. grateful of about to we're traditional gas When clients think chemicals, and they all right? very right metals, see in exciting and (ph), glad And business, Energy our it's government we ramp businesses, gas, to and

the in oil If all and CapEx and profits upstream oil and at biofuels you then traditional doubling look companies just their LNG in gas hydrogen. in low-carbon XXXX increasing refining

it's comes same and just and gas in big prices yes, Right the and of thing end oil as see for run refining with just going Urban margins -- China XXXX going through the back. the rates that's you'll Solutions that commodity to prices higher through higher -- and are based so decade. on And they're the the higher multi-year oils industry, seeing growth cycle

to and in. in in ATLS metals mining things certainly going the we're businesses see So play good and also in they

so in your grace yes, And we over. can say than question that from standpoint, more work we well there about margins, think did And XXXX. out I therefore

we're term both that that or all ongoing to for shaping fair terms -- XXXX north of set at fair going in positive. that's are clients. for and plan in contract booked XXXX, to strategic solution fair is And deal be to shaping our we north of going commercial well. contract businesses in margins terms both The seeing the think priority what sides, ourselves the -- so deal and I our get balanced of on

think, time really standpoint it's next that be several setting to in from an up So, the exciting I years. Joe?

Joe Brennan

end been strategic in have the exercise. different contact We've with Yes. and of Michael investors potential we at number on kicked-off a NuScale the the monetization, the of day.

end and the within opened opportunity by some talk a some maybe around that quarter strategic position on additional up to much the we would be in dialog how time have get that. set I to of we've potential side. we'll that forward better suspect one, investors We moving the of about we're

of of think a an perspective, the that individuals maker thesis there, in laid getting take it's of into it production I've out of type nirvana strategic end valuation our is from for day terms an end of in a us I terms at and monetization. means NuScale win-win in investment and technology getting what to SMR the really the again, the But wants market

kicked-off at have in address high priority the a item it we will to and XXXX. that here So, first half of earnest be critical

Michael Dudas

you, Thank Joe. Thanks David.

David Constable

Michael. Thanks,

Operator

Davidson. question is from Thielman next Brent with D.A. Your

line Your is open.

Brent Thielman

Hey, good Thanks, morning. great.

we Just I the Are to the see see we Howe, can on confidence Gordie to productive? projects. relief for something soon those there. think there Any infrastructure when it's some related don't quite some the which the Urban schedule great can progress for sense legacy two discussions that? Solutions, proportion, on Is get resolution

David Constable

Good Gordie joint say the just preliminary Howe discussions in our large agreement client a And soil and here QX, order, relief schedule into with just change reached removal cost on I'll morning. in QX. on and entered also venture

So, as that's continue it. Howe will our that completion. through I We'll guess, that's put through putting a here, XXXX. Gordie think to XXXX we XXXX the in with to place client forward as positive progress project the that looking move on way best and we early continue discussions

Brent Thielman

coming overall business in outpace for Energy of Do you a in pipeline this mean, growth Okay, seen few and consider When significant okay. margin growth I appreciate the awards there. that that opportunity Urban specifics Solutions has you business terms and things that. terms. years? new in are backlog of the kind and And in also focus upcoming reimbursable provided you then, higher risk and lower quite Solutions expect will I Fluor some in

Joe Brennan

it's and you is said to you taken the CapEx at their prices look you've -- Freeport or BHP really example, mining a again, there Anglo lithium and look copper, are, mining based the look at and to so gold whether at markets Rio seeing continuing increase higher strong for -- that Michael, all or houses, segments. I'm as commodity Vale, we're iron sure or or whoever and up across ore all It's on on. the metals, When CapEx, I as and through in

is strong metals big big for will and is will Pharmaceuticals certainly, now as So, well. mining us semiconductors pharmaceuticals -- a and as be right a ATLS. market

between major, balance this we every year Solutions ES, continue. Mission It's and Energy so. a -- and awards I Solutions saw with in it see to was or little through I would that expect So, Solutions lumpier coming major it other as Urban year,

down a that So US, go similar. up ES bit, but between and little very could and

portfolio work have spread us. which the very as is the want around we important so, for diverse and well, And to

Brent Thielman

Thank very much. Okay. you

Joe Brennan

Thank you.

Operator

is from UBS. next The question Steven Fisher with

open. line is Your

Steven Fisher

Thanks. plus that Good billion you morning. The below bit $X revenues in were had in QX November. expected the a

confidence of that? or of of So, completion start XXXX, really it I'm percentage if cleared? drove were a any it of the that is some to I And gauge adjustment wondering -- those drags drag? kind guess, drags? other trying just Are just the was Was what those specific

Joe Brennan

a we Steven. those number quite quarter. into Yeah, the It's didn't of simply the later in question. come in that that opportunities thanks for booked XXXX

a to month didn't quality into that we the right nothing and no as impact what burn. So, backlog, that ultimately by it XXXX relative backlog the our we the generate. of get much XXXX. with It our and to on to shifted perceive building and of It moving do has has of will what

issue. just is timing a So it simply

Steven Fisher

backend then I or of course Any be? that that's over terms to for guess helpful. XXXX. of related the frontend is of weighted weighted it expected in sense the kind earnings how to Okay, cadence of

Joe Brennan

a I steady would suspect reasonably climb.

backlog at backlog backlog quality pipeline. significant good way TCO good as So of we to some the portion up some robust a high a close the coming to the business like added we've out, with $XX I and a of look that billion have

expect and QX. increase how up terms and gradual from modeled in through QX we moving built our plan, in it EBITDA operating how see a EPS numbers I what you'll of our So have we

Steven Fisher

on Speakers] lastly [Multiple the Go ahead. then And Okay.

Joe Brennan

really that drive is just that's function activities at and is period to can which nine get a of percentage when into of where your progress. when more backlog say some to a procurement booked there looking and these online coming month of through get contracts, type engineering typically larger XX I’d EPCM you No, you other you're things of enough the

right, So what's little that. kind if of that shifts of driving the to that's a

Steven Fisher

it you're mean range and there? have wide And in guidance the major a of account uncertainties million what $XXX $X.XX. EBITDA Okay. in million I for trying What is $XXX Thank to you that to $X.XX somewhat you. factored are then, of to

Joe Brennan

Yes. Thanks.

but range those into month and bit slip look from reflective I couple if in seeing timing very slip a out or of of see perspective reaching The be of impact we XXXX. will that capital new little of what think those FID the is months, decisions how has a when in us. to would of comfortable numbers, I an feel occur. terms into front my XXXX, a bit they kind of an like range think or defense it think and made, awards. kept kind we've on will of FID quantum XXXX We as in opportunity impacts I of what don't they slate of the it decisions we're XXXX playing we're a

me we we what just the to that it the put us. forward. in backlog, good fact So of feel shifted about XX% very with front pipeline It's to into predictable seeing the -- we're very What reimbursable, moving out again, with being right. it's

really a reimbursable right? that in the contracts underlying and So the point, concentration of to ensure backlog, quality in consistency. of concentration good backlog Reimbursable predictability

Joe Brennan

get Yes, reflects bit into little when these a range, some of will of kind just of programs start execution. so of dates that the

Steven Fisher

Thanks so much.

Joe Brennan

Thanks.

Operator

of [Operator question Instructions] next is America. Bank from Feniger Michael The with

Your open. is line

Michael Feniger

questions. guys. Hey my taking Thanks for

earlier You work. mentioned and Force intelligence Air management

ceiling risk? think in some any Is of a slow awards? that the debt So, curious, that XXXX XXXX? kind strong of see there? any business. Mission Does pipeline if continuing Solutions and we in there headlines in should and the resolution I'm potential those on XXXX exposure of How we

David Constable

Yes, Michael. to certainly XXXX for XXXX. of and are budgets the off continue right, morning, for question. the Thanks government increase set, Good

at is is defense and billion. at $XXX $XX DOE think I up billion

at, intelligence are we good involved key the show about including the horizon. is can next as big is we're XXXX to Y-XX Pantex And and whether what we business various those talked both pretty on Portsmouth that projects starting contract, jobs one so and the coming our agencies from the close with, is plus intelligence or which through about the of decontamination opportunity on which for pretty numbers looking kind after like going that we're based customers the be strong, us. budgets intact or decommissioning are we're it'd what through, and We XXXX feel those see,

a ceiling from feeling risk now. So perspective, right budget pretty wise, comfortable we're

Michael Feniger

nice Great. to And just backlog start the year.

are win XX%? Just when of how we do to us hit much the that need Is it XXXX? hit backlog we XX% XX%? timing, it that kind think much help to the how Is year awards deliver to throughout Like to you revenue expecting growth? that of

Joe Brennan

relative targets. in Well, and new to say, but I don't know north XXXX awards, that years of $XX give XXXX if billion want let's beyond to to the beyond I guidance being able -- support upcoming and around it's definitely

Michael Feniger

started the more Great. pay cash, the just and guys on was you guys And generate you certain guys that balance some if the are in, Investor you boxes curious Day talk debt. notable, kind about how in just is as needs? as debt you potentially filling of starting Thanks. tuck-in cash, rating one thinking remember, down just to The move there I of you sneak sheet on checks are I'm where curious, as can doing generating areas. at some I acquisitions,

Joe Brennan

for Thanks question. the Great opportunity.

return preferred fundamentally our to to XXXXs. more the we we Obviously, that at. fulsome Where We've look over targets significant very money things still our would Strategy little the We've forward XXXXs around addressed. cap as relates what we've got the to we have having some capital to But well XXXX last off the we steps the of shareholders coming, clearly look progress discussion structure. We time. we the are needs, and our have like next capital need got out. discuss a made bit couple are it Day structure shortly of structure in I ahead years, of cleared around laid be and over that want to that to some

we're the So people, there to immediate there's then and reinvesting still looking is need of in working at ultimately in in things reinvesting very business future. number needs factoring a potential also and the addressed M&A that be in but, activities through our that

in ultimately, the moving through order we liabilities our and reinvesting our kind precedence of there. our and from then through then So down and need flows business of and address on the to people that capabilities

So we a bit it'll view be of a the structure. address how cascading capital of

Operator

and remarks. I Constable, We this no over further Executive questions for Chairman have closing will Chief turn Officer at to it David time. any

David Constable

the operator. Many to for you, participating Great. thanks of all Thank you on call today.

come. our XXXX to and to we'll to and our our the the we reestablished two we’re our positioned well years taken clients shareholders from past for significant you you results a providing As leverage years to the at construction engineering in Fluor's actions value over drive industry. technical see brand When with leader global as look we're solutions clearly coupled professional and can position

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

Operator

call. concludes Ladies today's conference Thank and gentlemen, this you participating. for

disconnect. may now You

Fluor (FLR) 21 Feb 232022 Q4 Earnings call transcript