FLR - Earnings call transcript Q1 2024

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

Operator

Good morning, and welcome to Fluor's First Quarter 2024 Earnings Conference Call. Today's call is being recorded. [Operator Instructions]

A replay of today's conference call will be available at approximately 10:30 a.m. Eastern Time today, accessible on Fluor's website at investor.fluor.com. be XX will replay web available days. for The be X accessible days telephone Fluor's replay a for also will also A through available registration at investor.fluor.com. website on link

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

Jason Landkamer

us good and Welcome David with while to and posted making Chairman prepared and Fluor Joe we Fluor's Officer, that Constable, Fluor's today. Chief XXXX Financial First will Jayel, presentation our on first release Thanks, Officer; its Fluor's morning, everyone. Executive Brennan, Chief reference website and is Call. quarter Quarter this earlier issued Earnings a are earnings slide remarks. morning,

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

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

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

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

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

David Constable

Good Jason. you, morning, Thank today. for everyone. you us Thank joining

local a for sciences well be such that the the for partners. regional service local and Strategically, and vision to establish to like ago matter our technology today, advanced hub in life years and key is and of the X. to fit FujiFilm, advanced started Fluor space within this customers growing key biopharma To clients, Novo in looking clients, I'll Solutions Slide in our hub, to a was forward Fluor strategy segment. decisions. purpose of for significant to technology our in growth get as Lilly the and this This strategy central collaborative center is established in Nordic our This Today, results and technology purpose highlight market Its turn a around the global providing our our Microsoft. of was briefly our Please action our of Copenhagen, supports component operations supporter Europe. strategic a great experts is markets. as subject office Northvolt presence centered Urban in markets Intel, subcontracting X traction Eli able a to hub as close clients, region. result Nordic a and to example in We're these team continuing Nordisk, as

X. for to billion, quarter Now let's $X & Advanced beginning for first Life Technologies Sciences billion. the by led Consolidated first $X.X the on Revenue was our at line. quarter new operating review awards awards strong were key turn Slide our business in

for Our X.X. book-to-burn quarter ratio the was

New is awards backlog billion, our is XX% $XX.X reimbursable, of which total were reimbursable. now and XX%

new award an Our X backlog strong to outpace over continue the past services. existing profile, XXX for margins points our to reflect margins quarters. for on by Specific continues margin to of new basis on margin the demand awards average

future in work positioning execution people and systems invest priority excellence, our for to and continue We a as for Fluor. remains top

a as energy led as size semiconductors, and being is current transition backlog. This of XXx total data through of pipeline current install studies and the opportunities Our in our prospective end the prospects cost in well mining feeds centers, key and represents life metals. of of by XXXX sciences, pipeline

awarded a execution most X in $XX Solutions, quarter. in projects, and Urban projects, reflect of this semiconductor a projects. several strong life project diverse reported business including to our steel turn to our X Results the segment, segment recently the segments, green ramp-up please and Moving profit X. million sciences Slide largest activities first on

billion of Any to the $X.X compared billion is year a $XX.X were ago. XX% which billion, awards backlog quarter reimbursable. now is New for $X.X stands substantial at and

turn and never Norte Gold feet, client Mining location, Andes. Metals, to our XX,XXX at the and altitudes in Chile. on first extraordinary achieved gold in Slide before a X. level an project please and the challenging Now between at of In Salares extremely was project This XX,XXX Fields modularization demanded seen

of of anticipated expansion the mining Bureau ounces first copper, molybdenum. debottlenecking completed, tons next across Ioneer. with on gold this has the the We strong its in has impact & copper-gold Chile, quarter. of X,XXX Sierra Land is lithium progress the of operation over environmental X Portsmouth Gorda. that review to $XXX prospects as full is rare the tons proceed Metals refining, port [indiscernible] notice metric Ioneer and Mining prospect $X nearly for approximately last for particularly start completed joint continue this in earth in This quarters the project stated aluminum, metric recognized of estimated the Fluor venture United XXX,XXX or to Speaking billion Antofagasta's of produce received Management million XXX,XXX the draft and When We're States encouraged of Centinela projects in study. award with to in

demand. people strong & to Advanced in to Sciences and and Moving infrastructure to Technologies X. invest had quarter Life very meet support another continues Slide

New full the broke XXXX. the quarter that manufacturing $X.X in in facility billion notice Lilly for a Eli award to awards ground Indiana on for included proceed EPCM

on we're capacity. the few grants past to currently United Act semiconductor the we're working the X government Over months, limited CHIPS including a in investment beginning seeing in kickstart that States,

significant current support later their centers will into orienting clients work On awards only year and plans XXXX. are more this a parallel not toward track, support but AI. data this CapEx positioning expect We to

are this While in it is early well-positioned to our we support days, space. still clients

center Union see U.S. the and in ahead, Asia. the momentum investments we Looking gaining Midwest, data European

handover for now is project. project of year. track ports XX% this In the both later This complete, of Infrastructure, entry with we're Gordie on and on strong midyear productivity connection remained Howe bridge

Automated the now XX% Mover Los in Angeles On complete. project People is

and Our joint the their venture of work recovery to cost alignment entitlements schedule collaboratively for match line. continues to with time client

last XXX project, progress continues LBJ, is complete. Our to XX% infrastructure and currently legacy

Plant Services nearly extension for Finally, new a including $XXX SunCoke X-year generation maintenance with million years. and a renewal company and work, secured contract the capital supporting XX work X-year & with power we've in a worked for Facility the past sustaining project

for Slide Solutions the X. segment $XX Moving $X Mission quarter on a first profit year to million of to compared million reported ago.

approximately this Force be project, during a valued Tinian has airfield and providing V transportation Program we million. quarter increased to the billion support Contract for and the the X-year region. awards $XXX construction located and On quarter, Also Augmentation extension will the of that performance Air at includes New $X.X Strategic currently for area executing, is in Reserve the notices nation's we a number for during an Petroleum that we including aligned national defense with received the are Portsmouth. of Paducah, closely Indo-Pacific strategy projects period

Solutions. was in method important backlog segment projects $X.X potential of fully billion. earnings included is is accounting. It's Ending the reflected the our note from accounted equity for contributions for this backlog. future not also segment Mission quarter that for under earnings represented this to Current guidance total for for the margin This and by

expect under award the order decision awards note midyear. as Pantex additional the that Looking program. we hear space ahead, on security to Also in for incremental include LOGCAP well the missions prospects a task assignments by national as

venture craft joint quarter. turn to delays, in rate on cost $XX by a million to first cost in portion subcontract for for Fluor's Moving this for XX. a were recognized $XX Segment $XXX escalation labor growth construction-only in Energy non-Pemex subcontract our of being Solutions, approximately the million. Results million entity reflect These client profit $XX Mexico. year Slide material is to million the please from ago. decreased executed a unit quarter increases and

project client venture However, the impacts. the with commercial is joint establish to to working resolutions

award confidential and New award award a East. initial the a an EPCM $XXX refinery rolled the pre-FEED a Johnson and from Matthey's Middle in for from the that we over awards recently Also, in quarter for reimbursable U.K. million a is work at integrated complex received sole-sourced client fee totaled Roystone refinery This site the for petrochemical mega package. included

On XX%. focus for in LNG testing in excess a Canada. mode on activities full systems completion LNGC, X,XXX with project over the site, on commissioning With is and people of progress is

expect We ready to XXXX. be for in the safe of half second start-up

is Penguins, Fluor commissioning activities Shell on this platform and handing to over offshore legacy the complete currently month. Moving systems later remaining will this

end is including markets, traditional fuels, of the of For LNG battery projects pursuing across a XXXX, renewable manufacturing, reimbursable energy and remainder refining. number offshore this transition segment

agreement we to has reevaluate in on approach variety in chemicals in the a we've with Regarding projects place, client hold best this Arabia for to quarters, past up we ] Saudi the [ they the continue The decided activities. discussed few to ramp development. of collaboration over liquids and the client this program put that as remains have and Kingdom

Finally, to shares we with on our of progress by NuScale, to continue with NuScale strategic held make monetization the investor respect Fluor.

has the based ever-increasing SMR investor quarters greater. and AI the data of globally, front been coming continue in With of which includes semiconductor on technology, for We'll build-out more recently interest, and industry-leading this power, provide facilities never offtake demand high-energy-consuming XXXX. of centers commercialization NuScale's carbon-free on power to updates the the

to to services Based the past clear it's our for expectations. X on allows years, of portfolio X% strong guidance performance protect that our X% for and margin support provide full us the corridor over our demand Fluor's significant the across year

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

Joseph Brennan

quarter our good guidance. Yes. review everyone. for will first that over the go Thanks, assumptions David, and outlook our financial Today, support I morning, results and

turn Please to XX. Slide

quarter mentioned, for was $X.X David billion. As XXXX, of the first revenue

$XX million. quarter previously ago. $XX normal the the million David million segment consolidated a EBITDA for $XX quarter for and compared the to the for year profit Adjusted first $XXX million seasonality quarter reflect we was see Results charge discussed. was the Our

guidance. compared in do affect Results was Our for expectations for the XXXX. adjusted $X.XX EPS not year QX quarter to our full of $X.XX

quarter $XX interest on FX net embedded for fed, in to anticipating were income million adjusted year this are the of ago. a year Our $XX results was for the a million run remain $XX derivative and for down last million the Based quarter million rest compared in quarter G&A income the expenses quarter in we the will for interest from rate range. positive XXXX comments income Mexico. $XX of the from million million, the in effects excludes Net the $XX ago. $X

XX% improved ending billion, backlog straight New for ratio the year. now equal $X or excess anticipate our which is $XX.X book-to-burn to balance prospect in awards third in to of the our a billion reimbursable. we Based on quarter of X pipeline,

Slide to XX. Moving

capital the the Operating cash of was an working and NuScale. the amounts by in for securities million increases reflects quarter marketable compared to and for annual and of reimbursable timing ago cash year an $X.X outflow balance incentive flow projects, in needs held was $XX Our payments projects. a funding million for $XXX excludes million of This billion. outflow usual quarter $XXX legacy for

of QX, we European completed to sale During Stork's Bilfinger. the operations

We milestone is a and This transaction as the also to sell UK planned businesses. expect Stork's entered operations into it of an the as our to early divestiture this quarter. close second final agreement significant as represents noncore

Please turn XX. Slide to

and earnings our are guidance adjusted share of $X million EBITDA our adjusted $XXX XXXX of We guidance per $XXX million. affirming $X.XX to to

million. expectations cash to $XXX million $XXX for are $XXX for legacy This funding projects. million Our in between excludes operating up flow and

of XXXX an tax effective approximately million revenue rate growth approximately of assumptions and expense for $XXX include XX%, approximately XX%. G&A of Our

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

Operator, first question. our now ready for are we

Operator

Instructions] comes Cook James of question Securities. of [Operator line first the from Your Truist

Jamie Cook

like cash I free increased X Jamie before. one I Well, you close. Joe, gotten haven't flow Cook. looks questions. it guess guide. your that It's But

$XXX million your before, I nice flow versus -- more is were approximating to EBITDA. because or guide, think think million million, saying you you're million it's XXX $XXX to now I to see $XXX $XXX sorry, which operating cash

that? the the So what of year? thinking in flow were generation, back drivers capital the cash the given how And about allocation behind half you stronger are

$XXX the million to my And the $XXX just EBITDA million. get second question,is to to your just then ramp guide,

adjusted EBITDA million. quarter first the was think I $XX

ramp, probably of first sort So guess we that yes, So about weaker those how are quarter? X given I my questions. think do a

Joseph Brennan

the we've push LNGC. obviously, the -- we is underlying what the Yes. kind our -- Thanks, our guidance some are from an seeing margins of more repatriation trajectory and the clarity of included Jamie. we reimbursable model. of in a to From a cash we're But bit dividends, of perspective, XX% into really an activity relative got as

we the cash going getting into the our with just where statements flow cash better Urban operating and flow -- think year. transparency feel into a is the of having to activities how profile. flow So going that lot start kind we're cash in business how I Solutions, better we're onboarding for to terms in the And more confidence cash just cash clarity that for into turn a as will that of generate early And some leaning flow that to flow that's is us. of into of though free

On the capital nothing's Jamie. allocation, changed,

be with going stated We'll as communicating year. goals to around half shareholder the latter are that returning relative the our out We to do we you get into of capital.

move bit that going And reimbursable. I up ramp really is story to start anticipated quicker perspective, from a to ramp than had even And we've in backlog a the being as -- we we really is getting headline XX% forward. think progressed the that

a reimbursable model, get to we're the less year. ramp volatile of the looking is as end a would we XX% Jamie, I what So very at, kind an and of nice, -- expect

I would a a expect into we from bit see QX. more ramp to little So -- as QX nice get linear

Operator

Your of next from line question Steven Fisher UBS. comes of the

Steven Fisher

You business mentioned I that's a is in of downs. risk of further for on a as charges of I do more a But it's JV and the you in Mexico. mentioned had that to its What's you, broadly on sort the commercial project? non-Pemex degree know ups Mexico, working place resolution there project. feel like that

to downs those do in you about So continue -- the of and risk/reward given Mexico? kind continuing here, think of ups how and work

David Constable

question. the David. It's for Thanks

probably here, look I've performance that historically I in company, really you Fluor -- the is, say, standpoint venture work the joint returned great is So best their refinery certainly as had financially on across our ICA system. ICA Fluor said company, from we since with would a strong the Pemex performance we've

and we fact, now complete, we're mechanically as speak. Dos In start-up is supporting Bocas

for and we particular to this continue So work great do project. Pemex really

bullish I'm down do there. So Mexico and work they Fluor ICA on and the

geographic of was heard, situation This California, project. particular a direct It's couple on as were project, locations in therefore, million construction contract subcontract a labor commercial we're Ensenada instability. border dollars, in for, with working hundred control unit volatile you location the small you a challenging is issues location, unique a that actually, a and like craft a which a clients very and, with rate only heard, and Baja very costs,

X extension a months. schedule negotiating been we've and So cost increase over the past

However, due degraded initial to apparent the that -- sufficient. negotiation location, is the it market unique market in the became QX, labor that labor to is the point where not

and challenges Fluor legacy our the So ICA up done are is focused now. taken perfection we've venture But as cost projects, addressing where first on clients, quarter. the with currently this increases had we're right to obviously to be joint subcontract [indiscernible] the and with revenue these the in of many recovery small and

Joseph Brennan

portfolio. David best our that challenges settlement we the with of is more And It's have to working with projects attraction provide proximity really get we border proximity unique the the Yes. region its client other just increasingly of it challenges Maybe in more a really and and the again, region craft commercial to got add project. experience those more But exacerbated labor the our And a on just a this this of around of challenges activities we're resources some color region, I other through happen northern to been little And of in the that it's has and any only said, difficult. is the that we've in that thing holidays. as in see resolution. challenging would with set above. to doing up lot the the retention work bit become don't out coming border, to but of the

Steven Fisher

when me, remind And project was that booked?

David Constable

XXXX, August of 'XX.

Steven Fisher

Okay.

And sort follow-up of is just my the idea... so

David Constable

XXXX. scheduled It's of for completion February in

Steven Fisher

helpful. of That's just lot there's the concept of the and higher of clean consistency seems with pieces put a Okay. place, it's I still not there guess And And in like being quite quarters but margins here. vision yet. that just

takes some this is through a older know business. we So projects. work time long-cycle It to

the we now? margins backlog of a achieving putting in can delivering nicely you're kind consistent those quarters on timing into have and basis higher what of that those So confidence consistent

Joseph Brennan

reimbursable, question. not guess lens the progress that And of No, where thanks look through reimbursable P&L, eliminate the award as profile we we forward. said on all XX% but that those we very comfort this get of reimbursable moving the I making the that the that percent through year we the factors for at of And of only a quarter up of are front the of the risk XX-plus side where heavily end I in I XX%, and would better to be of volatility opportunities of Yes. think by we it think proven $X we'll us a remain the QX portfolio. giving being within billion the in by our see we're at us, towards weighted booking the terms bookings, that's range, that start in I some in balance ledger.

that of revenue that us more I that volatility to and get certainly and profiles help think linear forward. some will discussions relative moving So EBITDA continues having

Operator

Andy question next the Baird. line of of from Your Wittmann comes

Andrew J. Wittmann

guidance. segment we've frankly, Obviously, you they're factored a Mission posted I margins David, the into Mission than your the them while. bit higher Solutions more ventures, but than a wanted much on in you is quarter that you higher here and, in in that backlog, joint guidance in margin have aren't the fact drill your little these much mentioned your showing to in seen script, up

it's discernible having a clearly So impact.

talk to Center. the in the at you Certainly, that through talk you just believe margin that quarter, if any are one. There's one about had Joe, be you Given that if have can, are you're or if as things Engineering it be and to which helpful that's if -- talk sized in already talked you your could Arnold status contributing recognize outlook decent fairly contracts, worked Hanford. that, profit. there's press the in to release to and Maybe if they've the particular, role protest projects at there begun. I you a able about those that another thought or contributing for I would

Joseph Brennan

basis, On down reflected the Mission being not the Andy, billion bit about what's the going line well, that's unrecognized of an maybe proportional in I'll a worth on NCI. backlog down have going talk revenue below overall approximately little -- and $X Solutions. we for

think and chunk a I margin So increased a guidance that's us also big obviously and very Pantex opportunity itself the the $XX another be for big significant nature, in a for range. of billion nonconsolidating reason will

you we're communicate progress flow going to Mission relative of better there the are So QX. of line. of below opportunities that and some better in we'll that above QX bit because we'll guidance on And means into as little a Solutions providing working margin that what some on work to how around the size and the we

So up of you're underlying that that the the to guide reasons X%. kind seeing margin those are push

David Constable

Mission good contract, in lot the going Andy. We've $XXX a of over There's awards million years. Solutions, got XX things tank's years. We've $XX Yes. FEMA, billion on had from X over recent Hanford

that bids environmental right right We've is nuclear Petroleum mentioned. is come Institute; up Strategic outstanding announcements in got very again going time, further so there Longview. the the Longview out nuclear waiting We're Pantex, and from There's now. at as on out space. National Joe award bids for going extension, lots Looking which Cancer with enrichment Reserve we with there Fusion, the fuel. we're think, the X forefront of interesting, to, the in technology in in a an for

as [ I national you've that program, CAP the the program side, intelligence, the defense and security Force. and ] Air half got work. mentioned all Sustainment And the including Operations well then Test [indiscernible] for

and right on. that then space a award work -- lot waiting announcements with, of outstanding the So we're X in intelligence now,

bids in process. So -- many and

national a in time lot security busy going now. support especially right right on now, very as a they Mission So Solutions,

Andrew J. Wittmann

that And updates Joe, into Pantex have and you that you expect up there? something coming one? you with guys it. is provide can a you the summer? back significant that have there RFP Is -- any could just your update just a thing. is to as this reissuing is hear and contract on you're there comment beyond to But that that any they're coming read something won there back this anything then You at brought

Joseph Brennan

expect month we're under submitted -- review yes, something We've the that signals point. the to wants of or But announce would it's would release. within we bit next next weeks. and being the government. expected at the the X hostage warning it we with proposal, held hear that's to It's X within government a to kind At so. this the relative least, it's when early But

David Constable

-- And don't right? be want award could It the election. it's to the before later, too, they make

Let's put it way. that

And we'll chance so a up on on usually to year to award take up types coming so be Pantex. September. there's it'll And be come and of to obviously, protested, those they contracts, in year good a more

Andrew J. Wittmann

Yes.

Okay.

over here. I and well. kind for guys of are outcome. story one been the me, NuScale just you talking a on this one of NuScale last was about and you've realistic is some Obviously, gone, thinking milestones as wondering kind fluctuated There's time. what obviously, various come for have been that kind of just Just

just kind timing. So process terms realistic for of want outcome your I in of and/or to get thoughts

David Constable

Yes.

obviously, I've the been with obviously, data And intelligence. centers, I The for data comments I -- you times in in if ever think need the that technology, just right, right? following it, made artificial So it's right very rapidly as carbon-free especially mentioned has with demand, remarks. don't I the and been offtake as NuScale Investor greater centers. even on you exciting the more interest increased so now, power follow,

alone, right right, expected, to at they're in are need consumption, megawatts versus, servers the to market think, think U.S. reflect of I megawatts, the XX,XXX going number XX,XXX power by I now that we're XXXX.

of detailed those power. NuScale solve challenges. types to clean tell discussions looking those And that there's ongoing I it's requirement clients significant a massive and on can to So with you

there. is So the demand

I'll that, it for say We exclusivity deal, industry-leading But investor it's a that it's development taking comes strategic NuScale. say parts. standpoint strategic that lot a complex of the our ongoing. very investors when to from I'd with a with but moving It's -- globally path have also

So with. business model supportive very investors very I'm -- that up the the of come strategic has

X ensure our that of have And the is: side need and ensure services of we we maximum of value can for objectives one; to all, the two, add Fluor's success. through participating successful on engineering importantly, value. number overarching And commercialization that technology, are first shareholders the Fluor's NuScale drive number our thirdly, and NuScale we monetization globally shares; projects construction management where and project NuScale on ensure

So that of all the path is part forward.

it yes, so to forward. continues And move

interest, I investor said, offtake see you Like XXXX be year through and Thanks. like the about continue think, update I we'll with will, And move forward that shareholders. for hopefully and excited time line-wise. power and to something that positively, later our things ourselves in said, I can we really

Operator

of from Dudas of comes Vertical line Michael question Research. next the Your

Michael Dudas

on follow-up data a your your on David, answer -- centers. with NuScale

but us is consumption say, there Fluor positioned comparisons cycle stage, early is couple is positioning Fluor's lot out. -- And the power to enormous, relative to, is parsed remind but ago? on So how it regulatory, there a it seems a market. Is tape, demand of the years semiconductor be -- on got red of that's construction maybe in that

over XX next gets Fluor could to be and that So the and involved a you months? backlog to XX timing visible about maybe how can share the bit how little that

David Constable

very and of the I'd centers, work semiconductor support U.S. to of that ongoing build-out as and centers that know, model, Data we're a in middle is in growing, So at and similar looking the is globally. you yes, data it say, market. we're right,

of one example these that data is build-out bear come bring start But centers in data to For example, the experience to in Microsoft for also our to as U.S. out bid. India internationally. expect we centers to

I increasing forward. ATLS would so be the going say And they'll in backlog

so right So well-positioned for we're those And are data right we're it in And who and players centers. clients in space. the the to -- positioning. thick you now that big know in -- support of

So yes, that's got what that. we on

Michael Dudas

reshoring a ability the the a And these all get bring and given that's any and capacity I required had, guess on more your bookings vendor manufacturing just you've why about space? improvements? and sense and moving follow-up, part you the talent then to to Science from is starting up mentioned to a how think Are from reflect the there you the that. I appreciate then concerned that's that's better better in on maybe competition? activity continue going margin And Life and what of the clients margin ability contractor T&Cs. in a to and do of getting and

David Constable

Most definitely. it the Certainly, in as you EPC only space seller's in in that vendor market not a market, well. space, can but consider space the

competition. so to deciding are to just their up have they clients out around Some sign sure agreements and locked talent engineering that arms they make get their A teams

we it task years -- force -- challenge. a ago. is a We've couple our capacity started been it's of So talent

years. really backlog hiring talent to our years grow, billion started this the has ago. task only years And have As booking We requisitions of been the job. $XX for time open done of couple we great -- so immediately, We've a we've that's those X,XXX, now X,XXX right but required a that couple are where we for stand. year started a not past X,XXX force got people

a so And jump luckily,we that. on got

now. redeploying We also are right

million is backlog, big there. and it, the in Energy that Energy got redeployable a over easily $XXX used what be $XX circa people If Solutions Solutions, which, into large billion past, be to at ATLS -- you now cross-pollinate in those in $XX are almost has ATLS. can the projects, billion in and look and mega to we've ATLS used project

project the we're focusing really or execution project on make we execute, over can -- well. and bringing management company So is what from in that's going really to sure skills elsewhere

ran big the fact, the billion leader in $XX project. ATLS, So Richard Meserole, of TCO

large understands all and projects And work. going after require, what he's that's we're -- how so ATLS that

But yes, price deliveries. We're and it's seeing -- vendors are longer also taking increases scheduled advantage.

clients our the and we've that on so got -- be for very and careful as make And well. front estimates realistic sure to are

So thanks, Mike.

Operator

Jain Instructions] the [Operator comes KeyBanc. line Sangita next question of from Your of

Alexander Dwyer

you I your is on year. bids about for just quarter, Last this Can This had in pursuits Sangita. XX% success of had one. you last won winning mentioned all Alex you talk quarter?

So I'm continued quarter wondering awards and market? to coming just rate. function demand if more the higher backlog is win strong a a more is this of it Or more

David Constable

XXXX. track -- a rate last to basis. high rate. pretty look And hit continue. on an said, yes, That's number. I didn't win in we're, this I We what, So like see it annual our that it quarter. at -- you we would I XX% expect

I the XX% range. XX% think historically, we're to in

So I on that allowing -- and our only win is selectivity our we to think deliver selectivity we A on, our our and rate. high for. going have criteria have We're can after pursuit teams is very prospects us a prospects screens

the us for of seller's in just part, with talked about many be of and out which a of our to most Mike, So markets, a we bit as most selective. allows market our markets, there more

paid are quarter, majority price, I have and the losses of fair that price, lose we'd vast and when And a right? priorities, on through risk paid terms, strategic to getting of provide. do losses the means profile get balanced getting to for fair value want fair contract we look on our that lost we each we small amount and at and love paid, contract, So having our the

margins to So where so resources prospects yes, we lose to starting on how push and need But we just -- Thanks. are that. key we'll to that's to our if it. continue the to we're deploy grow, on lose, going

Operator

Citibank. the Your of comes next from line Bak question of Natalia

Natalia Bak

Natalia Andy is behalf Bak on This Kaplowitz. of

well linear XQ. excess XQ as mentioned backlog, expect to of from you as you're get You the year, for reimbursable a book-to-bill XX% you more X as expecting ramp-up in an

maybe across all ramp-up is talk the the you expect linear that So segments? of cadence across something segments. could bookings about you And the

David Constable

Can help you of -- couple little have not closer mic difficult last I'm sorry. been very that hear. if questions could get one sure Thanks. a us The the question to with you time. more to I'm or

Natalia Bak

No, it's all good.

the a book-to-bill excess expect in you mentioned you So for X of year.

an reimbursable to ramp-up more from XQ as as get well linear XX% you're expecting XQ. As you backlog,

expect you linear And segments. that the for cadence you about bookings something maybe So segments? could across talk all all the across of is the ramp-up

Joseph Brennan

of see Well, Yes, model the maybe Natalia linear across earnings start, of supporting I'll in kind of the side. terms that across the of strength X balance segments we growth -- with our year. all from

and the put this we QX -- we think of X billion of new of in quarter, what terms that well kind forward as not have $X the the the awards that like us or over only but that supported kickstarted in I gives that's booked the in kind is year margin to look trajectory for going quarters. So by next profile confidence really look that

I awards want know, the David, cadence, On if you new to... don't

David Constable

current seeing, just expect I the of with we're there's couple lump-sum mean, that a a quarters, of you. the there. of -- just few what agree We've X I year, based end there the reimbursable XX% would Yes, right? higher I chasing to next we're $XX on or billion I very the by prospects be had think in in

expect we and continue. go to prospects to So in will backlog, -- up the projects margin a profile higher reimbursable continue

lot Obviously, ATLS, we today. it about talked a

As and the They're chips centers very and opportunities in ATLS & cadence data Mining place but now. segments as the in right pharma, very far and the good promising significant Metals. a also across remains in businesses, in

and out projects to very there, the energy chemical all strong. transition key entire have markets continues portfolio be across We

by awards Mission in going extension across So Solutions, Urban or coming Energy awards we're recompete supplemented in Solutions. awards to see Solutions,

Natalia Bak

then Okay. That's more question helpful. just from me. And one

how of risk? on good give you and think of towards If just weighted Do you East could or a Americas? region about little in demand as prospects XXXX see what us bookings seeing more you're geopolitical terms source in Middle a color more you by

David Constable

-- part, not -- developers, booking of the Geopolitical -- the clients, key major globally. through but recently. our right, clients multinationals We've for clients, and operating Yes. our a economic our most tend as challenges, been and internationally work which geopolitical lot they're look to short-term

not challenges have if there with billion didn't, they the the So uncertainty. $XX.X backlog, we right, in out would all and

able they're CapEx long capital and the returns, business model play to game. their plans So their allocation

they seeing whole in with supporting. and are we're to So risk. that Plus clients' right derisking or we're Certainly, scenario now not CapEx certain and geopolitical regions for of challenge the diversifying plans countries, example, middle of out any One China our reduction due all the

$XXX they to so spend $XXX XXXX. customers, $XXX $XXX in dozen between billion, billion CapEx. $XXX These billion, billion. $XXX top our commercial yes, beyond are But billion CapEx up billion billion, to slightly. is XXXX, $XXX 'XX billion customers, And in it's Their $XXX

at but, that that's again, -- our looking at. the continues CapEx -- flat, XX actually increasing stay when top part, we're their just least customers So to is for the most look primary our you at

include as for Energy this the $XXX $XX budget, doesn't up Texas, billion, probably is is to Army spend you've billion Department and billion going obviously, And up our government those lot here to infrastructure up Request -- there. TxDOT about that right? Army. billion. in TxDOT's the this for work, is do numbers is $XX got U.S. of then we FEMA year year. And All of well. a $XX are where

how markets to look grow and still to it. So yes, I the continue strong, very I that's be we'll backlog. at see continue

Joseph Brennan

think is bookings I the United we've quite seen States, add, on which helpful. could I in If significant traction

sitting effective to following sheet. been have over has for our rates benefits position see U.S., X number in created getting relative the to to you've I X, not kind reasons to performance that U.S. which tag-along of put a our profitable very have related other story, arriving, has to us back clean United some will and our value use If a tax tax David past starting in some friction. the a VA to pathway profitable the loss on and States, in been which We're balance of the of prior the in years and some we

long-winded the starting in yes, a here in and way see growth backlog of United we're saying, States. to some that's our So traction

Operator

of of question of the Michael comes Your next America. from line Bank Feniger

Michael Feniger

this about was when year year cash what I a better Just think million, guidance, flow it obviously, ago. we operating started use think, $XXX of, than

of to full know get I positive a guide, to level seasonality. there's year that Just

we that QX? the of some Is QX it you bulk of us and QX. cadence can Does go kind the how out try Just preparing to into QX? that we that as as inflect us of give of mostly Just on give guardrails through plays prepare kind guardrails year. kind any of cash from Is ops?

Joseph Brennan

Yes.

see on loaded in it the will the towards XXXX. -- the year. more QX Mike, to but relates repatriate and of during significant you'll dividends in as looking year There of middle ramp, think the of we're the to with the more part back lumpiness end bit that related I majority back-end be little the QX, some of some that a

I reasonably and flat you'll it'll of end of an uptick -- QX it's as closer So and think year. QX, between get see the kind to we the

Michael Feniger

And $XXX changed. that just hasn't I follow-up, million funding, the my Great. on believe of legacy

eyes could of Just of that our better any catalysts through that potentially how more year? guidepost kind through of progress for kind as you we or Any keep the should move the directionally, or kind does XXXX these of year? And completion? as we projects of down wind and look how to start to just close come that that $XXX enter just million, some out

Joseph Brennan

Yes.

talk me heading about Let into XXXX.

we'll I on amounts projects funding have XXXX. think in of loss requirements de minimis

will completion in to to I relative projects XXXX. of think what achieve the trying kind come the to those fruition we're bulk of of

the reduce that's loss of for flow we've able we've to year down common within, on do to is will its point. here And lowest you And driven our what of to to based the the last that projects, at look to we've if beginning historically, of on that. been able we able at, the been And that couple how over feel comfortable expectation achieve signpost project, the requirements is cash the legacy number. funding years the be And million on significantly been relative year. that $XXX historically denominator starting

Operator

I the remarks. over conference closing That David Q&A turn for and session. Chairman will back concludes our CEO, to now Constable,

David Constable

on for you many today. call thanks and operator, you, Thank Great. our to all participating of

marketplace, last shareholders performance continue position future. the and over strong generate to our the to we in value in for the years our expect substantial Given our X

your Appreciate your Fluor, again for today. time in and thank interest you

Operator

This concludes today's conference call.

now You disconnect. may

Fluor (FLR) 3 May 242024 Q1 Earnings call transcript