Why Is Engineering And Construction Company Fluor Stock Trading Lower Today?

Author: Akanksha Bakshi | February 20, 2024 12:47pm

Fluor Corp (NYSE:FLR) reported fourth-quarter fiscal 2023 revenue growth of 3% year-over-year to $3.82 billion, missing the consensus of $4.11 billion.

Sales by segment: Energy Solutions $1.42 billion (-19.9% Y/Y), Urban Solutions $1.42 billion (+30% Y/Y), Mission Solutions $646 million (+26.9% Y/Y) and Others $332 million (flat Y/Y).

FLR recorded a total segment profit of $85 million, compared to $174 million a year ago. The margin contracted by 247 bps to 2.2%.

The company reported a net loss attributed to the company of $(21) million, down from net earnings of $9 million a year ago.

Total new awards totaled $7.6 billion, compared to $4.6 billion a year ago. Ending consolidated backlog was $29.4 billion, an increase of 10% YoY.

Adjusted EPS improved to $0.68 from $0.43 a year ago, beating the consensus of $0.57.

Adjusted EBITDA rose to $145 million from $136 million, and the margin expanded by 13 bps to 3.8%.

At the end of the quarter, Fluor's cash and marketable securities were $2.5 billion, not including amounts held by NuScale.

Fluor stated that it is not providing forward-looking guidance for U.S. GAAP net earnings or U.S. GAAP earnings per share or a quantitative reconciliation of adjusted EBITDA or adjusted EPS guidance.

However, the company has established an adjusted EBITDA and EPS guidance based on the volume of new awards received over the past two years, early achievement of the 75% reimbursable backlog target, and robust and diverse prospect pipeline.

For 2024, FLR expects Adjusted EBITDA of $600 million to $700 million and adjusted EPS of $2.50 to $3.00 versus $2.84 consensus.

The company anticipates improved cash flow conversion in 2024. The company also reaffirmed its 2026 adjusted EBITDA guidance of $800 million to $950 million.

Price Action: FLR shares traded lower by 10.46% at $37.73 on Tuesday.

Posted In: FLR