Fluor Corporation Reports Third Quarter 2024 Financial Results
Fluor Corporation (NYSE: FLR) released its financial results for the third quarter ended September 30, 2024. The company reported revenue of $4.1 billion and net earnings attributable to Fluor of $54 million, or $0.31 per diluted share. Adjusted diluted earnings per share stood at $0.51, deviating notably from Wall Street consensus estimates of $0.76 EPS and $4.74 billion in revenue.
Key Financial Metrics
| Metric | Q3 2024 | Consensus Estimate | Variance to Estimate |
|---|---|---|---|
| Revenue | $4.1 billion | $4.74 billion | -$0.64 billion |
| Diluted EPS | $0.31 | $0.76 | -$0.45 |
| Adjusted Diluted EPS | $0.51 | - | - |
The financial performance was impacted by lower than expected contributions from the Energy Solutions segment. The reported revenue fell short of consensus estimates, reflecting challenges faced during the quarter, particularly project delays and cancellations.
Revenue Performance by Segments
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change | Q3 2024 Profit | Q3 2023 Profit | New Awards Q3 2024 | New Awards Q3 2023 |
|---|---|---|---|---|---|---|---|
| Energy Solutions | $1.4 billion | $1.6 billion | -$0.2 billion | $50 million | $177 million | $1.5 billion | $3.3 billion |
| Urban Solutions | $1.9 billion | $1.4 billion | $0.5 billion | $68 million | $66 million | $828 million | $1.0 billion |
| Mission Solutions | $635 million | $655 million | -$20 million | $45 million | $38 million | $274 million | $345 million |
- The Energy Solutions segment experienced a notable decline in both revenue and profit compared to the previous year, primarily due to lower contributions from a large project nearing completion.
- Urban Solutions showed growth in both revenue and profit, driven by additional awards in Australia and the U.S., though new awards reduced slightly from the previous year.
- Mission Solutions saw a modest profit increase despite a small decrease in revenue.
Key Developments and Operational Highlights
- Strong Q3 operating cash flow of $330 million; 2024 cash flow guidance increased to approximately $700 million.
- Board of Directors approved an increase in the share repurchase program to 30.5 million shares.
- Anticipated deconsolidation of NuScale will result in a $1.6 billion gain in Q4.
Executive Commentary
David E. Constable, CEO, highlighted that although quarterly earnings missed expectations due to project setbacks, the company remains committed to capital allocation strategies and addressing growth opportunities.
Dividends or Share Repurchase
Fluor has expanded its share repurchase program, showcasing confidence in its capital allocation and shareholder value strategies.
Forward Guidance
Fluor is not providing specific guidance for U.S. GAAP net earnings or EPS due to uncertainties. However, the company has tightened its full-year adjusted EPS guidance to $2.55-$2.75 per diluted share and reduced its adjusted EBITDA forecast to $525-$575 million.
Stock Price Movement
Following the earnings release, Fluor Corporation's stock experienced a minor upward movement of approximately 0.32%.
This summary reflects Fluor Corporation's ongoing strategy and challenges during the third quarter of 2024, with an emphasis on adaptations in response to market conditions and project-related issues.
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