The chart below shows how FLR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FLR sees a +0.54% change in stock price 10 days leading up to the earnings, and a +1.38% change 10 days following the report. On the earnings day itself, the stock moves by -0.93%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Increase Achievement: Fluor achieved a revenue of $16.3 billion in 2024, marking a 5.4% increase from 2023, indicating growth in the company's financial performance.
New Awards and Backlog: The company recorded new awards totaling $15.1 billion in 2024, achieving a book-to-burn ratio of just under 1, which supports a healthy backlog.
Reimbursable Awards Strategy: 85% of new awards for 2024 were reimbursable, and the total ending backlog is now approximately 80% reimbursable, reflecting a strong contract pursuit strategy.
Urban Solutions Backlog Growth: The Urban Solutions segment reported a 20% increase in ending backlog for the full year, growing to $17.7 billion from $14.8 billion a year ago, showcasing strong demand in this area.
Energy Solutions Profit Surge: Fluor's Energy Solutions segment reported a significant profit increase to $63 million in Q4 2024, up from $26 million in the previous year, demonstrating improved operational efficiency.
Future Growth Opportunities: The company is well-positioned for future growth with a robust slate of opportunities in various sectors, including semiconductor projects and data centers, indicating a strong market presence.
Cash Equivalents Increase: Fluor's cash and cash equivalents increased by 14% from 2023, reaching $3 billion, which reflects strong financial health and liquidity.
Share Repurchase Program: The company initiated a share repurchase program, purchasing $125 million worth of shares in Q4 2024, with plans for an additional $300 million in 2025, indicating confidence in its financial position.
EBITDA Guidance and Growth: Fluor's EBITDA guidance for 2025 is projected between $575 million to $675 million, with an expected revenue growth of approximately 15%, suggesting positive future performance.
Negative
Earnings Miss Report: Fluor Corporation missed earnings expectations, reporting an EPS of $0.48 compared to the expected $0.78.
Urban Solutions Profit Decline: The Urban Solutions segment reported a profit of $81 million, down from $147 million a year ago, indicating a decline in profitability.
Energy Solutions Backlog Decline: The Energy Solutions segment's ending backlog decreased to $7.6 billion from $9.7 billion a year ago, reflecting a reduction in future project commitments.
Jury Verdict Provision Impact: A $116 million provision was recognized related to a jury verdict against a Fluor joint venture, which could impact financial stability.
Legacy Project Funding Needs: Legacy projects required $81 million in funding during the year, with expectations of up to $200 million needed in 2025, indicating ongoing financial strain from past projects.
Backlog Decline Impact: The Mission Solutions segment's ending backlog decreased to $2.7 billion from $3.9 billion a year ago, suggesting a decline in future revenue potential.
Fluor Corporation (NYSE:FLR) Q4 2024 Earnings Call Transcript
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