On August 2, 2024, Fluor Corp (FLR, Financial) released its 8-K filing for the second quarter of 2024. Fluor, one of the largest global providers of engineering, procurement, construction, fabrication, operations, and maintenance services, reported significant growth in net earnings and a slight increase in revenue compared to the previous year.
Company Overview
Fluor Corp (FLR, Financial) serves a wide range of end markets including oil and gas, chemicals, mining, metals, and transportation. The company's business is organized into three core segments: urban solutions, mission solutions, and energy solutions. Fluor generated $15.5 billion in revenue in 2023.
Performance and Challenges
For Q2 2024, Fluor Corp (FLR, Financial) reported revenue of $4.2 billion, a 7% increase from the prior year's $3.9 billion. However, this fell short of the analyst estimate of $4.36 billion. Net earnings attributable to Fluor were $169 million, or $0.97 per diluted share, significantly higher than the $61 million, or $0.35 per diluted share, reported in Q2 2023. The adjusted diluted EPS was $0.85, surpassing the analyst estimate of $0.64.
Financial Achievements
Fluor Corp (FLR, Financial) demonstrated strong operating cash flow of $282 million for the quarter, leading to an increase in the 2024 cash guidance range to $500-$600 million. The company also affirmed its adjusted EPS guidance of $2.50 to $3.00 per share and tightened its adjusted EBITDA guidance to $625-$675 million.
Income Statement Highlights
| Segment | Q2 2024 Revenue ($M) | Q2 2023 Revenue ($M) | Q2 2024 Profit ($M) | Q2 2023 Profit ($M) |
|---|---|---|---|---|
| Energy Solutions | 1,595 | 1,721 | 75 | 89 |
| Urban Solutions | 1,831 | 1,202 | 105 | 76 |
| Mission Solutions | 704 | 705 | 41 | 40 |
| Other | 97 | 311 | (27) | (14) |
Balance Sheet and Cash Flow
Fluor Corp (FLR, Financial) reported an improvement in cash and marketable securities, which stood at $2.6 billion at the end of the quarter. The company also reported a significant increase in its consolidated backlog, which rose to $32.3 billion from $25.5 billion a year ago.
Commentary
"Our quarterly results demonstrate that our strategy is working, thereby ensuring targeted market growth and project execution excellence," said David E. Constable, chairman and chief executive officer of Fluor. "For the second half of 2024, our focus will be on deploying resources onto our high-value project backlog and positioning the company to return capital to shareholders."
Analysis
Fluor Corp (FLR, Financial)'s Q2 2024 performance indicates a robust growth trajectory, particularly in net earnings and operating cash flow. The company's ability to exceed EPS estimates while slightly missing revenue targets suggests effective cost management and operational efficiency. The significant increase in backlog and cash reserves positions Fluor well for future growth and stability.
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Explore the complete 8-K earnings release (here) from Fluor Corp for further details.
