Fluor's Q4 2024 Earnings Call: Unpacking Contradictions in Book-to-Bill, Cash Flow, and NuScale Monetization
Tuesday, Feb 18, 2025 12:32 pm ET
4min read These are the key contradictions discussed in Fluor's latest 2024Q4 earnings call, specifically including: Book-to-Bill Ratio and Cash Flow Guidance:
Leadership Transition and Strategic Focus:
- Fluor Corporation announced a leadership transition with David Constable stepping down as CEO and Jim Breuer taking up the role on May 1.
- The transition is part of a succession plan and is aimed at aligning with the company's new strategy focused on "grow and execute" to drive future growth.
Revenue and New Awards:
- Fluor's revenue for the year was $16.3 billion, marking a 5.4% increase from 2023.
- The company recorded new awards totaling $15.1 billion, achieving a book-to-burn ratio just under 1, which supports their established margin corridor of 4% to 6%.
Urban Solutions and Backlog Growth:
- Urban Solutions reported a profit for the quarter of $81 million, with new awards totaling $1.4 billion.
- The ending backlog for the full year grew by 20% to $17.7 billion, up from $14.8 billion a year ago, reflecting the company's focus on urban solutions as a key growth driver.
Energy and Mission Solutions Performance:
- Energy Solutions reported a fourth quarter segment profit of $63 million, a significant increase from $26 million in 2023.
- This growth was supported by new awards totaling $406 million, including additional scope on several projects, indicating a focus on front-end engineering and design packages.
Cash Flow and Capital Structure:
- Fluor's operating cash flow for the year was $828 million, marking its best performance since 2015.
- The strong cash flow performance was attributed to distributions from large joint ventures and IRS refunds, enabling the company to restart its capital allocation program with a $125 million share repurchase in Q4.
FLR EBITDA, Free Cash Flow...
Date | EBITDA | Free Cash Flow(USD) | P/E(TTM) | Debt-to-Equity Ratio | Total Revenue(USD) | Operating Cash Flow(USD) | Net Income(USD) |
|---|---|---|---|---|---|---|---|
| 20240930 | 105.00M | -287.85M | -- | 0.48 | 4.09B | 330.00M | 25.00M |
| 20250218 | -- | -- | 25.86 | -- | -- | -- | -- |
Name |
|---|
| FluorFLR |
| FluorFLR |
Leadership Transition and Strategic Focus:
- Fluor Corporation announced a leadership transition with David Constable stepping down as CEO and Jim Breuer taking up the role on May 1.
- The transition is part of a succession plan and is aimed at aligning with the company's new strategy focused on "grow and execute" to drive future growth.
Revenue and New Awards:
- Fluor's revenue for the year was $16.3 billion, marking a 5.4% increase from 2023.
- The company recorded new awards totaling $15.1 billion, achieving a book-to-burn ratio just under 1, which supports their established margin corridor of 4% to 6%.
Urban Solutions and Backlog Growth:
- Urban Solutions reported a profit for the quarter of $81 million, with new awards totaling $1.4 billion.
- The ending backlog for the full year grew by 20% to $17.7 billion, up from $14.8 billion a year ago, reflecting the company's focus on urban solutions as a key growth driver.
Energy and Mission Solutions Performance:
- Energy Solutions reported a fourth quarter segment profit of $63 million, a significant increase from $26 million in 2023.
- This growth was supported by new awards totaling $406 million, including additional scope on several projects, indicating a focus on front-end engineering and design packages.
Cash Flow and Capital Structure:
- Fluor's operating cash flow for the year was $828 million, marking its best performance since 2015.
- The strong cash flow performance was attributed to distributions from large joint ventures and IRS refunds, enabling the company to restart its capital allocation program with a $125 million share repurchase in Q4.
