Fluor Corporation (FLR) Bundle
A Brief History of Fluor Corporation
Fluor Corporation, a global engineering and construction company, has evolved significantly since its inception in 1912. Originally founded as a small construction firm in California, it has grown to become a major player in the engineering, procurement, construction, and maintenance (EPCM) sectors worldwide.
Financial Performance Overview
As of September 30, 2024, Fluor Corporation reported total revenue of $12.055 billion for the year-to-date period, compared to $11.654 billion in the same period of the previous year. This represents an increase driven primarily by the Urban Solutions segment, which saw substantial revenue growth due to several recently awarded projects.
| Financial Metric | 2024 YTD | 2023 YTD |
|---|---|---|
| Total Revenue | $12.055 billion | $11.654 billion |
| Net Earnings (Loss) | $391 million | $291 million |
| Total Assets | $7.100 billion | $6.973 billion |
| Total Equity | $2.243 billion | $2.341 billion |
Segment Performance
Fluor's operations are divided into three main segments: Energy Solutions, Urban Solutions, and Mission Solutions. Each segment has exhibited varied performance metrics as follows:
| Segment | Revenue (2024 YTD) | Segment Profit (2024 YTD) |
|---|---|---|
| Energy Solutions | $4.456 billion | $193 million |
| Urban Solutions | $5.240 billion | $223 million |
| Mission Solutions | $1.940 billion | $108 million |
Backlog and New Awards
As of September 30, 2024, Fluor's total backlog was reported at $31.319 billion, reflecting an increase from $29.441 billion at the end of 2023. The increase in backlog is attributed to new awards totaling $12.815 billion for the year-to-date, compared to $11.920 billion in the previous year.
| Backlog Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Backlog | $31.319 billion | $29.441 billion |
| New Awards | $12.815 billion | $11.920 billion |
Strategic Developments
Fluor has made several strategic decisions to enhance its market position, including the sale of non-core assets. For instance, the company completed the sale of Stork's operations in continental Europe for $67 million in March 2024, recognizing a gain on sale of $11 million. This divestiture is part of Fluor's strategy to focus on its core EPC services.
Market Position and Future Outlook
Fluor Corporation continues to position itself as a leader in the global EPC market, with a robust pipeline of projects and a diversified service offering. The company is leveraging its expertise in various sectors, including energy, infrastructure, and government services, to drive growth and profitability moving forward.
The effective tax rate for Fluor was reported at 70.9% for the 2024 Quarter, reflecting ongoing adjustments in tax strategies and market conditions. The company expects to navigate these challenges while capitalizing on growth opportunities in emerging markets and sectors.
A Who Owns Fluor Corporation (FLR)
Major Shareholders
As of 2024, Fluor Corporation (FLR) has a diverse ownership structure including institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned (in millions) |
|---|---|---|
| Vanguard Group, Inc. | 10.5% | 17.9 |
| BlackRock, Inc. | 9.2% | 15.6 |
| State Street Corporation | 7.8% | 13.3 |
| Wellington Management Co. LLP | 5.4% | 9.2 |
| Invesco Ltd. | 4.1% | 6.9 |
| Other Institutional Investors | 15.8% | 26.8 |
| Retail Investors | 37.2% | 63.2 |
Institutional Ownership
Institutional ownership accounts for a significant portion of Fluor's shares. As of September 30, 2024, the percentage of shares held by institutional investors is approximately 52.8%, reflecting a strong institutional interest in the company.
Recent Changes in Ownership
In 2024, Fluor Corporation experienced notable shifts in ownership, particularly with the conversion of all Convertible Preferred Stock (CPS) into common shares, which resulted in an increase in common stock outstanding from 170 million shares to 171 million shares as of March 31, 2024.
Stock Performance and Market Capitalization
As of October 2024, Fluor Corporation's stock price is approximately $47.17 per share, leading to a market capitalization of about $8.04 billion based on approximately 171 million shares outstanding.
Noncontrolling Interests
Fluor also has noncontrolling interests in various joint ventures and partnerships. As of September 30, 2024, the value of noncontrolling interests totaled $90 million.
Equity Structure
The total shareholders' equity for Fluor Corporation as of September 30, 2024, is approximately $2.341 billion, with total assets amounting to $7.1 billion.
Conclusion on Ownership Dynamics
The ownership dynamics of Fluor Corporation reflect a blend of institutional and individual investors, with significant stakes held by major asset management firms. The conversion of CPS and the ongoing changes in the market landscape continue to shape the shareholder base of the company.
Fluor Corporation (FLR) Mission Statement
Overview of the Mission Statement
The mission statement of Fluor Corporation emphasizes its commitment to delivering innovative and sustainable solutions to meet the needs of clients across various sectors including infrastructure, energy, and government. Fluor aims to enhance the quality of life and the environment through responsible project execution, while focusing on safety, integrity, and excellence.
Key Elements of the Mission Statement
- Client Commitment: Fluor is dedicated to understanding and fulfilling the specific needs of its clients.
- Sustainability: The company prioritizes sustainable practices in its project execution to protect the environment.
- Innovation: Continual investment in technology and innovation to improve efficiency and project outcomes.
- Safety and Integrity: A strong focus on safety protocols and ethical conduct in all operations.
Financial Performance Metrics
As of the third quarter of 2024, Fluor Corporation reported significant financial metrics that reflect its operational success:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenue | $4,094 million | $3,963 million | $12,055 million | $11,654 million |
| Net Earnings | $25 million | $181 million | $219 million | $119 million |
| Basic EPS | $0.32 | $1.18 | $1.65 | $0.73 |
| Diluted EPS | $0.31 | $1.15 | $1.63 | $0.72 |
| Total Assets | $7,100 million | N/A | N/A | $6,973 million |
Strategic Initiatives
Fluor Corporation has undertaken several strategic initiatives aligned with its mission statement:
- Investment in Technology: Focused on enhancing project delivery through advanced technological solutions.
- Global Expansion: Expanding operations in emerging markets to diversify service offerings and client base.
- Workforce Development: Committed to training and developing a skilled workforce to maintain high standards of safety and quality.
Market Position and Backlog
As of September 30, 2024, Fluor's backlog, which represents future revenue expected from signed contracts, was reported as follows:
| Segment | Backlog (in millions) |
|---|---|
| Energy Solutions | $8,824 million |
| Urban Solutions | $19,006 million |
| Mission Solutions | $3,095 million |
| Other | $394 million |
| Total Backlog | $31,319 million |
Recent Awards and Contracts
Fluor has secured new awards amounting to:
| Segment | New Awards (in millions) |
|---|---|
| Energy Solutions | $1,541 million |
| Urban Solutions | $828 million |
| Mission Solutions | $274 million |
| Other | $56 million |
| Total New Awards | $2,699 million |
Conclusion on Mission Alignment
Fluor Corporation's mission statement is closely aligned with its operational and financial strategies. The focus on sustainability, innovation, and client satisfaction drives the company’s performance metrics, strategic initiatives, and market positioning.
How Fluor Corporation (FLR) Works
Overview of Operations
Fluor Corporation operates primarily in the engineering, procurement, and construction (EPC) industry, offering services across various segments including Energy Solutions, Urban Solutions, and Mission Solutions. As of 2024, the company continues to focus on delivering large-scale projects worldwide.
Financial Performance
For the third quarter of 2024, Fluor reported total revenues of $4,094 million, an increase from $3,963 million in the same period of 2023. Year-to-date, the total revenue reached $12,055 million compared to $11,654 million in 2023.
| Segment | 3ME 2024 Revenue (in millions) | 3ME 2023 Revenue (in millions) | 9ME 2024 Revenue (in millions) | 9ME 2023 Revenue (in millions) |
|---|---|---|---|---|
| Energy Solutions | $1,428 | $1,553 | $4,456 | $4,886 |
| Urban Solutions | $1,931 | $1,431 | $5,240 | $3,842 |
| Mission Solutions | $635 | $655 | $1,940 | $2,009 |
| Other | $100 | $324 | $419 | $917 |
| Total Revenue | $4,094 | $3,963 | $12,055 | $11,654 |
Segment Profitability
The segment profits for the third quarter of 2024 indicated varied performance across Fluor's divisions.
| Segment | 3ME 2024 Profit (in millions) | 3ME 2023 Profit (in millions) | 9ME 2024 Profit (in millions) | 9ME 2023 Profit (in millions) |
|---|---|---|---|---|
| Energy Solutions | $50 | $177 | $193 | $355 |
| Urban Solutions | $68 | $66 | $223 | $121 |
| Mission Solutions | $45 | $38 | $108 | $84 |
| Other | ($46) | ($5) | ($95) | ($108) |
| Total Segment Profit | $117 | $276 | $429 | $452 |
Cash Flow Analysis
Fluor's operating cash flow for the nine months ended September 30, 2024, was $501 million, a notable improvement compared to a loss of $96 million in the same period of 2023.
| Cash Flow Category | 9ME 2024 (in millions) | 9ME 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $501 | ($96) |
| Investing Cash Flow | ($129) | ($46) |
| Financing Cash Flow | $22 | $131 |
Balance Sheet Highlights
As of September 30, 2024, Fluor's total assets were $7,100 million, reflecting an increase from $6,973 million as of December 31, 2023.
| Balance Sheet Item | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Total Assets | $7,100 | $6,973 |
| Total Liabilities | $4,849 | $4,921 |
| Total Shareholders' Equity | $2,251 | $2,052 |
Market Conditions and Strategic Focus
Fluor operates in a competitive environment, focusing on expanding its market share in the renewable energy sector while maintaining its core operations in traditional energy markets. The company has seen shifts in demand for its services, particularly in the Urban Solutions segment, which has benefitted from increased project awards in life sciences and infrastructure.
Tax and Regulatory Environment
The effective tax rate for Fluor was 70.9% for the third quarter of 2024, compared to 30.4% for the same quarter in 2023. This increase reflects changes in the company's operational and financial structure.
| Tax Category | 3ME 2024 (in millions) | 3ME 2023 (in millions) |
|---|---|---|
| U.S. Statutory Federal Income Tax Expense | $18 | $55 |
| Total Income Tax Expense | $61 | $79 |
Backlog and Future Outlook
Fluor's backlog as of September 30, 2024, reflects ongoing projects and anticipated future work, showcasing a robust pipeline for the upcoming quarters.
| Backlog Item | Amount (in millions) |
|---|---|
| Total Backlog | $27,057 |
| Unfunded Government Contracts | $1,300 |
How Fluor Corporation (FLR) Makes Money
Revenue Sources
Fluor Corporation primarily generates revenue through its three main business segments: Energy Solutions, Urban Solutions, and Mission Solutions. The breakdown of revenues for the nine months ended September 30, 2024, is as follows:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) |
|---|---|---|---|---|
| Energy Solutions | $1,428 | $1,553 | $4,456 | $4,886 |
| Urban Solutions | $1,931 | $1,431 | $5,240 | $3,842 |
| Mission Solutions | $635 | $655 | $1,940 | $2,009 |
| Other | $100 | $324 | $419 | $917 |
| Total Revenue | $4,094 | $3,963 | $12,055 | $11,654 |
Segment Performance
The performance of each segment is critical to Fluor's overall profitability. As of September 30, 2024, the segment profits (losses) were as follows:
| Segment | Q3 2024 Profit (in millions) | Q3 2023 Profit (in millions) | YTD 2024 Profit (in millions) | YTD 2023 Profit (in millions) |
|---|---|---|---|---|
| Energy Solutions | $50 | $177 | $193 | $355 |
| Urban Solutions | $68 | $66 | $223 | $121 |
| Mission Solutions | $45 | $38 | $108 | $84 |
| Other | ($46) | ($5) | ($95) | ($108) |
| Total Segment Profit | $117 | $276 | $429 | $452 |
Cost Structure
Fluor's cost of revenue for the nine months ended September 30, 2024, was $11,689 million, leading to a gross profit of $366 million. The general and administrative expenses for the same period were $147 million.
Operating Cash Flow and Earnings
Operating cash flow improved significantly, amounting to $501 million for the nine months ended September 30, 2024, compared to a negative cash flow of $(96) million for the same period in 2023.
Net earnings attributable to Fluor for the nine months ended September 30, 2024, were $282 million, compared to $161 million in the prior year.
| Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Earnings (in millions) | $282 | $161 |
| Basic EPS | $1.65 | $0.73 |
| Diluted EPS | $1.63 | $0.72 |
Backlog and New Awards
Fluor's backlog, which reflects the total value of awarded contracts not yet recognized as revenue, stood at $31,319 million as of September 30, 2024, compared to $29,441 million at the end of 2023. New awards totaled $12,815 million for the nine months ended September 30, 2024, up from $11,920 million for the same period in 2023.
| Segment | New Awards (YTD 2024 in millions) | New Awards (YTD 2023 in millions) |
|---|---|---|
| Energy Solutions | $2,840 | $4,718 |
| Urban Solutions | $8,117 | $5,090 |
| Mission Solutions | $1,481 | $1,015 |
| Other | $377 | $1,097 |
| Total New Awards | $12,815 | $11,920 |
Geographical Revenue Distribution
Revenue by project location for the nine months ended September 30, 2024, is outlined below:
| Region | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) |
|---|---|---|
| North America | $8,177 | $8,022 |
| Asia Pacific | $1,476 | $1,203 |
| Europe | $1,923 | $1,682 |
| Central and South America | $315 | $599 |
| Middle East and Africa | $164 | $148 |
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Resources:
- Fluor Corporation (FLR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fluor Corporation (FLR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fluor Corporation (FLR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.