Fluor Accelerates Growth Amid Favorable Market Conditions
Fluor, a leading global engineering, procurement, and construction (EPC) company, has reported a strong fourth quarter and full-year 2024 performance, driven by a favorable market environment and the company's disciplined contract pursuits.
In its recent conference call, David Constable, Fluor's Executive Chairman and Chief Executive Officer, highlighted the company's achievement of its strategic targets under the "building a better future" strategy. The company has met and exceeded its financial goals, with strong cash flow and a robust capital structure supporting a backlog that is majority reimbursable.
Fluor's revenue for the year reached $16.3 billion, marking a 5.4% increase from 2023. The company recorded new awards totaling $15.1 billion, with a book-to-burn ratio of just under 1. This represents a significant achievement, with new awards for the year 150 basis points above last year's margins and well within the established margin corridor of 4% to 6%
"We've had an incredible run over the past four years," said David Constable in the conference call. "I'm filled with gratitude for the experiences, traditions, and proud moments that defined my journey with Fluor." The CEO transition was also announced during the call, with Jim Breuer taking on the role of Chief Executive Officer.
Fluor's focus on disciplined contract pursuits has paid off, with 85% of new awards in 2024 being reimbursable. This, combined with a total ending backlog that is now approximately 80% reimbursable, positions the company for continued growth and success.
The company is also tracking the executive orders coming out of the U.S. administration closely, seeing them as favorable to nuclear and thermal sources of energy, LNG exports, expedited permitting for domestic mineral production, and significant data center buildouts. This presents a promising outlook for Fluor's business going forward, with the company poised to capitalize on these trends.
"We're excited about the opportunities ahead," said Jim Breuer in the conference call. "Our focus on project delivery and growth will enable us to drive value for our clients and stakeholders."
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