Fluor Corp (NYSE:FLR) reported a first-quarter fiscal 2024 revenue decline of 0.5% year-over-year to $3.734 billion, missing the consensus of $3.997 billion.
Sales by segment: Energy Solutions $1.43 billion (-11.2% Y/Y), Urban Solutions $1.48 billion (+22.4% Y/Y), Mission Solutions $601 million (-7.4% Y/Y) and Others $222 million (-21.6% Y/Y).
FLR recorded a total segment profit of $118 million, compared to a loss of $(15) million a year ago. The margin recovered by 3.2% from negative 0.4%.
Adjusted EPS improved to $0.47 from $0.28 a year ago, missing the consensus of $0.54.
The company reported net earnings of $59 million for the quarter, up from a loss of $(107) million in the first quarter of 2023.
The total new awards were $7.02 billion compared to $3.23 billion a year ago, which is 97% reimbursable. Ending consolidated backlog increased 27.8% Y/Y to $32.7 billion, 80% reimbursable.
Adjusted EBITDA rose to $88 million from $71 million, and the margin expanded to 2.4%.
At the end of the quarter, Fluor's cash and marketable securities were $2.3 billion.
The company expects divestiture of its non-core businesses by the end of the second quarter.
FLR reaffirmed its 2024 outlook, expects Adjusted EBITDA of $600 million to $700 million and adjusted EPS of $2.50 to $3.00 versus $2.79 the consensus.
"2024 is off to a good start with substantial new awards from clients in our Urban Solutions segment. This demand, which we believe is just beginning, drove our backlog to a level not achieved since 2019," commented David Constable, chairman and chief executive officer of Fluor.
Price Action: FLR shares are trading lower by 5.06% at $39.15 at the last check Friday.
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