Fluor Corporation Q4 FY2025 earnings call

James R. Breuer discussed the strategic journey, including executing fix-and-build chapter and launching grow-and-execute strategy. Deployed share repurchases, achieved NuScale monetization, completed sales of Stork and CFHI yard. Urban Solutions had new awards in various sectors, Energy Solutions had large projects and opportunities, Mission Solutions had opportunities in civil agency and national security markets. Fluor was an early AI adopter, using it across project life cycle and functional roles.

Urban Solutions: 2025 profit was $205 million vs $304 million in 2024. Segment profit was affected by $108 million in cost growth on three infrastructure projects but offset by $54 million from other developments. New awards in 2025 were $8.7 billion. Ending backlog is $18.7 billion. Energy Solutions: 2025 segment loss was $414 million vs $256 million profit in 2024, due to Santos ruling, completion of large projects, and temporary slowdown in Mexico. Excluding Santos effect, performed well. New awards in 2025 totaled $1.4 billion. Ending backlog was $4.6 billion. Mission Solutions: 2025 profit was $94 million vs $153 million in 2024. Results affected by $60 million aggregate for reserve recognition on DoD project and a ruling on a 2019 project. New awards totaled $1.8 billion, similar to 2024. Backlog was $2.2 billion.

2026 expected to spend ~$1.4 billion on share repurchases, including $400 million in first two months. Expect to conclude NuScale monetization efforts in Q2. Adjusted EBITDA guidance range $525 million to $585 million. Operating cash flow expected $300 million, excluding NuScale tax bill. Corporate G&A expenses ~$175 million to $185 million. Income tax rate ~26% to 28%.

Inherent risk that actual results and experience could differ materially from forward-looking statements. Risks related to project execution, such as delays or cost overruns on infrastructure projects, and uncertainties in client contract terms and insurance recoveries.

Q: Steven Fisher asked about initial guidance change and what's needed to hit targets.

A: James R. Breuer and John C. Regan said confidence from customers, with much in backlog and comfortable book-to-burn.

Q: Jamie Lyn Cook asked about power market opportunity.

A: James R. Breuer said power market evolved, with projects starting reimbursable and converting to fixed price, seeing multiple large projects.

Q: Sangita Jain asked about U.S. LNG FEED and Urban Solutions margin.

A: James R. Breuer said FEED is for ancillary scope, Urban Solutions margin affected by legacy projects.

Q: Andrew J. Wittmann asked about cash flows and corporate costs.

A: John C. Regan talked about tax, JV distributions, and Mission Solutions margin.

Q: Michael Stephan Dudas asked about Urban Solutions new clients.

A: James R. Breuer said market demand picking up for semis, data centers, and pharma with work for Lilly.

Q: Sangita Jain asked about backlog conversion and M&A.

A: John C. Regan and James R. Breuer discussed backlog conversion and M&A focus on tuck-in opportunities in target markets.

Q: Sangita Jain asked about competitive advantages and competition.

A: James R. Breuer said targeting markets where they have advantage, being selective in new markets like data centers