Fluor Corp. Files 10-Q for Period Ending March 31, 2024

AI Summary

FLUOR CORP (FLR) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Fluor Corp. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's headquarters are located at 6700 Las Colinas Blvd, Irving, TX 75039. Fluor Corp. is incorporated in Delaware. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023.

Why It Matters

For investors and stakeholders tracking FLUOR CORP, this filing contains several important signals. This filing provides investors with the latest quarterly financial performance and operational updates for Fluor Corp. Understanding the details within this 10-Q is crucial for assessing the company's current financial health and future prospects.

Risk Assessment

Risk Level: low — FLUOR CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant new disclosures that would suggest a high-risk event.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand Fluor Corp.'s performance and outlook.

Key Numbers

• 2024-03-31 — Period of Report (CONFORMED PERIOD OF REPORT)
• 2024-05-03 — Filing Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (2024-01-01)
• 2024-03-31 — Quarter End Date (2024-03-31)

Key Players & Entities

• Fluor Corp (company) — FILER
• 6700 Las Colinas Blvd (address) — BUSINESS ADDRESS
• Irving (location) — BUSINESS ADDRESS CITY
• TX (location) — BUSINESS ADDRESS STATE
• 75039 (postal_code) — BUSINESS ADDRESS ZIP
• DE (location) — STATE OF INCORPORATION

FAQ

Industry Context

Fluor Corp. operates in the heavy construction sector, focusing on projects other than building construction.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports.

What Investors Should Do

1. Analyze the consolidated balance sheets for changes in assets, liabilities, and equity.
2. Review the consolidated statements of operations for revenue and net income trends.
3. Examine the consolidated statements of cash flows for operating, investing, and financing activities.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update from the previous year-end report (10-K).

Key Financial Figures

• $0.01 — hares of the registrant's common stock, $0.01 par value, were outstanding. Table of

Filing Documents

• flr-20240331.htm (10-Q) — 901KB
• flr2024q1ex101.htm (EX-10.1) — 76KB
• flr2024q1ex102.htm (EX-10.2) — 82KB
• flr2024q1ex103.htm (EX-10.3) — 84KB
• flr2024q1ex104.htm (EX-10.4) — 42KB
• flr2024q1ex311.htm (EX-31.1) — 10KB
• flr2024q1ex312.htm (EX-31.2) — 10KB
• flr2024q1ex321.htm (EX-32.1) — 6KB
• flr2024q1ex322.htm (EX-32.2) — 6KB
• image_1a.jpg (GRAPHIC) — 1KB
• 0001628280-24-020092.txt ( ) — 6057KB
• flr-20240331.xsd (EX-101.SCH) — 40KB
• flr-20240331_cal.xml (EX-101.CAL) — 58KB
• flr-20240331_def.xml (EX-101.DEF) — 232KB
• flr-20240331_lab.xml (EX-101.LAB) — 564KB
• flr-20240331_pre.xml (EX-101.PRE) — 397KB
• flr-20240331_htm.xml (XML) — 669KB

Notes to Financial Statements

Notes to Financial Statements 8 Item 2:

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3:

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4:

Controls and Procedures

Controls and Procedures 22 Changes in Consolidated Backlog (Unaudited) 23 Part II: Other Information Item 1:

Legal Proceedings

Legal Proceedings 24 Item 1A:

Risk Factors

Risk Factors 24 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 4: Mine Safety Disclosures 24 Item 5: Other Information 24 Item 6: Exhibits 25

Signatures

Signatures 26 1 Table of Contents Glossary of Terms The definitions and abbreviations set forth below apply to the indicated terms used throughout this filing. Abbreviation/Term Definition 2023 10-K Annual Report on Form 10-K for the year ended December 31, 2023 2023 Quarter Three months ended March 31, 2023 2024 Quarter Three months ended March 31, 2024 3ME Three months ended AMECO American Equipment Company, Inc. AOCI Accumulated other comprehensive income (loss) APIC Additional paid-in capital ASC Accounting Standards Codification ASU Accounting Standards Update CFM Customer-furnished materials COVID Coronavirus pandemic CPS Convertible preferred stock CTA Currency translation adjustment DB plan Defined benefit pension plan DOE U.S. Department of Energy DOJ U.S. Department of Justice EPC Engineering, procurement and construction EPS Earnings (loss) per share Exchange Act Securities Exchange Act of 1934 FASB Financial Accounting Standards Board Fluor Fluor Corporation G&A General and administrative expense GAAP Accounting principles generally accepted in the United States ICFR Internal control over financial reporting IT Information technology LNG Liquefied natural gas NCI Noncontrolling interests NM Not meaningful NuScale NuScale Power Corporation OCI Other comprehensive income (loss) PP&E Property, plant and equipment RSU Restricted stock units RUPO Remaining unsatisfied performance obligations SEC Securities and Exchange Commission SGI Stock growth incentive awards Stork Stork Holding B.V. and subsidiaries TSR Total shareholder return VIE Variable interest entity 2 Table of Contents

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FLUOR CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS UNAUDITED 3ME March 31, (in millions, except per share amounts) 2024 2023 Revenue $ 3,734 $ 3,752 Cost of revenue ( 3,635 ) ( 3,790 ) Gross profit (loss) 99 ( 38 ) G&A ( 59 ) ( 62 ) Foreign currency gain (loss) 12 ( 41 ) Operating profit (loss) 52 ( 141 ) Interest expense ( 13 ) ( 16 ) Interest income 52 57 Earnings (loss) before taxes 91 ( 100 ) Income tax expense ( 51 ) ( 30 ) Net earnings (loss) 40 ( 130 ) Less: Net earnings (loss) attributable to NCI ( 19 ) ( 23 ) Net earnings (loss) attributable to Fluor $ 59 $ ( 107 ) Less: Dividends on CPS — 10 Net earnings (loss) available to Fluor common stockholders $ 59 $ ( 117 ) Basic EPS available to Fluor common stockholders $ 0.35 $ ( 0.82 ) Diluted EPS available to Fluor common stockholders 0.34 $ ( 0.82 ) The accompanying notes are an integral part of these financial statements. 3 Table of Contents FLUOR CORPORATION CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) UNAUDITED 3ME March 31, (in millions) 2024 2023 Net earnings (loss) $ 40 $ ( 130 ) OCI, net of tax: Foreign currency translation adjustment ( 45 ) 46 Other ( 4 ) 1 Total OCI, net of tax ( 50 ) 46 Comprehensive income (loss) ( 10 ) ( 84 ) Less: Comprehensive income (loss) attributable to NCI ( 19 ) ( 23 ) Comprehensive income (loss) attributable to Fluor $ 9 $ ( 61 ) The accompanying notes are an integral part of these financial statements. 4 Table of Contents FLUOR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET UNAUDITED (in millions, except share and per share amounts) March 31, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents ($ 462 and $ 491 related to VIEs) $ 2,335 $ 2,519 Marketable securities 74 69 Accounts receivable, net ($ 212 and $ 135 related to VIEs) 1,099 1,137 Contract assets ($ 167 and

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS UNAUDITED 1. Principles of Consolidation These financial statements do not include footnotes and certain financial information presented annually under GAAP, and therefore, should be read in conjunction with our 2023 10-K. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. Although such estimates are based on management's most recent assessment of the underlying facts and circumstances utilizing the most current information available, our reported results of operations may not necessarily be indicative of results that we expect for the full year. The financial statements included herein are unaudited. We believe they contain all adjustments of a normal recurring nature which are necessary to present fairly our financial position and our operating results as of and for the periods presented. All significant intercompany transactions of consolidated subsidiaries are eliminated. Certain amounts in tables may not total or agree back to the financial statements due to immaterial rounding differences. Management has evaluated all material events occurring subsequent to March 31, 2024 through the filing date of this Q1 2024 10-Q. Quarters are typically 13 weeks in length but, due to our December 31 year-end, the number of weeks in a reporting period may vary slightly during the year and for comparable prior year periods. We report our quarterly results of operations based on periods ending on the Sunday nearest March 31, June 30 and September 30, allowing for 13-week interim reporting periods. For clarity of presentation, all periods are labeled as if the periods ended on March 31, June 30 and September 30. 2. Recent Accounting Pronouncements We did not implement any new accounting pronouncements during the 2024 Quarter. However, we are evaluating the impact of the future disclosures that may arise under recent SEC and other promulgators' recently finalized rules and outstandi

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS UNAUDITED 3. Earnings Per Share Potentially dilutive securities include CPS, convertible debt, stock options, RSUs and performance-based award units. Diluted EPS reflects the assumed exercise or conversion of all dilutive securities using the if-converted and treasury stock methods. In computing diluted EPS, only securities that are actually dilutive are included. 3ME March 31, (in millions, except per share amounts) 2024 2023 Net earnings (loss) attributable to Fluor $ 59 $ ( 107 ) Less: Dividends on CPS — 10 Net earnings (loss) available to Fluor common stockholders 59 ( 117 ) Weighted average common shares outstanding 171 142 Diluted effect: CPS — — Stock options, RSUs and performance-based award units 2 — Convertible debt (1) — — Weighted average diluted shares outstanding 173 142 Basic EPS available to Fluor common stockholders $ 0.35 $ ( 0.82 ) Diluted EPS available to Fluor common stockholders $ 0.34 $ ( 0.82 ) Anti-dilutive securities not included in shares outstanding: CPS — 27 Stock options, RSUs and performance-based award units 2 5 Stock delivered under capped call options (2) — — (1) Holders of our 2029 Notes may convert their notes at a conversion price of $ 45.37 per share when the stock price exceeds $ 58.98 for 20 of the last 30 days preceding quarter end. Upon conversion, we will repay the principal amount of the notes in cash and may elect to convey the conversion premium in cash, shares of our common stock or a combination of both. The conversion feature of our 2029 Notes will have a dilutive impact on EPS when the average market price of our common stock exceeds the conversion price of $ 45.37 per share for the quarter. During the 2024 Quarter, the weighted average price per share of our common stock was less than the minimum conversion price. (2) Diluted shares outstanding does not include the impact of the capped call options we entered into concurrently with the issuance of the 202

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS UNAUDITED 4. Operating Information by Segment and Geographic Area 3ME March 31, (in millions) 2024 2023 Revenue Energy Solutions $ 1,432 $ 1,612 Urban Solutions 1,479 1,208 Mission Solutions 601 649 Other 222 283 Total revenue $ 3,734 $ 3,752 Segment profit (loss) Energy Solutions $ 68 $ 88 Urban Solutions 50 ( 20 ) Mission Solutions 22 7 Other ( 22 ) ( 90 ) Total segment profit (loss) $ 118 $ ( 15 ) G&A ( 59 ) ( 62 ) Foreign currency gain (loss) 12 ( 41 ) Interest income (expense), net 39 41 Earnings (loss) attributable to NCI ( 19 ) ( 23 ) Earnings (loss) before taxes $ 91 $ ( 100 ) Intercompany revenue for our professional staffing business, excluded from revenue above $ 81 $ 69 Energy Solutions. Segment profit in the 2024 Quarter was adversely impacted by $ 29 million (or $ 0.12 per share) in cost growth for delays, craft labor and material escalation on a construction only subcontract executed by our joint venture entity in Mexico. Segment profit in the 2023 Quarter included a favorable foreign currency remeasurement effect totaling $ 22 million (or $ 0.09 per share) on a project with multiple currencies. Segment profit in the 2024 Quarter included a gain of $ 7 million on embedded foreign currency derivatives compared to a loss of $ 39 million in the 2023 Quarter. Urban Solutions. Segment profit in the 2024 Quarter significantly improved due to the ramp up of execution activities on several recently awarded projects while segment profit in the 2023 Quarter included a $ 59 million (or $ 0.34 per share) charge for rework associated with subcontractor design errors on the LAX Automated People Mover project. Mission Solutions. Segment profit improved in the 2024 Quarter compared to the 2023 Quarter that included a $ 21 million (or $ 0.12 per share) charge for cost growth on a weapons facility project. Other . Segment profit (loss) for NuScale, Stork and AMECO follows: 3ME March 31, (in millions) 2024

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS UNAUDITED In March 2024, we completed the sale of Stork's operations in continental Europe for $ 67 million, including a second payment of $ 38 million that was received in April 2024. During the 2024 Quarter, we recognized a gain on sale of $ 11 million including de-recognition of Stork's net assets and cumulative foreign currency translation. During April 2024, we also entered into a definitive sale agreement for Stork's U.K. operations, which could close as early as the second quarter of 2024. The financial statement effects for this proposed U.K. sale did not meet the requirements for held-for-sale reporting as of March 31, 2024. The transaction, as agreed to, is not expected to have a material earnings impact when recognized. In March 2023, we sold our AMECO South America business, which included operations in Chile and Peru. This transaction marked the completion of the AMECO divestiture. Upon the sale of AMECO South America in the 2023 Quarter, we recognized a $ 60 million negative earnings impact, including $ 35 million associated with foreign currency translation. Total assets by segment are as follows: (in millions) March 31, 2024 December 31, 2023 Energy Solutions $ 1,085 $ 1,053 Urban Solutions 1,350 1,211 Mission Solutions 573 577 Other 267 509 Corporate 3,425 3,623 Total assets $ 6,700 $ 6,973 Revenue by project location follows: 3ME March 31, (in millions) 2024 2023 North America $ 2,372 $ 2,651 Asia Pacific (includes Australia) 443 324 Europe 772 512 Central and South America 67 221 Middle East and Africa 80 44 Total revenue $ 3,734 $ 3,752 11 Table of Contents FLUOR CORPORATION

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS UNAUDITED 5. Income Taxes The effective tax rate on earnings for the 2024 Quarter was 55.6 % compared to ( 30.1 )% for the 2023 Quarter. A reconciliation of U.S. statutory federal income tax expense to income tax expense follows: 3ME March 31, (In millions) 2024 2023 U.S statutory federal income tax expense $ 19 $ ( 21 ) Increase (decrease) in taxes resulting from: Valuation allowance, net ( 4 ) 52 Foreign tax impacts 7 8 Noncontrolling interest 4 5 Sale of AMECO South America — ( 10 ) Reserve for uncertain tax positions 17 — Other adjustments 7 ( 1 ) Total income tax expense $ 51 $ 30 6. Partnerships and Joint Ventures Many of our partnership and joint venture agreements provide for capital calls to fund operations, as necessary. Investments in a loss position of $ 274 million and $ 307 million were included in other accrued liabilities as of March 31, 2024 and December 31, 2023, respectively, and consisted primarily of provision for anticipated losses on two legacy infrastructure projects. Accounts receivable related to work performed for unconsolidated partnerships and joint ventures included in "Accounts receivable, net" was $ 186 million and $ 174 million as of March 31, 2024 and December 31, 2023, respectively. Variable Interest Entities The aggregate carrying value of unconsolidated VIEs (classified under both "Investments" and "Other accrued liabilities") was a net asset of $ 103 million and $ 91 million as of March 31, 2024 and December 31, 2023, respectively. Some of our VIEs have debt; however, such debt is typically non-recourse to us. Our maximum exposure to loss as a result of our investments in unconsolidated VIEs is typically limited to the aggregate of the carrying value of the investment and future funding necessary to satisfy the contractual obligations of the VIE. Future funding commitments as of March 31, 2024 for the un

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS UNAUDITED 8. Contingencies and Commitments We and certain of our subsidiaries are subject to litigation, claims and other commitments and contingencies, including matters arising in the ordinary course of business, of which the asserted value may be significant. We record accruals in the financial statements for contingencies when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. While there is at least a reasonable possibility that a loss may be incurred in any of the matters identified below, including a loss in excess of amounts accrued, management is unable to estimate the possible loss or range of loss or has determined such amounts to be immaterial. At present, except as set forth below, we do not expect that the ultimate resolution of any open matters will have a material adverse effect on our financial position or results of operations. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable outcomes could involve substantial monetary damages, fines, penalties and other expenditures. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position. We might also enter into an agreement to settle one or more such matters if we determine such settlement is in the best interests of our stakeholders, and any such settlement could include substantial payments. The following disclosures for commitments and contingencies have been updated since the matter was presented in the 2023 10-K. Fluor Australia Ltd., our wholly-owned subsidiary ("Fluor Australia"), completed a cost reimbursable engineering, procurement and construction management services project for Santos Ltd. ("Santos") involving a large network of natural gas gathering and processing facilities in Queensland, Australia. On December 13,