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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (77590)	5/24/2025 11:21:01 AM
From: E_K_S	Read Replies (1) \| Respond to of 78451

RE: Fluor Corp (FLR) - Value Analysis (cont) review by Perplexity AI & Google Gemini ---------------------------------------------------------------- Here's an analysis of Fluor's EPS, revenue breakdown by contract type, special one-time adjustments, and involvement in California pharma facilities, based on the latest available information: Earnings Per Share (EPS) for 2024 and 2025 (to date): Full Year 2024: GAAP EPS: $12.30 per diluted share. Adjusted EPS: $2.32 per diluted share. Q1 2025 (to date): GAAP EPS: ($1.42) per diluted share (a net loss). Adjusted EPS: $0.73 per diluted share. Breakdown of Revenue by Contract Type: Fluor's focus on shifting towards reimbursable contracts is primarily reflected in their new awards and backlog. While specific revenue percentages for reimbursable vs. fixed-price earned during the period aren't always explicitly broken down in quarterly summaries, their backlog composition provides a strong indicator of their revenue mix moving forward. 2024 Full Year: New awards: 85% reimbursable. Ending backlog: 79% reimbursable. Q1 2025: New awards: 87% reimbursable. Ending backlog: 79% reimbursable. This consistently high percentage of reimbursable contracts in their new awards and backlog demonstrates a strong move away from higher-risk fixed-price contracts, which was a stated goal of their "fix and build" strategy. Special One-Time Adjustments: Fluor has reported several significant one-time adjustments impacting their earnings in 2024 and Q1 2025: 2024 Full Year: NuScale Deconsolidation and Remeasurement: A significant non-cash gain of $2.221 billion due to the deconsolidation and subsequent remeasurement of Fluor's investment in NuScale. This is a primary driver of the high GAAP EPS for 2024. Provision related to a jury verdict: A $116 million provision related to a jury verdict against a Fluor joint venture on an infrastructure project completed over 12 years ago. Q1 2025: Equity Method Loss / Mark-to-market losses on NuScale: A $477 million mark-to-market loss on their investment in NuScale. This significantly impacted the GAAP net loss in Q1 2025. Positive adjustment from litigation settlement: An $84 million positive adjustment related to the settlement of a claim on an infrastructure project completed over 12 years ago. Impact of a court ruling on a long-completed Mission Solutions project: A $28 million reserve related to a recent ruling on a long-standing claim on a project completed in 2019. This impacted the Mission Solutions segment profit. Impact of reserves taken for a long-completed Energy Solutions project: A $22 million reserve related to a long-completed project at their joint venture in Mexico. This impacted the Energy Solutions segment profit. Do any of the projects include the Pharma facility built in California? Yes, Fluor has been involved in significant pharmaceutical facility projects in California: Bayer's Cell Therapy Launch Facility in Berkeley, California: Fluor announced in May 2025 that this facility, which they engineered, procured, and managed construction for, has achieved LEED v4 Platinum Certification. This is the first industrial manufacturing facility in the Western United United States to achieve this certification. Fluor's scope also included commissioning, qualification, and validation for the 144,000-square-foot facility, which includes 30,000 square feet of cleanroom space for cell therapy production. Bayer's Cell Culture Technology Center in Berkeley, California: Fluor previously completed construction of this state-of-the-art Single Use Technology biopharmaceutical manufacturing facility in 2021 on the same Bayer Biotech campus. It's important to note that while these projects are in California, Fluor also announced in April 2025 that they will provide EPCM services for a second multi-billion-dollar pharmaceutical facility in Indiana, indicating their continued strength in the life sciences sector beyond California. -------------------------------------------------------------------------- Here's a detailed breakout of Fluor's revenues by sector for 2024 and 2025 by quarter, including the percentage of total revenue for each sector, special one-time adjustments, and confirmation of projects in California: Fluor Corp (FLR) Revenue Breakout by Sector Fluor reports revenue across three main segments: Energy Solutions, Urban Solutions, and Mission Solutions, along with an "Other" category which historically included Stork and NuScale. Fiscal Year 2024 (Quarterly Breakout) Q1 2024 (Ended March 31, 2024) Total Revenue: $3.73 billion Energy Solutions: $1.5 billion Note: $29 million in cost growth on a construction-only subcontract in Mexico. Urban Solutions: $1.2 billion Mission Solutions: $601 million Other: $222 million Q2 2024 (Ended June 30, 2024) Total Revenue: $4.23 billion Energy Solutions: $1.5 billion (approx. $1.549 billion based on segment profit calculations) Urban Solutions: $1.8 billion Mission Solutions: $646 million Other: $97 million Q3 2024 (Ended September 30, 2024) Total Revenue: $4.09 billion Energy Solutions: $1.4 billion Note: Lower than expected contributions from a large project in late stages and $18 million in cost growth on a construction-only subcontract in Mexico. Urban Solutions: $1.9 billion Mission Solutions: $635 million Other: $100 million Q4 2024 (Ended December 31, 2024) Total Revenue: $4.26 billion Energy Solutions: $1.52 billion Urban Solutions: $2.0 billion Mission Solutions: $654 million Other: $87 million Fiscal Year 2025 (Quarterly Breakout - To Date) Q1 2025 (Ended March 31, 2025) Total Revenue: $3.98 billion Energy Solutions: $1.21 billion (down 15.7% year-over-year) Note: Decline due to projects nearing completion and a reserve related to a long-completed project in Mexico. Urban Solutions: $2.16 billion (up 45.8% year-over-year) Note: Driven by increased execution on life sciences projects, metals, and mining projects. Mission Solutions: $597 million (down 0.7% year-over-year) Note: Impacted by a $28 million reserve from a ruling on a long-standing claim from a 2019 project. Other: $22 million (significantly down from $222 million year-over-year, as NuScale is no longer consolidated). Percentage of Revenues by Contract Type (Based on Backlog & New Awards): As discussed, Fluor's reporting focuses on the composition of their backlog and new awards to demonstrate their shift to lower-risk contracts, rather than a direct revenue breakdown by contract type for the periods. 2024 Full Year: New awards: 85% reimbursable Ending backlog: 79% reimbursable Q1 2025: New awards: 87% reimbursable Ending backlog: 79% reimbursable This indicates that a large and growing portion of their future revenue will be generated from reimbursable contracts. Special One-Time Adjustments: These adjustments can significantly impact GAAP EPS and net earnings, often excluded from "adjusted" figures to show underlying operational performance. 2024 Full Year: NuScale Deconsolidation and Remeasurement: A non-cash gain of $2.221 billion. This was a primary driver of the high GAAP EPS for 2024. Provision related to a jury verdict: A $116 million provision against a Fluor joint venture on an infrastructure project completed over 12 years ago. Q1 2025: Equity Method Loss / Mark-to-market losses on NuScale: A $477 million mark-to-market loss on their investment in NuScale. This was a major contributor to the GAAP net loss. Positive adjustment from litigation settlement: An $84 million positive adjustment from the settlement of a claim on an infrastructure project completed over 12 years ago. Reserve related to a long-completed Mission Solutions project: A $28 million reserve stemming from a recent ruling on a long-standing claim (project completed in 2019). Reserve related to a long-completed Energy Solutions project: A $22 million reserve at a joint venture in Mexico. Do any of the projects include the Pharma facility built in California? Yes, Fluor has recently been involved in significant pharmaceutical facility projects in California: Bayer's Cell Therapy Launch Facility in Berkeley, California: Fluor engineered, procured, and managed construction for this facility, which recently achieved LEED v4 Platinum Certification. This highlights their capability in advanced manufacturing and life sciences, a key component of their Urban Solutions segment. Bayer's Cell Culture Technology Center in Berkeley, California: Fluor also completed construction of this facility in 2021 on the same Bayer Biotech campus in California. These California pharma projects fall under Fluor's Urban Solutions segment, which has seen significant growth, particularly due to increased execution activities in life sciences and advanced technology projects.

To: E_K_S who wrote (77590)	5/24/2025 2:08:10 PM
From: Paul Senior	Respond to of 78451

FLR. Very interesting. Thanks for this detailed review. I've not followed FLR. I bought into uranium stocks in late 2023 because "they said" we're going to need more uranium for more nuclear, and I believed. I passed on SMR (oops, a mistake) and instead went with uranium miners and particularly Sprott Physical Uranium Trust (which holds its assets in form of U238). SMR has done well this year, but not so for my miners or producers or uranium itself (down from 90 to 70 USD/Lbs this year). The more successful that NuScale is in developing/building/delivering the latest in nuclear reactors, presumably the more nuclear fuel will be needed, and that should, I hope, translate into better times and stock prices for uranium producers. I continue to hold my losing positions in this sector.