Fluor Corporation (NYSE: FLR) announced financial results for its second quarter ended June 30, 2023. Revenue for the quarter was $3.9 billion and net earnings attributable to Fluor were $61 million, or $0.35 per diluted share. Consolidated segment profit1 for the quarter was $191 million compared to $108 million profit in the second quarter of 2022. Excluding the adjustments outlined in the reconciliation table at the end of this release, the company recognized adjusted earnings per diluted share of $0.76.
“Our positive results for the quarter continue to support our strategic direction and confirms there is strong demand for our engineering and construction solutions,” said David E. Constable, chairman and chief executive officer of Fluor. “We believe we are approaching an inflection point that will deliver increasing shareholder value.”
Second quarter new awards were consistent with company expectations at $3.7 billion compared to $3.6 billion in the second quarter of 2022. Ending consolidated backlog was $25.5 billion compared to $19.5 billion a year ago. General and administrative expenses for the second quarter of 2023 were $60 million compared to Q2 2022 expenses of $45 million. Fluor’s cash and marketable securities at the end of the quarter were $2.1 billion, excluding cash held by NuScale.
Outlook
We are not providing forward-looking guidance for U.S. GAAP net earnings or U.S. GAAP earnings per share, or a quantitative reconciliation of adjusted EBITDA or adjusted EPS guidance, because we are unable to predict with reasonable certainty all of the components required to provide such reconciliation without unreasonable efforts, which are uncertain and could have a material impact on GAAP reported results for the guidance period. See “Non-GAAP Financial Measures” for additional information.
Fluor is increasing its full year adjusted EPS guidance from $1.50 to $1.90 per diluted share to a range of $2.00 to $2.30 per diluted share. The company is also tightening its full year adjusted EBITDA guidance from the previous range of $450 to $600 million to an updated range of $500 to $600 million. This revised guidance is based on the strong underlying performance of our non-legacy portfolio and achieving as-sold margins on large Energy Solutions projects. The company also reaffirms its guidance for 2026.
Business Segments
Energy Solutions reported a profit of $89 million in the second quarter compared to $65 million in the second quarter of 2022. The increase in segment profit from the prior year was the result of the ramp-up of execution activities on refinery projects in Mexico and positive forecast adjustments totaling $74 million on two projects. This was partially offset by $34 million in cost growth and schedule extension on a large upstream legacy project that is nearing completion. Revenue for the quarter increased to $1.7 billion from $1.3 billion a year ago due to increased execution activities on refinery projects in Mexico, mid-scale LNG projects and recently awarded chemicals projects in China. New awards in the quarter totaled $753 million, compared to $1.3 billion in the second quarter of 2022. Ending backlog was $7.6 billion compared to $8.4 billion a year ago.
Urban Solutions reported a profit of $76 million in the second quarter compared to $12 million profit in the second quarter of 2022. Results include a positive forecast adjustment on a legacy infrastructure project as well as the ramp-up of execution activities on newly awarded projects. Revenue for the second quarter increased to $1.2 billion from $1.1 billion a year ago. New awards for the quarter were $2.3 billion, up from $2.0 billion a year ago. Ending backlog was $11.7 billion compared to $8.3 billion a year ago.
Mission Solutions reported a profit of $40 million in the second quarter compared to $28 million in the second quarter of 2022. Results for the quarter reflect increased execution on a European logistics support project for the Army and the carbon-free power project for NuScale’s client partially offset by an incremental charge for cost growth on the F.E. Warren Air Force Base project. Revenue for the second quarter increased to $705 million from $547 million a year ago. New awards for the quarter totaled $339 million, compared to $52 million in the second quarter of 2022. Ending backlog was $4.9 billion compared to $1.9 billion a year ago.
The Other segment, which includes Stork and Fluor’s 56% ownership in NuScale, reported revenue of $311 million and a loss of $14 million. Segment results for the quarter include $23 million of loss related to NuScale.
