Slide 1: Q3 2023 Results
Q3 2023 RESULTS November 3, 2023 © 2023 Fluor Corporation. All Rights Reserved.
Slide 2: Safe Harbor Statement
This presentation contains forward-looking statements (including without limitation statements to the effect that the Company or its management “will,” “believes,” “expects,” “plans,” “intends,” “continue,” “anticipates,” is “positioned” or other similar expressions). These forward-looking statement
Slide 3: Opening Comments
Opening Comments Fluor leveraging AI technologies across the organization ̶ Started with industry exclusive partnership with IBM in 2018 Platform now includes over 200 projects spanning 20 years ̶ Developed predictive analytics solutions for our projects and supply chain organization Currently
Slide 4: Opening Comments
Opening Comments Q3 revenue $4 billion $5B ̶ 10% improvement from Q3 22 NEW Q3 new awards of $5 billion AWARDS 87% 94% 71% 68% ̶ 94% reimbursable Backlog 70% reimbursable FY 2020 FY 2021 FY 2022 Q3 2023 Margins on new awards 70 basis points above existing backlog $26B Prospect pipeline mor
Slide 5: Segment Updates
SEGMENT UPDATES FLUOR.
Slide 6: Urban Solutions
Urban Solutions Q3 segment profit of $66 million ̶ Incentive fee earned on large mining project nearing completion ̶ Favorable arbitration on a separate mining project Q3 new awards of $1.0 billion Segment backlog 59% reimbursable $11,051 CONSOLIDATED $8,057 Q3 2022 BACKLOG AND NEW AWARDS Q3 2
Slide 7: Urban Solutions – Mining & Metals
Urban Solutions – Mining & Metals Working on front end studies for critical minerals production and green steel technologies Several clients nearing final investment decisions Q4 award for BHP’s Jansen Potash project in Canada Near term prospects include: ̶ Lithium ̶ Steel ̶ Copper © 2023 Fl
Slide 8: Urban Solutions – ATLS & Infrastructure
Urban Solutions – ATLS & Infrastructure Completed Bayer’s first Cell Therapy Launch Facility ATLS Q3 new awards include: ̶ Semiconductor facility in the Pacific Northwest ̶ Expansion facility in Denmark Well positioned to win additional semiconductor work and multi-billion-dollar opportunities
Slide 9: Mission Solutions
Mission Solutions Q3 segment profit of $38 million ̶ Increased execution activities for FEMA hurricane support New awards for the quarter include: ̶ Four-month extension at Portsmouth ̶ New award under LOGCAP V and additional FEMA task order awards ̶ Navy Nuclear Propulsion program extended $6,1
Slide 10: Energy Solutions
Energy Solutions Q3 segment profit of $177 million includes: ̶ Initial recognition of cost recovery entitlements on several fixed-price projects ̶ Cost growth on large upstream legacy project ̶ Charge for expected net settlement of longstanding claim Q3 new awards of $3.3 billion ̶ Confidential
Slide 11: Q3 2023 Financial Results
Q3 2023 FINANCIAL RESULTS © 2023 Fluor Corporation. GV20230147 11
Slide 12: Q3 2023 Financial Results
Q3 2023 Financial Results $4 $276 $216 billion million million revenue consolidated segment profit adjusted EBITDA $1.02 Diluted G&A Net interest New awards adjusted EPS income expense $5 $56 $42 billion million million © 2023 Fluor Corporation. GV20230147 12
Slide 13: Q3 2023 Financial Update
Q3 2023 Financial Update $2.4 billion in cash and marketable securities ̶ Excludes amounts held by NuScale Expect positive cash flow for full year ̶ Includes legacy project cash needs ̶ Excludes potential client concessions on Gordie Howe Project Agreement reached to sell Stork European busine
Slide 14: Q3 2023 Financial Update
Q3 2023 Financial Update Successful convertible debt offering ̶ $575 million 1.125% Senior Notes due 2029 ̶ Capped call purchased to prevent dilution up to $68.48 share price ̶ Effective yield ~3.47% ̶ Proceeds currently invested in deposits and marketable securities yielding +5% Will be used to
Slide 15: Outlook
OUTLOOK FLUOR.
Slide 16: Outlook
Outlook Raising FY 2023 guidance ̶ Adjusted EPS range: $2.50 to $2.70 ̶ Adjusted EBITDA guidance: ~$600 million Q4 2023 assumptions ̶ Revenue: >$4 billion ̶ Adjusted G&A expense: ~$50 million ̶ Effective tax rate: ~40% Q4 2023 and FY 2023 segment margin guidance* Business Segment Q4 2023 FY 20
Slide 17: Q&A
Q&A © 2023 Fluor Corporation. GV20230147 17
Slide 18: Appendix: Non-GAAP Reconciliations & Convertible Debt Share Impact
APPENDIX Non-GAAP Reconciliations & Convertible Debt Share Impact © 2023 Fluor Corporation. GV20230147 18
Slide 19: Reconciliation of U.S. GAAP Net Earnings and EPS to Adjusted EPS
Reconciliation of U.S. GAAP Net Earnings and U.S. GAAP EPS to Adjusted EPS(1) RECONCILIATION OF U.S. GAAP NET EARNINGS TO ADJUSTED NET EARNINGS AND U.S. GAAP EARNINGS PER SHARE TO ADJUSTED (1) EARNINGS PER SHARE Three Months Ended Nine Months Ended September 30, September 30, (In millions, except pe
Slide 20: Reconciliation of U.S. GAAP Net Earnings to Adjusted EBITDA
Reconciliation of U.S. GAAP Net Earnings to Adjusted EBITDA(1) RECONCILIATION OF U.S. GAAP NET EARNINGS TO ADJUSTED EBITDA (1) Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2023 2022 2023 2022 Net earnings attributable to Fluor $ 206 $ 22 $ 161 $ 136 Interest (Net) (
Slide 21: Convertible Debt Share Impact
Convertible Debt Share Impact Note: conversions done over $68.48/share are only dilutive if settled in shares as they can also be settled in cash © 2023 Fluor Corporation. GV20230147 21