Slide 1: Q1 2023 Results
Q1 2023 RESULTS May 5, 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 Recognizing key project milestone ̶ The Marathon L.A. Refinery project team was able to complete the project’s turnaround construction work packages by December 31, 2022 ̶ In the spirit of One Fluor they worked collaboratively around the clock to keep the work going and beat the d
Slide 4: Opening Comments
Opening Comments Q1 revenue $3.8 billion ̶ 20% improvement from Q1 22 NEW Q1 new awards of $3.2 billion AWARDS 71% 87% 81% 68% ̶ 81% reimbursable FY 2020 FY 2021 FY 2022 Q1 2023 Backlog 64% reimbursable FEED and study packages represent an estimated $290 billion of installed cost BACKLOG 63%
Slide 5: Segment Updates
SEGMENT UPDATES FLUOR.,
Slide 6: Urban Solutions
Urban Solutions Q1 segment loss of $20 million ̶ Results include additional costs on a legacy infrastructure project Q1 new awards of $1.8 billion ̶ 86% reimbursable Segment backlog 58% reimbursable $10,656 $7,345 CONSOLIDATED Q1 2022 BACKLOG AND $1,775 NEW AWARDS $620 Q1 2023 (Dollars in Mill
Slide 7: Urban Solutions – Mining & Metals
Urban Solutions – Mining & Metals Continue to successfully execute and deliver on nearly $4 billion in backlog Over the next 18 months, either working on, or have direct line of sight on, $7 billion of opportunity ̶ Includes decarbonization of metal production facilities, copper projects in Sout
Slide 8: Urban Solutions – Advanced Technologies & Life Sciences
Urban Solutions – Advanced Technologies & Life Sciences Q1 new awards include: – Large automated distribution center program in North America – Additional work for an existing semiconductor plant in Malaysia Tracking $1 billion in awards for Q2 Continue to position for large semiconductor fabr
Slide 9: Urban Solutions – Infrastructure
Urban Solutions – Infrastructure $59 million charge on the LAX Automated People Mover Project ̶ Includes rework associated with subcontractor design errors, the related schedule impacts and systems integration testing timelines ̶ Construction is 88% complete I-635 LBJ East Freeway project progre
Slide 10: Urban Solutions – Infrastructure (cont.)
Urban Solutions – Infrastructure (cont.) Common themes on legacy infrastructure contracts include: ̶ Lack of contractual protection for supply chain, labor escalation costs, labor availability ̶ Tempo of claims recovery negotiations Marshaling additional resources ̶ Rigorous control and oversigh
Slide 11: Mission Solutions
Mission Solutions Q1 segment profit of $7 million – Results include a $21 million charge for government directed change orders on F.E. Warren Air Force Base project – Project is over 70% complete Q1 new awards of $331 million – Six-month extension at the Portsmouth Decontamination and Decommissi
Slide 12: Energy Solutions
Energy Solutions Q1 segment profit of $88 million – Results reflect increased execution activities on refinery and LNG projects in North America, partially offset by $39 million for our embedded derivatives at ICA Fluor in Mexico Q1 new awards of $712 million – Two EPC projects for Pemex – Compr
Slide 13: Energy Solutions (cont.)
Energy Solutions (cont.) LNG Canada – Out of 215 modules, 205 have been shipped, and 196 modules have been delivered on site – Inside battery limit (ISBL) modules for Trains 1 and 2 have been installed Shell legacy offshore project expected to reach project completion this summer Robust prospe
Slide 14: Energy Transition
Energy Transition 40% of Energy Solutions new awards in Q1 related to energy transition Signed licensing agreement with Federated Co-Operatives Limited (FCL) for their renewable diesel facility – FCL will be deploying Fluor’s proprietary EconamineFG+ carbon capture technology Opportunities in
Slide 15: Q1 2023 Financial Results
Q1 2023 FINANCIAL RESULTS © 2023 Fluor Corporation. GV20230147 15
Slide 16: Q1 2023 Financial Results
Q1 2023 Financial Results $3.8 $15 $71 million billion million adjusted EBITDA revenue consolidated segment loss $0.28 Diluted G&A Net interest New awards adjusted EPS expense income $3.2 $62 $41 billion million million © 2023 Fluor Corporation. GV20230147 16
Slide 17: Q1 2023 Financial Results
Q1 2023 Financial Results $2.3 billion in cash and marketable securities ̶ Includes cash and marketable securities held by NuScale of $268 million Q1 operating cash outflow of $161 million ̶ Increase in working capital needs on several large projects ̶ Timing of annual incentive payments Expec
Slide 18: AMECO, Stork and NuScale Update
AMECO, Stork and NuScale Update AMECO – Sold remaining operations in South America – Received $144 million in cash proceeds since 2019 Stork – Expect to complete final divestiture negotiations of Stork’s European operations in Q2 – U.K. operations going to market in June NuScale – Focus on str
Slide 19: Outlook
OUTLOOK FLUOR.,
Slide 20: Outlook
Outlook Affirming 2023 guidance – Adjusted EPS range: $1.50 to $1.90 – Adjusted EBITDA guidance: $450 to $600 million 2023 assumptions – Revenue: ~10% growth – Adjusted G&A expense: ~$45 million per quarter – Effective tax rate: ~40% 2023 segment margin guidance* – Energy Solutions: ~5.5% – Ur
Slide 21: Q&A
Q&A © 2023 Fluor Corporation. GV20230147 21
Slide 22: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations © 2023 Fluor Corporation. GV20230147 22
Slide 23: Reconciliation of GAAP Net Earnings and EPS to Adjusted EPS
Reconciliation of U.S. GAAP Net Earnings (Loss) and U.S. GAAP Earnings per Share to Adjusted EPS(1) THREE MONTHS ENDED MARCH 31, (In millions, except per share amounts) 2023 2022 Net earnings (loss) attributable to Fluor $ (107) $ 48 Less: Dividends on CPS (10) (10) Net earnings (loss) available to
Slide 24: Reconciliation of GAAP Net Earnings (Loss) to Adjusted EBITDA
Reconciliation of U.S. GAAP Net Earnings (Loss) to Adjusted EBITDA(1) THREE MONTHS ENDED MARCH 31, (in millions) 2023 2022 Net earnings (loss) attributable to Fluor $ (107) $ 48 Interest (41) 9 Taxes 30 31 Depreciation & Amortization 18 15 EBITDA $ (100) $ 103 Adjustments: Other: NuScale, Stork and
Slide 25: Reconciliation to Total Segment Profit (Loss)
Reconciliation of U.S. GAAP Net Earnings (Loss) from Continuing Operations Before Taxes to Total Segment Profit (Loss)(1) THREE MONTHS ENDED MARCH 31, (in millions) 2023 2022 Earnings (loss) before taxes (100) 87 G&A (62) (71) Impa i rment - 63 Forei gn currency ga i n (l os s ) (41) (19) Interes t