Fluor Corporation · NYSE:FLR
Fluor — Investor Day (April 2025)
52 slides from Fluor's investor day presentation, Apr 2, 2025
Slide 1: Strategy Update
STRATEGY UPDATE
Slide 2: Agenda Overview
Jason Landkamer Vice President, Investor Relations AGENDA OVERVIEW
Slide 3: Safe Harbor Statement
STRATEGY UPDATE 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 express
Slide 4: Agenda Overview
Strategy Update AGENDA OVERVIEW 8:00 AM WELCOME Jason Landkamer Jason Landkamer Kyle Morden Jennifer Kim 8:05 AM HEALTH SAFETY ENVIRONMENTAL (HSE) TOPIC Kyle Morden VP Investor Relations Construction Manager VP Project Director 8:10 AM VALUE CREATION TOPIC Jennifer Kim 8:15 AM OPENING REMARKS David
Slide 5: HSE Topic: Management Engagement
Kyle Morden Construction Manager HSE TOPIC MANAGEMENT ENGAGEMENT
Slide 6: Project Success – Malaysia Semiconductor Facility
HSE Topic PROJECT SUCCESS – MALAYSIA SEMICONDUCTOR FACILITY Achieved through high degree of management engagement 21M safe work hours with over 6,000 craft Fluor HSE Award of Excellence in 2022, 2023 and 2024 Fluor Safer Together 5 Star Award Malaysia Occupational Safety & Health Practitione
Slide 7: Management Engagement
HSE Topic MANAGEMENT ENGAGEMENT Touch Points and Planning Weekly management walk ACT Program – Awareness – Communication – Teamwork Lunches with craft Encouragement of regular HSE audits All hands meetings Detailed planning of execution Daily planning meetings with contractors Craft
Slide 8: Fluor in Life Sciences
Jennifer Kim Vice President, Project Director VALUE CREATION TOPIC FLUOR IN LIFE SCIENCES
Slide 9: Fluor Value to the Life Sciences Industry
Value Creation Topic FLUOR VALUE TO THE LIFE SCIENCES INDUSTRY Full EPC Services Provider for Capital Projects Engaged from early project stages Single point of accountability through all phases Global support for distributed execution of engineering and supply chain Best country sourcing fo
Slide 10: Opening Remarks
DAVID CONSTABLE CHAIRMAN & CEO OPENING REMARKS THE NEXT CHAPTER OPENING REMARKS FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
Slide 11: Key Messages
KEY MESSAGES 1 2 3 4 5 Well-positioned to Megatrends drive Business focused on Laser focused on Committed to return launch the next capital spend in our organic growth project delivery significant value to chapter of our strategy business shareholders 11
Slide 12: Strategy Laid Out in 2021: Building a Better Future
STRATEGY LAID OUT IN 2021: "BUILDING A BETTER FUTURE" Stakeholder Aspirations Mega Trends Strategic Priorities Trusted Energy Transition Reinforce Financial Advisor & Urbanization Discipline Pursue Great Place Industry 4.0 Fair and Balanced To Work Contract Terms Attractive Beyond Drive Growth Inves
Slide 13: Since the Last Strategy Update
SINCE THE LAST STRATEGY UPDATE….. Our actions… Our results… Reinforce Financial Building a Better Future Discipline Debt to capital: 55% 22% Simplified management structure Pursue Reimbursable Sold non-core businesses Fair and Balanced backlog: 45% 80% Contract Terms Capital restructure Ri
Slide 14: Beginning the Next Chapter: Grow and Execute
BEGINNING THE NEXT CHAPTER: GROW AND EXECUTE Commitment to Strategy Expand in growth Retain strict Continue financial Enhance project markets pursuit principles discipline delivery 14
Slide 15: The Next Chapter
Jim Breuer Chief Operating Officer (CEO effective May 1, 2025) OPENING REMARKS THE NEXT CHAPTER THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
Slide 16: Maintain Our Purpose, Vision, and Core Values
The Next Chapter MAINTAIN OUR PURPOSE, VISION, AND CORE VALUES 16
Slide 17: Strategy: Building a Better Future
The Next Chapter STRATEGY: BUILDING A BETTER FUTURE 2021-2024 “Fix & Build” Pursue Foster a Reinforce Financial Drive Growth Fair and Balanced High-Performance Discipline Across the Portfolio Culture with Purpose Contract Terms Improve capital structure Reinstate rigor around risk and Grow non-tradi
Slide 18: Core Competencies That Deliver Results
The Next Chapter CORE COMPETENCIES THAT DELIVER RESULTS Client Technical Global Project Relationships Expertise Presence Delivery 18
Slide 19: Metrics and Goals to Measure Success
The Next Chapter METRICS AND GOALS TO MEASURE SUCCESS Strategic Priorities 2025 - 2028 Reinforce Pursue Drive Growth Foster a Financial Discipline Fair and Balanced Across the Portfolio High-Performance Contract Terms Culture of Project Delivery Debt to capital 20-25% Maintain minimum 75% 10-1
Slide 20: Business Segments
The Next Chapter BUSINESS SEGMENTS URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS Mining & Metals Production & Fuels Nuclear & Advanced Technology & Life Sciences Chemicals Environmental Infrastructure LNG & Power National Security Plant & Facility Services TRS Staffing KEY G
Slide 21: Financial Priorities
John Regan Chief Financial Officer OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
Slide 22: Strong Capital Structure
Financial Priorities STRONG CAPITAL STRUCTURE ACTIONS TAKEN $600M $600M $800M Convertible Preferred Debt Reduction Net Cash Growth Stock & Subsequently converted RESULTS DELIVERED 2.1x 22% $3.0B Debt to Adj. EBITDA Debt to Cap Following Cash Balance (was >4.2x) SMR Deconsolidation (was 55%) 22
Slide 23: Committed to Significant Shareholder Returns
Financial Priorities COMMITTED TO SIGNIFICANT SHAREHOLDER RETURNS ALL DRIVEN BY CORE OPERATIONS Share repurchase underway Completed $150 million in repurchases Q1; $150 million repurchase goal for Q2 Targeting over 50% of expected operating cash flow to be directed toward equity holders FUTURE
Slide 24: Capital Allocation Overview 2025-2028
Financial Priorities CAPITAL ALLOCATION OVERVIEW 2025-2028 Supporting & driving growth in business Legacy project funding Acquisitions and contingent needs Capital expenditures Near-term share and debt repurchases ~$1.0B in potential excess cash Potential excess for shareholder return 24
Slide 25: Driving Capital Efficiency
Financial Priorities DRIVING CAPITAL EFFICIENCY Over the course of our strategic planning period, we see an ability to utilize tax attributes from past losses to minimize taxes of up to $2 billion in earnings in select jurisdictions, including the U.S. 25
Slide 26: Pathway to Success
Financial Priorities PATHWAY TO SUCCESS Project delivery focus that drives 1 consistent and predictable results Generate consistent and growing cash 2 flow from contracts with fair and balanced terms Enhanced focus on efficient 3 deployment of Fluor capital and expanding use of automation 26
Slide 27: Urban Solutions
Tony Morgan Group President, Urban Solutions OPENING REMARKS THE NEXT CHAPTER URBAN SOLUTIONS FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
Slide 28: Business Overview
Urban Solutions BUSINESS OVERVIEW ATLS* MINING & METALS INFRASTRUCTURE P&FS TRS Pharmaceutical Copper & Iron Ore Road & Bridge Power Plant Maintenance Contingent Work Force Biotechnology Critical Minerals O&M Basic Manufacturing Client Secondment Services Data Centers Undergr
Slide 29: Market Focus – ATLS
Urban Solutions MARKET FOCUS – ATLS TARGET BIDDING MARKET 50 Market Trends Life sciences including pharmaceutical, biological and fill & finish 40 driving growth in 2025-2026 32% CAGR Data centers and semiconductors driving growth in 2027-2028 US$ Billion 30 Time-to-market focus in resource co
Slide 30: Value Proposition – ATLS
Urban Solutions VALUE PROPOSITION – ATLS TECHNICAL SOLUTIONS DELIVERING CHALLENGING PROJECTS Project Delivery Studio for studies Go-to company for global mega-projects Facilities Integration Group Seamless integration of project phases with single point accountability Experience based conc
Slide 31: Market Focus – Mining & Metals
Urban Solutions MARKET FOCUS – MINING & METALS TARGET BIDDING MARKET Market Trends 50 Energy transition & urbanization driving growth Copper is most sought-after commodity for majors 40 Impacts of global uncertainty 11% US$ Billion 30 CAGR Market Positioning Brand leader and trusted advisor
Slide 32: Value Proposition – Mining & Metals
Urban Solutions VALUE PROPOSITION – MINING & METALS TECHNICAL SOLUTIONS DELIVERING CHALLENGING PROJECTS Best in class study expertise for definition Proven mega project track record and quantification of projects Technical excellence linked to capital Innovation focused on project delivery a
Slide 33: Core Competencies That Deliver Results
Urban Solutions CORE COMPETENCIES THAT DELIVER RESULTS Client Global Technical Expertise Project Delivery Relationships Presence Trusted partner Elite technical talent Global mobile workforce Proven track record Go-to company for quantification Conceptual through Global supply chain an
Slide 34: Project Delivery
Urban Solutions PROJECT DELIVERY LIFE SCIENCES COPPER DATA CENTERS Eli Lilly LP1 Anglo Quellaveco 2 x 48 MW data centers in India Manufacture of GLP-1 Mounjaro & Zepbound Open Pit Copper Concentrator, Moquegua EPCM awarded in Q1 2022 in Indiana Peru 12 million safe work hours EPCM aw
Slide 35: Strategy
Urban Solutions STRATEGY WHAT HOW Consolidate & expand brand Quality project delivery leader status in mining & metals budget & schedule certainty and life sciences Strategic business development Invest in our people the right markets Strengthen & expand global data the right clients Focus
Slide 36: Energy Solutions
Mike Alexander Group President, Energy Solutions OPENING REMARKS THE NEXT CHAPTER ENERGY SOLUTIONS FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
Slide 37: Business Overview
Energy Solutions BUSINESS OVERVIEW PRODUCTION & FUELS CHEMICALS LNG & POWER Traditional Refining Onshore/Offshore Upstream Base Chemicals Green & Sustainable H2 Liquefaction Nuclear Power Low Carbon Energy Production Oil & Gas Production Specialty Chemicals Chemicals LNG Gas Fi
Slide 38: Market Focus - Chemicals
Energy Solutions MARKET FOCUS - CHEMICALS Base Chemicals Specialty Chemicals Sustainable Chemicals ~$100B to a Cleaner Future in total market Green/ET Chemicals spend per year Strong position Sustaining Capital Projects Steady growth Highly reimbursable Chemicals is a long play market with ste
Slide 39: Market Focus - Power
Energy Solutions MARKET FOCUS - POWER Growth to meet increasing power demand driven by data centers 60 GW GAS-FIRED POWER Selectively pursue gas fired project with carbon capture, utilization and Growth in next 3 to 5 years in storage (CCUS) opportunities North America Early engagement with ma
Slide 40: Project Delivery
Energy Solutions PROJECT DELIVERY BASF GOLDEN ISLAND ALBEMARLE MEISHAN LNG CANADA 62M+ safe work hours on Fluor’s scope ENR 2024 Global Best Project Largest private energy investment project in Awarded 2024 HSE Award of Excellence (Power/Industrial) Canadian history Targeting on time deliv
Slide 41: Strategy
Energy Solutions STRATEGY WHAT HOW Winning repeat business, strengthening Project execution excellence execution, project delivery certainty Deliver our projects with Knowledge transfer across certainty and excellence Project leadership and talent project leadership teams Active client engagemen
Slide 42: Mission Solutions
Al Collins Group President, Mission Solutions OPENING REMARKS THE NEXT CHAPTER MISSION SOLUTIONS FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
Slide 43: Business Overview
Mission Solutions BUSINESS OVERVIEW NUCLEAR & ENVIRONMENTAL NATIONAL SECURITY Nuclear Assembly & Production Operations Logistics Services Environmental Cleanup Base Operations & Services Nuclear Fuel Technical Solutions Capital Projects Management High Tech Mission Services Civil A
Slide 44: Market Focus
Nuclear & Environmental MARKET FOCUS DOE’s budget maintains stable levels of spending Continuing federal commitments to address legacy cleanup mission National Nuclear Security Administration (NNSA) enjoys strong bipartisan support – Expect increasing funding Fluor positioned for domestic nuclea
Slide 45: Strategic Focus Areas
Nuclear & Environmental STRATEGIC FOCUS AREAS Sustain DOE Environmental Strengthen DOE NNSA Expand Adjacent Nuclear Management – Pantex M&O: $30B – EPC opportunities in fuel – Liquid Waste: $66B enrichment: $3B – Naval Reactors: $30B – Deactivation, Decommissioning – Savannah River Plutonium
Slide 46: Market Focus
National Security MARKET FOCUS U.S. National Security Priorities – Defend U.S. homeland – deter strategic attacks and aggression – Build and maintain resilient military forces and modernize Defense Industrial Base Substantial National Security Program – Spending across Army, Navy and Air Force – O
Slide 47: Strategic Focus Areas
National Security STRATEGIC FOCUS AREAS Sustain Core Competencies Strengthen Technical Expand High-tech Mission Solutions Services – DoD contingency logistics: $9B – Range services – Threat reduction – Intelligence Base Operations Services: $3B – Data center support – National Strategic Asset
Slide 48: Project Delivery
Mission Solutions PROJECT DELIVERY SAVANNAH RIVER M&O STRATEGIC PETROLEUM RESERVE ASCENSION ISLAND Awarded DOE’s Secretary’s Achievement Award Executed largest oil sale in history of site Execution plan addressed Air Force needs in remote Processed record amount of waste tank Storing 727 m
Slide 49: Strategy
Mission Solutions STRATEGY WHAT HOW Leverage NNSA/DOE strength Project delivery culture Grow adjacent nuclear Drive competitiveness and efficiency Provide advanced technical solutions to new clients and Launch technical solutions platform new markets underpinned by a Enhance international capability
Slide 50: Delivering the Strategy
Jim Breuer Chief Operating Officer (CEO effective May 1, 2025) OPENING REMARKS THE NEXT CHAPTER DELIVERING THE STRATEGY FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
Slide 51: Delivering the Strategy
DELIVERING THE STRATEGY Well-positioned to launch the next chapter of our strategy Megatrends drive capital spend in our business Businesses focused on organic growth Laser focused on project delivery Committed to return significant value to shareholders Reinforce Pursue Drive Growth Foster a F
Slide 52: Fluor Management Team Q&A
FLUOR, Fluor Management Team