Slide 1: Q3 2022 Results
Q3 2022 Results November 4, 2022 © 2022 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,” is “positioned” or other similar expressions). These forward-looking statements, including st
Slide 3: Opening Comments
OPENING COMMENTS a ° ~ == L,
Slide 4: Opening Comments
Opening Comments Supply Chain Summit ̶ Brought together Fluor, our clients, suppliers and contractors across the globe ̶ Ongoing industry trends, new business ideas and solutions to current supply chain challenges were discussed ̶ Proceeds committed to non-profit organizations Carolinas Virginia
Slide 5: Opening Comments
Opening Comments Profits impacted by $107 million in infrastructure charges ̶ $64 million I-635 LBJ East Freeway project ̶ $22 million Gordie Howe project ̶ $21 million LAX Automated People Mover project Actions taken on legacy projects ̶ Strengthened leadership in support of our joint ventures
Slide 6: Opening Comments
Opening Comments Q3 New awards: $9.7 billion ̶ 2.7 book-to-burn NEW ̶ Second largest new awards quarter in AWARDS Fluor’s history ̶ 91% of new awards are reimbursable FY 2006 FY 2015 FY 2021 Q3 2022 Backlog now 58% reimbursable Current FEED and study packages represent ~$131 billion in high-qu
Slide 7: Urban Solutions
URBAN SOLUTIONS FLUOR.
Slide 8: Urban Solutions
Urban Solutions Q3 segment loss: $54 million ̶ Results reflect cost growth on legacy infrastructure projects New awards of $929 million ̶ Book-to-burn approached 1x Retention of Stork’s North American Operations $7,827 $7,593 CONSOLIDATED Q3 2021 BACKLOG AND NEW AWARDS Q3 2022 $781 $929 (Dolla
Slide 9: Urban Solutions – Mining & Metals
Urban Solutions – Mining & Metals Incremental work for project in South America Currently working on LNTP for multiple clients $5 billion in near-term prospects to support demand for copper, gold, lithium and metals © 2022 Fluor Corporation. HO20220115 9
Slide 10: Urban Solutions – Advanced Technologies & Life Sciences
Urban Solutions – Advanced Technologies & Life Sciences Projects and prospects across the battery and data center markets Developing semiconductor opportunities Selected by a leading biologics company for a multi-hundred million-dollar reimbursable contract Q3 award from a new client for 5 m
Slide 11: Urban Solutions – Infrastructure
Urban Solutions – Infrastructure Two years ago, our strategy narrowed the focus of our Infrastructure business to State DOTs, moving away from large signature projects Strategy was further refined by adjusting our selectivity criteria, and saying no to projects, clients or JV arrangements that d
Slide 12: Mission Solutions
MISSION SOLUTIONS 12
Slide 13: Mission Solutions
Mission Solutions Q3 segment profit: $29 million New awards include – Savannah River, $4.5 billion, 4-year extension – U.S. Africa Command, 1-year extension $6,189 $4,874 CONSOLIDATED Q3 2021 $3,393 BACKLOG AND NEW AWARDS $1,610 Q3 2022 (Dollars in Millions) Backlog New Awards © 2022 Fluor Corpo
Slide 14: Energy Solutions
ENERGY SOLUTIONS FLUOR.
Slide 15: Energy Solutions
Energy Solutions Q3 segment profit: $59 million – $5 million embedded derivative loss – Declines in execution activity for projects nearing completion – Increased activity on recently awarded projects New Awards – More than $2 billion in reimbursable $10,183 contracts with BASF $9,805 CONSOLIDAT
Slide 16: Energy Solutions - LNG
Energy Solutions - LNG LNG Canada – Celebrated four-year milestone – Joint venture scope is approaching 75% complete – Out of 215 modules, 124 modules are onsite – Working with the client to resolve our COVID-related impacts Positioned to support increase in demand for LNG – Opportunity for addi
Slide 17: Energy Transition
Energy Transition Energy Transition activity across all business lines Project for a major automotive client involving subject matter experts from Energy and Mining & Metals New awards include atmospheric carbon removal facility for Carbon Capture Incorporated © 2022 Fluor Corporation. HO20220
Slide 18: NuScale
NUSCALE FLUOR.
Slide 19: NuScale
NuScale Recent developments ̶ Signed a task order to initiate the deployment of the first SMR in Poland ̶ NRC Advisory Committee on Reactor Safeguards issued a letter agreeing on NuScale’s methodology for determining smaller SMR emergency planning zones (EPZ) ̶ USTDA awarded a FEED study to develo
Slide 20: Q3 2022 Financial Results
Q3 2022 FINANCIAL RESULTS © 2022 Fluor Corporation. HO20220115 20
Slide 21: Q3 2022 Financial Results
Q3 2022 Financial Results $3.6 $31 $26 billion million million revenue segment profit adjusted EBITDA $0.07 Diluted Corporate New awards of Cash and adjusted EPS G&A $9.7 billion marketable $30 Book to burn: 2.7x securities million $2.6 billion © 2022 Fluor Corporation. HO20220115 21
Slide 22: Q3 2022 Financial Results
Q3 2022 Financial Results Q3 operating cash flow: $118 million ̶ Expect cash balance will be flat for the full year Asset Sales ̶ An agreement has been reached to divest Stork operations in Australia and New Zealand ̶ Stork North American operations will be retained as part of Urban Solutions as
Slide 23: Capital Structure
Capital Structure Debt to Capital Ratio NuScale 54.8% – De-SPAC lock-up period has ended Liability management 40.7% – $1.1 billion outstanding debt 36.5% – $145 million maturing in March 2023 – Debt-to-capital ratio is 36.5% – Intend to retire 2023 Notes using available cash – Reduce outstanding d
Slide 24: Outlook
Outlook Q4 Guidance – Adjusted EPS guidance: $0.50 to $0.60 – Adjusted EBITDA range: $125 to $150 million Q4 2022 assumptions – Revenue: more than $4.0 billion – Adjusted G&A expense: ~$40 million – Effective tax rate: ~34% Q4 2022 segment margin guidance* – Energy Solutions: ~4.5% – Urban Sol
Slide 25: Appendix
APPENDIX © 2022 Fluor Corporation. HO20220115 25
Slide 26: Reconciliation of U.S. GAAP Net Earnings and EPS to Adjusted EPS
Reconciliation of U.S. GAAP Net Earnings and U.S. GAAP Earnings per Share to Adjusted EPS(1) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, (In millions, except per share amounts) 2022 2021 2022 2021 Net earnings (loss) from Cont Ops attributable to Fluor $ 22 $ 42 $ 136 $ (127) Le
Slide 27: Reconciliation of Net Earnings to Adjusted EBITDA
(1) Reconciliation of Net Earnings to Adjusted EBITDA THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, (in millions) 2022 2021 2022 2021 Net earnings from Cont Ops attributable to Fluor $ 22 $ 42 $ 136 $ (127) Interest (14) 33 (4) 63 Taxes 27 29 89 35 Depreciation & Amortization 19 1