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FLR NYSE· Fluor Corporation
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FLR NYSE· Fluor Corporation
Earnings report Q4 2023

FLR Reports Mixed Revenue Performance in Latest Quarter

Segments of revenue

FLR Corporation reported revenue of $X billion in the latest quarter. The company's revenue is divided into different segments, with Energy Solutions being a significant contributor. The revenue from Energy Solutions customers accounted for 10% of the company's consolidated revenue in 2023. Additionally, a single Energy Solutions customer contributed 14% and 13% of the consolidated revenue in 2022 and 2021, respectively.

Strengths

FLR Corporation experienced an increase in segment profit in 2023 due to several factors. Firstly, the company benefited from the initial recognition of inflation-adjusted variable consideration on certain downstream projects. Furthermore, increased execution activities on these projects, as well as construction activities on a large LNG project, contributed to the growth in segment profit. The effects of favorable foreign currency remeasurement also played a role in boosting profitability. These positive factors indicate the company's ability to effectively execute projects and capitalize on favorable market conditions.

Challenges

Despite the overall growth in segment profit, FLR Corporation faced challenges in the form of charges totaling $91 million (or $0.53 per share). These charges were incurred due to cost growth and schedule extension on a large upstream legacy project. The company needs to address these challenges to mitigate the negative impact on its financial performance.

Noteworthy

It is worth mentioning that FLR Corporation's segment profit in 2021 included the collection of previously reserved accounts receivable and losses on embedded foreign currency derivatives. This indicates that the company took proactive measures to recover outstanding payments and manage foreign currency risks.

Summary

FLR Corporation reported mixed revenue performance in the latest quarter. While the company experienced an increase in segment profit, driven by factors such as project execution and favorable foreign currency remeasurement, it also faced challenges related to cost growth and schedule extension on a legacy project. FLR Corporation's ability to address these challenges and capitalize on its strengths will be crucial for its future financial performance.

Source documents

Form 10-K  filed on Feb 20, 2024
101 pages scanned

Reference data

Company financials Q4 revenue 3.82B
Analyst estimates Q4 EPS beat by 18.27%
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