FLR Reports Revenue Growth in Latest Quarter
Segments of revenue
FLR Corporation reported total revenue of $15.47 billion in the latest quarter. The revenue breakdown by segment is as follows:
- Energy Solutions: $6.31 billion
- Urban Solutions: $5.26 billion
- Mission Solutions: $2.65 billion
- Other: $1.25 billion
FLR Corporation demonstrated strong revenue growth in the latest quarter, with a 12.6% increase compared to the same period last year. This growth can be attributed to increased execution activities on downstream projects, construction activities on a large LNG project, and favorable foreign currency remeasurement. The company also benefited from the initial recognition of inflation-adjusted variable consideration on certain projects. Management comments indicate that the collection of previously reserved accounts receivable and losses on embedded foreign currency derivatives contributed to segment profit in the previous year.
Despite the overall revenue growth, FLR Corporation faced challenges in the latest quarter. The company incurred charges totaling $91 million for cost growth and schedule extension on a large upstream legacy project, which impacted segment profit. Additionally, losses on embedded foreign currency derivatives negatively affected segment profit in the previous year.
It is worth noting that FLR Corporation experienced a significant decrease in revenue from its Energy Solutions segment's largest customer. In 2023, the revenue from this customer accounted for 10% of the company's consolidated revenue, compared to 14% and 13% in 2022 and 2021, respectively. This decrease in revenue from a key customer may pose a potential risk to the company's future financial performance.
FLR Corporation reported strong revenue growth in the latest quarter, driven by increased execution activities on projects, construction activities on a large LNG project, and favorable foreign currency remeasurement. However, the company faced challenges due to charges related to a large upstream legacy project and losses on embedded foreign currency derivatives. The decrease in revenue from a key customer in the Energy Solutions segment is also noteworthy and may impact the company's future performance. Overall, FLR Corporation's revenue performance in the latest quarter reflects both strengths and challenges for the company.