IRVING, Texas - Fluor Corporation (NYSE: NYSE:FLR) reported a decline in its first-quarter earnings and revenue, falling short of Wall Street expectations.
The engineering and construction firm posted an adjusted EPS of $0.47, which was below the analyst consensus of $0.53. Revenue for the quarter also missed estimates, coming in at $3.73 billion against the expected $4.01 billion. Following the announcement, Fluor's stock fell by 7%, indicating investor disappointment with the company's financial performance.
The first quarter of 2024 saw Fluor's revenue decrease slightly from the same period last year, which was $3.75 billion. Despite the revenue shortfall, net income attributable to Fluor was $59 million, or $0.34 per diluted share, a significant improvement from the $107 million loss reported in the first quarter of the previous year.
This improvement was attributed to substantial new awards in the Urban Solutions segment, leading to a backlog reaching levels not seen since 2019, according to David Constable, chairman and CEO of Fluor.
Fluor's adjusted EBITDA for the quarter stood at $88 million. The company also confirmed its full-year 2024 adjusted EPS guidance range of $2.50 to $3.00, with the midpoint of $2.75 slightly below the analyst consensus of $2.80. The company's adjusted EBITDA guidance for the year remains unchanged at $600 to $700 million.
The Energy Solutions segment reported a profit of $68 million, down from $88 million in the prior year's quarter, impacted by cost growth for a construction subcontract in Mexico. Urban Solutions, however, showed a profit of $50 million, a significant turnaround from a $20 million loss in the first quarter of 2023, driven by increased execution activities on multiple projects.
The company's outlook remains positive, with Constable stating that the demand for their services in life sciences and semiconductor opportunities is just beginning. Fluor expects to divest its non-core businesses by the end of the second quarter, which is part of its strategic plan to focus on its core strengths.
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