Fluor CEO David Constable says significant new contract awards in the June quarter show some clients are moving ahead with capital spending plans in a “challenging business environment”. They include mining and infrastructure projects that helped triple the value of contracts awarded to the company’s urban solutions business versus the same time last year.
Fluor’s urban solutions EPC arm services a curious mix of markets, including advanced technology, infrastructure, life sciences, and mining and metals.
The unit’s Q2 revenue dropped from $1.2 billion in 2021 to $1b this year as mining and metals projects in Australia and North America, and data centre projects in Europe, wound down. However, new awards in the latest quarter totalled $1.9b compared with $617 million in the same three months last year.
New awards included Australia’s first rare earths refinery in Western Australia and a large highway project in Texas, USA.
Fluor’s company-wide Q2 new awards of $3.6 billion took its backlog at the end of June to $19.5b.
Q2 revenue was $3.3b and net income from continuing operations was $66m.
The company’s full-year adjusted EBITDA guidance range is $380-430m, “consistent with original expectations for 2022”.
“Although I am disappointed with the performance to date on a few legacy infrastructure projects, our strategic priority to pursue contracts with fair and balanced terms continues to drive a healthier backlog with as-sold margins above our expectations,” Constable said.