Fluor Reaffirms FY23 & FY26 Guidance Post Mixed Q1 Performance

Fluor Corp FLR reported a first-quarter FY23 revenue growth of 20% year-over-year to $3.75 billion, beating the consensus of $3.55 billion.
Sales by segment: Energy Solutions $1.61 billion (+37.3% Y/Y), Urban Solutions $1.21 billion (+13.9% Y/Y), Mission Solutions $649 million (+9.4% Y/Y) and Others $283 million (-3.7% Y/Y).
FLR recorded a total segment loss of $(15) million, compared to a profit of $115 million in 1Q22.
Net loss attributable to Fluor of $(107) million reflects project forecast revisions and sale of AMECO South America.
Adjusted EPS improved to $0.28 from $0.16 in 1Q22, missed the consensus of $0.37.
Adjusted EBITDA decreased by 21.1% Y/Y to $71 million, and the margin fell by 100 bps to 1.9%.
New awards in Q1 totaled $3.23 billion, up from $1.93 billion a year ago. Consolidated backlog was $25.62 billion as of March 31, 2023.
At the end of the quarter, Fluor’s cash and marketable securities were $2.3 billion, including $268 million held by NuScale.
FY23 Outlook, reaffirmed: Fluor sees FY23 adjusted EPS of $1.50-$1.90 (consensus $1.66) and Adjusted EBITDA of $450 million-$600 million.
It expects FY26 adjusted EPS of $3.10-$3.60 and Adjusted EBITDA of $800 million-$950 million.
Price Action: FLR shares traded lower by 1.39% at $27.00 on the last check Friday.

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