- Q1 2022 diluted earnings per share (EPS) from continuing operations of $0.27; adjusted diluted EPS from continuing operations of $0.16
- Q1 2022 segment profit nearly doubles to $115 million
- Company reaffirms 2022 adjusted EPS guidance of $1.15 to $1.40
- NuScale transaction complete and now a publicly-traded company
- Anticipate significant conversion of prospect pipeline over the next three quarters
Fluor Corporation announced financial results for its first quarter ended March 31, 2022. Revenue for the quarter was $3.1 billion and net income from continuing operations attributable to Fluor was $48 million, or $0.27 per diluted share.
Consolidated segment profit for the quarter was $115 million compared to $60 million in the first quarter of 2021. Results for the period reflect higher than anticipated tax expenses and also include entities that were formerly in discontinued operations.
Excluding the results of these entities that continue to be marketed for sale together with certain other adjustments outlined in the table at the end of this release, adjusted earnings per diluted share were $0.16.
“This year is off to a great start as we see our strategic focus accelerate change and improve our competitive position in the key markets we serve,” said David Constable, chairman and chief executive officer of Fluor. “We see our clients moving forward with a significant amount of work over the next few quarters, and we are well positioned to deploy our world-class teams to support their efforts.”
First quarter new awards were $1.9 billion compared to $3.9 billion a year ago and consistent with company expectations. Ending consolidated backlog was $19.3 billion. Corporate G&A expenses for the first quarter of 2022 were $71 million compared to $67 million a year ago. Fluor’s cash and marketable securities at the end of the quarter were $2.1 billion.
During the quarter, the company suspended any new investment in its Russian operations. Fluor’s backlog on projects in this region is not a significant source of future revenue or margin. We continue to monitor the situation as we wind down our existing contractual obligations.
Fluor reaffirms its adjusted EPS guidance of $1.15 to $1.40 per diluted share. Adjusted EPS guidance excludes entities formerly in discontinued operations and other considerations outlined in the table at the end of this release. Guidance for 2022 anticipates a substantial volume of new awards from all segments. Guidance also assumes a tax rate of 28 percent, but the company notes that this rate may vary depending on the country in which profit is generated.
Energy Solutions reported a profit of $54 million in the first quarter compared to $2 million in the first quarter of 2021. Results include embedded derivative expenses of $13 million and $29 million respectively. Segment profit for the first quarter of 2022 reflects increased execution activities on projects in North America and a reduction in overhead costs. Revenue for the quarter was $1.2 billion, up from $1 billion a year ago. New awards in the quarter totaled $682 million, compared to $1.6 billion in the first quarter of 2021, and included a chemical project in Texas and a mid-scale LNG project offshore the U.S. Gulf Coast. Ending backlog was $8.5 billion compared to $11.1 billion a year ago.
Urban Solutions reported a profit of $15 million in the first quarter compared to $30 million in the first quarter of 2021. Segment profit in the quarter reflects the impact of cost growth on an advanced manufacturing project that is now complete, and the timing associated with the closing of a P3 transaction. Segment profit in the first quarter of 2021 included proceeds from the favorable settlement of a light-rail project. Revenue for the first quarter declined to $1 billion from $1.2 billion a year ago due to the closeout of data center projects in Europe and mining projects in South America. New awards for the quarter totaled $598 million, compared to $1.1 billion in the first quarter of 2021, and included a data center project in India. Ending backlog was $6.7 billion compared to $9.7 billion a year ago.
Mission Solutions reported a profit of $58 million in the first quarter compared to $44 million in the first quarter of 2021. The increase in segment profit was primarily driven by the favorable closeout of a U.S. Army Corps of Engineers project in Puerto Rico and for a project providing humanitarian support for Afghan evacuees in the United States. Revenue for the first quarter declined to $593 million from $753 million a year ago primarily due to the completion of a Department of Energy contract last year. New awards for the quarter totaled $386 million, compared to $992 million in the first quarter of 2021. Ending backlog was $2.3 billion compared to $3.0 billion a year ago.
In the first quarter of 2022, Fluor determined that the company’s Stork business and remaining AMECO equipment business no longer met all of the requirements to be classified as discontinued operations. Therefore, these entities are now reported in continuing operations and included in our Other segment.
The Other segment, which includes NuScale and the entities listed above, reported revenue of $396 million and a segment loss of $12 million. NuScale successfully completed its de-SPAC transaction with Spring Valley Acquisition Corporation. and is now publicly traded on the NYSE under the ticker symbol SMR. As of May 2nd, Fluor now owns 57% of NuScale.