Published on 18 Apr 2024 on Zacks via Yahoo Finance

Fluor (FLR) Wins a Spot in Global Contingency Services Contract

Fluor Corporation FLR clinched a significant win, securing a spot on the Global Contingency Services Multiple Award Contract III by the U.S. Naval Facilities Engineering Systems Command (NAVFAC) Pacific. This accolade positions Fluor among six elite firms eligible to compete for task orders with a combined value of up to $2 billion over a period of 102 months.The contract underscores Fluor’s capability to swiftly deliver critical facility support services in response to a spectrum of exigencies, including natural disasters, humanitarian endeavors, or military exigencies. The scope of work extends across diverse global locations, encompassing even the most remote areas.This achievement is a testament to FLR’s extensive legacy of over a century, serving both U.S. government and commercial clients in some of the most challenging and remote environments worldwide. The contract’s alignment with Fluor’s core competencies further solidifies its positioning as a go-to provider for high-quality, rapid-response contingency construction, humanitarian aid, and disaster recovery support, particularly in demanding circumstances.NAVFAC Pacific's selection of Fluor highlights the company's esteemed reputation and proven track record in delivering mission-critical services. As the oldest of the U.S. Navy's System Commands, NAVFAC is deeply committed to enhancing Navy and Marine Corps combat readiness. By partnering with Fluor, NAVFAC ensures access to reliable, expert support for critical operations, underscoring the strategic significance of this partnership for both entities.In conclusion, Fluor's inclusion in the Global Contingency Services Multiple Award Contract III underscores its position as a trusted partner for critical government initiatives. This contract not only validates Fluor's capabilities but also opens doors for substantial growth opportunities in the future.

Growing Backlog Level: A Boon

The demand for Fluor's services is clearly demonstrated by its robust prospect pipeline. The company is currently monitoring a list of potential projects that exceed its existing backlog by notable figures. The primary opportunities driving this demand include those in the chemicals sector, closely followed by energy transition, fuel production, as well as mining and metals and big data.In 2023, Fluor successfully secured consolidated new awards amounting to $19.52 billion, with a book-to-burn ratio of 1.3x, which aligned with its full-year plan to achieve a book-to-burn ratio exceeding 1. Notably, 87% of these new awards are reimbursable. The total backlog, at the end of 2023, for Fluor stands at $29.44 billion, with 76% of it being reimbursable. The reported value portrays 13.2% year-over-year growth, with projects located outside of the United States being 62% compared with 49% in the prior year. This substantial backlog underscores the continued strong demand for Fluor's services and the recognized value it brings to its clients.