Fluor (FLR) 2 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to Fluor's Second Quarter 2024 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] A replay of today's conference call will be available at approximately 10:30 a.m. Eastern time today, accessible on Fluor's website at investor.fluor.com. The website replay will be available for 30 days. also also for at accessible will the days investor.flour.com. replay link, registration on telephone be X available through A Fluor's website turn At would Jason opening for Head the to Landkamer, Relations. this to call Investor remarks, of over time, like I Mr. ahead, go Please Landkamer.

Ellie, Joe Welcome to release and us Financial are Brennan, Earnings Fluor's Second we Fluor's Chief and today. morning. remarks. and Fluor's a posted is will website prepared morning its this with earnings Constable, reference Chief earlier David Chairman good second Fluor Executive you, while making XXXX Quarter presentation Thank Call. Officer; quarter our issued and Officer slide on that

started, harbor Slide to getting X. Before forward-looking to summarized would our note on refer safe you statements, I like regarding which is

we'll materially. which analysis statements, presentation, today's risk reflect information. is forward-looking differ making existing of actual an be could current that experience There inherent and trends and our results During

a to XX-Q, which filed discussion our factors, Form morning. of which risk in You XX-K in Form differences can XXXX this such find and our contribute was potentially could our

will Investor certain our at During our Executive we over call are Fluor's investor.fluor.com. and release David? now Constable, in Chairman of in comparable GAAP discuss to Chief of Officer. call, non-GAAP measures reflected Reconciliations financial earnings posted turn the and these Relations the section amounts the measures. the I'll website to David

to of both us matter today. Fellows I externally. a to success, whose Well, thank world-class group turn wanted joining Fluor highlight you, Jason. contribute and and Please briefly experience experts Fellows program. and the for Good morning, X. subject are significantly knowledge you started to Fluor's To everyone, distinguished internally Slide Fluor get today, thank

fellows. for become and Candidates managers, sets robust work. its senior Our process. future nomination a fellows when Fluor the The are Fluor selecting apart existing frequently department executive nominated from fellow's factor management Fellows Fluor involves for technical program clients decisive and and competitors expertise by

on selected XXXX recognition the projects, fellows from both pleased and the have the that and we peers are leaders a clients basis. class, they and drive helping on have XX across beyond Tellers performance based These driving world-class their company say expertise, to global value I'm organization. with excellence. now and the fellows innovation to bring technical roles senior

segment. quarter Now $X.X let's turn joint billion. More our our on in not awards $XX quarter Awards Slide for Urban in key for billion in second the our the a to the Pantex won venture was that do by operating new Revenue M&O were quarter beginning recently for a Consolidated reflect review Solutions second billion, minority the contract. led awards moment. $X.X ownership substantial that on X.

and total services underpins to past Specific demand reimbursable. New points margins range an to strategy. new margins to backlog our awards award profile, on of XX% basis the margin margin X award our for by backlog outpace that margin average were XXX drive the existing our XX% for $XX.X quarters. over is new continue which to Strong is of the above X% billion, reimbursable segment now continues X%

in margins, been for demand Our This margin services range have for in driving in story our year strength is XX% businesses. strong traditional is service our this driven EPCM and our by which investment people. the resources

everything to studies a to which wide includes resources range from an and move pre-FEED large Our EPCM programs. of provides requests, quickly we the asset-light shift as opportunity to us company pursue

and and broadly, and also supports opportunities metals, This sciences, advanced in more mining and of life energy flexibility transition. fuels pipeline production diverse our technologies

change projects segment, Results to technology and multiple in activities $XXX life segment a reported our the a and on order X. business legacy Please advanced Solutions, Moving quarter. profit Slide second infrastructure of project. execution reflect on our segments. Urban turn this sciences diverse in to increased the million effects most

This XXXX. the change quarter charge to recognized we matters gave in of covers second many order of that rise the

the of stands represents our $XX.X compared to nearly markets past billion billion continues quarter an end and New Ending strength awards This were at to XX for $X.X increase billion. over months. $X.X a now the ago. of XX% reflect the year backlog

turn X. to Slide please Now

this Metals During CapEx a Clients rolling to $X.X the for their in long-term received for quarter, facility Mining have plans. billion and incremental Alabama. steady award a an vision aluminum continue in space

support Over the United port next the for project we and debottlenecking a ore rare earth few iron to preparing new refining, in States. quarters, are awards lithium

up Moving to demand. sustained Slide to X. Advanced Technologies client Sciences ramp continues meet to and Life

included quarter Volt's the North for Germany for million. battery awards manufacturing of X lithium-ion large-scale the Phase New $XXX facility in

Volt Sweden solutions industrial for in energy vehicles products, batteries headquartered and consumer systems. and electric manufactures storage North for

ATLS During construction to state-of-the-art our of quarter, and line in Limited formed the Topco ABB of align business effective with hydrogen. for green electrolyzers streamline production

providing forward EPC to for transition support look We energy effort. this key

is outlook next over Act We the all fabrication in potential United From continue strong CHIPS XX tool billion in large to the semiconductor over $X in here way supported space, smaller install the opportunities prospects see there's funded facilities, the where States. to by months. the up investments the

the to few ATLS business building our line large phases data with center tech are taking quarters, expenditures. the is additional capital and next that pursuing large approach sciences on disciplined data life centers the relationships market, a projects. opportunities Over in companies In we're

portfolio. productivity infrastructure, strong across the remains In

During This we cable-stay concrete longest bridge and cable completed the in connection America steel North the on bridge bridge project. in deck state Gordie world. is the deck composite and longest quarter, the the the

of entry. The team completion and on is currently both focused of handover ports

time completed price Mover dating settlement client back the XXXX a our On already construction with the LAX August extra reached Angeles, and the line. to covers longer-than-anticipated that People work joint has in Los venture automated

seek city change of will We work continue with client the the of while Angeles. we to the order with Los final approval

million While we of loss our project improvement position a $XX our disclosed portion this the previous to in for recognized a settlement, remains position.

construction renewal million where a management from $XXX secured products services. a services ongoing facility large are and manufacturing client, providing consumer plant Finally, we

Solutions X. to of profit the Mission year $XX million Slide reported quarter segment second to for compared $XX ago. on million a Moving

task included for backlog $X.X were various New the million awards Ending for was orders the quarter billion. quarter and FEMA. $XX for

was During our Paduca the contract X XXXX. extended June for years quarter, through

received through We X is notice have for up XXXX. of weapon to I'm facility pleased warrant our September storage year contracts and to report intent the X Portsmouth extend nuclear and a DUF maintenance also [indiscernible] substantially complete. to that

proceed project minority joint Mission The represents Fluor to the early ownership portfolio. last X Solutions the project to ventures issued notices in legacy has July, which In were interest. in

X-year passed will at span the exercised. being $XX this on The billion. funding an the options level contract XX Based Amarillo, As in of from Pantex protest contract previously all is The estimated transition NNSA mentioned, years project Award Texas. and MNO awarded incumbent of the on underway. the has X approximately period contract

and Force we the sustainment denied, were in that minority protest be project operations Because our contract in ventures, on will of Also, not both method notified substantial is and July was equity recognized earnings portion joint Air partner test revenue. incumbent a we underway. the and this the on transition income for are as

project accounting, revenue. managing accounted X over contributions equity $X of scope is With our additional for annually of in method these the from reflected segment currently that not this under projects is the billion additional

Mission of the Tanks include have protest the conclusion for Other prospects awaiting Hanford we process. won, project, are which Solutions but

work positioned the In in intelligence services are to additional space. addition, win we

competencies Solutions, trilateral also a enabling nuclear partnership to to I maritime, XX-XX opportunities and while the to USA deep defense as defense Australia, build maintain Australia's move nuclear want I Before highlight capability uplift industrial The partnership Energy partnership, formerly new that and pursue base. brings required sovereign a known Worley Navy of support with the U.K., security ACUS. to

the Slide $XX million for quarter compared million of the a Solutions, Energy In large stages reflect in profit Please turn was the year ago. to to execution. $XX quarter XX. several segment late projects second for Results

our modest a in charge venture quarter, entity the During joint with we a subcontract construction-only Mexico. on recognized

With we the this an are reaching to to complete project. cost client this with agreement on recognition, our close

facility Energy New had for of Solutions a and Canada totaled the million in number and team quarter work an a included $XXX quarter. awards for incremental study the The Aramco. second for engineering petrochemical accomplishments in

First, Energy concentration location Texas, a our estate to we optimizes real exposure our Solutions lead to long-time location expected talent for moved Houston's increases of location fit-for-purpose from industry tremendous a This Energy office and our in growth. Corridor. footprint in Sugarland, our

India office opened support global platform to in and a position us to growth. second we our market Next, execution significant in-country for

legacy in the only contract, its the Penguin's Solutions Sea. Energy over North Finally, client destination turned project towed was and to final the to FPSO

import teams Train Canada, LNG the took well final over work to turned began we X/X celebrated the will the XX continuous of client in refrigerants on worked XXXX. on have shifts. X. of date, The milestone More with ready be our welders working Shifting XXX welders project major construction of in systems hours and have To to mid-August. a in well from than since of pipe team the

This award power's we key engineering announced facility for next modular week, phase a Road of industry-leading small technology. the design NuScale for using and Power's contract reactor

Fluor opportunities. preferential to with agreement SMR work we a has reminder, right a for development where As a NuScale, have related

programs, are EPC now a for that For X-year the on by traditional large-scale stage TCO, the and mature by delivering Canada manufacturing. opportunities projects. we large-scale cycle remainder pre-FEED of FEED XXXX, seeing led including replaced refining and battery prospects are higher-margin LNG backlog After and set this new

Grand nuclear SMR Home the a a the to the role had in a industry, recently supporting in and Secretary about to respect key importance of Fluor with United low-carbon power specifically the and Energy States. call how With can play nuclear I transition

for the positioned that recently I'm the nuclear company optimistic ADVANCE that Act well aperture increase will opportunities the passed is for.

year to demonstration million of added well and 'XX recently fiscal billion program fund as the advanced Water XXXX, project. demonstration reactor the completion an to for year the Committee in Energy $XXX Finally, as the SMR fiscal Appropriations House $X

turn a financial call law, While that, making With the end a the reality not decade. to step to nuclear Joe let update. the by Joe? for me power is this over the advanced of critical

Thanks, outlook the David, assumptions that support XX. and and good I to Today, guidance. morning, financial quarter review over will results for turn Slide our go Please our second everyone.

of for quarter $X.X second revenue XXXX, As was the David billion. mentioned,

segment second to for for million. was $XXX year quarter was ago. profit EBITDA the Our consolidated compared the quarter $XXX million $XXX a Adjusted million

and compared results lower EPS of from XXXX. $X.XX tax advantaged to was locations QX EPS in adjusted $X.XX revenue benefited Our rate increased. as tax a

order solutions, a of change full on the our timing QX for from large the in incremental projects and growth results adjust cost revenue project the contributions infrastructure, in year Mexico guidance. you and support When energy

for and positive $XX of in results derivatives FX the nearly the exclude Mexico for embedded adjusted $XX million FX Our gains. on million quarter income other of effects

for from $XX quarters. million was for near quarter $XX longer quarter next ago. this year interest Net ago. $XX debt. low-cost a the remain fixed for expenses We income level and million higher Net environment compared anticipate $XX reflect for a year rate down to our rate interest G&A the the X interest million, contributions to a were interest million income

of awards XX% our in quarter which resulted backlog in ending reimbursable. billion balance $X.X at of stands the $XX.X now New billion,

equal straight year. third Based if a the on anticipate X The book much manages. included would pipeline, our book-to-burn that be you the Solutions to higher prospect Mission we unconsolidated burn for revenue ratio to

Moving on to XX. Slide

million. This year million Our billion. amounting distributions amounts large flow ago. compared on our from the million $X.X payments $XX cash quarter and was $XX marketable Operating securities for outflow IRS and ventures cash Scale projects a by the from balance customer a reflects to refund joint $XXX several second held for New the was This quarter excludes to

Additional IRS this refunds to approximately year. are later be $XX of million anticipated recovered

During in projects XXXX. remaining is $XX to that cash of X we our currently requirements balance fund legacy million $XX estimate projects. distributed for We the on million legacy the quarter, funding the

is of which regulatory and The operations towards of timing, the to progressing likely dependent sale is U.K. end Storage approval XXXX. happen upon

NuScale, Regarding threshold efforts ownership may NuScale's to Fluor's ongoing the consolidation. that below note want capital reduce I for

us in equity would to new no our we investment scale, result consolidating recognize would method. the under longer this While expect

and have stated of investing view on entitlement capital our our cash progress close goal Before These made free an want structure. to in initiating Year-to-date, return I I capital a in outlook, we all support flow shareholders. our update with to elements of people. our negotiations, considerable details to plan conversion on provide

Please to Slide turn XX.

of range to $XXX $X.XX million. $XXX and We guidance are affirming tightening to a $XXX guidance $X our our adjusted from million per XXXX share range to million of million $XXX to EBITDA adjusted

operating for $XXX million between cash are expectations now million. $XXX Our and flow

G&A assumptions expense revenue Our million XXXX include XX%; of for tax and effective approximately $XXX rate of growth between to XX% approximately XX%. of an

X% year and Our approximately approximately expectations margins X% in for X% Urban Solutions Solutions, in XXXX full in segment are Solutions. Mission Energy approximately

call the David? turn to over organizational Q&A, head we Before announcement. an back change to I'll David for

Thanks, Joe.

ahead of future chapter. half wrap up plans our strategy, X As building we better for enter the developing successfully we're and the looking Chapter a next year second the of and

maximize remain pipeline Going to talent. and growth opportunities objectives generate forward, flow our cash execution, markets, be in operating to of will laser-focused develop consistent continue on our

our needs In allocation support markets, future, talent our businesses. a the in making project changes of view floor prepare of are our management more for team to strengths and objectives, we across holistic our we to and execution require

this Please within to Jim. turn Brewer, segment. to end, solutions our Operating Solutions X business of assume is and mission segment Succeeding Chemicals Alexander, Group line with reporting the as Chief the president group currently President who Energy XX. me, reporting Slide Energy Mike urban currently Fluor's the to Jim President presidents Group Solutions, August for the Energy, business Officer To effective of is Jim role of will

and will join for Currently, Raj Raj commercial October Fluor team chain our our Procurement Next, supply Fluor's to capabilities, chain Desai management groups. Chief strengthen X, is supply and the as optimize Effective Officer. responsible strategies

leveraging In and addition duties, these product and Raj execution. will expertise furthering in for technology our assume technology information responsibility also organization, Fluor's to

at mid-May company advised Officer Robert almost lastly, Reynolds, to Taylor, our XX years, and to a Information its that Officer, March -- spans XXXX the XX decision with the nearly Corporate Chief career end our from of And a XXXX Fluor confirmed Legal retire Fluor. after Chief after current Secretary, intention John XXXX. effective retire with years has

as join Chief Kevin Officer. August team Effective will Fluor the management Legal Hammons X,

will coming Board service John to as in retirement Managing will Corporate the Until for of John transition Directors. company served several the his Secretary to responsibilities of years, Senior the Counsel Americas. Vice the Kevin President remain Over months, to and past as the May in his XXXX,

take the service FMT and and to Raj warmly Corporation and this dedication for to Jim Kevin congratulate his on to upcoming their and like Officer. role Robert Mike, on their thank and to as Operating Chief I'd opportunity new Fluor John appointments

an For your earnings Raj first and with appendix operator, to reference, Kevin the we're Mike, bridge for ready as question. attached now Jim, our profiles for the presentation. And are that, call

first Capital [Operator from . Gan question Sangita comes Instructions] KeyBanc Markets. from Our

could on the what you that bit means start to I capital shareholders. if So that that the the you a exactly made little just be? more with plan about comments us guys cash return to and would that what Can of allocation and tell timing

Thanks for Sangita Yes. question. the

be firm laid we I out beginning position think of the the the it. the what would in year year, to like by the of of of at as that end that kind up timing look plan we a would and

allocation And the to one shareholder we're piece of to elements, doing this a the that's with circle kind communication last to think plan satisfied we're the on XXXX the our and the I of strategic think roll close lot of to I of will plan I internally. as related kind we us out off of allow what be. think embarking

more strategic position and of a of plan, granularity But of by kind giving things granular more looks what we'll more I close in then the to in about would a like And the I But that I are we're the little us coming occurring as that talk off like. be process. of prepared X it's to a discussion. the bet are off And it. we in confidence. the to say we'll We'd end bit the more lot that think good quarter thing. don't that be we're year. So think about have

that now that's quarter? Great. you fair LA reflection at project a million last gave adjustment seems And $XXX Is outlay assume lower more the it the the lost to than People positive of be mover? that that one on to

there. of settlement terms that's outlay, fair in value of that is cash That's fact don't It and the tie sure. a for a it, the we piece Sangita, that have logic

Our Jamie Truist next comes from from question Cook Securities.

on the you IRS cash question, just Joe, And said your fairly Congratulations in are starting see and and it's initial I'm of not bookings book-to-bill I you're the for sort was a joint then to Or the of if ventures, I I it's cash What cash just I embedded talked guide? would guess the get from to upside? before get increase. wondering, embedded your coming my just And much see. guide lumpy. you joint the et that to I'm a cash clean then X. what's and I about expectations. of David, refund be there wondering are first It the positive just know know these how distributions guidance? guess, magnitude flow wondering over year, that? ventures outperformed the think was on had reflects in on quarter from bookings you've distributions the where we nice should the I'm here. rest cetera. nice more of

Just seeing your center you're what particular, confidence level there, data on side. in the

I'll in we and $XXX planning of year outlay. managed execution. even dropped improve reestablishment of $XXX XXXX Jamie. projects. with today, And kind that start We've fund million that the from had of the balance And the beginning of Thanks, to number I see million to that currently of the now to an outlay ways excellence perspective a at entitlements $XXX through outlay cash. million. have legacy from and a potentially the within $XXX million we

think of And confidence of I play that to I'm guide some upper So drive see the that laid the end to time I to OCF. kind that's going opportunity more more I relative getting get that that, the out But we've and that's to out us guide, more here. we're heading. upper think direction to needs end to but help the of

Jamie. Okay.

in half, half had of good book-to-bill the we've and the billion the We first booked a first confidence, year. really right? On the X-X

with on over years and of X.X -- right in each $XX and billion the 'XX. booking $XX that's basically track So the billion -- in our past 'XX

run about So the same rate.

strong, the remain points bookings basis awards backlog in XXX the profile prepared right, remarks, were in QX, existing above versus margin higher the new award New margin. fact, mentioned backlog we as

to So see. that's great

large at what traditional it's LNG, you mining refining, shaping more chemicals, very up then portfolio. across the also major environmental and semiconductors, new management then prospects. centers, more prospects, as in data maintenance some transition energy some far in in half, mining, promising. QX, for center projects DOE be QX chemicals As ATLS DOE mining, awards markets work look and remain if But And bookings, like second they'll and data the the

yes, level, X, confidence So think I'd we'll I right around say be thereabouts.

think what XX% to obviously, would about been can well we've we've track so that got what the book quarters. that's get I guidance messaging just to burn be. revenue that of past for way year, this to growth as several And you it

So at. where that's we're

Our from next comes Citi question from Andy Group. Kaplowitz

David, Jamie's around on maybe up data I'll follow centers. questions

building relationships you're You with projects. tech taking approach and customers, a to mentioned that they're disciplined

you mean? the does the Is seeing you it up And bookings there? projects So in bookings do maybe invisible. maybe what Fluor's think that Do more majority talk more will ramp positioning, of competitive be year? a start about XX% cost this actually

Yes.

said QX mentioned. what XX then for are you now like into programs the starting to right is in So seeing we're work I now like right center data the Jamie, larger and

we're with a now. at that's demand So It's really centers. big data where just right

we house it data, XX,XXX market looked on power right artificial about and increased in consumption right? that in think XXXX. And of for alone, is knows as XX,XXX to or about servers think, we megawatts data they the to the place reach going the data I reach, will based rapidly and need of at we've what, the centers the cloud-based by can now. there's, reflect has centers number call intelligence, everyone on technology the U.S. think So

And U.S. XX% So for a account is global for data of huge centers. growth the -- in market. going to XX the accounts it

So over lots what of reimbursable, it with So also reimbursable and encouraging data here. say or incentives is we've work from that's right? center schedule. grace to on cost seen, primarily And

to are -- only wheelhouse our strategic in really build-outs on the right large, term can And in profile contract, that of these to and contract Floor So our in risk priority. will mix those fair few the the there's data right for a centers. right? go -- they data projects. balanced after So And and our contractors take really that's center country obviously be coming. who these large is X in

centers, ATLS. but also data semiconductor and on more in bullish also global the markets in life right very we're facilities now So sciences

shaping ATLS So is forward. very up going here nicely

you're up David. maybe us Canada, down. is have Helpful, Energy as within seeing owned is you you down said, winding can give And Solutions. you more but what regarding revenue color year-over-year, Backlog and specifically

as but later what and kind does over in growth visibility bunch then So there lull before or in you the do it 'XX revenue into Could TPC, the a quarters business you a 'XX. be I of get evolve? toward of coming do guess, in 'XX. said, you How have feeds, you

a bit run Backlog Yes. Energy It's of a billion, Solutions. good in -- $X.X mentioned, right, had 'XX. up quite we've I is to over up as up, QX

in some major good the Solutions, news. a have right? -- that finishing if prospects somewhat. of there's and off is Energy down But of look that's all to in potential Just go the the end now. the we energy that's And at can out power. off a refining chemicals which as work, after. split very across LNGC billion is at work and there at that right refining, is of projects pretty in then But ramping $XXX good chunk Solutions you between specifically Solutions, of So And and we the transition. FEED we're prospects work, coming and been And big billion split projects it about very look for production TCO also, portion $XXX It's about we just that a the tracking in Energy evenly downstream covers evenly Urban front-end in $XXX -- and between Solutions. of lot billion Mexico, fuels, Energy nuclear FEED

good think lot another studies of in-house, I will we've So got proceed. $XXX think billion things are either coming. that is with we that's which everything A that

for Energy look $XX of months company EPCM, billion next projects, about is $XX EPC that at If the prospects in and XX full there's billion EPC, Solutions. of the you

-- front-end it call I is wouldn't where -- stay in get it's late. work early strategy but yes, going into to it's So and that a our we lull,

more in that solutions them So we're work see quarters. some front-end energy busy nicely the growing on in will coming

comes UBS. Fisher from question Steven next from Our

that just basis Is Solutions Congratulations. margins the into offset points. whether higher going the over my quarter of wanted average that in kind do think that kind relative clarify in? the we How quarters. the going last weighed you of the of something higher XXX here Urban flattening that second trajectory putting Or then that you margins backlog points order was change about of to room was to basis think of I EBITDA I'll And of was, there's guidance? same. now. had margins still the into of backlog XXX now? should the since if from X for David, And ask in cited kind question midpoint probability there else already it was kept you the just

run I'll we up you booked Steven, view I but still suggest results backlog existing the we've the the way our we the the additional quality in results results reflect would $XX it I for the an of that confidence think of guess kind million $XX take underlying years. quarter. in for takes there have the of what's coming the quarter, plus the We and over rate for understand of were in the of on of through some and last those is kind the billion I Pantex. quarter. shown couple the billion quarter end in frame $XXX that million That core puts XX on guidance

and are think as the And Solutions, reimbursable We've continuing to pipeline. legacy in, some I will begin in less is Energy in laid year. the Steven, progress project close of remarks, forward, pulls mature But revenue in what the recognitions results, move we're as programs we'll major significant delayed back XX% less out existing we some As to our prepared through projects. of derisked coming of it our portfolio volatility the out see made we have did which we our as half over there.

being us certainly gives midpoint point. confidence guidance to able in the up the that the support so and And at to this

on Yes, up. into backlog, it continues and to seen, margins our a been we've that's run good Steve. that pull backlog and going margins

So our healthier. to continues backlog -- we get

target now, As we've reimbursable said, our reimbursable work priority we're surpassed which of has backlog. met over in strategic XX% our

looking say I'd it's it say will it, I'd at So continue.

book lot awards Solutions, I it our it back work continue services when now. do we're A to we'll only. this that new A plan brings think Energy with in that higher we're services into above margins right has front-end margins. lot of of to booking with much obviously margins it

that's So seeing be what over we'll quarters. several to contributor big a next the

see fact. planned that margins expectations. it's awards and into new are our think continue I But So that to we'll get I will the -- continue above you wouldn't to better want think coming after to there then tell what I is it

comes Vertical Mike Our from next Research Dudas from question Partners.

of And normalized expectations be? special even conversion from that when what -- is on some that movements and through through a can rate would with P&L. ago, First year moving been? of will business and of all some intra-quarter and those the out kind positive takes running expect be for go after the projects Joe. the there in do the backlog has cash success Fluor changed better what your year have this flow cylinders versus you though and Joe, moving kind improvement puts a of the legacy from of What we without the some

for question, Mike. No, thanks the

stated up range floor and I we've in back at gone a kind forward, that historical similar rate -- conversion to We XX% as have the times, and of I've in move model. and looked XX% we -- at if XX% I expect asset-light would we've our been

be we So drive to X XX% few as levels the to in think of an the probably XX% goal progress quarters. transition But I think next to here, XX% is through view conversion that XX% to range. kind would I the we appropriate as

discussion real, your from in you it's for Joe. on opportunities Energy the nuclear what Secretary. opportunities on remarks on years your how booking AndroPower, could monetization other How update David, potential new be helpful, And thoughts scale with the your whether an scale for through are other and your the That's maybe the Department that how side or of for for, mentioned your prepared of holdings. at new majority

that's great only the now but topic about the requirements demand data right on everything for in Mike. U.S. -- Yes, on centers globally. talked not power based we as Yes, and going

has greater. say been the -- and development we and demand their supporting quarter, think supporting globally. commercialization interest I the also We or but interest, I'll the in commercialization obviously their scale, partner are carbon-free never new said technology, power seeing last SMR

we've into utilities companies to a for the with good it tech demand be and out got there all nut to energy. the power crack clean So requirement with on pretty this opportunities insight and

utilities build the or in taking the and excited lot to new And their So chosen on the well with over going U.S. U.S. for being pretty as from Different forward it, are there's more will started excited We're looking about the And are well. assets package we're to exciting We're believe start both internationally. fence, Row business their technology facilities that in row on a companies available support the of to be models front-end government times. over about I power. the floodgates as operate. think power. as And either coming. open for scale we getting tech their on here

PPA's developers towards there. purchase agreements power out they'll lean the think with more I SMR

from Like NuScale, So preferential have are the know an perspective. times rights we said, engineering and I we with constructability design and good. technology best Yes.

shaping be up to going forward all be we'll So it's that something over.

exciting times. So

talking more and the positive Thanks, with here, shares the I be we'll working shaping, strategic at everything the will commercialization the about letting majority just over still end the Fluor's line get investor take selling about going the things and goal we're Mike. monetization, a where are it our is down with how of to shares the said that stands investor, year think, think that of definitely our you that I've strategic forward. know to I On probably investment,

next Andy from Our from comes question Wittmann Baird.

versus quarter SG&A is -- thinking guess ask guess, you wanted guidance. to last what were I the quarter. I Great. this just up on

could you're I Is just so it well? you talk in Joe. change Maybe And incentive there, wondering there. Is was if comp about there onetime? something the out discuss could if turning what's because you

No, build-out Houston, our be as through the it's investment it partly office move we a and forward. flowed due impact, some in to will Andy, that into nonrecurring, the of onetime of

Got it.

Okay.

So we the still kind like company. the $XXX of rate million as for underlying the

That's fair.

Yes.

the I about infrastructure that order change in Okay. on wanted people you to just mover. talk got

actually change substantial there was During in was was from about Then second an don't the order. this resolutions was announcement scope. one. the a But in that I some headlines. Fluor's publicly if on quarter, La know that more the there announcement

So could that. I was hoping you clarify

Or Lowe comment So the And was relief quarter? second in there there any you one, recognized could that was scope that -- recognized the any given of or Just the second money? could quarter? be too, the wave that on in Joe. third is in thought quarter in maybe

taken reflects and position project. Sure, the the Andy. that is Yes, to global we've we've complete reached our position the a settlement that settlement

Entirely the second yes. quarter,

to to terms of job sets how This over gets the the the mark But than able the execute changes we settlement the handing for us is contingencies. kind other finish line. settlement that expect of in we to the facility utilize any And if and reserves client. don't other we're the this

Brent Our D.A. next Davidson. question comes from from Thielman

you range you're the just good of into it you've the end just the David can seeing or down. upper Is came guidance Joe, why wondering if anything deploy clarify EBITDA some new business got going the pace second like that else? seems I really momentum It the actually or half?

where It into Brent. question, the the cycle, we we are of that are But where is those the as of cycle in burn 'XX. to XX maturity we projects. sense online. it these programs move all the of of we range. end the the in to they're of and us good to pace kind and off hold And of It's progress, some midpoint. kind that and of bring going out a coming backlog continue the is as the burn deployment through and more top of made It's see

a last onboarded, is that in onboarded relative work the we X $XX-plus where just of in we've the So that maturity billion this work the to more the of of of function years. cycle are the we've

of mean, less I question, compared I sort sort it's could this I that, whether I where product new bigger so for is that of line. guess to I a curious know of going Okay. a a forward now. this sort Solutions appreciate down the you've the new years I forward? ago, XX% floor just interesting. my just -- just are curious, your energy solutions And markets yes, look than But guess is got Fluor right now XX% this few backlog second potential going of of pipeline of or Joe. for Urban a I'm mean, picture, work come look

that and around our you're really Solutions outside and to we've in seeing in thought mix, Yes. think that of driving traditional we really But traditional and at wanted also come of has trends Urban question. and we outside but it be to future, across strong it It's same -- that traditional. energy grow for up also the along could a part we to based mega seeing the energy we also that happy 'XX, back for in the the encouraging and said transition, priority $XX gas billion. traditional would, will of and Thanks we're I really both gas, time, the be and that growth backlog portfolio come almost fruition in early as exactly of see strategic on were the world lined

solutions in as well. So energy -- and nuclear sits

that, those Energy sitting projects Just in as at be that, sitting just going be Solutions be aware will talked forward. -- Mike, we with about we'll

we'll backlog. solutions thinking Sciences, about. centers, is And raised semiconductor strong, enjoy most we've and But watching out we're for will Solutions very, the hoping got Metals Life X energy based forward, and as the data going very ATLS all Mining on that now, So Urban battle who's and definitely talked across segments. be it it's boats right

the lines. guess across all say it's I'd So business I coming

like to for Mr. question-and-answer now our concludes Constable today. David session I'd final for That to over hand back remarks. the call

the all for performance to and to continues thanks of operator. Many trends and I'm today. product XXXX, serve call our you, and date participating Thank company's discipline the on with pleased focus our very for us to you bidding well. performance on

your Thanks appreciate Fluor. for Thanks. interest in I So again joining.

joining conference today's day. Have a for Thank call. wonderful you

disconnect. may You now