Fluor’s pre-tax profit halves in Q4 of 2023

Fluor unveiled US$3.8 billion in turnover for Q4 of 2023, up from $3.7 billion in the same period a year before.

But the company’s profit before tax declined to $24 million, from $50 million in the same period in 2022.

For the full year, Fluor saw its revenue increase to $15.5 billion, up from $13.7 billion in the prior year. Its earnings before taxes were $315 million in 2023, up from $244 million in 2022.

Its total order backlog as of 31 December 2023 was $29.4 billion, up from $26 billion on 31 December 2022.

Fluor attributed its decline in fourth quarter pre-tax earnings to settlement of claims on a legacy infrastructure project, which was offset by cost growth and a schedule extension on a large project that is scheduled to complete in the first quarter of 2024.

The results also included a $93 million loss on the sale of its Stork maintenance and modification business in Latin America.

Fluor’s Urban Solutions business, which provides EPC services in technology, manufacturing, life sciences, infrastructure and mining, increased revenue to US$5.3 billion up from $4.4 billion in 2022. Segment profit was $268 million in 2023.

In its Energy Solutions arm, which provides EPC services across energy markets, revenue for 2023 climbed to $6.3 billion, up from $5.9 billion the previous year. Segment profit in 2023 was $381 million.

Meanwhile, its Mission Solutions division which undertakes EPC services in the defence, intelligence, nuclear and civil sectors, saw an increase in revenue to just under $2.7 billion, up from $2.3 billion. Segment profit declined to $116 million in 2023, down from $136 million in 2022.

Fluor’s ‘Other’ segment, which includes Stork, the struggling NuScale small modular nuclear reactor venture, and its now divested AMECO business, recorded a loss in 2023 of $228 million on flat revenue of $1.25 billion.