Slides
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STRATEGY UPDATE
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Jason Landkamer Vice President, Investor Relations AGENDA OVERVIEW
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SAFE HARBOR STATEMENT STRATEGY UPDATE 3 This presentation contains forward-looking statements (including without limitation statements to the effect that the Company or its management “will,” “believes,” “expects,” “plans,” “intends,” “continue,” “anticipates,” is “positioned” or other similar expressions). These forward-looking statements, including statements relating to resolution of outstanding claims or lawsuits strategic and operational plans, projected operating results, forecasts, market outlook, new awards, backlog levels, prospects, capital allocation plan and liquidity are based on current management expectations and involve risks and uncertainties. Actual results may differ materially as a result of a number of factors described in our form 10-K for the year ended December 31, 2024. Caution must be exercised in relying on these and other forward-looking statements. Additional information concerning risk factors that could affect the Company’s business and financial results can also be found in the Company's public periodic filings with the Securities and Exchange Commission, including our 2024 10-K. The Company disclaims any intent or obligation other than as required by law to update its forward-looking statements in light of new information or future events. During this presentation, we may discuss certain non-GAAP financial measures including consolidated segment profit (loss), adjusted EBITDA, and adjusted EPS. Reconciliations of non-GAAP amounts to the comparable GAAP measures are reflected in our earnings release and are posted in the investor relations section of our website at investor.fluor.com. Reconciliations of forward-looking non-GAAP financial measures are not available due to the inability to reliably estimate the amounts of items excluded from such measures. Unless otherwise noted, capitalized terms used herein shall have the meanings ascribed to them in the Company’s 2024 Form 10-K.
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4 AGENDA OVERVIEW Strategy Update 8:00 AM WELCOME Jason Landkamer 8:05 AM HEALTH SAFETY ENVIRONMENTAL (HSE) TOPIC Kyle Morden 8:10 AM VALUE CREATION TOPIC Jennifer Kim 8:15 AM OPENING REMARKS David Constable 8:25 AM THE NEXT CHAPTER Jim Breuer 8:35 AM FINANCIAL PRIORITIES John Regan 8:45 AM URBAN SOLUTIONS Tony Morgan 9:00 AM ENERGY SOLUTIONS Mike Alexander 9:15 AM MISSION SOLUTIONS Al Collins 9:30 AM DELIVERING THE STRATEGY Jim Breuer 9:35 AM Q&A Fluor Management Jason Landkamer VP Investor Relations Kyle Morden Construction Manager Jennifer Kim VP Project Director David Constable Chairman & CEO Jim Breuer COO (CEO effective May 1, 2025) John Regan EVP CFO Tony Morgan Group President Urban Solutions Mike Alexander Group President Energy Solutions Al Collins Group President Mission Solutions
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Kyle Morden Construction Manager HSE TOPIC MANAGEMENT ENGAGEMENT
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PROJECT SUCCESS – MALAYSIA SEMICONDUCTOR FACILITY HSE Topic 6 21M safe work hours with over 6,000 craft Fluor HSE Award of Excellence in 2022, 2023 and 2024 Fluor Safer Together 5 Star Award Malaysia Occupational Safety & Health Practitioner’s Association (MOSHPA) Award Malaysia Industrial Safety & Health Association (MiSHA) National Excellence Award Achieved through high degree of management engagement
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MANAGEMENT ENGAGEMENT HSE Topic 7 Weekly management walk ACT Program – Awareness – Communication – Teamwork Lunches with craft Encouragement of regular HSE audits All hands meetings Detailed planning of execution Daily planning meetings with contractors Craft involvement in execution planning Training and induction programs Touch Points and Planning
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Jennifer Kim Vice President, Project Director VALUE CREATION TOPIC FLUOR IN LIFE SCIENCES
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FLUOR VALUE TO THE LIFE SCIENCES INDUSTRY Value Creation Topic 9 Engaged from early project stages Single point of accountability through all phases Global support for distributed execution of engineering and supply chain Best country sourcing for equipment and materials Execution strategies for managed subcontracts and self-perform construction Support for commissioning and validation of facilities Experience to tackle challenges of the industry Delivery of critical speed to market requirements Full EPC Services Provider for Capital Projects
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DAVID CONSTABLE CHAIRMAN & CEO OPENING REMARKS OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
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4 Laser focused on project delivery 1 Well-positioned to launch the next chapter of our strategy 2 Megatrends drive capital spend in our business 11 KEY MESSAGES 3 Business focused on organic growth 5 Committed to return significant value to shareholders
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Beyond Globalization Stakeholder Engagement Industry 4.0 Energy Transition & Urbanization STRATEGY LAID OUT IN 2021: "BUILDING A BETTER FUTURE" 12 Strategic Priorities Drive Growth Across the Portfolio Pursue Fair and Balanced Contract Terms Foster a High-Performance Culture with Purpose Reinforce Financial Discipline Mega TrendsStakeholder Aspirations Great Place To Work Attractive Investment Trusted Advisor Positive Impact
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Drive Growth Across the Portfolio Pursue Fair and Balanced Contract Terms Foster a High-Performance Culture with Purpose Reinforce Financial Discipline As-sold performance: SINCE THE LAST STRATEGY UPDATE….. 13 Building a Better Future Simplified management structure Sold non-core businesses Capital restructure Rigorous prospect pursuit principles Diversified revenue mix Improved company culture Our actions… Our results… 80%45% 22%Debt to capital: Reimbursable backlog: 78%63%Non-traditional O&G revenue 112%73% 55%
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14 BEGINNING THE NEXT CHAPTER: Commitment to Strategy GROW AND EXECUTE Expand in growth markets Retain strict pursuit principles Continue financial discipline Enhance project delivery
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Jim Breuer Chief Operating Officer (CEO effective May 1, 2025) THE NEXT CHAPTER OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
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16 MAINTAIN OUR PURPOSE, VISION, AND CORE VALUES The Next Chapter
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Improve capital structure Reinstate rigor around risk and pursuit processes Grow non-traditional oil & gas markets Refresh our culture 17 STRATEGY: BUILDING A BETTER FUTURE The Next Chapter 2021-2024 “Fix & Build” Drive Growth Across the Portfolio Pursue Fair and Balanced Contract Terms Foster a High-Performance Culture with Purpose Reinforce Financial Discipline 2025-2028 “Grow & Execute” Generate cash and earnings Maintain robust pursuit/risk principles along with commercial acumen Grow organically in target markets Niche acquisitions Project exec. & delivery People development Knowledge transfer Foster a High- Performance Culture of Project Delivery Drive Growth Across the Portfolio Pursue Fair and Balanced Contract Terms Reinforce Financial Discipline
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18 CORE COMPETENCIES THAT DELIVER RESULTS The Next Chapter Client Relationships Technical Expertise Global Presence Project Delivery
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Strategic Priorities 2025 - 2028 19 METRICS AND GOALS TO MEASURE SUCCESS The Next Chapter Debt to capital 20-25% Debt to EBITDA below 1.5 Return significant capital to shareholders Maintain minimum 75% reimbursable backlog contract mix 10-15% EBITDA CAGR $90-110B in New Awards Deliver successful projects Projects perform at or above as-sold gross margin Foster a High-Performance Culture of Project Delivery Drive Growth Across the Portfolio Pursue Fair and Balanced Contract Terms Reinforce Financial Discipline
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Providing sustainable growth and predictable earnings and cash flow; prioritizing return of capital to shareholders. 20 BUSINESS SEGMENTS The Next Chapter Mining & Metals Advanced Technology & Life Sciences Infrastructure Plant & Facility Services TRS Staffing Nuclear & Environmental National Security Production & Fuels Chemicals LNG & Power KEY GROWTH MARKETS: Chemicals & Power, selective LNG KEY GROWTH MARKETS: Mining & Metals, Life Sciences, Semiconductors & Data Centers KEY GROWTH MARKETS: DOE Environmental, DOE NNSA, Adjacent Nuclear URBAN SOLUTIONS MISSION SOLUTIONSENERGY SOLUTIONS
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John Regan Chief Financial Officer FINANCIAL PRIORITIES OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
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22 STRONG CAPITAL STRUCTURE Financial Priorities 2.1x Debt to Adj. EBITDA (was >4.2x) $800M Net Cash Growth $3.0B Cash Balance $600M Convertible Preferred Stock & Subsequently converted $600M Debt Reduction 22% Debt to Cap Following SMR Deconsolidation (was 55%) ACTIONS TAKEN RESULTS DELIVERED
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COMMITTED TO SIGNIFICANT SHAREHOLDER RETURNS Financial Priorities 23 Share repurchase underway Completed $150 million in repurchases Q1; $150 million repurchase goal for Q2 Targeting over 50% of expected operating cash flow to be directed toward equity holders NuScale monetization Sustaining & Growing share price hinges on expanding shareholder yield in the form of earnings and capital return programs ALL DRIVEN BY CORE OPERATIONS FUTURE OPPORTUNITY
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24 CAPITAL ALLOCATION OVERVIEW 2025 -2028 Financial Priorities Supporting & driving growth in business Legacy project funding Acquisitions and contingent needs Capital expenditures Near-term share and debt repurchases Potential excess for shareholder return ~$1.0B in potential excess cash
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DRIVING CAPITAL EFFICIENCY Financial Priorities 25 Over the course of our strategic planning period, we see an ability to utilize tax attributes from past losses to minimize taxes of up to $2 billion in earnings in select jurisdictions, including the U.S.
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Project delivery focus that drives consistent and predictable results Generate consistent and growing cash flow from contracts with fair and balanced terms Enhanced focus on efficient deployment of Fluor capital and expanding use of automation 26 PATHWAY TO SUCCESS Financial Priorities 1 2 3
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Tony Morgan Group President, Urban Solutions URBAN SOLUTIONS OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
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28 BUSINESS OVERVIEW Urban Solutions Contingent Work Force Client Secondment Services External Direct Hire Fluor Spend Copper & Iron Ore Critical Minerals Underground Material Handling Steel Road & Bridge O&M Commuter & Light Rail Engineering/Design Space Pharmaceutical Biotechnology Data Centers Semiconductors Foods & Consumables Power Plant Maintenance Basic Manufacturing Data Center Maintenance Life Science Maintenance ATLS* MINING & METALS INFRASTRUCTURE P&FS TRS Growth during the strategic planning period will be initially driven by mining, metals and life sciences, followed by opportunities in data centers and semiconductors KEY GROWTH MARKETS * Advanced Technology & Life Sciences
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29 MARKET FOCUS – ATLS Urban Solutions 0 10 20 30 40 50 2024 2025 2026 2027 2028 US$ Billion TARGET BIDDING MARKET 32% CAGR Market Trends Life sciences including pharmaceutical, biological and fill & finish driving growth in 2025-2026 Data centers and semiconductors driving growth in 2027-2028 Time-to-market focus in resource constrained market Market Positioning Premier brand for building mega-projects with scalability Global execution, supply chain and resource footprint Integrated end to end processes and tools support execution Life sciences key to 2025 with $15B of TIC under management Significant contribution from data centers with rapid growth anticipated 3,000+ resources globally
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30 VALUE PROPOSITION – ATLS Urban Solutions TECHNICAL SOLUTIONS Project Delivery Studio for studies Facilities Integration Group Experience based conceptual estimating Value engineering Elite technical talent Peptides & small molecule expertise DELIVERING CHALLENGING PROJECTS Go-to company for global mega-projects Seamless integration of project phases with single point accountability Uniquely tailored construction solutions Scalable tools & systems Global supply chain and logistics network Global, mobile workforce Delivering speed-to-market solutions for our customers
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31 MARKET FOCUS – MINING & METALS Urban Solutions Market Trends Energy transition & urbanization driving growth Copper is most sought-after commodity for majors Impacts of global uncertainty Market Positioning Brand leader and trusted advisor to mining majors Track record of dominating volume commodities Strong presence in key mining jurisdictions Current in-house study work could over time convert to $38B in awards Execution is key differentiator0 10 20 30 40 50 2024 2025 2026 2027 2028 US$ Billion TARGET BIDDING MARKET 11% CAGR Over $60B in prospect pipeline 60% of prospect pipeline associated with copper and gold Robust outlook based upon diversified portfolio of clients, commodities and geographies 4,000+ resources globally
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32 VALUE PROPOSITION – MINING & METALS Urban Solutions TECHNICAL SOLUTIONS Best in class study expertise for definition and quantification of projects Innovation focused on project delivery and operational efficiency Technical review panel Value engineering Comminution circuits, complex material handling solutions, green steel DELIVERING CHALLENGING PROJECTS Proven mega project track record Technical excellence linked to capital efficiency & certainty Scalable tools & systems Uniquely tailored construction solutions Global supply chain and logistics network Global, mobile workforce Data centric execution Delivering projects in a resource constrained market with a scalable execution approach
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Trusted partner Go-to company for quantification and delivery of complex projects globally Delivery drives repeat business Proven track record Brand leader in life sciences copper and iron ore Integrator with single point accountability Elite technical talent Conceptual through commissioning Employer of choice for project professionals Global mobile workforce Global supply chain and logistics network Presence in key locations Client Relationships Technical Expertise Global Presence Project Delivery 33 CORE COMPETENCIES THAT DELIVER RESULTS Urban Solutions Core competencies that deliver results for our clients and Fluor
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COPPER DATA CENTERSLIFE SCIENCES Eli Lilly LP1 Manufacture of GLP-1 Mounjaro & Zepbound in Indiana EPCM awarded Q1, 2024 Major steel for peptides and small molecules complete 34 PROJECT DELIVERY Urban Solutions We are defined by the projects we build Anglo Quellaveco Open Pit Copper Concentrator, Moquegua Peru EPCM completed 2022 On schedule and within budget 2 x 48 MW data centers in India EPCM awarded in Q1 2022 12 million safe work hours Construction essentially complete
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35 STRATEGY Urban Solutions Invest in our people Focus on project execution Build client relationships Consolidate & expand brand leader status in mining & metals and life sciences Strengthen & expand global data center and semiconductor presence Convert front end-work to execution Quality project delivery budget & schedule certainty Strategic business development the right markets the right clients the right deal Strengthen project capabilities Employer of choice for project professionals Trusted client relationships Project outcome focus Collaboration WHAT HOW People, Projects and Client Relationships
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Mike Alexander Group President, Energy Solutions ENERGY SOLUTIONS OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
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Base Chemicals Specialty Chemicals Battery Chemicals Plastic Recycling Green & Sustainable Chemicals Petrochemicals 37 BUSINESS OVERVIEW Energy Solutions H2 Liquefaction LNG LNG Regasification Nuclear Power Gas Fired Power Achieving growth in high demand power sector, while maintaining lead market share in chemicals to drive a balanced portfolio across all sectors Traditional Refining Low Carbon Energy Production Renewable Diesel & Sustainable Aviation Fuel (SAF) Green Shipping Fuels Blue & Green Hydrogen Onshore/Offshore Upstream Oil & Gas Production Sulfur & Gas Treatment Carbon Capture Pipelines CHEMICALS LNG & POWERPRODUCTION & FUELS KEY GROWTH MARKETS
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38 MARKET FOCUS - CHEMICALS Energy Solutions Chemicals is a long play market with steady and sustainable growth Strong position Steady growth Highly reimbursable Sustainable Chemicals to a Cleaner Future ~$100B in total market spend per year Base Chemicals Specialty Chemicals Green/ET Chemicals Sustaining Capital Projects
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MARKET FOCUS - POWER Energy Solutions 39 Growth to meet increasing power demand driven by data centers Selectively pursue gas fired project with carbon capture, utilization and storage (CCUS) opportunities Early engagement with major utilities to reach agreement on a balanced risk profile Positioning to meet growing power demand with gas fired in the near term and nuclear in the long term 60 GW GAS-FIRED POWER Growth in next 3 to 5 years in North America 35 GW NUCLEAR POWER Addressable market growth in the next 5 to 10 years in Europe and North America Position for long term EPC opportunities by executing front-end work for SMR and conventional nuclear projects in North America and Europe Expand technology offering to deliver SMR projects with multiple licensors Grow nuclear resources both organically and through strategic hires
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Industry Leaders Through Proven Project Delivery ALBEMARLE MEISHAN LNG CANADABASF GOLDEN ISLAND Energy Solutions 40 PROJECT DELIVERY Largest private energy investment project in Canadian history 215 modules, with individual weights of up to 8,700 tonnes delivered at site 62M+ safe work hours on Fluor’s scope Awarded 2024 HSE Award of Excellence Targeting on time delivery Q4 2025 ENR 2024 Global Best Project (Power/Industrial) 17M+ safe work hours 28 month schedule delivery (FEED award to Mechanical Completion) Project delivery certainty Active client engagement Meet / Exceed as-sold Instilling a project driven “value added” culture in our teams Develop talent to successfully deliver projects
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41 STRATEGY Energy Solutions Deliver our projects with certainty and excellence Active client engagement to grow our business Develop our next generation of project leaders WHAT HOW Winning repeat business, strengthening execution, project delivery certainty Project leadership and talent development Risk management, growing revenue and as-sold gross margin Client partnership, consistent delivery, and collaboration Project execution excellence Knowledge transfer across project leadership teams Integrated risk management and profit optimization Building trusted client relationships People, Projects and Pursuits
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Al Collins Group President, Mission Solutions MISSION SOLUTIONS OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
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43 BUSINESS OVERVIEW Mission Solutions NATIONAL SECURITYNUCLEAR & ENVIRONMENTAL Logistics Services Base Operations & Services Technical Solutions High Tech Mission Services Adjacent Capabilities, Contracts, Clients Nuclear Assembly & Production Operations Environmental Cleanup Nuclear Fuel Capital Projects Management Civil Agency Clients, Contracts As a trusted government partner, Mission Solutions is positioned for growth with long-term, mission-critical contracts utilizing Fluor’s project delivery culture and track record. KEY GROWTH MARKETS
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MARKET FOCUS Nuclear & Environmental 44 DOE’s budget maintains stable levels of spending Continuing federal commitments to address legacy cleanup mission National Nuclear Security Administration (NNSA) enjoys strong bipartisan support – Expect increasing funding Fluor positioned for domestic nuclear fuel market Increase in major natural disasters and recovery efforts
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45 STRATEGIC FOCUS AREAS Nuclear & Environmental Sustain DOE Environmental Management – Liquid Waste: $66B – Deactivation, Decommissioning and Remediation: $7B Strengthen DOE NNSA – Pantex M&O: $30B – Naval Reactors: $30B – Savannah River Plutonium Processing Facility (SRPPF): $8B Expand Adjacent Nuclear – EPC opportunities in fuel enrichment: $3B Expand Civil Agencies and Growth Markets
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MARKET FOCUS National Security 46 U.S. National Security Priorities – Defend U.S. homeland – deter strategic attacks and aggression – Build and maintain resilient military forces and modernize Defense Industrial Base Substantial National Security Program – Spending across Army, Navy and Air Force – Opportunities for Fluor to penetrate the market Investments to counter future threats
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Sustain Core Competencies – DoD contingency logistics: $9B – Intelligence Base Operations Services: $3B Strengthen Technical Solutions – Range services – Data center support Expand High-tech Mission Services – Threat reduction – National Strategic Asset Management 47 STRATEGIC FOCUS AREAS National Security
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Project Performance Drives Repeat Business STRATEGIC PETROLEUM RESERVE ASCENSION ISLANDSAVANNAH RIVER M&O Mission Solutions 48 PROJECT DELIVERY Awarded DOE’s Secretary’s Achievement Award Processed record amount of waste tank radioactive material Delivered all tritium shipments on time with zero faults Executed largest oil sale in history of site Storing 727 million barrels - highest recorded since 2009 Executing $1.4B infrastructure lifecycle capital project Fluor commercial project experience reach-back Focus on reimbursable contracts Significant projects and pipeline in place Execution plan addressed Air Force needs in remote South Atlantic Replaced 10,000 linear ft. of runway, doubled runway shoulders Offloaded over 0.5 million metric tons of construction material
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49 STRATEGY Mission Solutions HOWWHAT Project delivery culture Drive competitiveness and efficiency Enhance international capability Add capabilities, clients and contracts Leverage NNSA/DOE strength Grow adjacent nuclear Launch technical solutions platform Expand high tech mission services Build civil agency business Provide advanced technical solutions to new clients and new markets underpinned by a project delivery culture People, Projects and Pride
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DELIVERING THE STRATEGY Jim Breuer Chief Operating Officer (CEO effective May 1, 2025) OPENING REMARKS THE NEXT CHAPTER FINANCIAL PRIORITIES URBAN SOLUTIONS ENERGY SOLUTIONS MISSION SOLUTIONS DELIVERING THE STRATEGY
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Well-positioned to launch the next chapter of our strategy Megatrends drive capital spend in our business Businesses focused on organic growth Laser focused on project delivery Committed to return significant value to shareholders 51 DELIVERING THE STRATEGY Debt to capital 20-25% Debt to EBITDA below 1.5 Return significant capital to shareholders Maintain minimum 75% reimbursable backlog contract mix 10-15% EBITDA CAGR $90-110B in New Awards Deliver successful projects Projects perform at or above as-sold gross margin Foster a High-Performance Culture of Project Delivery Drive Growth Across the Portfolio Pursue Fair and Balanced Contract Terms Reinforce Financial Discipline
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Fluor Management Team Q&A