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Fluor's (FLR) Stork Unit Wins 2-Year Contract From Babcock

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Fluor Corporation’s (FLR - Free Report) Stork unit has received a contract from Babcock International Group for inspections, surveillance and quality assurance services. This two-year contract is booked for Fluor’s first-quarter 2021 contact value.

Under this contract, it will provide the above-mentioned services to serve various vendor sites in the United Kingdom, including Babcock’s Rosyth site and other global locations.

Over the said contract period, Stork will provide independent third-party inspection, surveillance and quality assurance services. This will help Babcock International Group to comply with regulatory and legal requirements for the quality standards of the company’s products and services. Notably, the project will start in January 2021.

Taco de Haan, president of Stork said, “Babcock’s Rosyth site is one of the largest waterside manufacturing and repair facilities in the UK. This new specialist services contract award truly demonstrates Stork’s expanding footprint into new onshore markets as well as the company’s proven capabilities to deliver value-added solutions to clients."

Continuous Contract Wins Bode Well

Notably, Fluor’s Stork unit provides a wide range of integrated, innovative and data-driven solutions. The company aims to expand clients’ business sustainably and set a new standard in asset management. Stork’s core business value includes Safety, Integrity, Teamwork, Client Focus and Excellence.

It has a solid track record of receiving awards and management is optimistic about continuation of this trend in the future as well, which is expected to drive growth. The company, being an industry leader in nuclear remediation at government facilities throughout the United States, is expected to benefit from the rising demand for energy across the globe.

Last month, Fluor’s Stork unit announced a two-year contract extension with Chrysaor Holdings Limited. Stork will provide asset integrity services offshore North Sea.

Shares of Fluor have climbed 38.9% year to date, outperforming the industry's 22.7% growth. Continuous contract wins, strong end-market prospects and a good business portfolio mix are expected to benefit the company in the future.

 

Zacks Rank & Key Picks

Fluor currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the same space include Gates Industrial Corporation PLC (GTES - Free Report) , Altair Engineering Inc. (ALTR - Free Report) and Howmet Aerospace Inc. (HWM - Free Report) .

Gates Industrial, sporting a Zacks Rank #1, is expected to witness an earnings growth rate of 61.4% for 2021.

The Zacks Ranked #2 Altair’s earnings are expected to grow 45.2% for 2021.

Howmet, also a Zacks Rank #2 stock, is expected to witness an earnings growth rate of 12.5% for 2021.

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