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Fluor's (FLR) JV Wins Hanford Integrated Tank Disposition Deal
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Fluor Corporation’s (FLR - Free Report) affiliate — Hanford Tank Waste Operations & Closure, LLC (H2C) — was selected by the U.S. Department of Energy (DOE) for the Hanford Integrated Tank Disposition Contract.
H2C is a joint venture between Fluor, a subsidiary of BWX Technologies and Amentum, which will offer environmental management operations at the Hanford Site in Washington state. The scope of the work includes the operation of Hanford tank farm facilities, the eventual operation of the Waste Treatment and Immobilization Plant and responsibility for other core functions. The latest deal within Fluor’s Mission Solutions business has an estimated ceiling of $45 billion over a 10-year ordering period.
Tom D’Agostino, group president of Mission Solutions business, said, “The scope of work under this new contract is critical to the mission of cleaning up Hanford and we are excited to begin building on the progress the tank farm facilities have already achieved in removing and processing tank waste. We look forward to supporting the DOE and other site contractors in this effort and reinforcing Fluor as a responsible corporate citizen within the community.”
Since 1996, Fluor has been serving the Tri-Cities community on projects like the Project Hanford Management Contract.
Price Performance & Growth Prospect
Shares of this Zacks Rank #3 (Hold) company have risen 2.4% in the past year against the Zacks Engineering - R and D Services industry’s decline of 2.1%.
Image Source: Zacks Investment Research
Fluor’s market diversity remains a key strength that helps the company mitigate the cyclicality of the markets in which it operates. The company’s strategy of maintaining a good business portfolio mix permits it to focus on more stable business markets and capitalize on developing cyclical markets at suitable times.
The company has been focusing on its new strategy, “Building a Better Future,” within which it has outlined four strategic priorities for driving shareholder value. First, the company intends to drive growth across portfolios by enhancing markets outside the traditional oil and gas sector, including energy transition, advanced technology and life sciences, high-demand metals, infrastructure and mission solutions.
Second, Fluor aims to pursue contracts with fair and balanced commercial terms that reward value with a bias toward reimbursable contracts. The company has decided that it will not bid competitive fixed-price EPC in the Energy & Chemicals segment and will be more selective in Infrastructure segment. This marks a significant shift from the prior management team's high-risk, high-margin strategy.
Third, it intends to reinforce financial discipline by maintaining a solid balance sheet and generating predictable cash flow and earnings.
Lastly, foster a high-performance culture with purpose by advancing diversity, equity and inclusion efforts and promoting social progress and sustainability.
Key Picks
Some better-ranked stocks in the same space are:
Altair Engineering Inc. (ALTR - Free Report) currently sports a Zacks Rank #1 (Strong Buy). ALTR has a trailing four-quarter earnings surprise of 135.8%, on average.
The Zacks Consensus Estimate for ALTR’s 2023 sales and EPS indicates growth of 7.8% and 11.2%, respectively, from the previous year’s reported levels.
CRH plc’s (CRH - Free Report) long-term earnings growth rate is anticipated to be 10.2%. The Zacks Consensus Estimate for CRH’s 2023 sales and EPS indicates growth of 4.5% and 9.2%, respectively, from the previous year’s reported levels.
AECOM (ACM - Free Report) currently carries a Zacks Rank #2. ACM has a trailing four-quarter earnings surprise of 5.2%, on average.
The Zacks Consensus Estimate for ACM’s fiscal 2023 sales and EPS indicates growth of 3.9% and 5.8%, respectively, from the previous year’s reported levels.
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Fluor's (FLR) JV Wins Hanford Integrated Tank Disposition Deal
Fluor Corporation’s (FLR - Free Report) affiliate — Hanford Tank Waste Operations & Closure, LLC (H2C) — was selected by the U.S. Department of Energy (DOE) for the Hanford Integrated Tank Disposition Contract.
H2C is a joint venture between Fluor, a subsidiary of BWX Technologies and Amentum, which will offer environmental management operations at the Hanford Site in Washington state. The scope of the work includes the operation of Hanford tank farm facilities, the eventual operation of the Waste Treatment and Immobilization Plant and responsibility for other core functions. The latest deal within Fluor’s Mission Solutions business has an estimated ceiling of $45 billion over a 10-year ordering period.
Tom D’Agostino, group president of Mission Solutions business, said, “The scope of work under this new contract is critical to the mission of cleaning up Hanford and we are excited to begin building on the progress the tank farm facilities have already achieved in removing and processing tank waste. We look forward to supporting the DOE and other site contractors in this effort and reinforcing Fluor as a responsible corporate citizen within the community.”
Since 1996, Fluor has been serving the Tri-Cities community on projects like the Project Hanford Management Contract.
Price Performance & Growth Prospect
Shares of this Zacks Rank #3 (Hold) company have risen 2.4% in the past year against the Zacks Engineering - R and D Services industry’s decline of 2.1%.
Image Source: Zacks Investment Research
Fluor’s market diversity remains a key strength that helps the company mitigate the cyclicality of the markets in which it operates. The company’s strategy of maintaining a good business portfolio mix permits it to focus on more stable business markets and capitalize on developing cyclical markets at suitable times.
The company has been focusing on its new strategy, “Building a Better Future,” within which it has outlined four strategic priorities for driving shareholder value. First, the company intends to drive growth across portfolios by enhancing markets outside the traditional oil and gas sector, including energy transition, advanced technology and life sciences, high-demand metals, infrastructure and mission solutions.
Second, Fluor aims to pursue contracts with fair and balanced commercial terms that reward value with a bias toward reimbursable contracts. The company has decided that it will not bid competitive fixed-price EPC in the Energy & Chemicals segment and will be more selective in Infrastructure segment. This marks a significant shift from the prior management team's high-risk, high-margin strategy.
Third, it intends to reinforce financial discipline by maintaining a solid balance sheet and generating predictable cash flow and earnings.
Lastly, foster a high-performance culture with purpose by advancing diversity, equity and inclusion efforts and promoting social progress and sustainability.
Key Picks
Some better-ranked stocks in the same space are:
Altair Engineering Inc. (ALTR - Free Report) currently sports a Zacks Rank #1 (Strong Buy). ALTR has a trailing four-quarter earnings surprise of 135.8%, on average.
The Zacks Consensus Estimate for ALTR’s 2023 sales and EPS indicates growth of 7.8% and 11.2%, respectively, from the previous year’s reported levels.
CRH plc’s (CRH - Free Report) long-term earnings growth rate is anticipated to be 10.2%. The Zacks Consensus Estimate for CRH’s 2023 sales and EPS indicates growth of 4.5% and 9.2%, respectively, from the previous year’s reported levels.
CRH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AECOM (ACM - Free Report) currently carries a Zacks Rank #2. ACM has a trailing four-quarter earnings surprise of 5.2%, on average.
The Zacks Consensus Estimate for ACM’s fiscal 2023 sales and EPS indicates growth of 3.9% and 5.8%, respectively, from the previous year’s reported levels.