We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fluor to Initiate New Contract From the DOE, Boosts Backlog
Read MoreHide Full Article
Fluor Corporation (FLR - Free Report) announced that the Hanford Tank Waste Operations & Closure, LLC joint venture (JV), including FLR and Amentum and led by BWX Technologies, Inc.’s subsidiary, received approval for a contract from the U.S. Department of Energy (DOE).
The JV received approval to begin the Hanford Integrated Tank Disposition Contract after the U.S. Court of Federal Claims dismissed a protest against this contract. The award has a 10-year ordering period for environmental management operations at the Hanford Site in Washington state. The estimated price ceiling for the contract is $45 billion.
FLR stock gained 1.6% in the after-hours trading session on Thursday, after the contract approval announcement.
Work Scope of FLR’s New Contract
The JV is expected to carry on several works encompassing the Hanford Integrated Tank Disposition Contract. The work scope includes the operation of the Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant and responsibility for other core functions such as project management, security and emergency services, business performance, and environment, safety, health and quality.
The share of earnings from this new contract will be recognized by Fluor through the equity method of accounting starting in the fourth quarter of 2024.
Fluor’s Growing Backlog Bodes Well
Fluor has been witnessing business prospects and a demand uptrend in various sectors including the chemicals sector, energy transition, fuel production, as well as mining and metals, and big data. This growing trend is reflected in the solid uptick in new awards and backlog value.
During the second quarter of 2024, the company secured new awards worth $3.1 billion. At the end of June 30, 2024, the consolidated backlog was $32.3 billion, up 27% from $29.4 billion a year ago. This substantial backlog underscores the continued strong demand for Fluor's services and the recognized value it brings to its clients. The company continues to witness strong demand for its services, pushing new award margins above its strategic segment margin range of 4-6%.
Image Source: Zacks Investment Research
Shares of FLR have gained 37.4% in the past six months, outperforming the Zacks Engineering - R and D Services industry’s 21.3% growth. The ongoing backlog strength, market diversity and the Building a Better Future strategy are positioning the company well for an outperformance in the upcoming period.
FLR’s Zacks Rank & Key Picks
Fluor currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
It has a trailing four-quarter earnings surprise of 33%, on average. Shares of KNF have surged 87.1% in the past year. The Zacks Consensus Estimate for KNF’s 2024 sales and earnings per share (EPS) implies an increase of 3.2% and 15.2%, respectively, from the prior-year levels.
KBR, Inc. (KBR - Free Report) currently carries a Zacks Rank #2 (Buy). KBR delivered a trailing four-quarter earnings surprise of 4.8%, on average. The stock has gained 16.1% in the past year.
The Zacks Consensus Estimate for KBR’s 2024 sales and EPS indicates an increase of 9.5% and 11.7%, respectively, from a year ago.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank of 2. MTPI delivered a trailing four-quarter earnings surprise of 9.2%, on average. The stock has risen 78.5% in the past year.
The Zacks Consensus Estimate for MPTI’s 2024 EPS indicates growth of 76.6% from the prior-year level.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fluor to Initiate New Contract From the DOE, Boosts Backlog
Fluor Corporation (FLR - Free Report) announced that the Hanford Tank Waste Operations & Closure, LLC joint venture (JV), including FLR and Amentum and led by BWX Technologies, Inc.’s subsidiary, received approval for a contract from the U.S. Department of Energy (DOE).
The JV received approval to begin the Hanford Integrated Tank Disposition Contract after the U.S. Court of Federal Claims dismissed a protest against this contract. The award has a 10-year ordering period for environmental management operations at the Hanford Site in Washington state. The estimated price ceiling for the contract is $45 billion.
FLR stock gained 1.6% in the after-hours trading session on Thursday, after the contract approval announcement.
Work Scope of FLR’s New Contract
The JV is expected to carry on several works encompassing the Hanford Integrated Tank Disposition Contract. The work scope includes the operation of the Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant and responsibility for other core functions such as project management, security and emergency services, business performance, and environment, safety, health and quality.
The share of earnings from this new contract will be recognized by Fluor through the equity method of accounting starting in the fourth quarter of 2024.
Fluor’s Growing Backlog Bodes Well
Fluor has been witnessing business prospects and a demand uptrend in various sectors including the chemicals sector, energy transition, fuel production, as well as mining and metals, and big data. This growing trend is reflected in the solid uptick in new awards and backlog value.
During the second quarter of 2024, the company secured new awards worth $3.1 billion. At the end of June 30, 2024, the consolidated backlog was $32.3 billion, up 27% from $29.4 billion a year ago. This substantial backlog underscores the continued strong demand for Fluor's services and the recognized value it brings to its clients. The company continues to witness strong demand for its services, pushing new award margins above its strategic segment margin range of 4-6%.
Image Source: Zacks Investment Research
Shares of FLR have gained 37.4% in the past six months, outperforming the Zacks Engineering - R and D Services industry’s 21.3% growth. The ongoing backlog strength, market diversity and the Building a Better Future strategy are positioning the company well for an outperformance in the upcoming period.
FLR’s Zacks Rank & Key Picks
Fluor currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
Knife River Corporation (KNF - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter earnings surprise of 33%, on average. Shares of KNF have surged 87.1% in the past year. The Zacks Consensus Estimate for KNF’s 2024 sales and earnings per share (EPS) implies an increase of 3.2% and 15.2%, respectively, from the prior-year levels.
KBR, Inc. (KBR - Free Report) currently carries a Zacks Rank #2 (Buy). KBR delivered a trailing four-quarter earnings surprise of 4.8%, on average. The stock has gained 16.1% in the past year.
The Zacks Consensus Estimate for KBR’s 2024 sales and EPS indicates an increase of 9.5% and 11.7%, respectively, from a year ago.
M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank of 2. MTPI delivered a trailing four-quarter earnings surprise of 9.2%, on average. The stock has risen 78.5% in the past year.
The Zacks Consensus Estimate for MPTI’s 2024 EPS indicates growth of 76.6% from the prior-year level.