Fluor Corporation (NYSE:FLR) Q3 2023 Earnings Call Transcript

David Constable: You know, it is — I would say, maybe there’s a few pockets in our markets or a few customers specifically who run into challenging times. If you’re a chemical client in Europe, you are challenged with feedstock and you may have to pull back a bit. But everything we’re seeing — we’ve got a key account management process that keeps our finger on the pulse. Along with a client CapEx, we look at quarterly, invoice of the customer, all that front end work that we track to see — to give us line of sight on what’s coming down the pipeline. And I must say, including our government — don’t forget our government business where the budgets always are growing. But the CapEx across our client base is not softening at all.

It’s either flat, up, or up, and then you lay an energy transition on top of that. So with all the war for talent and resources, it’s a bit of a seller’s market right now, and margins, I expect, will stay strong on reimbursable work, which is great to see. And I guess that’s how I look at it. And I think we’ll be able to continue to drive that margin and backlog in the right direction. And it’s very dependent on whether you’re just doing front-end services work or the full EPC, obviously, and how that comes into backlog definitely affects the level of margin as well. So I think it’s positive going forward, Michael, and we’re going to burn it off above those as-sold margins as well. So that’s helpful.

Michael Dudas: Excellent, David. Thank you.

David Constable: Thanks, Mike.

Operator: There are no further questions at this time. I would like to turn the call back over to the presenters for closing remarks.

David Constable: All right. Thank you, operator. Many thanks to all of you for participating on our call today. I’m very pleased with our performance this quarter as it further supports our belief that we are really past our inflection point now. And with a strong capital structure and high demand for our services, we’re well positioned to deliver increased value to our shareholders. So we appreciate your interest in Fluor and thank you again for your time today. Thanks.

Operator: That concludes today’s conference. You may now disconnect.