Fluor Earnings: Full-Year Outlook Maintained Despite Charges on Legacy Projects

We are maintaining our $33 fair value estimate for no-moat Fluor after the engineering & construction firm reported mixed first-quarter results. While revenue was up 20% from the prior-year period, Fluor posted a $107 million net loss driven by $80 million in charges on two legacy projects as well as a $60 million negative earnings impact from the sale of Ameco South America. Management expects full-year cash flow to be modestly positive, even with around $200 million for legacy project cash needs.