Fluor Corporation FLR has been benefiting from continuous contract wins over the past few months. Recently, the company’s subsidiary — Fluor Marine Propulsion LLC — has received a contract from the U.S. Navy.
This is a $1.12-billion cost-plus-fixed fee modification to a previously awarded contract to exercise the fiscal 2021 option for naval nuclear propulsion work at the Naval Nuclear Laboratory.
The contract work — which is expected to be completed by September 2021 — will be carried out in Pittsburgh, PA (48%); Schenectady, NY (42%); and Idaho Falls, ID (10%).
Fluor has been riding high on strong end-market prospects, solid backlog level and a good business portfolio mix. In March, Fluor Marine Propulsion received a $1.8-billion contract modification for work at the Naval Nuclear Laboratory. The deal is a modification to a contract awarded in July 2018 that included options that, if exercised, would bring the total value of the same to $13.1 billion. The scope of the contract includes work on naval nuclear propulsion technology, including research, design, construction, testing, operation, maintenance and ultimate disposition to support operation of the country’s aircraft carrier fleets.
It has a solid track record of receiving awards, and management remains optimistic about continuation of this trend in the future as well, which is expected to drive growth. Recently, the company filed an annual report on Form 10-K for 2019. Full-year new awards from continuing operations and government were $12.6 billion, and ending consolidated backlog was $31.9 billion, which hints at further growth. Fluor, being an industry leader in nuclear remediation at government facilities throughout the United States, is expected to benefit from rising demand for energy across the globe.
Meanwhile, the company’s market diversity remains a key strength that helps it mitigate the cyclicality of markets in which it operates. The company’s