Q3 2023 Fluor Corp Earnings Call
Okay.
Good morning, and welcome to Fluor's third quarter 2023 earnings Conference call today's call is being recorded.
At this time all participants are in a listen only mode.
I shouldn't answer session will follow.
Management's presentation.
A replay of today's conference call will be available at approximately 10 30, a M. Eastern time today accessible on Fluor's website at Investor day for Dot Com. The web replay will be available for 30 days a telephone replay will also be available for seven days through a registration link.
Also accessible on Fluor's website at Investor Dot Fluor Dot com at this time for opening remarks, I'd like to turn the call over to Jason Lang Tamar.
Head of Investor Relations. Please go ahead, Mr land camera.
Thanks Jordan.
Ma'am the floor is 2023 third quarter earnings call, David Constable Forest, Chairman and Chief Executive Officer, and Joe Brent enforced Chief Financial Officer are with us today.
<unk> issued its third quarter earnings release earlier this morning, and a slide presentation is posted on our website, we will reference while making prepared remarks.
Before getting started I would like to refer you to our safe Harbor note regarding forward looking statements, which is summarized on slide two during today's.
There is an inherent risk that actual results and experience could differ materially.
Can find a discussion of our risk factors, which could potentially contribute to such differences in our 2022 Form 10-K and in our Form 10-Q, which was filed earlier today.
During the call we will discuss certain non-GAAP financial measures reconciliations of these amounts to the comparable GAAP measures are reflected in our earnings release and posted in the Investor Relations section of our website at investor that floor Dot com.
I'll now turn the call over to David Constable Forest, Chairman and Chief Executive Officer, David.
Yeah.
Thank you Jason Good morning, everyone and thank you for joining us today.
Please turn to slide three.
In response to Investor inquiries from our shareholders I wanted to provide some insight into how floor as well.
Emerging artificial intelligence technologies across the organization.
As some of you may recall in 2018, we had entered into an industry exclusive partnership with IBM to develop a predictive analytics solution for large projects.
Based on a significant database of over 200 projects spanning 20 years, we continue to expand the use of this platform to supplement execution across our portfolio.
But at the same time, we launched a parallel effort to create an AI platform to provide predictive pricing on materials for our supply chain.
Outside of these two major predictive solutions.
Or is currently using over 60 AI derived platforms across <unk>.
Tax treasury and human resources.
Proposal development and plant and facility services.
This is in addition to a number of stimulation and rule based AI enabled systems that we have deployed to support project execution.
These systems are helping floor reduce costs.
And drive a data driven decision making process that.
That leads to better project management.
Quality control.
Now, let's turn to our operating review beginning on slide four.
Revenue for the third quarter was $4 billion, representing our third straight quarter of 10% growth over the prior year.
Our increase in revenue was led by urban solutions as we wrap up execution activities on several recently awarded projects.
Putting a large metals project in the U S.
<unk> life Sciences projects and semiconductor project.
Consolidated New awards for the quarter were $5 billion remaining on track relative to our full year plan of a book to burn ratio of greater than one.
New awards were 94% Reimbursable and are.
Our total backlog is now 26 billion.
Of which 70% is reimbursable.
We continue to see strong demand for our services and the value we provide.
Margins on New awards were 70 basis points above the margin profile of our existing backlog.
The demand for our services as evidenced by our prospect pipeline.
We continue to track a slate of prospects, there's more than 15 times the size of our current backlog.
This is led by opportunities in chemicals.
Closely followed by production in fuels and mining and metals.
As you will see over the next few slides our financial discipline.
And with our focus on productivity and price execution.
Starting to drive consistent results.
Moving to our business segments, Please turn to slide six.
Urban solutions reported a $66 million profit in the third quarter.
Results included an incentive fee earned on a large mining project that is nearing completion as.
As well as a favorable arbitration outcome on a separate mining project.
New awards for the quarter were $1 billion.
Ending backlog is now $11 1 billion and 59% Reimbursable.
Now please turn to slide seven.
Okay.
In mining and metals, we continue to work on a number of front end studies, including critical minerals production and Green steel technologies.
Although there have been no cancellations the industry has been carefully monitoring inflation inputs and commodity pricing.
We're now starting to see clients move forward with final investment decisions.
Earlier today, we announced a multibillion dollar Reimbursable award from BHP for stage two of their Janssen potash project in Canada.
This award will be recognized into backlog in the fourth quarter.
Looking ahead to the first half of 2024, we see significant opportunities in lithium.
Steel.
And copper to bring into backlog.
Moving to slide eight.
Yes.
Our advanced technologies and life Sciences business line had another active quarter.
Last month, we announced the completion of Bayer's first global cell therapy launch facility.
This new state of the art biopharmaceutical development and manufacturing facility will be used to produce cell therapies for neurological degenerative disorders cardiovascular disease and other current unmet medical needs.
On the New awards Brian.
<unk> was able to build office successes in the second quarter.
This included an initial award for a semiconductor facilities in the Pacific Northwest.
And an award north of $400 million for an expansion facility for a key strategic customer in Denmark.
Yeah.
We were also awarded a feed package for all of US a b for the world's first industrial scale sodium ion battery production facility.
We are excited about the pipeline of Reimbursable opportunities in this business line.
Over the next few quarters, we are positioned to win significant additional semiconductor work.
And multibillion dollar opportunities in life Sciences.
In infrastructure, we continue to make significant progress on legacy and non legacy projects during the quarter.
On the Gordie Howe project, we had a very productive summer with great progress on the bridge and the U S and Canadian ports of entry.
In August the team celebrated the topping off of the U S tower at 722 feet.
The project is now 65% complete.
As we mentioned last quarter floor, along with our partners continue to have collaborative discussions with the Gordie Howe client.
With respect to cost and schedule relief.
Our joint venture team is working to resolve these discussions in the next few months.
Moving on to slide nine.
Mission solutions reported a segment profit of $38 million for the third quarter compared to $29 million a year ago.
Results for the quarter reflected increased execution activities for FEMA hurricane support.
New awards for the quarter included $175 million four month extension at Portsmouth.
Our New award for Africom under our Logcap five contract.
And additional task Order awards under our FEMA contract.
To support Hurricane related efforts in Florida and Georgia.
Last month, we were also informed that our contract for the Ana and assays Naval nuclear propulsion program was.
It was extended for five years through 2028.
Fees from this $8 $5 billion extension will be recognized as equity income.
During the quarter, our team submitted our bid package to the NSA for the Pantex management and operations contract.
This contract includes a five year base period with three five year options valued at up to $30 billion over 20 years.
We expect to have an update on this contract next year.
Moving to energy solutions, Please turn to slide 10.
Segment profit significantly improved to $177 million from $59 million a year ago.
Results reflect the initial recognition of cost recovery entitlements on several fixed price projects.
Partially offset by cost growth on a large upstream legacy project and a charge for the expected net settlement of a longstanding claim.
Results also included a $24 million gain on our embedded derivatives in Mexico.
New awards for the quarter totaled $3 $3 billion and included a confidential reimbursable EPC contract for a large chemicals project in North America.
For the fourth quarter, we are anticipating some sizeable reimbursable New awards.
Prospects include a large battery chemical project and an ICU craft or a retrofit project both in Europe.
And an LNG facility in Indonesia.
Finally, I'd like to note that LNG, Canada is now 88% complete.
And this project continues to meet management expectations.
Before I turn the call over to Joe I want to note that our results and accomplishments this quarter reflect notable progress against our corporate strategy.
And is indicative of our ongoing transformation into one of the leading engineering and construction companies in the world.
With that let me turn the call over to Joe for the financial update Joe.
Thanks, David and good morning, everyone. Today I will review our results for the third quarter highlight some of the key capital structure activities that were recently executed and go over financial outlook assumptions that support our revised guidance.
Please turn to slide 12.
As David mentioned for the third quarter of 2023 revenue was $4 billion, a 10% increase from last year revenue for the quarter was driven by the ramp up of execution activities on several recently awarded projects across all three segments.
Our consolidated segment profit for the quarter was a strong was strong at $276 million <unk>.
This performance was driven by higher execution activity as well as the initial recognition of cost recovery entitlements on several fixed price contracts.
Adjusted EBITDA for the third quarter was $216 million compared to $30 million a year ago our.
Our adjusted EPS was $1 <unk> compared to seven in Q3 of 2022.
Our adjusted results for the quarter exclude $47 million for the positive income effects of FX and the embedded derivative in Mexico.
G&A expenses for the quarter were $56 million up from $30 million a year ago. This was driven by higher performance based compensation forecasts, including stock price influence compensation, which is expected to be paid in Q1 of 2024.
Net interest income in the quarter was $42 million compared to $37 million last quarter and $14 million a year ago.
Our reinforced liquidity position will enable us to generate positive net interest income throughout the year with prevailing interest rates on our deposits and marketable securities.
New awards of $5 billion in the quarter improved our ending backlog balance to 26 billion based on our prospect pipeline for Q4 and as David advised earlier, we anticipate a book to burn ratio in excess of one for the full year moves.
Moving on to slide 13.
Our cash and marketable securities balance for the quarter was $2 4 billion. This excludes amounts held by new scale.
As it relates to operating cash flow, we expect to be positive for the full year. This includes additional distributions from our joint venture arrangements in Mexico, and Canada, which more than covers the cash needs for legacy projects any potential client concessions on the Gordie Howe project are not currently included in our cash flow outlook, while we are.
We're not discussing 2020 for guidance on this call I do think it is important to note that we expect 2024 to be a significant year for cash flow generation as we start to see meaningful contributions from our growing non legacy portfolio.
During the quarter, we reached an agreement to sell store to European businesses to Bill finger.
We have also launched an effort to transact Stuart's remaining operations at this point, we expect all transactions to close by Q2 next year.
Now please turn to slide 14.
In August we completed a very successful convertible debt offering to address our December 2024, senior notes as a result of our offering being oversubscribed by five times, we were able to lock in a coupon rate of one and one 8% and a conversion premium of 32, 5%.
We also entered into a capped call transactions that prevent any share dilution until our share price trades above $68 <unk>.
Including the cost of the capped call our effective cost of this debt is approximately 347% slightly lower than the three 5% of December 24 notes we are retiring.
If we had pursued a straight debt issuance, we estimate our cost of funds would have been more than doubled this market leading effective rate.
A simplified example of how the cap call transaction works can be found in the appendix section of our slide deck.
I should note that in advance of retiring the 2024 notes the proceeds from the offering have been primarily invested in securities yielding over 5% out, earning our maturing fixed rate debt of three 5% by over 150 basis points.
Lastly in September we announced the full conversion of our convertible preferred stock, which further simplifies our capital structure.
The cost of this conversion was $27 million approximately $2 million less than the remaining earn discounted mandatory dividends, we will not have any change to our adjusted EPS estimated calculations. As these shares were already reflected in our share count and now that our 10-Q has been filed our market cap will adjust upward by more than 1 billion.
With these transactions, we have rebuilt a capital structure that was pressured over the past few years as we transition back into a lower risk portfolio.
Please turn to slide 16, we are raising our full year 2023 adjusted earnings per share guidance to a range of $2 50 to $2 70.
And increasing our adjusted EBITDA guidance to approximately $600 million our.
Our assumptions for the fourth quarter include revenue of more than $4 billion.
Adjusted G&A expense of approximately $50 million and an effective tax rate of approximately 40%. This may vary depending on countries in which revenue is generated we expect tax rates to moderate as revenue in our tax advantaged location start to increase.
Our expectations for Q4 segment margins are approximately four to four 5% in energy solutions, approximately 4% and urban solutions and approximately 6% in mission solutions. Finally, we also reaffirm our 2026 adjusted EBITDA guidance of $800 million to $950 million as.
<unk> in our earnings release. This morning, operator, we are now ready for our first question.
Your first question comes from the line of Steven Fisher from UBS. Your line is live.
Great. Thanks, good morning, and good to see the backlog growth there was a cost reimbursable mix.
There were a lot of one offs in this segment this quarter, though related to older projects.
And the language in the release said that you had initial recognition of cost recovery entitlements. So I guess I'm curious if that means there's going to be more of those benefits.
Benefits coming in how consistent.
The recognition B and what did you bake into the guidance for that.
Thanks, Thanks Steven.
Yes.
Principally what's driving.
Some of the recognition relative to that as the activities in Mexico.
And the way I'm looking at the recovery of those costs.
Or really through kind of the financial discipline and the execution as we drive.
Two more positive conclusions on some of our lump sum projects and it's it's a process.
It clearly was part of our entitlement in our in our contract, but we had to work our way through it. So there is a portion of that we always had it outlook in Q4, but we were able to recognize it in Q3. So it was part of our guidance overall, but I think.
The majority of those projects now are close to 90% complete so I do not expect to see that type of significant uptick in AR and a recognition around these cost recoveries going forward.
Okay. That's very helpful and just I guess bigger picture macro I think David when you were talking about the mining.
Activity mentioned, there is no cancellations and things moving forward I guess I'm, just curious about related to the kind of stronger for longer interest rate environment or what do you hear from your customers about the impact of that.
Does that create opportunities for you to do more value engineering are there any delays.
Your project set.
Pipeline looking more insulated what do you think about sort of that big picture macro.
Topic. Thank you.
Steven It's David.
From a mining and metals perspective as you just saw we had a great award here from BHP.
Earlier this morning up in Saskatchewan for their potash plant a great clients.
We had a long relationship with BHP due to our <unk>.
Execution.
Performance with them. So it was great to see that more generally we've got about $55 billion of of front end work ongoing in mining and metals right now we see that continuing.
And have another line of sight on about another $50 billion of front end work, obviously value engineering is also always important.
Across our client base to make sure we can drive the best value and the right the right solutions.
For our customers so yes mining clients are.
Big picture investing in energy transition.
Minerals and metals, so we see that continuing.
Some some of the mid tier clients are not going after the big multibillion dollar projects, but their capex.
And we charge our clients capex levels quarterly.
And we don't see that.
Softening at all right at this point, so and with all of that front end work, we continue to remain confident in our mining and metals business and.
Especially being such an copper specifically being.
The later in the in.
In the copper mining space.
We feel we're in a really good position going forward.
Terrific. Thank you very much thank.
Thank you.
Your next question comes from the line of Andrew Wittmann from Baird. Your line is live.
Okay.
Great.
Good morning, I thought I would ask here Joe to cut through the noise as much as we would all love to here and quantify the claims settlement the upstream charge and the various other things that ran through your income statement. This quarter I know that you're not going to do that for us.
I asked that question in aggregate a different way and so your adjusted EBITDA for the quarter was $216 million you previously talked about.
Your run rate of EBITDA and have demonstrated in fact, the last several quarters of around $150 million of EBITDA.
Was the quarter's results. If you would look at it kind of ex the big items that you called out in your release in that $150 million run rate range or was it different from that.
Andy Thanks for the question what's happened is we had anticipated.
<unk>.
The work that needed to be done in order to get to the position, where we could recognize those cost recoveries with our client to occur in quarter four it got pulled forward into quarter three.
So youre seeing a little bit of a distortion of that $1 50 run rate over the Q3 Q4 period that we had laid out in the last call. So some of that is being recognized earlier, but I think were still feeling.
Comfortable in that 140 to $1 60 range going into quarter four as well.
Okay. That's helpful and then I just.
Wanted to drill in on your commentary.
Previously been a little reluctant to talk about cash flow in 2024, I think that made a lot of sense.
Is it just that were closer to 24 now that gives you confidence to say that that there could be significant free cash flow next year or is there something in the business that youre seeing.
More confidently today in terms of the businesses performance that gave you the confidence to make that a general comment.
Andy I appreciate the question I think this is.
This is a result of a lot of hard work in clearing out the legacy.
Challenge as you can see some of those settlements flowing through the books today, we're getting significantly more comfortable where we are in that position. We continue to add very high quality backlog.
<unk>.
Very good rates.
As experienced in Q3 relative to $5 billion in New award and then coming out next quarter. So it's really a combination of all of those things the other thing thats underpinning our comfort levels around.
Kind of highlighting cash generation moving not only into Q4 of this year, but into 2024 as we're starting to see some of the repatriation of the dividends that we have been communicating to the market over the last two three quarters and in Q4 Youll start to see the the ramp up of the return of the liquidity to Florida.
Great. Thanks, a lot guys.
Your next question comes from the line of Brent <unk> from D. A Davidson your line is live.
Hey, Thank you congrats on a great quarter.
Just looking at the slide deck, the expectations for energy segment margins for for Q4 to four 5%.
Yes, it would be below what you've seen year to date I understand there were some outstanding benefits here in the third quarter.
Just wondering if there's some specific influences in the fourth quarter in that business, we should consider.
Or just sort of trying to be prudent given that the moving pieces of the business.
No.
We are for the full year were at six 5%.
And this is more just a reset after the culmination of of getting to two the recognition of the cost recoveries in Mexico, that's just a bit of a settling of that a bit of the lumpiness thats flowing through about six 5% and as we look forward to giving you the guide for 2024, but.
We do not see four to four 5% being the run rate moving forward for energy energy solutions at this point.
Okay I appreciate that.
And I guess, just taking a step back I mean like you are still facing some cost growth on some legacy projects, that's more than offset by kind of positive items in the business core execution recoveries.
As some of these legacy activities move into sort of late stages here youre ramping up more profitable new work.
Just wanted to get a sense are you more confident that the sort of typical kind of quarter to quarter risks associated with these legacy projects is diminishing companies in a better position now to give them.
More than offset that even if we do see some more cost growth ahead.
I'll start Joe you can chime in as well.
I'd say, we're getting.
Much more confident with the remaining legacy work there.
There are only a few projects.
Remaining.
<unk>.
That are well along in fact, the large offshore projects that were.
We're looking to finish off is 100% complete 75% complete commissions and.
And hopefully by the end of January that it'll be hand, it over to the client.
So that's well along as I mentioned Gordie Howe is 65% complete and we're getting great progress there.
And having good discussions with the client on revenue recovery.
And well along on the Lax people mover project out in Los Angeles, I think it's 88% complete as we speak.
So these are these projects are in a very good place now and with good discussions.
With the clients.
Where there is revenue recovery required so that allows us to oh.
Good confidence going forward and as we.
Continuing to execute.
Right now well above our as sold margins on the on the much healthier backlog that we brought in.
As we've said, we fit and passed an inflection point at the company now that gives us a lot of confidence in our numbers and that cash that Joe talked about.
The year of cash in 2024.
No I think thats the only thing maybe I would add is you are starting to see some of the financial discipline relative to the recognition of cost and the hard work that's gone in over the last 12 to 18 months to bring some of these claims to very positive conclusions with our clients. So I think all.
That is kind of contributing to the to.
So the positive outlooks here.
Great. Thank you. Thank you.
Your next question comes from the line of Andy.
Kaplowitz from Citigroup Your line is live.
You got it right good morning, everyone.
Yeah close enough Andes.
This allows close enough.
David or Joe I think you said that these positive cost recoveries or part of your guidance, but they just moved early into Q3, but you still raised your EPS guidance significantly for the year. So what else is going right to lead to that raise and then without giving US an EPS guide for 'twenty four is it fair to say that with the significant backlog growth you have and expect an underlying margin improve.
And you would still expect significant EPS growth off of 'twenty three as higher base.
Well I don't want to guide into 2004, yet I think what David touched on we're having the resolution of the challenged projects and we're coming to.
The conclusions that we expected through a lot of hard work, that's one element of it and I think David's leaned into and we're seeing it is just this higher quality.
Better than.
Existing backlog margin intake and we're starting to burn that to.
To burn those those higher quality awards through through the P&L. So I guess, just a combination of all of that and youre going to start seeing that higher quality higher quality margin backlog kind of be the headline story next year as we get back to a lot more consistency around.
Around how we're reporting out and the cash flow generation around contracts that have.
Much better terms and conditions. So I think it's a combination of a few things that are that are giving us that level of confidence.
So that $20 billion, we booked in the.
The 20 billion booked in 2022 is really strong margin in there and we're doing it again this year.
You may not get quite to the 20th will be we will be getting close to that this year as well with that same type of margin profile, we expect to be.
At or near 75% Reimbursable by the end of the year.
And we've got execution excellence.
As I said earlier, we are executing above above our as sold so that all plays so well into into the future.
Trajectory.
Positive trajectory for the company here over several years right. These jobs will run right.
Right now we've got jobs running out to 2000 26027, because they are you know there's a lot of volume a lot of hours to burn over the next over the next several years and so that gives us pretty good.
Line of sight.
Going forward, we'll be looking at the operating plan reviews for 24 in mid December and that will that will certainly.
<unk> leads to our guidance in 'twenty four around margins and growth.
That's helpful. And then David can you give us an update on how you're thinking about new scale. I know you said you would look to monetize at some point maybe by the end of the year, but how are you thinking about the funding needs of new scale moving forward is there any possibility that Florida to inject more capital into the JV.
Yes.
As we said we're.
In discussions with a strategic investor for the monetization of new scale those discussions are proceeding well.
And we do have a term sheet with with our strategic investor.
Uh huh.
All things lineup correctly will.
We will be able to talk more about that at the end of the year or early in the new year.
On that monetization, so that's where we're focused right now new scale has a great.
Great offering.
In the industry. They are well ahead of any other SMS technology I'd say by five years.
Easily and so we're very excited about supporting the commercialization.
New scale going forward and.
I believe they have an earnings call next Wednesday, where they can talk obviously more about your your comments around.
Cash and how they look at that.
I appreciate the color.
Thank you.
Your next question comes from the line of Michael Dudas from vertical research. Your line is live.
Good morning, gentlemen.
Congrats on that World series victory.
Ranger.
Rangers.
I'm glad you guys, even though theres a baseball team in Dallas, that's good news.
Right.
So.
Yes.
David.
You talked you've mentioned marks the extraordinary pipeline that you guys were working on relative to your current backlog.
Maybe share how.
How are you guys are set up or how difficult it could be youll because there is such demand for your services.
How you're going about allocating either through sectors industry clients and certainly what metrics youre thinking about it.
How is your labor and your capacity to execute not only what you have now, but what seems to be a pretty strong steep opportunity.
The opportunity in the future.
Yeah.
Yes, good morning, and Michael and right, that's where we that's where we spend most of our time.
Right now is is.
In our staffing.
Great projects and getting.
You know the right talent the right people in the right places at the right time. So we can we can have.
Execution success for all of our clients.
And we have a very structured pursuit process bid no bid process.
Where we will only move forward if we have the right teams in place that's.
The first question, we asked before we get into the all the other details so.
The whole management teams just laser focused on.
On an.
On resources and.
Hiring.
Traction in hiring.
Of talent into the company done a great job over the last couple of years brought in over 6500 people.
Over 30% of those folks are re hires people wanted to come back to the floor family as we continue to grow again so.
That really is where we spend a lot of our time and make sure that we're not bringing in projects that we can execute as far as allocation goes it's.
We do Fortunately.
It's a business where we can.
Cross pollinate into different businesses as required for example, with the HOS business ramping up dramatically from.
If I'm doing 400 $500 million projects to multibillion dollar projects.
We've successfully.
Inserted.
Uh huh.
Prior to execution skills project management skills product control skills into HOS from our energy solutions business. So there's always that going on and we're fortunate that our.
Processes and procedures, which all of us follow allow us to move people around the company and gives us more flexibility in that in that rig.
Regards so.
Yeah, it's nonstop.
We've got a talent task force in place we've had it in place since early 2022.
And that's really working well for us.
And given the your capacity.
Growing as you mentioned, but also the demand for your services can we anticipate.
As we look over the next several quarters that.
As you indicated booking margins were up 70 bps from your backlog is that a trend that should continue in this environment for the foreseeable future no.
Varying degrees, but certainly see that show up and improve margins and to book backlog.
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 youre a chemical clients in.
In Europe you.
You are challenged with feedstock and you may have to pull back a bit but.
Everything we're seeing we look we've got a key account management process that gives us keeps our finger on the pulse.
Along with our client Capex, we look at quarterly and voice of the customer.
All of that our 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 it including our government and don't forget our government business, where the budget is 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 <unk>.
Les and energy transition on top of that.
So with all the.
The war for talent and resources.
A bit of a seller's market right now.
And margins I expect we'll stay stay strong.
On Reimbursable work, which is which is great to see and.
I guess, that's how I look at it.
And I think we'll be able to.
To drive.
The margin in backlog in the right direction, and it's very dependent on whether Youre, just doing front end services work or the full EPC, obviously and how that.
How that comes into backlog deaths.
Definitely affects the level of margin as well so it's I think it's positive.
Going forward, Michael and we're going to burn it off above those those those asphalt margins as well so thats helpful.
Excellent David Thank you.
Thanks, Mike.
Yeah.
There are no further questions at this time.
I'd like to turn the call back over to the presenters for closing remarks.
Alright. Thank you operator, many thanks to all of you for participating on our call today.
I am 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 are 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.
That concludes today's conference you may now disconnect.
[music].
Yes.