Earnings fell at Fluor, Irving, Texas, in the second quarter, which the Department of Energy contractor attributed partly to a $34 million charge cost and schedule issues in its Energy Solutions sector.
Net earnings for the second quarter ended June 30 were $61 million, or $0.35 a share, down from $66 million, or $0.38 a share, in the year-ago quarter, Fluor said in its earnings press release Friday. Quarterly revenue was $3.9 billion, up year-over-year from $3.3 billion.
Quarterly segment operating income for the Mission Solutions segment that includes government contracting for DOE and the military was $40 million, up from $28 million a year ago. Segment revenue was $705 million, up from $547 million in the year-ago period.
“We recently announced that our joint venture with Amentum was successful in securing the contract for the Portsmouth Gaseous Diffusion Plant Decontamination and Decommissioning contract,” said Fluor CEO David Constable, during an earnings call with analysts. The cleanup contract has an estimated value of $5.9 billion over a 10-year ordering period, the CEO said.
Fluor is a minority partner to Amentumr in the new Portsmouth contract, after being the lead partner in the incumbent, Fluor-BWXT Portsmouth. Briefings on the contract award were held last week, sources have told Exchange Monitor. As of 10 a.m. Friday morning, no bid protest has been posted online with the Government Accountability Office.
Fluor is also pursuing the potential 20-year, $30-billion business to run the National Nuclear Security Administration’s Pantex Plant in Texas, Constable said, adding a Fluor venture will submit its bid proposal in September.
In other items, Fluor reported that the Department of Justice has closed an investigation of the company, though company officials did not elaborate. In 2020, the feds did subpoena certain records on charges reported by the company during the second quarter of 2019.
A copy of the full earnings presentation can be found here.
Fluor is a major player in the DOE weapons complex and is lead partner in the Savannah River Nuclear Solutions prime contract at the Savannah River Site in South Carolina. The business, which started in January 2008 and is scheduled to run at least through September 2026, is currently valued at $24 billion.
