Fluor's (FLR) Unit Wins $1.36B Naval Nuclear Propulsion Contract
Arlington-based Fluor Marine Propulsion LLC, a subsidiary of Fluor Corporation FLR, has been granted a $1.36 billion cost-plus-fixed-fee modification to a previously awarded contract. This modification enables the exercise of fiscal 2024 options for crucial Naval Nuclear Propulsion work at the Naval Nuclear Laboratory.
The extensive work associated with this contract will primarily take place in three key locations: Pittsburgh, PA (46%); Schenectady, NY (45%); and Idaho Falls, ID (9%). The anticipated completion date for this project is September 2024.
Funding for this significant contract is being sourced from various channels, with fiscal 2023 other procurement (Navy) contributing $6 million (50%), fiscal 2021 other procurement (Navy) adding $3.02 million (25%), fiscal 2023 operations and maintenance (Navy) providing $2.3 million (19%), and fiscal 2022 research, development, test, and evaluation contributing $0.7 million (6%). Notably, $3.69 million of this funding will expire at the end of the current fiscal year.
This contract win underscores Fluor’s commitment to excellence in defense-related projects. It not only strengthens Fluor's position in the industry but also underscores its crucial role in advancing Naval Nuclear Propulsion work. With Fluor's extensive expertise and resources, this contract is expected to have a positive impact on the company's financial performance in the coming years.
Share Price Performance
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Shares of FLR gained 24.2% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 1.9% decline. The company has been benefiting from the solid demand for its engineering and construction solutions. Fluor's total new awards in the second quarter of 2023 came in at $3.71 billion compared with $3.55 billion in the year-ago period. Fluor's total new awards rose in the second quarter compared with the year-ago period. New awards also demonstrate that clients are moving forward with capital spending plans in a challenging business environment.
Zacks Rank
Fluor currently sports a Zacks Rank #1 (Strong Buy).
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