IRVING, Texas – Fluor Corporation (NYSE: NYSE:) has been selected to provide engineering, procurement and construction management services for the first phase of Northvolt’s lithium-ion battery plant in Heide, Germany. The contract is part of a larger $4.8 billion project, with Fluor’s share of the contract value not disclosed but scheduled to be recognized in the company’s earnings in the second quarter of 2024.
Northvolt, a Swedish battery manufacturer, is expanding its operations to meet the growing demand for batteries in consumer electronics, industrial products, electric vehicles and energy storage systems. Fluor’s participation will focus on developing facilities and chemicals modules within the new campus, with a goal of completion in 2027.
Richard Meserole, President of Fluor’s Advanced Technology and Life Sciences Division, expressed the company’s enthusiasm for the partnership with Northvolt, highlighting the importance of the project in advancing the transition from fossil fuels to renewable energy in the transportation sector.
Fluor, with a history spanning more than 100 years, provides professional and technical solutions to various industries. The company, which reported revenues of $15.5 billion in 2023, employs approximately 34,000 people worldwide and is known for delivering safe, efficient and capital-efficient projects. This new contract with Northvolt demonstrates Fluor’s ongoing commitment to supporting innovative and sustainable technologies.
The information is based on a press release issued by Fluor.
In other recent news, Fluor Corporation reported strong results for the first quarter of 2024, with revenue reaching $3.7 billion and consolidated segment profit of $118 million. Analysts from Truist Securities, Baird and BofA Securities raised their price targets for Fluor shares, reflecting confidence in the company’s earnings estimates and financial performance. Truist Securities maintained its earnings per share forecast at $2.90 for fiscal year 2024, $3.20 for fiscal year 2025, and $3.50 for fiscal year 2026.
In other developments, Fluor has expanded its operations in India by opening a new office in Vadodara, which is expected to create around 300 new jobs. The expansion is seen as a strategic move to strengthen Fluor’s project execution capabilities globally.
These latest developments confirm Fluor’s commitment to growth and its ability to maintain strong financial performance despite the challenges in the energy solutions sector. According to a recent earnings call, the company’s focus on maintaining high margins, reducing traditional financing requirements, and tapping into a seller’s market for engineering talent positions it well for future growth and profitability.
InvestingPro Insights
As Fluor Corporation (NYSE: FLR) embarks on its significant Northvolt battery plant project, the company’s financial health is a key factor for investors to consider. Fluor’s market capitalization is $7.36 billion, indicating its significant presence in the industry.
It is worth noting that the company’s price-to-earnings ratio is 26.15, with a slight adjustment to 27.41 when looking at the past twelve months through the first quarter of 2024. This indicates that investors expect earnings growth in the future, which is in line with the optimism surrounding the North Vault project.
Investors may also find comfort in the company’s liquidity position, as Fluor holds more cash than debt on its balance sheet, a tip from InvestingPro that emphasizes financial stability. This is especially important for a company like Fluor, which is involved in large, capital-intensive projects. Furthermore, analysts have revised their earnings upward for the coming period, indicating confidence in the company’s profitability trajectory.
Revenue growth has been modest, with an increase of 7.53% over the past 12 months to Q1 2024. However, gross profit margin over the same period was relatively low at 3.97%, reflecting one of the challenges the company faces. Despite this, Fluor is a prominent player in the construction and engineering industry and is expected to turn a profit this year, according to another tip from InvestingPro.
For investors looking for more in-depth analysis, InvestingPro offers additional advice on Fluor, including insights into stock price volatility and dividend policies. To access these insights and more, investors can visit https://www.investing.com/pro/FLR and use coupon code Pro News 24 Get an extra 10% off your annual or semi-annual Pro and Pro+ subscription. With a total of 10 tips available from InvestingPro, making informed decisions is just one click away.
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