Fluor to Initiate New Contract From the DOE, Boosts Backlog

Fluor Corporation FLR announced that the Hanford Tank Waste Operations & Closure, LLC joint venture (JV), including FLR and Amentum and led by BWX Technologies, Inc.’s subsidiary, received approval for a contract from the U.S. Department of Energy (DOE).The JV received approval to begin the Hanford Integrated Tank Disposition Contract after the U.S. Court of Federal Claims dismissed a protest against this contract. The award has a 10-year ordering period for environmental management operations at the Hanford Site in Washington state. The estimated price ceiling for the contract is $45 billion.FLR stock gained 1.6% in the after-hours trading session on Thursday, after the contract approval announcement.Work Scope of FLR’s New ContractThe JV is expected to carry on several works encompassing the Hanford Integrated Tank Disposition Contract. The work scope includes the operation of the Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant and responsibility for other core functions such as project management, security and emergency services, business performance, and environment, safety, health and quality.The share of earnings from this new contract will be recognized by Fluor through the equity method of accounting starting in the fourth quarter of 2024.Fluor’s Growing Backlog Bodes WellFluor has been witnessing business prospects and a demand uptrend in various sectors including the chemicals sector, energy transition, fuel production, as well as mining and metals, and big data. This growing trend is reflected in the solid uptick in new awards and backlog value.During the second quarter of 2024, the company secured new awards worth $3.1 billion. At the end of June 30, 2024, the consolidated backlog was $32.3 billion, up 27% from $29.4 billion a year ago. This substantial backlog underscores the continued strong demand for Fluor's services and the recognized value it brings to its clients. The company continues to witness strong demand for its services, pushing new award margins above its strategic segment margin range of 4-6%.Image Source: Zacks Investment ResearchShares of FLR have gained 37.4% in the past six months, outperforming the Zacks Engineering - R and D Services industry’s 21.3% growth. The ongoing backlog strength, market diversity and the Building a Better Future strategy are positioning the company well for an outperformance in the upcoming period.FLR’s Zacks Rank & Key PicksFluor currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Construction sector.Knife River Corporation KNF presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.It has a trailing four-quarter earnings surprise of 33%, on average. Shares of KNF have surged 87.1% in the past year. The Zacks Consensus Estimate for KNF’s 2024 sales and earnings per share (EPS) implies an increase of 3.2% and 15.2%, respectively, from the prior-year levels.KBR, Inc. KBR currently carries a Zacks Rank #2 (Buy). KBR delivered a trailing four-quarter earnings surprise of 4.8%, on average. The stock has gained 16.1% in the past year.The Zacks Consensus Estimate for KBR’s 2024 sales and EPS indicates an increase of 9.5% and 11.7%, respectively, from a year ago.M-tron Industries, Inc. MPTI currently carries a Zacks Rank of 2. MTPI delivered a trailing four-quarter earnings surprise of 9.2%, on average. The stock has risen 78.5% in the past year.The Zacks Consensus Estimate for MPTI’s 2024 EPS indicates growth of 76.6% from the prior-year level.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluor Corporation (FLR): Free Stock Analysis Report KBR, Inc. (KBR): Free Stock Analysis Report M-tron Industries, Inc. (MPTI): Free Stock Analysis Report Knife River Corporation (KNF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks