US-based construction giant Fluor reported a decrease in profits and new awards for Q3 2024, yet the company remains optimistic about its future prospects. Despite a slight revenue increase to $4.1 billion, Fluor's net earnings dropped sharply to $54 million, compared to $206 million in Q3 2023. New awards also fell to $2.7 billion, a significant decline from the previous year’s $5 billion, with the most notable drop in its energy solutions sector.

Despite these financial setbacks, Fluor's executive team offered a positive outlook during a call with investors, particularly highlighting key opportunities for growth:

Trump Victory Brings Investment Certainty‍

Fluor's Chairman and CEO, David Constable, emphasized that the clear outcome of the US presidential election, with Donald Trump’s victory, creates the "environment of certainty" needed for large capital investments. Executive VP Joseph L. Brennan added that the potential regulatory changes under Trump could benefit Fluor’s energy solutions division, particularly in chemicals, fuels, and energy transition sectors.

Small Modular Nuclear Reactors (SMRs) Still a Priority‍

Fluor remains bullish on small modular reactors, particularly through its majority stake in NuScale. Despite setbacks like the termination of the Carbon Free Power Project, Fluor remains confident in SMRs’ potential, especially as a carbon-free power solution for data centers. COO James R. Breuer noted that SMRs are gaining momentum, fueling NuScale's commercial prospects, and Constable highlighted NuScale's unique position as the only US NRC-approved SMR technology.

Data Centers: A ‘Sweet Spot’ for Fluor‍

Fluor sees continued high demand for data center construction as a major opportunity. Constable called the sector a "sweet spot," given the company's capabilities and supply chain advantages. Fluor is working on new cooling technologies and offsite modular designs to speed up data center construction, with Breuer identifying this sector as the "primary engine of growth" in the short term.

Ongoing Legal Battle Over Tappan Zee Bridge‍

Fluor is embroiled in a billion-dollar lawsuit concerning the construction of the Mario M. Cuomo Bridge in New York. Fluor's JV consortium filed a lawsuit against the New York Thruway Authority for nearly $1 billion in disputed costs, a case that remains unresolved despite ongoing dispute resolution efforts.

Slower Energy Transition in the US‍

Constable expressed concern that the energy transition in North America is moving more slowly than anticipated. He noted that several energy transition projects have yet to progress to financial investment decisions (FID), with the regulatory environment appearing less favorable for rapid transition. However, he pointed to greater momentum in Europe, where Fluor is involved in multiple energy transition projects.

In summary, Fluor faces challenges in the short term but sees growth opportunities in areas such as data center construction, small modular nuclear reactors, and the potential regulatory shifts under Trump's administration.