3 2023 Integrated Report 01 Our Company and Strategy 02 Our Businesses 03 Our Functions 04 Our Corporate Information Our strategy continues to serve us well, and in just three years, has helped us reposition the company to deliver value for our shareholders, clients, employees, partners and communities. We have made important progress toward being the preeminent leader in professional and technical solutions across all the industries we support while maintaining our position in the marketplace as one of the few companies that can deliver both engineering and construction for large-scale, complex projects. In 2023, our project mix was the most diverse it has been in years, both in sector and geography. Non-traditional oil and gas projects comprised 65% of our revenue, while 76% of new awards were related to projects located outside of the United States. Our capital structure, along with our cash flow and earnings, continues to improve based on actions taken in 2023. Fueled by a robust backlog, a promising prospect pipeline and secure finances, we are capitalizing on the opportunities at hand. REFLECTING ON OUR PERFORMANCE Our accomplishments in 2023 not only reflect significant progress against all areas of our ’building a better future’ corporate strategy; they also illustrate the value Fluor brings to our stakeholders. The following are a few key 2023 financial performance proof points: • Our total revenue increased by 13% to $15.5 billion versus $13.7 billion in 2022. We aim to continue driving growth across the portfolio by increasing the percentage of non-traditional oil and gas project revenue from 65% to greater than 70% in 2024. • Our new awards totaled $19.5 billion, 87% of which were reimbursable. Since implementing our strategic priorities in 2021, we have secured nearly $50 billion in new fair and balanced contracts. • Our ending backlog of $29.4 billion means that 2024 and the years ahead will be both busy and exciting as our offices around the world gear up to execute megaprojects in the Americas, Europe and Asia. • Fluor’s backlog mix has grown from 63% reimbursable in 2022 to 76% at the end of 2023, providing a risk-balanced portfolio. We surpassed our 75% goal one year ahead of schedule and intend to maintain this level of reimbursable backlog to support consistent and reliable earnings. • We reduced the stated interest rate on outstanding debt by 100 basis points to a weighted average rate of 2.7%. • Since year end 2020, we have substantially improved our debt-to-capitalization ratio from 63% to 37%. Our strong client relationships continue to be a huge contributor to our success. We see a large portion of repeat business in our pipeline, which reaffirms the trust our clients have in our integrity and ability to meet their project execution expectations. Beyond these achievements, I would like to highlight the progress we have made in several other key areas: • We are leaders in safety. Through our continued focus on safety, we improved our total case incident rate (TCIR) and our days away, restricted or transferred (DART) rate to 0.29 and 0.15, respectively, in 2023 compared to 0.34 and 0.19 in 2022. We are proud of being awarded the International Safety Award from the British Safety Council; and we remain committed to sending our people, our partners and our subcontractor personnel home safely to their families and loved ones every day. • Our people focus remains front and center. We are investing in our people and creating a more inclusive work environment for everyone, ensuring that there are avenues for career growth. In 2023, talent acquisition efforts led to nearly 5,000 staff additions notwithstanding a significant headcount reduction related to the divestment of Stork Latin America. • We are reaching our sustainability goals. Fluor achieved our Net Zero 2023 commitment, reducing the Scope 1 and Scope 2 greenhouse gas emissions of our offices and associated fleet to net zero. This is a significant milestone in our journey as we shift our focus to helping our clients achieve their sustainability goals, which has a much greater global impact. • Our energy transition portfolio has been gaining momentum. In 2023, nearly 40% of our new awards were energy transition-related, led by projects in renewable fuels, the battery value chain and carbon reduction. • As a company and through our employees, we continue our focus of giving back to the communities where we live and work. Illustrating Fluor’s generosity and purposeful commitment to philanthropy, our employees increased their volunteer hours by nearly 50% compared to 2022. “We ended 2023 with optimism for 2024. As we continue to execute on our strategy, we are repositioned to deliver consistent value with a strong backlog and prospect pipeline.”
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