17 2024 Integrated Report Company and Strategy Corporate Information Businesses Enablers Extending our global reach // Vadodara, India Fluor employees supporting community initiatives // Southern California, United States Market megatrends have influenced how Fluor’s business segments operate and evolve for future growth. In early 2021, we identified four global megatrends – listed below – that continue to influence our strategy. Revalidated in 2024, these trends have shown even greater market impact than anticipated, guiding our efforts to deliver long-term growth and value for our stakeholders. Stakeholder Engagement Societal expectations for companies to prioritize environmental, social and governance areas remain strong, requiring greater stakeholder engagement and transparency. For employees, this means a desirable work environment with growth opportunities. Clients expect contractors to adopt sustainable technologies, uphold ethical standards and manage project risks proactively. Investors and shareholders expect companies to deliver reliable earnings and smart technology investments for maximum returns. Suppliers and partners are critical to maintaining successful operations and fostering mutually beneficial relationships. Governments and regulators continue to expand requirements, such as European Union Corporate Sustainability Reporting Directive (CSRD) requirements, which will compel disclosure of materially relevant information across numerous ESG areas. DEMONSTRATED EXCELLENCE • De-risked project portfolio with a backlog that is composed of 79% reimbursable projects and at its highest level since 2019 in support of shareholder interests. • Rollout of 27 functional career development frameworks, covering nearly all company disciplines, providing transparency in career development opportunities and helping employees identify upskilling pathways. • Voluntarily report our environmental impact data since 2006. To prepare for changing regulatory requirements, we are engaging regional stakeholders and training our workforce. Beyond Globalization To strengthen supply chains, countries and companies around the world are ‘nearshoring’ or ‘friend-shoring’ in response to geopolitical uncertainty, emphasizing national security and securing critical value chains. The Russia-Ukraine war exposed dependencies on rare earth materials, oil and gas, neon and other essential commodities. China’s decision to restrict critical mineral exports affected the semiconductor industry. More than 64 national elections took place worldwide in 2024, leaving the future of global trade uncertain. The 2025 tariffs implemented by the United States are fueling market unpredictability. Additionally, geopolitical tensions will continue to pose other trade barriers, such as quotas and embargoes, while also limiting access to labor pools. DEMONSTRATED EXCELLENCE • Tracking supply chain trends with our proprietary Market Dynamics/Spend Analytics (MD/SA)SM system to help project teams manage risk and optimize spend. • Supporting NATO allies and U.S. national defense strategy, awarded a $400M contract for modifications to the Tinian Airfield in the Indo-Pacific region. • Pursuing projects in critical industry supply chains such as semiconductors, including providing engineering, procurement and construction management (EPCM) services for a facility in Malaysia and working toward securing three projects in the United States. • Leveraging our 30-year presence in India and new office in Vadodara provides opportunities to utilize India’s capable and growing workforce.
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