3 2024 Integrated Report Company and Strategy Corporate Information Businesses Enablers CREATING A PLATFORM FOR GROWTH When we introduced our ‘building a better future’ strategy in January 2021, Fluor was at a turning point. Facing uncertainty, we were determined to rebuild a stronger company by reinforcing financial discipline, lowering our risk profile, being selective with our project pursuits and rebuilding trust with our clients, shareholders and employees. The first phase of our strategy, ‘fix and build’, spanned 2021 through 2024 and has served our stakeholders well. I am proud of the tremendous progress we made in strengthening the company´s capital structure and building quality backlog. We also continue to deliver complex projects for our clients by utilizing our technical expertise, leveraging our global presence and fostering enduring and trusted relationships. Through our collective actions, we have established a leadership position in professional and technical solutions and have maintained our global position in the engineering and construction industry. The infographic below highlights our strategic priorities and how we have met or exceeded the goals we set four years ago. BUILDING A BETTER FUTURE: FIX AND BUILD (2021 TO 2024) Strategic Priority How We Achieved It Metrics Drive growth across the portfolio • Diversified revenue into key growth markets, such as energy transition, advanced manufacturing and mining. • Achieved goal to derive 70% of revenue outside of traditional oil and gas markets. Non-traditional oil and gas revenue 2021 72% 56% 2022 65% 2023 78% 2024 Pursue fair and balanced contract terms • De-risked backlog by increasing percentage of reimbursable work and reducing exposure to high-risk projects. • Surpassed 75% reimbursable backlog goal in 2023, one year ahead of schedule. Reimbursable backlog 2021 41% 79% 63%76% 2022 2023 2024 Reinforce financial discipline • Improved capital structure by rebuilding the balance sheet and developing a strong cash position. • Achieved debt-to-capitalization ratio* under 40% in 2022, two years ahead of schedule, and further improved to 22% in 2024. Debt-to-capitalization ratio* 2021 46% 22% 39% 37% 2022 2023 2024 Foster a highperformance culture with purpose • Fostered a high-performance culture with purpose through safety, employee experience and sustainability. • Increased employee training investment levels consistently since 2021. • Reached carbon neutrality goal in 2023 across our offices and permanent facilities. Learning and development training hours 2021 55,000 213,000 73,000 130,000 2022 2023 2024 * Debt-to-capitalization ratio is a non-GAAP financial measure calculated by dividing (i) long-term debt by (ii) total capitalization (the sum of long-term debt and total shareholders’ equity) Our strategy delivered strong results over the past four years as we moved from a ‘fix and build’ to a ‘grow and execute’ phase. By maintaining a laser focus on project delivery, we will strengthen our platform for growth.
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