8 Fluor Corporation COO Review continued ENABLING FUTURE GROWTH To support Fluor’s future, we are harnessing our global execution platform and directing our resources to growth markets. Our platform integrates Fluor’s global offices and leadership teams and ensures reliable execution and flexibility in meeting client requirements. Underpinning our efforts will be the ongoing cultivation of our core competencies: client relationships, technical expertise, a global presence and project delivery. To ensure we remain optimally positioned to capture the opportunities in the growth markets ahead of us, we are focused on four key areas: • Enhanced project execution and delivery. We are committed to delivering projects that meet our clients’ requirements as well as Fluor’s objectives. Successful projects result in repeat business, a strong company and a motivated workforce. • Accelerated leadership development. We are deliberate in identifying and preparing Fluor’s future leaders, both in terms of internal development and external hiring. • Coordinated resource optimization. We are dedicated to enhancing our execution model across our business segments, making it more flexible and effective to meet client needs. This allows us to deploy our teams quickly to where the project opportunities are. • Focused benchmarking. Through our data-centric execution model, we benchmark our performance on current projects against our best-performing projects of the past. This incorporates more than 20 years and 250 projects’ worth of historical data to target similar, high-quality performance. A PERSONAL NOTE Through the hard work of our employees, we have repositioned Fluor over the past four years with a stronger balance sheet, a high-quality backlog and a favorable position in multiple growth markets. I am grateful to the Board of Directors for the opportunity to lead Fluor at this pivotal time, building on the platform for growth we have collectively established under the leadership of David Constable. Stepping into the Chief Executive Officer role is a privilege and responsibility I assume with great pride and optimism. I look forward to the next chapter in Fluor’s rich history, working closely with David, the Board, the management team and our dedicated employees and partners across the globe to continue to deliver for our clients, shareholders and communities. Reflecting on my 31 years at Fluor, I am reminded of the countless people, partners and projects that have shaped who we are today. I am deeply proud of everything we have achieved together and equally excited about the opportunities that lie ahead. Jim Breuer Chief Operating Officer and Incoming Chief Executive Officer* April 2025 * Jim Breuer assumes the role of Chief Executive Officer on May 1, 2025. BUILDING A BETTER FUTURE: GROW AND EXECUTE (2025 TO 2028) Strategic Priority How We Will Achieve It Metrics Drive growth across the portfolio • Continue to advance through organic growth in our key markets supplemented by niche acquisitions. • Measure progress through EBITDA compound annual growth rates (CAGR). • Debt to Capital 20-25%. • Debt to EBITDA below 1.5. • Return significant capital to shareholders. Pursue fair and balanced contract terms • Consistent application of robust pursuit and risk principles with enhanced focus on commercial acumen. • Measure progress through backlog mix, targeting a minimum of 75% reimbursable work. • Maintain minimum 75% reimbursable backlog contract mix. Reinforce financial discipline • Focus on cash generation and sustainable earnings. • Measure progress through debt-to-capital and debt-to-EBITDA ratios. • Return capital to shareholders through structured share repurchases and dividend strategies. • 10-15% EBITDA CAGR. • $90-110 billion in new awards. Foster a highperformance culture of project delivery • Elevate project delivery, focusing on execution and people development. • Measure progress through project performance at or above as-sold. • Deliver successful projects. • Projects perform at or above as-sold gross margin.
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