Fluor Corporation

session will follow management's presentation. A replay of today's conference call will be available at approximately 10.30 a.m. Eastern time today, accessible on Floor's website at investor.floor.com. The web replay will be available for 30 days. A telephone replay will also be available for seven days through a registration link, also accessible on Floor's website at investor.floor.com. At this time for opening remarks, I would like to turn the call over to Jason Landkamer, Vice President, Investor Relations. Please go ahead, Mr. Landkamer.

Thank you, Operator, and welcome to the Flores 2024 Fourth Quarter Earnings Call. David Constable, Flores Chairman and Chief Executive Officer, Joe Brennan, Flores Chief Financial Officer, Jim Brewer, our Chief Operating Officer, and John Regan, our current Chief Accounting Officer and soon-to-be CFO, are here with us today. FLOR issued its fourth quarter earnings release earlier this morning, and a slide presentation is posted on our website that we will reference while making prepared remarks. Before getting started, I would like to refer you to our safe harbor note regarding forward-looking statements, which is summarized on slide two. During today's presentation, we'll be making forward-looking statements, which reflect our current analysis of existing trends and information. There is an inherent risk that actual results and experience could differ materially. You can find a discussion of our risk factors, which could potentially contribute to such differences in our 2024 Form 10-K, which was filed earlier today. During this call, we will discuss certain non-GAAP financial measures. Reconciliations of these amounts to the comparable GAAP measures are reflected in our earnings release and posted in the investor relations section of our website at investor.floor.com. I'll now turn the call over to David Constable, Floor's Chairman and Chief Executive Officer. David.

Thank you, Jason. Good morning, everyone. Thank you for joining us today. Please turn to slide three. I would like to start by discussing the CEO transition announcement issued earlier this morning. It has been just over four years since we launched our building a better future strategy and set our long-term financial targets. In 2024, we achieved the goals under this strategy with strong cash flow and a robust capital structure. supporting a backlog that is not only majority reimbursable, but one that reflects our portfolio approach to our end markets. Importantly, we have met and in most cases exceeded our strategic targets, bringing the fix and build portion of our strategy to a close. Consistent with our long-term succession plans and with the full support of Fleur's board, it is now the right time for me to transition into the role of Executive Chairman and pass this Chief Executive Officer role on to Jim Brewer. Starting on May 1st in my new role, I will be supporting Jim as he builds upon his relationships with clients and engages more fully with our stakeholders. In Jim's new role, he will be focused on developing the storylines for the next chapter of our strategy, which is thematically focused on grow and execute. This will include revised growth targets and a laser focus on project delivery. We look forward to sharing our view of the markets over the next four years at our upcoming strategy update event on April 2nd at one of our major ATLS sites. On a personal note, back in 1982, when I first started at Fluor as an engineer in our Calgary office, I had no idea of the incredible experiences and opportunities that awaited me and my family over the next five decades. I'm filled with gratitude for the experiences, traditions, and proud moments that define my journey with the corporation. And I'm really looking forward to seeing our new management team build upon Fleur's legacy. Now please turn to slide four. Our revenue for the year was $16.3 billion, marking a 5.4% increase from 2023. In 2024, we recorded new awards totaling $15.1 billion, achieving a book to burn ratio of just under one. New awards for the year were 150 basis points above new award margins last year and well supports our established margin corridor of four to 6%. Importantly, our 2024 net gross margin book to burn ratio was a healthy 107%. Through our discipline contract pursuits, 85% of new awards for 2024 were reimbursable and our total ending backlog is now approximately 80% reimbursable. Moving to the new US administration and the rapid pace of announcements that are coming out of the executive branch, we are tracking the executive orders closely. While it's still too early to be definitive about the long-term impacts, we are focusing on the broad economic themes of the administration's agenda, which are to promote capital investment and job creation. Considering the underlying themes of pro-domestic energy, key minerals production, and AI infrastructure development in the executive orders, we see these directives as favorable to nuclear and thermal sources of energy, favorable to LNG exports and expedited permitting, favorable to increasing domestic mineral production, and favorable to significant data center build-outs. Therefore, we see positive elements across all of FLUR's business segments and stand ready, as we always have, to support our clients. Before I turn the call over to Jim, I want to thank Joe for partnering with me through this journey and for playing an instrumental role in strengthening our financial stability and positioning Fluor for long-term success. Jim will now take us through the fourth quarter highlights and prospects for 2025. Jim?