Fluor Wins $1.2B Deal For Naval Nuclear Propulsion Work

Fluor Corporation FLR has secured a contract from the U.S. Navy for naval nuclear propulsion work at the Naval Nuclear Laboratory. The contract is worth $1.22 billion and incorporates options, which if exercised, would bring the cumulative estimated value of this contract to $13.1 billion.

The majority of this cost-plus-fixed fee contract's work will be carried out it Pittsburgh, PA and Schenectady, NY. However, no completion date has been provided pertaining to the Naval Nuclear Propulsion Program contracts.

Streak of Deal Wins Back Government Business

The company's Government segment, accounting for more than 27.5 percent of total revenues, has been performing pretty well. Fluor enjoys a solid track record of contracts, and management remains optimistic that the trend will continue even in the future, thereby driving growth of the company. Over the past few quarters, major wins in the government business have allowed Fluor to expand its long-term recurring revenue opportunities.

Revenues at the Government segment soared 73.5 percent year over year in the last reported quarter. The improvement in revenues was supported by the execution and substantial completion of task order awards for the U.S. Army Corps of Engineers in Puerto Rico.

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