The second quarter of 2019 wasn’t all roses for Fluor Corporation—the company announced a net loss of $555 million in Q2. The loss was caused by pre-tax charges totaling $714 million from meetings to discuss and solve disputes, change orders and more.
The contractor reported $4.1 billion in revenue, down 16% from 2018’s $4.9 billion. However, Fluor’s backlog is valued at $35.5 billion, an increase from last year’s $29.3 billion at the same time.
Fluor Chief Executive Officer Carlos Hernandez said the loss in revenue has prompted the company to undergo a “comprehensive operational and strategic review of Fluor’s businesses.” The company will take on infrastructure work in North America and, specifically, in five states where it already has an established presence: North Carolina, Virginia, Texas, Arizona and California.
It will also cease pursuing lump-sum projects in the government sector and will limit energy projects to only those that meet certain requirements.
Tutor Perini may not have had an increase in gross profit from one quarter to the next—from $118.6 million to $100.9 million, but it did report a backlog that almost beats the company’s current record. Backlog amounted to $11.4 billion as of June 30, an increase of 31% over 2018’s $8.7 billion.
The company’s Q2 revenue was $1.1 billion, a slight increase from revenues at the same time last year. Tutor Perini leadership said revenues were negatively impacted by project delays like the $20 billion California High-Speed Rail and the $1.4 billion Newark Airport Terminal One in New Jersey.
For AECOM, the third quarter of its fiscal year 2019 was a success. AECOM’s Construction Services division reported revenues of $1.9 billion in the quarter, with a construction backlog that has increased nearly 50% year over year. The revenues from the division make up 38% of the company’s total revenue for the period—approximately $4.98 billion.
Nearly 90% of the firm’s construction services backlog is in four core markets, including Los Angeles and New York.