Fluor (FLR) Wins $581M Design-Build Contract In Texas - Analyst Blog

Fluor Corp. FLR, one of the leading providers of engineering, fabrication, construction and maintenance services globally, won a $581 million worth design-build contract from the Central Texas Regional Mobility Authority. Fluor registered this deal in its second quarter of 2015 books.

In particular, Colorado River Constructors got this deal, which is a Fluor’s joint venture (‘JV’) in alliance with Balfour Beatty Infrastructure. As per this 4-year contract, the JV will provide design and reconstruction services for the Bergstrom Expressway Project located in Austin, TX. The company’s work scope entails design and construction of six tolled lanes; upgrade to the general purpose lanes; five grade-separated interchanges; construction of four new bridges and two new direct connect flyover ramps; and setting up intelligent traffic management systems.

The project is projected to commence next year and finish through 2020. With the completion, the Bergstrom Expressway Project will boost the capacity of one the most prominent roadways of Austin that has a per day traffic of over 60,000 vehicles. This will prove beneficial to commuters in the long run.

We are encouraged with this significant contract win of Fluor. The deal also strengthens the company’s 14-years relationship with Balfour Beatty Infrastructure. As a matter of fact, Fluor holds a good track record of winning lucrative awards, and management remains optimistic about continuation of this trend in the future, which is likely to drive its growth.

Encouragingly, in the ongoing second quarter 2015, Fluor has won several awards that include a contract in Brazil for offering engineering, procurement, construction ('EPC') services to a natural gas field development project; as well as two more EPC contracts from Dominion Virginia Power and Suncor Energy Oil Sands in Virginia and Canada, respectively. We believe that the company’s strong focus on cost-control, timely completion of projects and customer-centric approach will aid its top-line growth, going forward.

Fluor currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include AECOM ACM, VSE Corp. VSEC and KBR Inc. KBR. All stocks carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
 
AECOM TECH CORP (ACM): Free Stock Analysis Report
 
KBR INC (KBR): Free Stock Analysis Report
 
VSE CORP (VSEC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Comments on FLR stock

Do share this awesome post