FLR - Fluor falls sharply as government cancels $28B contract

Fluor (NYSE:FLR) -6.8% in early Tuesday trading after the National Nuclear Security Administration canceled a proposed 10-year, $28B contract for the company's joint venture with Amentum to manage the agency's main nuclear weapons production sites. The NNSA said protests filed after the contract was awarded in November 2021 led them to take "voluntary corrective action" to assess alleged organizational conflicts of interest and alleged proprieties, and contracts for operating each facility will now be awarded separately. The agency said terminating the contract award is appropriate "to safeguard the integrity of the procurement process and to best address NNSA's mission requirements." Fluor (FLR) recently reported Q1 adjusted earnings that missed estimates but said it expects a substantial volume of new awards from all segments.

For further details see:

Fluor falls sharply as government cancels $28B contract