Fluor to divest government business

Fluor said today it has decided to sell its government business following a strategic review.

In a call with analysts this morning, Carlos Hernandez, Fluor's chief executive, said the business is "not strategically enabling to the rest of Fluor."

"The marketplace is currently consolidating, but Fluor has limited ability to participate," he added.

According to the company's latest annual report, its government business recorded $3.8 billion in sales in 2018.

The company’s government work has included the Logistics Civil Augmentation Program. Fluor was one of the prime contractors on LOGCAP IV.

Meanwhile, AECOM said in June it is spinning off its management services segment into a standalone government services company. That business has more than 25,000 employees and fiscal year 2018 sales of $3.7 billion.