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1. Company Snapshot

1.a. Company Description

Fluor Corporation provides engineering, procurement, and construction (EPC); fabrication and modularization; operation and maintenance; asset integrity; and project management services worldwide.It operates through four segments: Energy Solutions, Urban Solutions, Mission Solutions, and Other.The Energy Solutions provides solutions to the energy transition markets, including asset decarbonization, carbon capture, renewable fuels, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources.


It also provides consulting services, including feasibility studies, process assessments, and project finance structuring; and a range of services for small modular reactor technologies, as well as operation support services for nuclear power facilities and managing waste.This segment serves the oil, gas, and petrochemical industries.The Urban Solutions segment offers EPC and project management services to the infrastructure, advanced technologies, life sciences, and mining and metals industries.


This segment also provides staffing services to the company and third-party clients with technical, professional, and craft resources on a contract or permanent placement basis.The Mission Solutions offers technical solutions to the U.S. and other governments.It also delivers solutions for nuclear security and operation, nuclear waste management, and laboratory management; and operation and maintenance, logistics, EPC, and life support solutions for mission-critical facilities across U.S. military service organizations.


This segment offers site management, environmental remediation, and decommissioning for nuclear remediation at governmental facilities, as well as services to commercial nuclear clients.The Other segment researches, develops, licenses, and commercializes small modular nuclear reactor technology.It also provides unionized management and construction services.


The company was founded in 1912 and is headquartered in Irving, Texas.

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1.b. Last Insights on FLR

Fluor Corporation's recent performance was positively driven by stronger-than-expected Q3 earnings, with quarterly earnings of $0.68 per share beating the Zacks Consensus Estimate of $0.44 per share. The company's 2025 guidance was raised, and project activity increased. A rating upgrade citing Fluor as an "AI-resistant stock" with diversified business and attractive valuation also contributed. Additionally, the company's exposure to booming sectors like life sciences and data centers, as well as potential tariffs and large industry investments in pharmaceutical manufacturing, are seen as tailwinds. (Source: MarketBeat Ratings, Citigroup Inc.)

1.c. Company Highlights

2. Fluor's Q3 2025 Earnings: A Closer Look

Fluor's financial performance in Q3 2025 was marked by revenue of $3.4 billion, which included a $653 million revenue reversal in Energy Solutions related to the Santos litigation. The company's adjusted EBITDA for the quarter was $161 million, and adjusted EPS was $0.68, beating analyst estimates of $0.44. The company's cash and marketable securities stood at $2.8 billion, up $0.5 billion from June 30.

Publication Date: Nov -11

📋 Highlights
  • NuScale Monetization: Converted remaining investment into Class A shares, with $111 million in remaining stake to be monetized starting November 2025, concluding by Q2 2026.
  • Q3 Revenue & Litigation Impact: Reported $3.4 billion revenue, including a $653 million reversal in Energy Solutions due to Santos litigation, leading to a $533 million segment loss.
  • Urban Solutions Growth: Delivered $61 million profit with $1.8 billion in new awards, driven by front-end engineering projects like MP Materials and reimbursable contracts.
  • Capital Allocation: Repurchased 1.4 million shares ($70 million in Q3) and plans $800 million additional buybacks by February 2026, targeting $1.3 billion total repurchases since December 2024.
  • Cash Position: Ended Q3 with $2.8 billion cash and marketable securities, a $500 million increase YoY, including $800 million in Mexican cash receipts post-Q2 liquidity constraints.

Segment Performance

The company's business segments showed varying degrees of performance. Urban Solutions reported a profit of $61 million, with new awards totaling $1.8 billion, a significant increase from the previous year. Energy Solutions, on the other hand, reported a segment loss of $533 million, mainly due to the Santos litigation. The company's CFO, John Regan, noted that the adjusted EBITDA for Q3 was $161 million, and adjusted EPS was $0.68.

Capital Allocation and Share Repurchases

Fluor's capital allocation plan includes targeting an additional $800 million in repurchases through the end of February, putting the company on pace for total share repurchases of $1.3 billion over the 15-month period beginning December 2024. The company's adjusted EBITDA guidance for 2025 has been increased to $510 million to $540 million, and adjusted EPS guidance to $2.10 to $2.25.

Valuation Metrics

To understand what's priced into Fluor's stock, we can look at various valuation metrics. The company's P/E Ratio is 2.28, P/B Ratio is 1.49, and P/S Ratio is 0.47. The EV/EBITDA ratio is -64.37, indicating that the company's enterprise value is not justified by its EBITDA. The company's ROE is 72.5%, which is high, but the ROIC is -1.78%, indicating that the company's investments are not generating returns. As Jim Breuer mentioned, "We're confident in our capabilities to sell a compelling story to clients and are talking to multiple clients about complex projects, including gig data centers."

Outlook and Growth Prospects

Fluor expects EBITDA generation to be marginally better in 2026 than in 2025, driven by growth in Urban Solutions and a tailwind in Energy Solutions from the resumption of work in Mexico. The company's expectations for segment margins in 2025 are approximately 2.5% for Urban Solutions, approximately 6% for Energy Solutions, and approximately 4.5% for Mission Solutions. Analysts estimate next year's revenue growth at 2.7%.

3. NewsRoom

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Fisher Asset Management LLC Takes $16.21 Million Position in Fluor Corporation $FLR

Dec -04

Source: defenseworld.net

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Cetera Investment Advisers Boosts Stock Position in Fluor Corporation $FLR

Dec -02

Source: defenseworld.net

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1 No-Brainer Nuclear Stock to Buy With $2,000 Right Now

Nov -29

Source: fool.com

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The Smartest Nuclear Stock to Buy With $1,000 Right Now

Nov -29

Source: fool.com

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Charles Schwab Investment Management Inc. Has $105.15 Million Stock Holdings in Fluor Corporation $FLR

Nov -29

Source: defenseworld.net

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2 Things to Know Before Buying Fluor

Nov -27

Source: fool.com

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Quanta vs. Fluor: Which Infrastructure Stock Has More Upside?

Nov -24

Source: zacks.com

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Fluor Breaks Ground on State Highway 6 Project in Bryan/College Station, Texas

Nov -20

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.84%)

6. Segments

Energy Solutions

Expected Growth: 8%

Fluor Corporation's Energy Solutions segment growth is driven by increasing global demand for clean energy, rising investment in renewable energy projects, and growing need for energy storage solutions. Additionally, the segment benefits from Fluor's expertise in engineering, procurement, and construction, as well as its strong relationships with major energy companies.

Urban Solutions

Expected Growth: 7%

Fluor's Urban Solutions segment growth is driven by increasing urbanization, government investments in infrastructure, and rising demand for sustainable and resilient cities. Additionally, the need for modernized transportation systems, energy-efficient buildings, and smart city technologies also contribute to this growth.

Mission Solutions

Expected Growth: 10%

Fluor's Mission Solutions segment growth is driven by increasing demand for advanced technology and cybersecurity solutions, expansion in the intelligence and defense markets, and strategic acquisitions. Additionally, the segment benefits from the company's expertise in systems engineering, integration, and logistics, as well as its strong relationships with government agencies and prime contractors.

Other

Expected Growth: 6%

Fluor's 6% growth in 'Other' segment is driven by increasing demand for professional services, particularly in the Middle East and Asia. Strong project execution, strategic partnerships, and expansion into new markets also contribute to growth. Additionally, the company's focus on digital transformation and innovation enables it to capitalize on emerging trends, further boosting segment performance.

7. Detailed Products

Engineering Services

Fluor provides engineering services to design and develop projects in various industries such as oil and gas, chemicals, mining, and infrastructure.

Procurement Services

Fluor offers procurement services to source and manage materials, equipment, and services for clients' projects.

Construction Services

Fluor provides construction services to build and deliver projects in various industries such as oil and gas, chemicals, mining, and infrastructure.

Operations and Maintenance Services

Fluor offers operations and maintenance services to manage and operate clients' facilities and assets.

Fabrication and Modularization Services

Fluor provides fabrication and modularization services to fabricate and assemble modules for clients' projects.

Consulting Services

Fluor offers consulting services to provide strategic and technical advice to clients in various industries.

Project Management Services

Fluor provides project management services to manage and deliver projects for clients in various industries.

8. Fluor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Fluor Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing competition in the engineering and construction industry.

Bargaining Power Of Customers

Fluor Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and expertise in the industry give it an upper hand in negotiations.

Bargaining Power Of Suppliers

Fluor Corporation relies on a network of suppliers for materials and services. While the company has some bargaining power due to its large scale of operations, suppliers still have some leverage due to the specialized nature of their products and services.

Threat Of New Entrants

The engineering and construction industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This limits the threat of new entrants and gives Fluor Corporation a competitive advantage.

Intensity Of Rivalry

The engineering and construction industry is highly competitive, with several large players competing for a limited number of projects. Fluor Corporation faces intense rivalry from companies such as Bechtel, Jacobs, and AECOM.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight -55.82%
Debt Cost 14.55%
Equity Weight 155.82%
Equity Cost 14.55%
WACC 14.55%
Leverage -35.82%

11. Quality Control: Fluor Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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AECOM

A-Score: 5.5/10

Value: 3.5

Growth: 5.7

Quality: 5.2

Yield: 1.0

Momentum: 8.0

Volatility: 9.7

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API Group

A-Score: 5.4/10

Value: 2.5

Growth: 6.4

Quality: 6.4

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

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KBR

A-Score: 4.8/10

Value: 5.8

Growth: 6.4

Quality: 5.0

Yield: 3.0

Momentum: 1.0

Volatility: 7.7

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MYR Group

A-Score: 4.7/10

Value: 3.2

Growth: 4.9

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

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Construction Partners

A-Score: 4.5/10

Value: 1.5

Growth: 8.6

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 4.7

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Fluor

A-Score: 4.2/10

Value: 6.0

Growth: 6.0

Quality: 6.7

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.96$

Current Price

43.96$

Potential

-0.00%

Expected Cash-Flows