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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 is driven by several positive factors. The company's upcoming Q4 2025 earnings announcement, expected to show $0.34 per share and $4.2692 billion in revenue, has garnered attention from investors. Additionally, Fluor's evolving growth strategy, outlined in its Q4 earnings call, is supported by existing backlog and improving client sentiment. Institutional investors, such as Lingohr Asset Management GmbH, have increased their holdings, with a 792.4% stake increase. A Zacks rating upgrade to Buy reflects growing optimism about the company's earnings prospects.

1.c. Company Highlights

2. Fluor Corporation's 2025 Earnings: A Mixed Bag

Fluor Corporation reported a consolidated segment loss of $109 million and adjusted EPS of $2.19 for 2025, with adjusted EBITDA coming in at $504 million. The company's actual EPS for the fourth quarter was $0.33, slightly below estimates of $0.34. Revenue for the year was not explicitly stated, but the company's guidance for 2026 suggests a revenue split of approximately 20% in Energy Solutions, 65% in Urban, and 15% in Mission.

Publication Date: Feb -20

📋 Highlights
  • Share Repurchases:: $754 million deployed in 2025, with $1.4 billion planned for 2026.
  • Adjusted EBITDA:: $504 million in 2025, with 2026 guidance of $525–$585 million.
  • Cash Reserves:: $2.2 billion in cash and marketable securities as of 2025, down from $3 billion.
  • Backlog Growth:: Over $25 billion backlog, with 50% expected to convert to revenue in 12 months.
  • Market Focus:: Strategic emphasis on LNG, semiconductors, data centers, and pharma, with 2026 revenue split of 65% Urban Solutions, 20% Energy Solutions, and 15% Mission.

Financial Performance

The company's financial performance was impacted by a $643 million charge related to Santos and $108 million in cost growth across three infrastructure projects. However, Fluor Corporation also achieved a monetization solution for its investment in NuScale and completed the sale of Stork, which should help to drive future growth. The company's cash and marketable securities stood at $2.2 billion at the end of 2025, down from $3 billion a year ago.

Outlook and Guidance

Fluor Corporation expects new awards in 2026 to be significantly higher than in 2025, with a book-to-burn ratio in excess of one. The company has guided to adjusted EBITDA of $525 million to $585 million for 2026, with revenue expected to grow by around 6.6% according to analyst estimates. The company's backlog stood at over $25 billion, with 50% expected to convert to revenue in the next 12 months.

Valuation

Using the company's current valuation metrics, we can see that the P/E Ratio is -25.55, indicating that the company is currently unprofitable on a trailing twelve-month basis. The P/B Ratio is 2.76, while the EV/EBITDA is -30.42. These metrics suggest that the company's valuation is heavily dependent on its future growth prospects. With a ROE of -7.79% and ROIC of -7.78%, it's clear that the company still has work to do to improve its profitability.

Growth Prospects

James R. Breuer expressed confidence in achieving the company's 2028 objectives, citing adjusted EBITDA growth over the next few years and new business opportunities. The company is well-positioned in end markets where it has a competitive advantage, such as LNG in Canada, copper, nuclear fuels, and DOE work. With a disciplined approach to project pursuit and a strong backlog, Fluor Corporation is poised for growth in the coming years. As Breuer noted, the company is excited about the future, citing its capabilities and competitive positioning in the EPC services market.

3. NewsRoom

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Fluor Dumps 71 Million SMR Shares for $1.35 Billion

18:28

Source: fool.com

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If You'd Invested $1,000 in Fluor Stock (FLR) 5 Years Ago, Here's How Much You'd Have Today (It's Probably More Than You Expected)

Feb -21

Source: fool.com

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FLR or BCKIY: Which Is the Better Value Stock Right Now?

Feb -20

Source: zacks.com

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Why Did Fluor Stock Surge Higher This Week?

Feb -19

Source: fool.com

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Fluor Q4 Earnings Call Highlights

Feb -19

Source: defenseworld.net

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Fluor: After Q4 Results, I See This Stock As Fully Valued

Feb -18

Source: seekingalpha.com

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Fluor Corporation (FLR) Q4 2025 Earnings Call Transcript

Feb -17

Source: seekingalpha.com

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Fluor Receives $1.35 Billion for 71 Million NuScale Shares; Launches Trading Program for Remaining 40 Million Shares

Feb -17

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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Quality: 3.9

Yield: 0.0

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Fluor

A-Score: 4.3/10

Value: 7.7

Growth: 6.0

Quality: 5.5

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

51.62$

Current Price

51.62$

Potential

-0.00%

Expected Cash-Flows