Fluor Corp
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Fluor Corp
Rising from a modest construction company founded in 1912, Fluor Corporation has crafted a legacy of innovation and resilience within the engineering, procurement, and construction (EPC) industry. Over the decades, the company has evolved into a global juggernaut, deftly executing complex projects across varied sectors such as energy, chemicals, infrastructure, and mining. Fluor's prowess lies in its ability to envision intricate mega-projects and marshal expertise to bring them to fruition, often assuming the role of both designer and builder. By orchestrating the core elements of project management—design, procurement, and construction—Fluor ensures that its clients’ objectives are met with precision and efficiency, a competence that has made it a trusted partner for both governments and private enterprises around the world.
Fluor's financial engine hums to life through a diverse revenue stream predominantly sourced from long-term contracts, many of which are negotiated on a cost-plus or fixed-price basis. This enables the company to navigate the unpredictabilities of project execution, securing profit margins even amidst fluctuating material costs or unforeseen project challenges. Beyond mere execution, Fluor leverages its strategic consulting services and maintenance offerings, providing lifecycle solutions that extend beyond project completion, thus ensuring recurring income. This multifaceted approach not only stabilizes its earnings amidst the cyclical nature of the construction and energy markets but also fortifies its standing as a leader in delivering sustainable, efficient, and strategic solutions to the world's greatest engineering challenges.
Rising from a modest construction company founded in 1912, Fluor Corporation has crafted a legacy of innovation and resilience within the engineering, procurement, and construction (EPC) industry. Over the decades, the company has evolved into a global juggernaut, deftly executing complex projects across varied sectors such as energy, chemicals, infrastructure, and mining. Fluor's prowess lies in its ability to envision intricate mega-projects and marshal expertise to bring them to fruition, often assuming the role of both designer and builder. By orchestrating the core elements of project management—design, procurement, and construction—Fluor ensures that its clients’ objectives are met with precision and efficiency, a competence that has made it a trusted partner for both governments and private enterprises around the world.
Fluor's financial engine hums to life through a diverse revenue stream predominantly sourced from long-term contracts, many of which are negotiated on a cost-plus or fixed-price basis. This enables the company to navigate the unpredictabilities of project execution, securing profit margins even amidst fluctuating material costs or unforeseen project challenges. Beyond mere execution, Fluor leverages its strategic consulting services and maintenance offerings, providing lifecycle solutions that extend beyond project completion, thus ensuring recurring income. This multifaceted approach not only stabilizes its earnings amidst the cyclical nature of the construction and energy markets but also fortifies its standing as a leader in delivering sustainable, efficient, and strategic solutions to the world's greatest engineering challenges.
NuScale Monetization: Fluor will begin selling its remaining NuScale investment next week, aiming to complete the process by Q2 2026, unlocking significant value for shareholders.
Revenue Impacted by Santos: Q3 revenue was $3.4 billion but included a $653 million reversal due to the Santos litigation, leading to a segment loss in Energy Solutions.
Adjusted EBITDA & EPS Up: Adjusted EBITDA rose to $161 million from $124 million last year; adjusted EPS was $0.68 versus $0.51 in 2024, both excluding the Santos impact.
Guidance Raised: Full-year 2025 adjusted EBITDA guidance increased to $510–$540 million, and adjusted EPS guidance to $2.10–$2.25.
Strong Cash Flow & Buybacks: Operating cash flow was $286 million for Q3, and Fluor announced a new $800 million share repurchase target by February, on pace for $1.3 billion in repurchases over 15 months.
Backlog Stable: Total backlog remains around $28 billion, with 82% reimbursable and delays shifting expected EBIT delivery out by roughly four quarters.
Award Pipeline & Delays: New awards were $3.3 billion in Q3, but award and FID delays, especially in Energy Solutions, are shifting growth expectations to 2026–2028.
Urban Solutions Momentum: Urban Solutions segment showed growth in new awards and backlog, with strong activity in mining, metals, and life sciences.