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Fluor Corp (FLR)
NYSE:FLR
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Fluor (FLR) AI Stock Analysis

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FLR

Fluor

(NYSE:FLR)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$54.00
▲(10.68% Upside)
Fluor's overall stock score is driven by its strong valuation and positive technical indicators. Financial performance is solid but hampered by revenue and cash flow challenges. The earnings call highlighted both achievements and concerns, but it was not factored into the score due to its exclusion.
Positive Factors
Strong Backlog
A strong backlog of approximately $28 billion ensures future revenue streams and indicates robust demand for Fluor's services, supporting long-term growth.
NuScale Share Conversion
This conversion is a strategic move to enhance shareholder value and improve liquidity, reflecting management's focus on optimizing capital structure.
Urban Solutions Backlog
A significant backlog in Urban Solutions highlights Fluor's strong market position in infrastructure, promising sustained revenue from diverse projects.
Negative Factors
Cash Flow Challenges
Negative operating cash flow indicates potential liquidity issues, which can hinder Fluor's ability to invest in new projects and manage operational costs.
Cost Growth in Infrastructure Projects
Rising costs in infrastructure projects can erode margins and delay project completion, impacting profitability and client satisfaction.
Reduced Segment Profit in Energy Solutions
A significant drop in Energy Solutions profit suggests challenges in maintaining margins, potentially affecting long-term earnings stability.

Fluor (FLR) vs. SPDR S&P 500 ETF (SPY)

Fluor Business Overview & Revenue Model

Company DescriptionFluor Corporation (FLR) is a global engineering and construction firm that provides services across various sectors, including energy, chemicals, government, infrastructure, and mining. The company is known for delivering comprehensive project solutions, from design and engineering to procurement and construction management. Fluor's core offerings include project management, construction services, and operations and maintenance support, catering to a diverse clientele ranging from private enterprises to government entities.
How the Company Makes MoneyFluor generates revenue primarily through its engineering, procurement, and construction (EPC) contracts, which are typically awarded on a fixed-price, cost-plus, or unit-price basis. The company earns money by executing large-scale projects, where it charges clients for the services rendered in managing and constructing these complex undertakings. Key revenue streams include contracts in the energy sector, particularly in oil and gas, renewable energy, and chemicals, as well as infrastructure projects funded by government and private investments. Additionally, Fluor benefits from long-term maintenance contracts and consulting services, providing ongoing revenue. Strategic partnerships and joint ventures with other firms also enhance its capabilities and project portfolio, contributing to its earnings. Factors such as market demand for infrastructure development, energy transition initiatives, and government spending on public works significantly influence Fluor's financial performance.

Fluor Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While Fluor highlighted progress in NuScale share conversion and milestones on the LNG Canada project, challenges in infrastructure project costs, reduced Energy Solutions profit, and cash flow issues were notable. The company also experienced delays in client investment decisions due to economic uncertainty.
Q2-2025 Updates
Positive Updates
NuScale Share Conversion
Fluor announced the conversion of 15 million NuScale Class B shares into Class A securities, which is seen as a positive step towards returning value to shareholders.
Positive Backlog Adjustments
Fluor recognized $1.7 billion in positive backlog adjustments for scope changes on existing reimbursable work, contributing to a strong total backlog of approximately $28 billion.
LNG Canada Milestones
Fluor achieved Ready for Startup (RFS) on Train 1 of LNG Canada, with the first cargo of LNG shipped on schedule. A settlement agreement was reached covering COVID claims and other matters.
Significant Urban Solutions Backlog
Urban Solutions ended with a backlog of $20.6 billion, representing 73% of Fluor's total backlog, despite some challenges in project execution and timelines.
Negative Updates
Cost Growth in Infrastructure Projects
Fluor experienced cost growth on three infrastructure projects due to rework, subcontractor defaults, and third-party utility delays, impacting project margins and completion timelines.
Reduced Segment Profit in Energy Solutions
Segment profit in Energy Solutions fell to $15 million from $75 million a year ago, impacted by projects nearing completion and an unexpected $31 million arbitration ruling.
Delay in New Awards and Project Decisions
Fluor faced delays in new project awards and client investment decisions due to ongoing trade policy uncertainty, cost escalation, and economic factors, impacting short-term revenue growth.
Cash Flow Challenges
Operating cash flow was negative at $21 million, falling short of expectations due to working capital increases, infrastructure cost growth, and timing of collections.
Company Guidance
In the second quarter of 2025, Fluor reported revenue of $4 billion and consolidated new awards amounting to $1.8 billion, with 72% being reimbursable. The company also recorded $1.7 billion in positive backlog adjustments for scope changes on existing reimbursable work. For the first half of the year, new awards totaled $7.6 billion, with a book-to-burn ratio above 1, while total backlog remained around $28 billion, with 80% reimbursable. The Urban Solutions segment reported a profit of $29 million, impacted by a $54 million net effect from cost growth and expected recoveries on three infrastructure projects. The segment also faced lower take-up on mining and metals projects and slower-than-expected revenue ramp-up on a large life sciences project, with new awards for the quarter reaching $856 million. Furthermore, Fluor revised its adjusted EBITDA guidance for 2025 to $475 million to $525 million and adjusted EPS to $1.95 to $2.15, ascertaining new awards outlook between $13 billion to $15 billion.

Fluor Financial Statement Overview

Summary
Fluor's financial performance is mixed. The company shows strong profitability with a high net profit margin of 25.35% and a low debt-to-equity ratio of 0.18, indicating prudent leverage management. However, challenges in revenue growth, operational inefficiencies, and cash flow generation, with a significant decline in free cash flow growth, are concerning.
Income Statement
65
Positive
Fluor's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company has achieved a strong net profit margin of 25.35% in the TTM period, significantly higher than previous years, indicating improved profitability. The gross profit margin remains low at 3.02%, suggesting cost management challenges. EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.
Balance Sheet
70
Positive
The balance sheet reveals a stable financial position with a low debt-to-equity ratio of 0.18 in the TTM period, indicating prudent leverage management. Return on equity is exceptionally high at 105.11%, driven by substantial net income. The equity ratio is healthy, reflecting a solid capital structure. However, the high ROE may not be sustainable if net income normalizes.
Cash Flow
55
Neutral
Cash flow analysis shows a decline in free cash flow growth by 52.54% in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is low at 0.11, indicating potential cash flow challenges. The free cash flow to net income ratio is relatively healthy at 0.69, suggesting some ability to convert profits into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.31B16.32B15.47B13.74B14.16B14.16B
Gross Profit492.00M574.00M477.00M355.00M454.00M399.53M
EBITDA524.00M732.00M449.00M376.00M-182.00M174.44M
Net Income4.14B2.15B139.00M145.00M-440.00M-435.05M
Balance Sheet
Total Assets11.79B9.14B6.97B6.83B7.09B7.31B
Cash, Cash Equivalents and Short-Term Investments2.27B2.96B2.59B2.62B2.34B2.22B
Total Debt1.07B1.10B1.16B1.13B1.41B1.87B
Total Liabilities5.81B5.15B4.92B4.83B5.52B6.05B
Stockholders Equity5.95B3.95B1.94B1.79B1.39B1.03B
Cash Flow
Free Cash Flow243.00M664.00M106.00M-44.00M-50.00M72.44M
Operating Cash Flow350.00M828.00M212.00M31.00M25.00M185.88M
Investing Cash Flow-356.00M-333.00M-277.00M-78.00M-122.00M-41.56M
Financing Cash Flow-463.00M-116.00M127.00M315.00M122.00M48.45M

Fluor Technical Analysis

Technical Analysis Sentiment
Positive
Last Price48.79
Price Trends
50DMA
43.06
Positive
100DMA
46.29
Positive
200DMA
43.23
Positive
Market Momentum
MACD
1.49
Negative
RSI
62.06
Neutral
STOCH
55.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLR, the sentiment is Positive. The current price of 48.79 is above the 20-day moving average (MA) of 44.94, above the 50-day MA of 43.06, and above the 200-day MA of 43.23, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 55.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLR.

Fluor Risk Analysis

Fluor disclosed 40 risk factors in its most recent earnings report. Fluor reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Fluor Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$11.23B40.1236.72%3.31%76.94%
77
Outperform
$8.58B33.3120.65%12.61%10.33%
76
Outperform
$7.80B31.9336.85%17.83%34.73%
73
Outperform
$7.74B2.01102.24%3.62%943.43%
72
Outperform
$7.52B31.6017.01%0.23%15.08%55.10%
69
Neutral
$5.61B14.8027.41%1.45%12.59%98.20%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLR
Fluor
48.79
-4.04
-7.65%
DY
Dycom
290.28
95.51
49.04%
IESC
IES Holdings
396.48
185.70
88.10%
KBR
KBR
44.50
-21.93
-33.01%
PRIM
Primoris Services
137.21
76.12
124.60%
STRL
Sterling Infrastructure
364.32
207.19
131.86%

Fluor Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Fluor Signs Relocation and Consulting Agreements
Neutral
Jul 7, 2025

Fluor Corporation announced that James R. Breuer was appointed as CEO effective May 1, 2025. On July 2, 2025, Fluor entered into a Relocation Agreement with Breuer, providing a $750,000 bonus for his move to the Dallas-Fort Worth area, with conditions for repayment if certain criteria are not met. Additionally, on the same date, Fluor’s subsidiary FDEE Consulting, Inc. signed a Consulting Agreement with former CFO Joseph L. Brennan to provide advisory services at $640 per hour for up to six months.

Executive/Board ChangesBusiness Operations and Strategy
Fluor Subsidiary Signs Consulting Deal with Ex-CLO
Neutral
Jun 24, 2025

On June 19, 2025, Fluor Corporation’s subsidiary, FDEE Consulting, Inc., entered into a consulting agreement with John R. Reynolds, the company’s former Chief Legal Officer. Reynolds will offer advisory services for up to six months, impacting the company’s legal and strategic operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025