Fluor (FLR) AI Stock Analysis

• Market Cap: $6.01B
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 2.9
• Beta (1Y): 1.15
• Revenue Growth: 5.43%
• EPS Growth: 2094.12%
• Country: US
• Employees: 26,866
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 12.21
• Shares Outstanding: 168,019,470
• 10 Day Avg. Volume: 2,369,445
• 30 Day Avg. Volume: 2,614,589
• PEG Ratio: 0.00140
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.97
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $43.81
• Price Target Upside: 22.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Fluor's stock is supported by strong financial performance, including effective cost management and robust cash flow, indicating a stable financial foundation. The undervaluation based on a low P/E ratio suggests upside potential. Despite some technical indicators pointing to bearish momentum, the company's strong backlog and strategic leadership changes provide a positive outlook. However, challenges such as project delays and operational risks present hurdles that need to be navigated carefully.

Positive Factors

Earnings Potential

Management expressed confidence in near-term earnings power and long-term demand for its services, while noting that its full EPC capabilities are increasingly in demand as speed-to-market rises up customer’s preferences.

Financial Guidance

FLR raised its FY cash from ops guide to $500-600mn given the outperformance in Q2, indicating strong cash flow management.

Project Execution

The LNG Canada project seems impressive in its scale and technical efficiency — strong pride coming from FLR management in its ability to deliver 224 modules and efficiently manage almost 5,000 people on site at the project.

Negative Factors

Earnings Uncertainty

Negatives include near-term earnings performance uncertainty and valuation now well off its highs.

Market Volatility

A macro/politically uncertain environment could potentially increase bookings volatility in the second half of the year.

Project Delays

Energy profit of $75mn declined 16% year-over-year due to certain delays in revenue recognition for some major projects, which are expected to be recognized later.

Fluor Business Overview & Revenue Model

Company Description

Fluor Corporation is a global engineering, procurement, construction (EPC), and maintenance company headquartered in Irving, Texas. The company operates across various sectors, including energy and chemicals, infrastructure and power, mining and metals, and government services. Fluor provides comprehensive solutions to complex projects, offering services such as project management, design, engineering, procurement, construction, and maintenance.

How the Company Makes Money

Fluor makes money primarily through its engineering, procurement, and construction services across diverse sectors. The company earns revenue by securing contracts for large-scale projects, which typically involve designing, building, and maintaining industrial facilities and infrastructure. Revenue is generated through fixed-price, cost-reimbursable, and hybrid project contracts. Significant revenue streams include projects in the oil and gas industry, government contracts for infrastructure and defense projects, and partnerships with global companies for mining and industrial developments. Fluor's ability to deliver complex projects efficiently and its strategic partnerships and joint ventures contribute significantly to its earnings.

Fluor Financial Statement Overview

Summary

Fluor demonstrates strong profitability margins and robust cash flow generation. The income statement shows effective cost management with a solid net profit margin of 11.13%. The balance sheet is healthy with a low debt-to-equity ratio of 0.30, reflecting low financial leverage. Cash flows are strong, with a free cash flow growth of 20.18%, indicating effective capital management.

Income Statement

Fluor demonstrates solid performance in its income statement with a TTM gross profit margin of 3.71% and a net profit margin of 11.13%, indicating effective cost management and profitability. Revenue growth from 2024 to 2025 is modest at 1.52%, reflecting stable, albeit slow, expansion. The EBIT margin stands at 2.74% in TTM, and the EBITDA margin is 3.66%, showing operational efficiency improvements over previous periods.

Balance Sheet

The balance sheet reveals a healthy financial position with a debt-to-equity ratio of 0.30 in the TTM period, suggesting low financial leverage and reduced risk. Return on equity is robust at 51.37%, driven by significant net income growth. The equity ratio is strong at 42.62%, indicating a solid equity foundation relative to total assets.

Cash Flow

Cash flow analysis highlights strong free cash flow growth of 20.18% in the TTM period, underscoring effective capital management. The operating cash flow to net income ratio is 0.51, and the free cash flow to net income ratio is 0.43, reflecting efficient conversion of earnings into cash. The positive cash flow metrics demonstrate Fluor's ability to generate cash to support operations and investment needs.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.32B	15.47B	13.74B	12.43B	15.67B
	Gross Profit
574.00M	477.00M	355.00M	411.60M	385.25M
	EBIT
463.00M	147.00M	209.00M	211.65M	170.25M
	EBITDA
732.00M	334.00M	231.00M	-183.00M	172.76M
	Net Income Common Stockholders
2.15B	139.00M	73.00M	-144.19M	-225.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.96B	2.59B	2.62B	2.34B	2.22B
	Total Assets
9.14B	6.97B	6.83B	7.28B	7.31B
	Total Debt
1.10B	1.16B	1.13B	1.17B	1.74B
	Net Debt
-1.73B	-1.36B	-1.31B	-1.04B	-463.33M
	Total Liabilities
5.15B	4.92B	4.83B	5.71B	6.05B
	Stockholders Equity
3.95B	1.94B	1.79B	1.39B	1.03B
Cash Flow		Free Cash Flow
664.00M	106.00M	-44.00M	-49.74M	72.44M
	Operating Cash Flow
828.00M	212.00M	31.00M	25.33M	185.88M
	Investing Cash Flow
-333.00M	-277.00M	-78.00M	-121.87M	-41.56M
	Financing Cash Flow
-116.00M	127.00M	294.00M	122.25M	48.45M

Fluor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.77
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 35.77 is above the 20-day moving average (MA) of 33.93, above the 50-day MA of 35.67, and below the 200-day MA of 46.35, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLR.

Fluor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	$13.30B	28.52	26.35%	0.93%	8.89%	669.67%
KBR	77 Outperform	$6.81B	18.82	26.45%	1.16%	11.30%	―
FLR	74 Outperform	$6.01B	2.93	72.85%	―	5.43%	2094.12%
TTEK	73 Outperform	$8.37B	32.58	16.05%	0.74%	11.02%	11.33%
J	71 Outperform	$15.23B	25.61	10.92%	0.96%	-13.76%	-13.39%
MTZ	69 Neutral	$10.60B	65.21	5.80%	―	2.56%	―
Sector *	64 Neutral	$4.28B	11.80	5.30%	250.74%	4.12%	-9.02%

Fluor Corporate Events

Fluor Names Jim Breuer as New CEO

On February 17, 2025, Fluor Corporation announced the appointment of Jim Breuer as the new Chief Executive Officer effective May 1, 2025, while David E. Constable transitions to the role of Executive Chairman. This strategic leadership change aims to advance the company’s focus on business growth and excellence in project execution. Breuer, with over three decades of experience at Fluor, is expected to drive the company’s strategy forward, emphasizing sustainable earnings and leadership development. Constable highlighted the achievements under the ‘building a better future’ strategy and expressed confidence in Breuer’s ability to lead the company into its next phase, ‘grow and execute.’

Fluor Expands Board with Charles P. Blankenship Jr.

On February 5, 2025, Fluor Corporation’s Board of Directors voted to expand the Board to eleven members, appointing Charles P. Blankenship Jr. effective March 1, 2025. Blankenship, an experienced leader in the industrial and aerospace sectors, will join the Board’s Audit and Commercial Strategies and Operational Risk Committees, bringing strategic expertise that aligns with Fluor’s focus on growth in advanced manufacturing and energy markets.