Fluor (FLR) AI Stock Analysis

• Market Cap: $6.59B
• Dividend Yield: N/A
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 2.1
• Beta (1Y): 1.32
• Revenue Growth: -1.81%
• EPS Growth: 1228.51%
• Country: US
• Employees: 26,866
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.43
• Shares Outstanding: 161,182,510
• 10 Day Avg. Volume: 2,940,024
• 30 Day Avg. Volume: 2,903,942
• PEG Ratio: <0.01
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 12.78
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: -163.08
• Enterprise Value/Ebitda: -42.18
• 1Y Price Target: $49.25
• Price Target Upside: 20.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $45.00 ▲(10.32% Upside)

Fluor's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and an undervalued valuation. The earnings call highlighted both positive backlog developments and significant challenges in project execution and cash flow, impacting the overall outlook.

Positive Factors

Strong Backlog

A strong backlog of approximately $28 billion, with 80% reimbursable, indicates a stable revenue stream and long-term project commitments, enhancing financial predictability.

NuScale Stake Monetization

Monetizing its stake in NuScale Power provides Fluor with additional capital resources, supporting strategic investments and potentially improving financial flexibility.

Sustainable Aviation Fuel Project

Involvement in sustainable aviation fuel projects aligns with global trends towards renewable energy, positioning Fluor as a leader in sustainable infrastructure development.

Negative Factors

Cash Flow Challenges

Negative operating cash flow indicates liquidity issues, potentially limiting Fluor's ability to invest in new projects or manage unexpected expenses, affecting long-term growth.

Cost Growth in Infrastructure Projects

Rising costs in infrastructure projects can erode margins and delay project completion, impacting profitability and client relationships over time.

Reduced Segment Profit in Energy Solutions

A significant drop in segment profit suggests challenges in maintaining profitability in the Energy Solutions sector, potentially affecting overall financial performance.

Fluor Business Overview & Revenue Model

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.

How the Company Makes Money

Fluor generates revenue through various channels, primarily by providing engineering and construction services for large infrastructure and industrial projects. The company's revenue model is based on contracts that can be structured as fixed-price, cost-plus, or unit-rate arrangements, allowing it to capture revenue based on the nature of the project and client requirements. Key revenue streams include fees for engineering services, construction services, and project management. Fluor also benefits from partnerships with government entities and private sector companies, which provide a steady pipeline of projects. The company's ability to secure long-term contracts and maintain a diversified portfolio across multiple sectors contributes significantly to its earnings stability and growth potential.

Fluor Financial Statement Overview

Summary

Fluor's financial performance shows strong profitability with a high net profit margin and low debt-to-equity ratio. However, challenges in revenue growth and cash flow generation, along with operational inefficiencies, are concerning.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.59B	16.32B	15.47B	13.74B	14.16B	14.16B
Gross Profit	-45.00M	574.00M	477.00M	355.00M	454.00M	399.53M
EBITDA	-174.00M	732.00M	449.00M	376.00M	-182.00M	174.44M
Net Income	3.38B	2.15B	139.00M	145.00M	-440.00M	-435.05M
Balance Sheet
Total Assets	11.47B	9.14B	6.97B	6.83B	7.09B	7.31B
Cash, Cash Equivalents and Short-Term Investments	2.83B	2.96B	2.59B	2.62B	2.34B	2.22B
Total Debt	1.07B	1.10B	1.16B	1.13B	1.19B	1.87B
Total Liabilities	6.24B	5.15B	4.92B	4.83B	5.52B	6.05B
Stockholders Equity	5.19B	3.95B	1.94B	1.79B	1.39B	1.03B
Cash Flow
Free Cash Flow	237.00M	664.00M	106.00M	-44.00M	-50.00M	72.44M
Operating Cash Flow	306.00M	828.00M	212.00M	31.00M	25.00M	185.88M
Investing Cash Flow	112.00M	-333.00M	-277.00M	-78.00M	-122.00M	-41.56M
Financing Cash Flow	-526.00M	-116.00M	127.00M	315.00M	122.00M	48.45M

Fluor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLR, the sentiment is Negative. The current price of 40.79 is below the 20-day moving average (MA) of 42.78, below the 50-day MA of 44.81, and below the 200-day MA of 42.98, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLR.

Fluor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	80 Outperform	$9.97B	34.18	21.90%	―	13.19%	33.58%
IESC	76 Outperform	$8.14B	26.89	40.54%	―	16.89%	54.13%
PRIM	75 Outperform	$6.76B	24.74	18.56%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.12B	13.10	27.77%	1.64%	9.66%	29.01%
STRL	71 Outperform	$9.48B	30.70	35.73%	―	6.20%	72.81%
FLR	64 Neutral	$6.59B	2.07	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Fluor Corporate Events

Fluor Announces Executive Transitions for Strategic Growth

On October 17, 2025, Fluor Corporation announced a series of executive transitions as part of its succession planning. Mr. Mark E. Fields will retire in 2026, and effective November 1, 2025, he will serve as Group President, Strategic Projects. Mr. Michael E. Alexander and Mr. Pierre Bechelany will also assume new roles, aiming to strengthen the company’s strategic positioning and operational execution.