Fluor (FLR) AI Stock Analysis

• Market Cap: $6.89B
• Dividend Yield: N/A
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 1.7
• Beta (1Y): 1.32
• Revenue Growth: 3.62%
• EPS Growth: 943.43%
• Country: US
• Employees: 26,866
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.43
• Shares Outstanding: 161,664,370
• 10 Day Avg. Volume: 3,931,788
• 30 Day Avg. Volume: 3,681,267
• 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: 1.06
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 14.92
• Enterprise Value/Ebitda: 14.01
• 1Y Price Target: $48.71
• Price Target Upside: 15.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: $47.00 ▲(11.72% Upside)

Fluor's overall stock score is driven by strong profitability and an undervalued P/E ratio, indicating potential for value investors. However, challenges in revenue growth, cash flow generation, and technical indicators suggest caution. The absence of a dividend yield and mixed earnings call sentiment further temper the outlook.

Positive Factors

Strong Profitability

A high net profit margin indicates effective cost management and pricing power, contributing to long-term financial stability and competitive advantage.

Robust Backlog

A strong backlog provides revenue visibility and stability, supporting future growth and enhancing the company's ability to plan and allocate resources effectively.

Low Leverage

Low leverage enhances financial flexibility, reduces risk, and allows the company to invest in growth opportunities without significant financial strain.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder long-term expansion and market competitiveness, potentially impacting the company's ability to capture new business opportunities.

Cash Flow Challenges

Negative operating cash flow can strain liquidity, limiting the company's ability to invest in growth and meet financial obligations, affecting long-term sustainability.

Cost Management Issues

Cost overruns can erode profit margins and delay project completion, impacting client satisfaction and the company's reputation, potentially affecting future contract awards.

Fluor Business Overview & Revenue Model

Company Description

Fluor 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 Money

Fluor 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 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

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	16.31B	16.32B	15.47B	13.74B	14.16B	14.16B
Gross Profit	492.00M	574.00M	477.00M	355.00M	454.00M	399.53M
EBITDA	524.00M	732.00M	449.00M	376.00M	-182.00M	174.44M
Net Income	4.14B	2.15B	139.00M	145.00M	-440.00M	-435.05M
Balance Sheet
Total Assets	11.79B	9.14B	6.97B	6.83B	7.09B	7.31B
Cash, Cash Equivalents and Short-Term Investments	2.27B	2.96B	2.59B	2.62B	2.34B	2.22B
Total Debt	1.07B	1.10B	1.16B	1.13B	1.41B	1.87B
Total Liabilities	5.81B	5.15B	4.92B	4.83B	5.52B	6.05B
Stockholders Equity	5.95B	3.95B	1.94B	1.79B	1.39B	1.03B
Cash Flow
Free Cash Flow	243.00M	664.00M	106.00M	-44.00M	-50.00M	72.44M
Operating Cash Flow	350.00M	828.00M	212.00M	31.00M	25.00M	185.88M
Investing Cash Flow	-356.00M	-333.00M	-277.00M	-78.00M	-122.00M	-41.56M
Financing Cash Flow	-463.00M	-116.00M	127.00M	315.00M	122.00M	48.45M

Fluor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.07
• 50DMA: Negative
• 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 Negative. The current price of 42.07 is below the 20-day moving average (MA) of 42.13, below the 50-day MA of 44.17, and below the 200-day MA of 43.67, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 40.25 is Neutral, 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	77 Outperform	$8.51B	32.80	19.05%	―	12.61%	10.33%
PRIM	77 Outperform	$7.28B	30.59	12.83%	0.23%	15.08%	55.10%
IESC	76 Outperform	$7.76B	32.31	34.21%	―	17.83%	34.73%
STRL	73 Outperform	$10.38B	36.93	32.32%	―	3.31%	76.94%
KBR	72 Outperform	$6.05B	16.02	24.55%	1.36%	12.59%	98.20%
FLR	62 Neutral	$6.89B	1.73	102.24%	―	3.62%	943.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Fluor Corporate Events

Fluor Signs Relocation and Consulting Agreements

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.

Fluor Subsidiary Signs Consulting Deal with Ex-CLO

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.