Fluor (FLR) AI Stock Analysis

• Market Cap: $6.72B
• Dividend Yield: N/A
• Average Volume (3M): 4.96M
• Price to Earnings (P/E): 1.7
• Beta (1Y): 1.25
• Revenue Growth: 3.62%
• EPS Growth: 943.43%
• Country: US
• Employees: 26,866
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 0.43
• Shares Outstanding: 161,664,370
• 10 Day Avg. Volume: 3,802,329
• 30 Day Avg. Volume: 4,963,549
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 14.92
• Enterprise Value/Ebitda: 15.39
• 1Y Price Target: $49.00
• Price Target Upside: 20.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: $42.00 ▲(3.17% Upside)

Fluor's overall stock score is driven by strong profitability and a robust balance sheet, but is weighed down by technical bearishness and cash flow challenges. The undervaluation indicated by the P/E ratio is a positive, but the lack of dividend yield and mixed earnings call sentiment temper the outlook.

Positive Factors

Capital Deployment

The proceeds from the monetization of NuScale are expected to be used to buy back stock above the $450-$500M implied in the full-year guide and at attractive levels.

Competitive Positioning

Fluor is viewed to benefit as markets calm, reflecting their strong competitive positioning in Energy/Power Generation, Life Sciences, and Mining.

Negative Factors

Client Behavior

FLR attributed the muted outlook to reduced capex budgets and an increase in clients taking a ‘wait-and-see’ approach due to uncertainty around trade policy, interest rates, and cost escalations.

Earnings and Guidance

Fluor's stock closed down almost 30% on an earnings miss, a guidance cut, and the announcement that it will finally start to monetize its investment in NuScale, although the initial amount fell short of the market’s expectations.

Project Execution

FLR attributed the weak results to cost overruns on projects and delayed capital spending timelines from some clients.

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 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 shows strong profitability with a net profit margin of 25.35%, but faces challenges in revenue growth and cash flow generation. The balance sheet is robust with low leverage, but the sustainability of high returns on equity is uncertain.

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	477.00M	732.00M	334.00M	231.00M	-182.00M	172.76M
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	-49.74M	72.44M
Operating Cash Flow	350.00M	828.00M	212.00M	31.00M	25.33M	185.88M
Investing Cash Flow	-356.00M	-333.00M	-277.00M	-78.00M	-121.87M	-41.56M
Financing Cash Flow	-463.00M	-116.00M	127.00M	315.00M	122.25M	48.45M

Fluor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.71
• 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 40.71 is below the 20-day moving average (MA) of 41.60, below the 50-day MA of 47.23, and below the 200-day MA of 44.63, indicating a bearish trend. The MACD of -1.45 indicates Negative momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 32.01 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
PRIM	77 Outperform	$6.32B	26.57	17.01%	0.27%	15.08%	55.10%
IESC	76 Outperform	$7.17B	29.37	36.85%	―	17.83%	34.73%
DY	74 Outperform	$7.31B	28.33	20.65%	―	12.61%	10.33%
STRL	73 Outperform	$8.72B	31.17	36.72%	―	3.31%	76.94%
KBR	72 Outperform	$6.35B	16.81	27.41%	1.28%	12.59%	98.20%
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
FLR	54 Neutral	$6.72B	1.68	102.24%	―	3.62%	943.43%

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.