Fluor (FLR) AI Stock Analysis

• Market Cap: $7.95B
• Dividend Yield: N/A
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 1.03
• Revenue Growth: 7.16%
• EPS Growth: 523.56%
• Country: US
• Employees: 26,866
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 0.73
• Shares Outstanding: 164,664,700
• 10 Day Avg. Volume: 4,648,954
• 30 Day Avg. Volume: 3,741,029
• PEG Ratio: -0.45
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -111.86
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: 1.83
• 1Y Price Target: $42.50
• Price Target Upside: -11.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: $55.00 ▲(13.92%Upside)

Fluor's overall stock score reflects a stable financial foundation and attractive valuation, offset by technical indicators suggesting overbought conditions and earnings call challenges. The company's robust backlog and strategic initiatives provide potential for future growth, but project-specific hurdles and economic uncertainties could pose risks.

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 (FLR) is a global engineering, procurement, construction (EPC), and maintenance company that provides services to a diverse set of industries including energy, chemicals, government, industrial, infrastructure, mining, and power. Headquartered in Irving, Texas, Fluor delivers integrated solutions across the entire project life cycle, from conceptual studies through commissioning and operation, serving clients in both the public and private sectors worldwide.

How the Company Makes Money

Fluor Corporation makes money primarily through the provision of engineering, procurement, construction, and project management services to its clients. The company's revenue model is based on contracts that range from lump-sum turnkey projects to cost-plus reimbursable agreements. Revenue streams are diversified across multiple sectors including oil and gas, chemicals, government services, infrastructure, and mining. A significant portion of its income is derived from long-term contracts with governmental and commercial entities. Additionally, Fluor engages in strategic partnerships and joint ventures to expand its service offerings and enhance its competitive position in the global market.

Fluor Financial Statement Overview

Summary

Fluor's financial performance is stable, underpinned by strong profitability margins and cash flow generation. The company exhibits effective cost management and operational efficiency, although revenue growth is modest.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.56B	16.32B	15.47B	13.74B	12.43B	15.67B
	Gross Profit
614.00M	574.00M	477.00M	355.00M	411.60M	385.25M
	EBIT
454.00M	463.00M	147.00M	209.00M	211.65M	170.25M
	EBITDA
607.00M	732.00M	334.00M	231.00M	-183.00M	172.76M
	Net Income Common Stockholders
1.84B	2.15B	139.00M	73.00M	-144.19M	-225.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.51B	2.96B	2.59B	2.62B	2.34B	2.22B
	Total Assets
8.42B	9.14B	6.97B	6.83B	7.28B	7.31B
	Total Debt
1.09B	1.10B	1.16B	1.13B	1.17B	1.74B
	Net Debt
-1.35B	-1.73B	-1.36B	-1.31B	-1.04B	-463.33M
	Total Liabilities
4.77B	5.15B	4.92B	4.83B	5.71B	6.05B
	Stockholders Equity
3.59B	3.95B	1.94B	1.79B	1.39B	1.03B
Cash Flow		Free Cash Flow
512.00M	664.00M	106.00M	-44.00M	-49.74M	72.44M
	Operating Cash Flow
939.00M	828.00M	212.00M	31.00M	25.33M	185.88M
	Investing Cash Flow
-275.00M	-333.00M	-277.00M	-78.00M	-121.87M	-41.56M
	Financing Cash Flow
-90.00M	-116.00M	127.00M	294.00M	122.25M	48.45M

Fluor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 48.28 is above the 20-day moving average (MA) of 42.61, above the 50-day MA of 37.88, and above the 200-day MA of 45.27, indicating a bullish trend. The MACD of 2.79 indicates Negative momentum. The RSI at 71.90 is Negative, neither overbought nor oversold. The STOCH value of 87.01 is Negative, 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	$14.82B	24.43	28.07%	0.93%	4.55%	―
KBR	74 Outperform	$6.94B	17.86	28.18%	1.23%	12.84%	―
MTZ	73 Outperform	$12.79B	59.85	7.70%	―	3.03%	―
J	71 Outperform	$15.10B	34.72	8.46%	1.02%	-22.81%	-30.13%
TTEK	71 Outperform	$9.50B	51.93	11.91%	0.72%	10.35%	-29.34%
FLR	70 Outperform	$7.95B	4.62	66.58%	―	7.16%	523.56%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

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.’