Fluor Corporation

What they do

Fluor operates through three segments: Urban Solutions (mining, metals, infrastructure, life sciences), Energy Solutions (upstream, downstream, LNG, petrochemical), and Mission Solutions (U.S. Department of Energy and defense projects). The company also held a significant equity stake in NuScale Power Corporation, which it fully monetized in April 2026. Fluor typically contracts on a reimbursable basis, with 85% of its $26.9 billion backlog structured that way as of June 30, 2026.

Revenue drivers

• Urban Solutions — Largest segment by revenue and backlog, at $2.9 billion in Q2 2026 revenue and $19.4 billion backlog. Drives income from mining, metals, infrastructure, and life sciences projects. Profit $38 million in Q2.
• Energy Solutions — Revenue of $709 million and backlog of $3.5 billion in Q2 2026. Generates profit from oil & gas, LNG, and chemical projects. Segment profit was $88 million in the quarter.
• Mission Solutions — Revenue $716 million and backlog not separately disclosed; awarded $2.2 billion in new awards in Q2 2026, including a reimbursable EPC contract for a nuclear fuel enrichment facility. Segment profit $44 million.

Recent performance

For Q2 2026, Fluor reported revenue of $4.33 billion, up 9% year-over-year, and GAAP net earnings attributable to Fluor of $114 million. Adjusted EBITDA was $149 million, and diluted EPS was $0.81. New awards surged to $6.1 billion (89% reimbursable), compared to $1.8 billion a year earlier. Operating cash flow was negative $317 million, reflecting a $357 million tax payment related to the NuScale monetization.

Strategy

Fluor is focused on disciplined growth in selected markets, strategic capital allocation, and long-term value creation. Management emphasizes converting its front-end prospect pipeline into new awards, as evidenced by the strong Q2 new awards. The company completed the divestiture of its Mexico joint venture for $175 million and returned $300 million to shareholders via share repurchases in Q2 2026. It continues to target $1.4 billion in total share repurchases for 2026.

Risks

• Project execution and cost overruns — Urban Solutions segment recognized $44 million of cost growth on the Gordie Howe International Bridge project due to foreign currency impacts, a subcontractor bankruptcy, and client-driven changes.
• Legacy project risks — As of June 30, 2026, the company still carried $119 million of legacy project backlog, which may carry higher execution risk and potential for further losses.
• Foreign exchange exposure — Fluor's international projects expose it to foreign currency fluctuations; the company reported a $3 million foreign currency loss in Q2 2026 and prior-year period saw a $30 million loss.
• NuScale monetization tax impact — Equity method earnings from NuScale contributed $3.2 billion in Q2 2025 but also generated $757 million in related income tax expense, contributing to negative operating cash flow in 2026.

Outlook

Fluor narrowed its full-year 2026 adjusted EBITDA guidance from $525-$560 million to $500-$525 million, reflecting the removal of the Mexico joint venture's expected second-half contribution. The company sees continued demand across key markets and is focusing on reimbursable contract structures. Management did not provide forward-looking GAAP net earnings or EPS guidance due to difficulty in predicting all required components.