Fluor Q2 Earnings Call Highlights

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Fluor (NYSE:FLR) reported second-quarter revenue of $4.3 billion, up 9% from a year earlier, as strong project execution helped lift adjusted EBITDA to $149 million from $96 million in the prior-year period. Adjusted earnings per share rose to $0.91 from $0.43.

The engineering and construction company also reported more than $6 billion in new awards during the quarter, lifting ending backlog to $26.9 billion. Chief Executive Officer Jim Breuer said several client decisions arrived sooner than expected, supporting the company’s expectation for a full-year book-to-bill ratio “well above” one.

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“The pull-through capture of our prospect pipeline is taking flight,” Breuer said, pointing to awards across nuclear fuels, fertilizers, copper and midstream markets.

Backlog Growth Spans Target Markets

Breuer said Fluor is converting front-end engineering and planning assignments into larger engineering, procurement and construction, or EPC, programs while replenishing its pipeline with additional front-end opportunities. Areas of focus include fertilizers in the United Kingdom, data centers, copper projects in the Americas, domestic refining, nuclear power, Middle Eastern chemicals and liquefied natural gas.

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Urban Solutions received $3.2 billion in new awards during the quarter, including construction management for a Chilean copper mine, a feasibility study for an Anglo fertilizer project in the U.K., expanded Canadian fertilizer-project scope, added U.S. life-sciences work and a European infrastructure project.

Breuer said Fluor sees nearly $30 billion of potential Mining Metals awards over the next 18 months within its in-house pipeline. These opportunities include copper, fertilizers, potash, steel and aluminum projects across South America, North America, Australia, the U.K. and the Middle East.

He said most anticipated Mining Metals work would be reimbursable and lower risk, with margins consistent with the segment’s historical profile. Clients remain focused on capital efficiency, permitting and project economics, Breuer said, though demand and commodity prices for copper, fertilizers, aluminum and steel remain supportive.

Legacy Work Winds Down, Gordie Howe Project Records Losses

Fluor said it completed two legacy infrastructure projects during the quarter and expects its remaining two legacy projects to be completed by year-end. Remaining legacy-project backlog fell to $120 million at the end of the second quarter.

Urban Solutions generated segment profit of $38 million, compared with $29 million a year earlier. However, the result included $44 million of additional losses related to the Gordie Howe International Bridge project. The company attributed the project impact to foreign-currency fluctuations, the bankruptcy of a subcontractor and client-driven changes.

All main lanes, toll lanes and side roads on the LBJ project were turned over to the Texas Department of Transportation, Breuer said. Fluor also completed the Oak Hill Parkway in Texas, Chicago’s Red Purple Line elevated rail project and the Gordie Howe International Bridge, which opened to traffic July 27.

Breuer said Fluor continues to work with the Gordie Howe project client, partners and subcontractors to resolve remaining commercial matters. On a separate remaining mining legacy project, he said the company has begun handing over early portions to the client but is also discussing additional scope that could affect project timing and schedule.

Energy Closeouts Boost Results as Portfolio Reloads

Energy Solutions posted segment profit of $88 million, up from $15 million a year earlier, primarily due to higher contributions from projects nearing completion. Chief Financial Officer John Regan said closeout activity included subcontractor settlements and warranty satisfaction, and represented profits that theoretically could have been recognized earlier in the projects’ life cycles.

Regan said closeout benefits were largely included in Fluor’s original outlook, though some may have accelerated from the second half into the first half of 2026. He expects Energy Solutions’ segment-profit percentage to decline in the second half as the business reloads with new work, while Urban Solutions makes a larger contribution to EBITDA.

In Energy Solutions, Fluor received limited notice to proceed for Phase 2 of LNG Canada, began a front-end engineering and design package for an aromatics facility in Bahrain and booked a West Coast gas-compression project. The company is also pursuing domestic gas-fired generation opportunities tied to electricity demand from data centers, industrial expansion and electrification.

Breuer said the company is performing front-end work on a combined-cycle power project on the East Coast, has submitted a proposal for two single-cycle Midwest projects and is advancing a standardized combined-cycle design for a third client. He expects these efforts to support meaningful backlog growth in the first half of 2027.

Fluor is also providing limited-release project management and engineering services for TeraWulf’s Kentucky data center while working toward finalizing EPC contract terms. Breuer said power generation is Fluor’s primary play within the data-center ecosystem, while data-center construction opportunities are being evaluated selectively.

Nuclear Award and Mexico Exit Shape Portfolio

During the quarter, Fluor booked an award at Centrus’ fuel-enrichment facility. Breuer said the company had been working on the project for at least six months and now has several hundred people assigned to it, with early procurement underway. Revenue contribution is expected to begin this year, with heavier activity expected in 2027 and beyond.

The award expands Fluor’s presence across the nuclear value chain, which Breuer said includes conventional plant construction, reactor operations and maintenance, small modular reactors, nuclear fuel, national-security programs and decommissioning work. Fluor is progressing FEED work for the X-energy Dow project and preparing a detailed cost estimate for the Cernavoda project in Romania.

In July, Fluor sold its equity stake in a Mexican joint venture for $175 million. The transaction will result in a $90 million pre-tax book gain and a $33 million tax payment, according to Regan. The gain is excluded from the company’s adjusted EBITDA guidance.

Fluor removed more than $650 million of backlog related to the joint venture from its second-quarter balance, even though the sale closed in the third quarter. Regan said the company saw diminishing backlog and limited prospects in Mexico through the end of the decade, making the divestiture consistent with its strategic priorities.

Guidance Updated; Share Repurchases Continue

Fluor revised its 2026 adjusted EBITDA outlook to a range of $500 million to $525 million and projected adjusted EPS of $2.70 to $2.80 at its current repurchase pace. The company raised its adjusted operating cash flow outlook slightly to $300 million to $320 million, excluding tax payments associated with the 2025 NuScale share conversion and the Mexican joint-venture sale.

Second-quarter operating cash flow was negative $317 million, reflecting a $357 million tax payment tied to the NuScale conversion. Excluding that tax effect, Regan said operating cash flow would have been positive $40 million on a more normalized basis.

Fluor ended the quarter with $3 billion in cash and cash equivalents, rising to $3.2 billion as of July 31. It repurchased 6 million shares for $300 million during the second quarter and continues to model $1.4 billion in share repurchases for the full year.

Regan said the company expects most of its second-half EBITDA to come from projects already in backlog, rather than from awards that may be booked later this year. He added that Fluor will evaluate disciplined acquisitions in power, mining, government services and life sciences, while ruling out a return to “heavy steel” businesses.

About Fluor (NYSE:FLR)

Fluor Corporation (NYSE: FLR) is a global engineering and construction firm that provides integrated solutions across the energy, chemicals, mining, clean energy, infrastructure and government services markets. The company's core offerings include engineering, procurement, fabrication, construction, maintenance and project management services, with capabilities spanning feasibility studies, detailed design and turnkey delivery. Fluor's diversified portfolio encompasses conventional oil and gas facilities, liquefied natural gas (LNG) plants, petrochemical facilities, power generation projects, transportation infrastructure and federal government programs.

Founded in 1912 by John Simon Fluor as the Fluor Construction Company in Pomona, California, the firm has grown into an industry leader headquartered in Irving, Texas.

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