Fluor’s 85% reimbursable backlog and industrial pipeline support a turnaround, but FLR needs flawless execution to justify upside beyond $57.37.
Overview
Fluor Corporation (FLR) is a diversified global professional-services and industrial EPC company serving energy, mining, chemicals, semiconductors, data centers, life sciences, nuclear, and sovereign-government customers. Its strategic transformation is centered on replacing high-risk fixed-price work with an 85% reimbursable backlog, improving revenue visibility and reducing exposure to cost overruns. Revenue reached $16.31 billion in 2024 before declining to $15.50 billion in 2025 as management deliberately rejected lower-quality programs. **The operating turnaround is gaining evidence:** Q2 2026 revenue rose 9% year over year to $4.329 billion, adjusted EPS increased to $0.91 from $0.43, and adjusted EBITDA rose 55% to $149 million. Fluor also held $3.0 billion of cash and marketable securities after monetizing NuScale and selling its China fabrication yard, while reducing shares outstanding to 146 million through buybacks. The stock jumped 14.6% to $57.37 after the earnings beat, above its prior $54.79 52-week high. However, the base case implies only $55.71 in five years, so upside depends on pipeline conversion, margin recovery, buybacks, and a favorable Santos litigation appeal.