NYSE:FLR
FLUOR CORP
A global engineering and construction powerhouse providing end-to-end project delivery for energy and industrial infrastructure.
Key Metrics
Investment Thesis
Bull Case
FLR is well-positioned to benefit from the global energy transition as it pivots its portfolio toward renewables and nuclear power projects. The company's massive backlog of awarded contracts provides a stable revenue base that should support future profitability once current project completions occur. Valuation appears attractive given the historical cyclicality of the construction sector and the potential for margin expansion in new service-based models.
Bear Case
Recent financials show a sharp deterioration in profitability with gross profit turning negative at -$120M and net income dropping from $2B to -$62M. The company carries substantial debt obligations including $1.07B in long-term debt while holding significant cash reserves that are not generating sufficient operating returns. High exposure to the cyclical energy sector creates uncertainty regarding future order flow and pricing power in a potentially downmarket environment.
About FLUOR CORP
Fluor Corporation (FLR) is a global engineering, procurement, construction, and maintenance firm serving the energy, industrial, infrastructure, and technology sectors. The company delivers project solutions across oil and gas, renewables, nuclear, and power generation markets with a focus on lifecycle services. Its diversified portfolio spans upstream and downstream energy projects alongside significant investments in clean energy transitions.
Analysis
Management Discussion
Despite reporting a net loss of $62M for the current period, Fluor demonstrated resilience with revenue holding steady at $15.5B compared to the prior year's $16.32B peak. The cash flow from operations turned negative at -$387M while significant capital was deployed via share repurchases totaling $754M, indicating management confidence in shareholder returns despite recent earnings headwinds.
Industry Overview
The industrial construction and engineering services industry is currently navigating a transition from traditional fossil fuel projects to renewable and low-carbon infrastructure solutions. Market dynamics are heavily influenced by government policy on clean energy adoption, interest rates affecting project financing costs, and global supply chain constraints for specialized materials. Consolidation is expected as smaller firms struggle with margin compression while larger integrated players like Fluor capture complex, multi-billion dollar mandates.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $13.74B | $15.47B | $16.32B | $15.50B |
| Cost of Revenue | $13.39B | $15.00B | $15.74B | $15.62B |
| Gross Profit | $355.0M | $477.0M | $574.0M | $-120.0M |
| Operating Expenses | $146.0M | $330.0M | $111.0M | $258.0M |
| Operating Income | $209.0M | $147.0M | $463.0M | $-378.0M |
| G&A | $237.0M | $232.0M | $203.0M | $196.0M |
| Stock-Based Comp | $19.0M | $48.0M | $31.0M | $30.0M |
| D&A | $73.0M | $74.0M | $73.0M | $68.0M |
| Depreciation | — | — | $73.0M | $68.0M |
| Other OpEx | $-91.0M | $98.0M | $-92.0M | $62.0M |
| Non-Operating Income | $35.0M | $168.0M | $2.25B | $277.0M |
| Interest Expense | $59.0M | $60.0M | — | — |
| Interest Income | $94.0M | $228.0M | $196.0M | $109.0M |
| Pre-Tax Income | $244.0M | $315.0M | $2.72B | $-101.0M |
| Income Tax | $171.0M | $236.0M | $634.0M | $-39.0M |
| Continuing Ops | $73.0M | $79.0M | $2.15B | $-62.0M |
| Discontinued Ops | $0 | $0 | $-61.0M | $0 |
| Net Income | $73.0M | $79.0M | $2.08B | $-62.0M |
| Minority Interest | $-72.0M | $-60.0M | $-61.0M | $-11.0M |
| Net to Common | $145.0M | $139.0M | $2.15B | $-51.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $5.04B | $5.06B | $5.17B | $6.44B |
| Cash & Equivalents | $2.44B | $2.52B | $2.83B | $2.13B |
| Marketable Securities | $185.0M | $69.0M | $130.0M | $59.0M |
| Other Current Assets | $2.42B | $2.48B | $2.22B | $4.25B |
| Long-Term Assets | $1.78B | $1.91B | $3.97B | $1.79B |
| PP&E (Net) | $447.0M | $458.0M | $494.0M | $464.0M |
| Goodwill | $206.0M | $206.0M | $199.0M | — |
| LT Investments | $584.0M | $614.0M | $2.83B | $543.0M |
| Other LT Assets | $546.0M | $632.0M | $447.0M | $787.0M |
| Total Assets | $6.83B | $6.97B | $9.14B | $8.24B |
| Current Liabilities | $3.22B | $3.16B | $3.07B | $3.38B |
| Accounts Payable | $1.02B | $1.21B | $1.22B | $1.48B |
| Deferred Revenue | $742.0M | $639.0M | $684.0M | $633.0M |
| Other Current Liab | $1.46B | $1.31B | $1.17B | $1.26B |
| Long-Term Liabilities | $1.61B | $1.76B | $2.08B | $1.58B |
| Long-Term Debt | $978.0M | $1.16B | $1.10B | $1.07B |
| Other LT Liab | $637.0M | $600.0M | $976.0M | $511.0M |
| Total Liabilities | $4.83B | $4.92B | $5.15B | $4.96B |
| Shareholders' Equity | $2.00B | $2.05B | $3.99B | $3.28B |
| Retained Earnings | $896.0M | $979.0M | $3.12B | $3.06B |
| AOCI | $-365.0M | $-269.0M | $-351.0M | $-265.0M |
| Total L&E | $6.83B | $6.97B | $9.14B | $8.24B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $73.0M | $79.0M | $2.08B | $-62.0M |
| Non-Cash Adjustments | $972.0M | $-431.0M | $-1.13B | $-563.0M |
| Working Capital Changes | $-1.01B | $564.0M | $-124.0M | $238.0M |
| Cash from Operations | $31.0M | $212.0M | $828.0M | $-387.0M |
| Capital Expenditures | $75.0M | $106.0M | $164.0M | $50.0M |
| Cash from Investing | $-78.0M | $-277.0M | $-333.0M | $437.0M |
| Share Buybacks | — | — | $125.0M | $754.0M |
| Cash from Financing | $315.0M | $127.0M | $-116.0M | $-797.0M |
| FX Effect | $-38.0M | $18.0M | $-69.0M | $53.0M |
| Net Change in Cash | $230.0M | $80.0M | $310.0M | $-694.0M |
| Beginning Cash | $2.21B | $2.44B | $2.52B | $2.83B |
| Ending Cash | $2.44B | $2.52B | $2.83B | $2.13B |
Frequently Asked Questions
How does FLUOR CORP make money?
The company operates primarily through four key segments: Energy, Infrastructure, Technology, and Corporate. Revenue is driven by EPC contracts for oil and gas facilities, nuclear power plants, renewable energy projects, and heavy civil works including bridges and tunnels.
What are the main risks for FLR?
Significant exposure to volatile commodity prices and shifting capital expenditure cycles in the oil and gas sector remains a primary threat. The company faces substantial regulatory and permitting risks associated with its heavy involvement in nuclear and energy transition projects. Geopolitical instability in international operating regions can disrupt project timelines and increase insurance and operational costs.
What is FLR's competitive advantage?
FLR leverages its massive scale and integrated project management capabilities to execute complex, high-value international contracts efficiently. The firm possesses deep proprietary expertise in specialized sectors like nuclear engineering and carbon capture technologies that few competitors can match. Its global footprint allows it to capture opportunities across diverse geographic regions regardless of local market cycles.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.