Fluor (NYSE:FLR) executives used the company’s fourth-quarter and full-year 2025 earnings call to outline an evolving growth strategy, discuss the financial impact of several notable items in 2025, and provide initial guidance for 2026 that management said is supported largely by existing backlog and improving client sentiment.
Strategy update and shareholder returns
Chief Executive Officer Jim Breuer said Fluor has progressed from an earlier “fix and build” phase into a “grow and execute” chapter focused on growth, project delivery, and returning capital to shareholders. He highlighted $754 million of share repurchases during 2025 and an additional $335 million completed to date in 2026.
In addition to capital returns, management cited portfolio actions including the completed sale of Stork and an agreement to sell the CFHI Yard. Regan said the agreement to sell Fluor’s ownership in the Chinese fabrication yard is for “over $120 million.”
Backlog, awards, and market outlook
Breuer said client confidence has improved entering 2026, supported by higher levels of front-end work and “detailed negotiations on projects” that could convert to backlog in coming quarters, weighted toward the second half of 2026. He added that uncertainty seen in the prior year was “abating.”
For 2025, Breuer reported consolidated new awards of $12 billion, with 87% reimbursable. Fluor also recognized close to $1 billion in positive backlog adjustments as project activity progressed. Total backlog ended 2025 at $25.5 billion and 81% reimbursable. Management said both new award margin and total backlog margin improved, which Breuer described as supportive of the operating margin range discussed at the company’s investor day.
Looking ahead, Breuer said Fluor anticipates 2026 new awards will be “significantly higher than in 2025,” with a book-to-burn ratio above 1. In the Q&A, management said the 2026 earnings outlook is largely underpinned by existing backlog, with Regan estimating roughly two-thirds to three-quarters of the adjusted EBITDA guide coming from backlog and the remainder from “book and burn.”
Segment performance: Urban, Energy, and Mission
Urban Solutions reported 2025 profit of $205 million, down from $304 million in 2024. Breuer said results included $108 million of cost growth on three infrastructure projects, partially offset by $54 million of favorable developments on other infrastructure work, including a negotiation related to a project completed in 2019. He said four infrastructure projects remain in a loss position, with Fluor still targeting handover of three in 2026 and one in early 2027, while pursuing recoveries and change orders.
Urban Solutions generated $8.7 billion in 2025 new awards, including a major pharmaceutical project, two mining projects, and two highway projects. Segment backlog ended at $18.7 billion. For 2026, Fluor cited opportunities across mining and metals (including copper, aluminum, and green steel), rare earth material production, and life sciences facilities for new clients. Breuer said Fluor is in advanced discussions on a major U.S. data center project and is also pursuing European data center project management work, while remaining selective in the data center market.
Energy Solutions posted a 2025 segment loss of $414 million compared to a profit of $256 million in 2024. Breuer said the results reflected the Santos ruling, completion of several large projects, and a temporary slowdown in execution in Mexico, but he added that excluding Santos, the segment exceeded internal expectations. Energy Solutions recorded $1.4 billion in new awards, primarily higher-margin engineering services intended to enable larger EPC awards in the next two years. Segment backlog ended at $4.6 billion.
Breuer also highlighted the mechanical completion of Fluor’s work on BASF’s largest investment in China, noting more than 75 million work hours without a lost time injury and delivery of full engineering, procurement, and construction management services across multiple facilities.
For 2026 prospects, management emphasized a return to the gas-fired power market. Breuer said Fluor has a limited notice to proceed (LNTP) with a confidential U.S. utility for a large project that could expand to two additional facilities. He said the projects would begin on a reimbursable basis and later convert to a negotiated fixed price after an execution plan and estimate are completed in late 2026 or early 2027, under what he called “smart lump sum” terms with improved risk allocation versus a decade ago.
In nuclear, Breuer said Fluor expects to finalize deliverables and an EPC estimate on the Cernavoda project by the end of 2026, which “could result in a multi-billion-dollar award” the following year. He also discussed the RoPower SMR project, where Fluor is working with stakeholders to obtain the next stage of funding following completion of FEED. In LNG, he said Fluor continues supporting LNG Canada’s work toward a decision on phase two and has begun a FEED package for a portion of a U.S. LNG facility. Responding to an analyst question, Breuer said the U.S. FEED scope is an ancillary package rather than a train and that any eventual EPC structure would seek balanced risk allocation, potentially including elements of lump sum.
Mission Solutions produced 2025 profit of $94 million, down from $153 million in 2024. Breuer attributed the decline to $60 million in aggregate related to recognition of reserves on a Department of Defense project and a previously disclosed ruling on a project completed in 2019. New awards were $1.8 billion, similar to 2024, including the start of a six-year contract extending Fluor’s presence at the Portsmouth site. Segment backlog was $2.2 billion, down from $2.7 billion, with management noting the figures exclude work performed under the equity investment method.
Breuer said Fluor sees 2026 opportunities across civil agencies (including FEMA and the National Cancer Institute), national security pursuits, additional LOGCAP work, and intelligence community support services. He also highlighted nuclear fuels as a growth area and referenced a recent Centrus award for EPC on an expansion of an Ohio uranium enrichment plant. Fluor expects an early engineering award in the first quarter of 2026 and “meaningful EPC awards” in the second half of 2026 into 2027.
2025 financial drivers and 2026 guidance
Regan detailed key 2025 items affecting GAAP results, including a $643 million charge related to Santos recorded as a revenue reduction, with a $10 million “clawback” in the fourth quarter as estimates were refined and insurance contributions increased. He also cited $210 million in equity method earnings driven mainly by NuScale and the first-quarter NTTA impact, and $43 million in restructuring costs to optimize the operating platform.
Fluor reported adjusted EBITDA of $504 million for 2025 versus $530 million in 2024 and adjusted EPS of $2.19 compared to $2.32. Regan said G&A was $196 million, down from $203 million, reflecting lower stock-based compensation expense offset by restructuring costs. Net interest income fell to $67 million from $150 million due to lower interest rates and cash balances at significant joint ventures.
Fluor ended 2025 with $2.2 billion in cash and marketable securities, down from $3.0 billion, which management attributed to share repurchases, NuScale monetization activity, and the Santos payment. Operating cash flow was negative $387 million, “largely due” to the $642 million paid to Santos, while Regan said cash flow was “robust” absent that payment. Regan said the appeal is slated to be heard in mid-2026, with no meaningful updates expected on the appeal or insurance recoveries until the second half of the year.
For 2026, Fluor initiated adjusted EBITDA guidance of $525 million to $585 million. Assuming completion of the planned repurchase program at $45 per share (citing the prior Friday’s close), Regan said adjusted EPS would be expected in a range of $2.60 to $3.00. Operating cash flow expectations are approximately $300 million, excluding more than $400 million in cash taxes due in the second quarter related to NuScale conversion. Regan also guided corporate G&A of $175 million to $185 million, an income tax rate of 26% to 28%, and segment margin expectations of 3% to 4% for Urban, 4% to 5% for Energy, and 6% for Mission.
Regan said Fluor expects to spend about $1.4 billion on share repurchases during 2026, including $400 million in the first two months of the year, and reiterated priorities that include reinvesting in the business and evaluating “tuck-in” acquisitions that add depth in targeted markets.
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.
