Fluor Reports Second Quarter 2025 Results

08/01/2025 – 05:50 AM

• First cargo shipped from LNG Canada project
• NuScale to convert 15 million class B shares
• Share repurchases of $153 million during Q2
• Company adjusts 2025 guidance

IRVING, Texas – Fluor Corporation (NYSE: FLR) has released its financial results for the second quarter, ending June 30, 2025. While some segments shined, others dragged on the overall performance, leading to a revised full-year outlook.

“I’m pleased with the tremendous accomplishments achieved by the team on the LNG Canada project, including the first shipment of LNG. We received a contract award to update the FEED package for a proposed phase 2 expansion, and this week an agreement was reached on our COVID claims and other matters,” stated Jim Breuer, CEO of Fluor. “However, our results for the quarter were unfortunately impacted by three long-standing infrastructure projects and a pullback in expected capital spending from some clients.” Breuer characterized the spending shift as temporary, expressing confidence in the company’s long-term strategy focusing on disciplined project execution within growing markets, set to benefit both clients and shareholders. The LNG Canada milestone, in particular, signals a robust future for Fluor in the energy sector, despite current headwinds.

Outlook: Uncertainty Prompts Guidance Adjustment

Fluor is adjusting its adjusted EBITDA guidance to $475 to $525 million, down from the previous estimate of $575 to $675 million. Adjusted EPS guidance is also revised to $1.95 to $2.15 per share, from $2.25 to $2.75 per share. This revision reflects client hesitation due to ongoing economic uncertainty, influencing new awards and causing project delays. The updated estimates for 2025 assume a tax rate of 30 percent.

Segment Performance: A Mixed Bag

Urban Solutions experienced a challenging quarter, reporting a profit of $29 million versus $105 million a year ago due to a $54 million hit from cost overruns and expected recoveries on three infrastructure projects linked to subcontractor design errors, schedule complications and price increases. Despite these setbacks, revenue increased to $2.1 billion from $1.8 billion year-over-year. New awards totaled $856 million, driven by the Reko Diq mining project and an incremental award on a life sciences project. The segment’s ending backlog rose 5% to $20.5 billion.

Energy Solutions also saw a decline in profit, reporting $15 million compared to $75 million in Q2 2024. This was partly due to an unexpected $31 million arbitration ruling against a fabrication project by Fluor’s Mexico joint venture completed in 2021. The segment also curtailed work at the Mexico joint venture pending client payments. Revenue decreased to $1.1 billion, while new awards stood at $549 million. The ending backlog was $5.6 billion.

Mission Solutions reported a steady profit of $35 million, slightly down from $41 million a year ago. The segment faced a temporary stop-work order for an airfield project in the Pacific. Revenue modestly increased to $762 million. New awards reached $363 million, including short-term extensions at two DOE sites and hurricane relief funding. The ending backlog was $2.0 billion.

Conference Call Details

Fluor will host a conference call at 8:30 a.m. ET on Friday, August 1, accessible via webcast at investor.fluor.com or by phone at 888-800-3960 (U.S./Canada) or +1 646-307-1852 (conference ID: 4438700). A replay will be available for 30 days.

Fluor’s Q2 performance presents a complex picture: The company delivered successfully on key projects like LNG Canada, securing future opportunities, but faced financial repercussions from legacy issues and a cautious economic environment. The revised guidance reflects a pragmatic approach to near-term uncertainties while maintaining a longer-term growth perspective.

Fluor Corporation (NYSE: FLR), ranked 257 on the Fortune 500, delivers engineering, procurement, construction and maintenance services across the globe. With nearly 27,000 employees worldwide, Fluor generated revenues of $16.3 billion in 2024.

Forward-Looking Statements: This release may contain forward-looking statements (including without limitation statements to the effect that the Company or its management “will,” “believes,” “expects,” “anticipates,” “plans” or other similar expressions). These forward-looking statements, including statements relating to resolution of outstanding claims or lawsuits, strategic and operation plans, future growth, new awards, backlog, earnings, capital allocation plans and the outlook for the company’s business.

Actual results may differ materially as a result of a number of factors, including, among other things, the cyclical nature of many of the markets the Company serves and our clients’ vulnerability to poor economic conditions, such as inflation, slow growth or recession, which may result in decreased capital investment and reduced demand for our services; the Company’s failure to receive new contract awards; cost overruns, project delays or other problems arising from project execution activities, including the failure to meet cost and schedule estimates; intense competition in the industries in which we operate; the inability to hire and retain qualified personnel; failure of our joint venture or other partners to perform their obligations; the failure of our suppliers, subcontractors and other third parties to adequately perform services under our contracts; cyber-security breaches; possible information technology interruptions; risks related to the use of artificial intelligence and similar technologies; exposure to political and economic risks in different countries, including tariffs and trade policies, geopolitical events and conflicts, civil unrest, security issues, labor conditions and other foreign economic and political uncertainties in the countries in which we do business; client cancellations of, or scope adjustments to, existing contracts; failure to maintain safe worksites and international security risks; risks or uncertainties associated with events outside of our control, including weather conditions, pandemics, public health crises, political crises or other catastrophic events; the use of estimates in preparing our financial statements; GAAP earnings volatility due to recurring fair value measurements of our investment in NuScale; client delays or defaults in making payments; uncertainties, restrictions and regulations impacting our government contracts; the potential impact of certain tax matters; the Company’s ability to secure appropriate insurance; liabilities associated with the performance of nuclear services; foreign currency risks; the loss of one or a few clients that account for