$FLR

FLR 2025 Q4 and Year-End Results, 2026 Outlook, and Strategic Evaluation
FLR completed its transition from the “Fix & Build” strategy to the “Grow & Execute” (Grow and Execute) phase. In fiscal year 2025, the company focused on clearing the financial burdens of old problematic projects (legacy projects), and prioritized shareholder returns especially through the monetization of NuScale investments and share buybacks.
2025 Q4 results came in slightly below expectations on revenue and earnings per share (EPS). However, the aggressive share repurchase plan for 2026 ($1.4B) and the cash obtained from the NuScale sale ($2B) are strengthening the balance sheet.
Core strategy: Focus on “Hard Asset” investments such as data centers, semiconductors, and mining, and on nuclear energy/AI infrastructure.
Risk: The $643M liability from the Santos lawsuit and cost increases in old infrastructure projects continue to pressure profitability.
Financial Performance Analysis
2025 Q4 and Year-End Results:
Revenue: Q4 revenue was $4.2B (down 2.0% YoY) and came in $70M below expectations. Full-year 2025 revenue is $15.5B.
Earnings Per Share (EPS): Q4 Non-GAAP EPS was reported at $0.33, missing expectations by $0.01. Full-year 2025 adjusted EPS is $2.19.
Net Loss: The company reported a GAAP net loss of $51M (attributable to shareholders) due to the Santos lawsuit ($643M expense) and the impact of changes in NuScale’s market value (Mark-to-Market).
Segment Performances:
Urban Solutions: Profit: $205M profit in 2025 (2024: $304M). The decline was due to $108M of cost increases in three infrastructure projects. New Awards: $8.7B of new work was won, including pharmaceutical, rare earth elements, and semiconductor facilities. Backlog: $18.7B.
Energy Solutions: Profit/Loss: $414M loss in 2025 (2024: $256M profit). This large decline is due to the Santos lawsuit. Excluding the Santos impact, the segment performed above expectations. Highlights: The BASF project in China was completed successfully.
Mission Solutions: Profit: $94M (2024: $153M). A $60M reserve provision affected profitability. Backlog: $2.2B.
Guidance
Management presented an outlook for 2026 focused on growth and cash flow:
Adjusted EBITDA: Targeted at $525M - $585M.
Adjusted EPS: Expected at $2.60 - $3.00 (with the positive impact of share buybacks).
New Awards: The “book-to-burn” ratio is expected to be above 1.0 and new orders are expected to increase noticeably compared to 2025.
Capital Allocation: A total of $1.4B of share repurchases is planned in 2026 ($400M was completed in January-February).
Cash Flow: Approximately $300M of operating cash flow is expected (excluding NuScale tax payments).
Strategic Themes and Opportunities
The strategic investment themes highlighted from the report and documents are as follows:
NuScale Monetization (Liquidity Event): Fluor is rapidly monetizing its NuScale (SMR - Small Modular Reactor technology) investments. As of February 2026, approximately $2B of cash inflow has been generated, and it is planned to sell the remaining shares by the end of Q2 2026. This is “cleaning” the company’s balance sheet and financing the large-scale share repurchase.
AI and Data Centers: The company is in advanced talks for data center projects in the U.S. and Europe. It also sees opportunities in gas-fired power plants and nuclear power projects (in the “Power” segment) to meet rising AI energy demand.
“Smart” Contract Structure: Fluor has shifted away from risky fixed-price (lump-sum) contracts to a reimbursable (cost-plus) model. 81% of the current backlog consists of reimbursable contracts. This provides margin protection in an inflationary environment.
Conclusion
Fluor Corporation is taking determined steps to clean its balance sheet and optimize its capital structure (NuScale sale and share buyback). The company’s strategy aligns with global infrastructure renewal, the energy transition, and AI-supported industrial investments.
Positive Catalysts: • The aggressive $1.4B share repurchase program. • High reimbursable (risk-protected) contract ratio (81%). • Expected increase in data center and energy infrastructure spending.
Negative Factors: The cash burn from old projects will continue in 2026. And the deviation in quarterly financial results.
Summary: The company is approaching the end of its process of shedding its operational burdens. 2026 is evaluated as a critical turning point both for the normalization of operating profitability and for the aggressive capital return (buyback) story.
Technical Analysis: ...