Fluor Corporation
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did FLR Beat Earnings? Q2 2025 Results
Fluor Corporation delivered a bruising second quarter, with results falling well short of expectations as cost overruns, an arbitration setback, and a sharp pullback in client spending converged on the engineering giant. Revenue slid 5.9% year-over-year to $3.98 billion, missing the $4.55 billion consensus by 12.55%, while adjusted EPS came in at $0.43, a 23.26% miss against the $0.56 estimate. The single most damaging driver was $54 million in net cost growth on three troubled infrastructure projects within Urban Solutions, compounded by a $31 million arbitration ruling tied to a completed fabrication project in Mexico. Adjusted EBITDA collapsed 42% to $96 million, and operating cash flow swung to negative $21 million from positive $282 million a year ago. New awards fell 43% to $1.77 billion, with trade policy uncertainty and rising interest rates prompting clients to defer commitments, a dynamic that pushed Fluor to cut its full-year adjusted EPS guidance to $1.95-$2.15 from a prior $2.25-$2.75, with adjusted EBITDA now expected at $475-$525 million.
- LNG Canada project achieved first cargo shipment milestone
- $54 million net cost growth impact from three infrastructure projects due to subcontractor design errors, schedule impacts, and price escalation
- $31 million unexpected arbitration ruling on Mexico joint venture fabrication project
- Temporary stop work order on Pacific airfield project impacted Mission Solutions
- Curtailed work at Mexico joint venture pending client payments
- $3.2 billion pre-tax mark-to-market gains on NuScale investment drove GAAP earnings
“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.”
Fluor CEO, on the earnings call
Forward Guidance & Outlook
Fluor revised its full-year 2025 guidance downward due to client hesitation around economic uncertainty impacting new awards and project delays. Adjusted EBITDA guidance was reduced to $475–$525 million from $575–$675 million. Adjusted EPS guidance was lowered to $1.95–$2.15 per share from $2.25–$2.75 per share. Full year operating cash flow guidance is $200–$250 million. Estimates assume a tax rate of 30 percent. Management characterizes the client spending shift as temporary.
FLR YoY Financials
FLR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.