FLUOR CORPORATION

Overview of Financial Performance

Fluor Corporation, a global engineering, procurement, and construction (EPC) company, reported its financial results for the first quarter of 2025. The company’s revenue increased during the quarter, primarily driven by a ramp-up of execution activities on several large projects in the Urban Solutions segment. However, earnings before taxes were impacted by a decline in net interest income, a foreign currency loss, and a significant loss from the company’s equity method investment in NuScale.

Revenue and Profit Trends

• Revenue increased by 6.6% to $3.98 billion in the first quarter of 2025, compared to $3.73 billion in the same period of 2024. This was mainly due to increased execution activities on large projects in the Urban Solutions segment.

• Total segment profit, a non-GAAP financial measure, increased to $131 million (3.3% margin) in the first quarter of 2025, compared to $118 million (3.2% margin) in the same period of 2024. The improvement was driven by the ramp-up of execution activities on Urban Solutions projects and a decrease in cost on a highway project, partially offset by the impact of unfavorable foreign currency movements on an international bridge project.

• Net earnings attributable to Fluor were a loss of $241 million in the first quarter of 2025, compared to a profit of $59 million in the same period of 2024. This was primarily due to a $393 million loss from the company’s equity method investment in NuScale.

Strengths and Weaknesses

Strengths:

• Strong performance in the Urban Solutions segment, driven by increased execution activities on large projects
• Reduction in G&A expenses, particularly in stock-based compensation

Weaknesses:

• Significant loss from the equity method investment in NuScale, which resulted in a net loss for the quarter
• Decline in revenue and profitability in the Energy Solutions segment due to projects nearing completion
• Challenges in the Mission Solutions segment, including an additional reserve related to a long-standing claim on a completed project

Outlook

Fluor’s backlog remained relatively stable at $28.72 billion as of March 31, 2025, compared to $28.48 billion at the end of 2024. The company booked a multi-billion-dollar award for a life sciences project during the first quarter of 2025, but also adjusted backlog on two large projects due to reductions in scope and associated cost-plus-fee (CFM) work.

The company expects to continue its stock repurchase program, with plans to repurchase approximately $150 million of its stock during the second quarter of 2025 and $300 million during the latter half of the year.

Overall, Fluor’s financial performance in the first quarter of 2025 was mixed, with strong results in the Urban Solutions segment offset by challenges in other business areas and the significant loss from its NuScale investment. The company’s outlook remains cautious, as it navigates the cyclical nature of its markets and the ongoing impact of various risks and uncertainties.