Fluor Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the quarter ended June 30, 2026, was $4.3 billion, an increase of 9% year-over-year.
• GAAP net earnings attributable to Fluor were $114 million.
• Adjusted EBITDA was $149 million.
• Earnings per share (EPS) were $0.81, with adjusted EPS at $0.91.
• Consolidated segment profit was $170 million.
• Operating cash flow was ($317) million, which included a $357 million tax payment related to the NuScale monetization.
• Cash and marketable securities at quarter-end totaled $3.0 billion.
• General and administrative (G&A) expenses were $41 million.
• For the six months ended June 30, 2026, total revenue was $7.991 billion compared to $7.959 billion in the prior-year period.
• Consolidated segment profit for the six-month period was $178 million compared to $210 million in the prior-year period.
• Operating cash flow for the six-month period was ($207) million.

Guidance and Future Outlook

• The company is not providing forward-looking guidance for U.S. GAAP net earnings, U.S. GAAP earnings per share, or a quantitative reconciliation of adjusted EBITDA or adjusted EPS guidance due to uncertainty regarding foreign exchange fluctuations and other components.
• The 2026 adjusted EBITDA guidance was narrowed from $525–$560 million to $500–$525 million.
• The reduction in adjusted EBITDA guidance reflects the removal of the previously estimated second-half contribution from the Mexico joint venture.
• The company continues to target returning $1.4 billion to shareholders through share repurchases for the full year 2026.

Business Segments and Product Lines

• Urban Solutions: Reported segment profit of $38 million (up from $29 million in the prior year) and revenue of $2.9 billion (up from $2.1 billion). New awards totaled $3.2 billion (up from $856 million). Ending backlog was $19.4 billion (down from $20.6 billion). Segment profit was impacted by cost growth of $44 million on the Gordie Howe International Bridge project due to foreign currency fluctuation, a subcontractor bankruptcy, and client-driven changes. New awards included a fertilizer project in Canada, an incremental life sciences award in the U.S., and an infrastructure project in Europe.
• Energy Solutions: Reported segment profit of $88 million (up from $15 million) and revenue of $709 million (down from $1.1 billion). New awards totaled $704 million (up from $549 million). Ending backlog was $3.5 billion (down from $5.6 billion). Results reflected favorable close-out items, including the former Mexico JV. New awards included a gas compression project on the west coast and a limited notice to proceed on the phase 2 expansion of the LNG Canada project.
• Mission Solutions: Reported segment profit of $44 million (up from $35 million) and revenue of $716 million (down from $762 million). New awards increased to $2.2 billion from $363 million. Results reflected improved award fee performance within the DOE portfolio. New awards included the reimbursable EPC contract for the Centrus nuclear fuel enrichment facility.
• Legacy project backlog was reduced to $119 million.

Market and Competitive Landscape

• Total new awards for the quarter were $6.1 billion, compared to $1.8 billion in the prior-year period, with 89% of awards being reimbursable.
• Total ending backlog was $26.9 billion, with 85% of the backlog being reimbursable.
• 42% of the backlog was related to projects located outside of the U.S.

Risks and Challenges

• The press release notes that actual results may differ materially due to factors including the cyclical nature of markets, client vulnerability to poor economic conditions, cost overruns, project delays, intense competition, and the inability to hire and retain qualified personnel.
• Specific risks include joint venture partner performance failures, supplier/subcontractor performance issues, cyber-security breaches, political and economic risks, government shutdowns, client cancellations, and foreign currency risks.
• The company faces risks related to litigation, regulatory proceedings, and the potential impact of certain tax matters.

Management Commentary and Tone

• Jim Breuer, CEO, stated that second-quarter awards demonstrate the successful pull-through of front-end work and client confidence in advancing important investments.
• Management noted that awards reflect the conversion of the prospect pipeline, which continues to be replenished.
• The company remains focused on disciplined growth in selected markets, strategic capital allocation, and long-term value creation.

Other Key Points

• Completed the $175 million divestiture of the Mexico joint venture.
• Completed the NuScale monetization in April, generating $1.831 billion in proceeds from the sale of NuScale shares during the six-month period.
• Returned $300 million to shareholders through repurchases during the quarter.
• Total repurchases of common stock for the six months ended June 30, 2026, were $816 million.
• The company has nearly 23,500 employees and is ranked 292 on the Fortune 500.