Fluor Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported revenue of $3.7 billion, a 10% increase year-over-year from $3.4 billion.
• GAAP net earnings attributable to Fluor were $158 million, compared to a net loss of $697 million in the prior year period; this includes a $73 million pre-tax gain on the sale of the company's interest in ICA-Fluor.
• Consolidated segment profit was $248 million, a significant improvement from a loss of $439 million in the prior year.
• GAAP EPS was $1.16, compared to a loss of $4.30 per share in the prior year.
• Adjusted EPS was $0.77, up 13% year-over-year from $0.68.
• Adjusted EBITDA was $142 million, down from $161 million in the prior year.
• GAAP EBITDA margin was 5.7%, compared to -13.9% in the prior year.
• Adjusted EBITDA margin was 3.8%, compared to 4.8% in the prior year (which included an 80 basis point lift from the Santos revenue reversal).
• General and administrative (G&A) expenses were $52 million, driven by higher stock price and performance-based compensation.
• Operating cash flow for the quarter was $186 million.
• Cash and equivalents totaled $3.1 billion at quarter end.

Guidance and Future Outlook:

• The company affirmed its 2026 adjusted EBITDA guidance of $500 million to $525 million.
• The company is not providing forward-looking guidance for U.S. GAAP net earnings or EPS, nor a quantitative reconciliation of adjusted EBITDA or adjusted EPS guidance, due to the inability to predict with reasonable certainty all components required for such reconciliation without unreasonable efforts.

Business Segments and Product Lines:

• Urban Solutions: Revenue was $2.327 billion, consistent year-over-year. Segment profit increased 64% to $100 million with a margin of 4.3% (up 170 basis points). New awards were $1.991 billion (up 13%), including two copper mining projects in Chile. Backlog decreased 7% to $19.172 billion.
• Energy Solutions: Revenue increased 159% to $679 million from $262 million in the prior year; the prior year included a $653 million revenue reduction related to the Santos project ruling. Segment profit improved to $93 million from a loss of $533 million, primarily reflecting the $73 million gain on the sale of ICA-Fluor. Segment margin was 13.7%. New awards were $7.716 billion, including $7.5 billion for Phase 2 of LNG Canada. Backlog increased 109% to $10.679 billion.
• Mission Solutions: Revenue decreased 6% to $714 million from $761 million due to lower DOE and emergency-response volume. Segment profit increased 62% to $55 million with a margin of 7.7% (up 320 basis points). New awards were $1.165 billion (down 8%), including a six-month extension of the Savannah River DOE contract. Backlog increased 71% to $4.454 billion.

Market and Competitive Landscape:

• New awards totaled $10.9 billion, the highest quarterly total in Fluor's history, compared to $3.3 billion in the prior year.
• The book-to-burn ratio was 2.9x.
• Total backlog reached $34.3 billion, a 21% increase year-over-year, representing the highest backlog this decade.
• 69% of the backlog is reimbursable, compared to 81% at the prior year-end.
• 85% of new awards in the quarter were related to projects located outside the U.S.

Risks and Challenges:

• The press release notes risks including the cyclical nature of markets, client vulnerability to poor economic conditions (inflation, slow growth, recession), and potential decreases in capital investment.
• Risks include failure to receive new contract awards, cost overruns, project delays, and failure to meet cost and schedule estimates.
• Other risks involve intense competition, inability to hire and retain personnel, joint venture partner performance failures, supplier/subcontractor failures, cyber-security breaches, and geopolitical events.
• Specific risks include exposure to political and economic risks, government shutdowns, client cancellations, safety and security issues, and liabilities associated with nuclear services.

Management Commentary and Tone:

• Jim Breuer, CEO, stated that results reflect strong demand across key markets and continued progress converting the prospect pipeline into high-quality awards.
• Management highlighted the record $10.9 billion in new awards, including LNG Canada Phase 2 and two mining projects, as building a solid foundation for sustained growth.
• The company's focus remains on continued growth, successful project delivery, and strategic capital deployment to create long-term shareholder value.

Other Key Points:

• Share repurchases totaled $300 million in the quarter and $1.1 billion year-to-date, moving toward the previously announced 2026 target of $1.4 billion.
• The company sold its interest in ICA-Fluor, generating a $73 million pre-tax gain included in the quarter's results.
• The company sold its interest in CFHI, generating a $124 million gain in the nine-month period.
• Proceeds from the sale of NuScale shares were $1.831 billion in the nine-month period.
• The company has nearly 23,500 employees and is ranked 292 on the Fortune 500.