Fluor Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Revenue reached $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 improved to 5.7% from -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).
• G&A expenses were $52 million, driven by higher stock prices and performance-based compensation.
• Cash and equivalents totaled $3.1 billion at quarter end.
• Q3 operating cash flow was $186 million.
• Year-to-date operating cash flow for the nine months ended September 30, 2026, was $(21) million.

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 from 2.6%); new awards were $1.991 billion (up 13%); backlog decreased 7% to $19.172 billion. Profit growth was driven by improved project performance and milestone achievements on an infrastructure project, partially offset by cost growth on a large mining joint venture. New awards included two copper mining projects in Chile.
• Energy Solutions: Revenue increased 159% to $679 million from $262 million; segment profit improved to $93 million from a loss of $533 million, with a margin of 13.7%; new awards surged to $7.716 billion from $222 million; backlog grew 109% to $10.679 billion. Revenue growth excluded a $653 million reduction in the prior year related to the Santos project ruling. Profit improvement reflected the $73 million gain on the sale of ICA-Fluor. New awards included $7.5 billion for Phase 2 of LNG Canada.
• Mission Solutions: Revenue declined 6% to $714 million from $761 million; segment profit increased 62% to $55 million with a margin of 7.7% (up from 4.5%); new awards decreased 8% to $1.165 billion; backlog grew 71% to $4.454 billion. Revenue decline was due to lower DOE and emergency-response volume. Profit growth was driven by improved award fee performance and project contributions within the nuclear portfolio. New awards included a six-month extension of the Savannah River DOE contract and additional scope on an EPC project.
• Total new awards for the quarter were $10.872 billion, compared to $3.253 billion in the prior year.
• Total backlog was $34.305 billion, up 21% year-over-year from $28.236 billion, with 69% of the backlog being reimbursable (compared to 81% at the prior year-end).

Market and Competitive Landscape

• New awards of $10.9 billion represent the highest quarterly total in Fluor's history.
• The backlog of $34.3 billion is the highest recorded this decade.
• 85% of new awards in Q3 2026 were related to projects located outside the U.S., compared to 30% in the prior year.
• 56% of the backlog is related to projects located outside the U.S., compared to 41% at the prior year-end.

Risks and Challenges

• The press release notes standard forward-looking risks including the cyclical nature of markets, client vulnerability to poor economic conditions (inflation, recession), failure to receive new contract awards, cost overruns, project delays, intense competition, and inability to hire/retain personnel.
• Specific risks mentioned include joint venture partner performance failures, supplier/subcontractor performance issues, cyber-security breaches, geopolitical events, political risks, government shutdowns, client cancellations, safety risks, climate change, and risks related to indebtedness and credit availability.
• The company cites the inability to predict foreign exchange fluctuations and other components as a reason for not providing GAAP earnings guidance.

Management Commentary and Tone

• CEO Jim Breuer stated that results reflect strong demand across key markets and progress converting the prospect pipeline into high-quality awards.
• Management highlighted the $10.9 billion in new awards, including LNG Canada Phase 2 and two mining projects, as building a solid foundation for sustained growth.
• The tone emphasized 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 reported a $73 million pre-tax gain on the sale of its interest in ICA-Fluor, a former joint venture in Mexico.
• The company also reported a $124 million gain on the sale of CFHI 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 was ranked 292 on the Fortune 500 in 2025.
• A conference call was scheduled for November 6, 2026, at 8:30 a.m. Eastern.