Fluor Corporation

Q2 revenue was $4.3 billion, up 9% year over year. Adjusted EBITDA was $149 million versus $96 million a year ago, and adjusted EPS was $0.91 versus $0.43 last year. Ending backlog was $26.9 billion, after removing just over $650 million of backlog related to the former Mexico JV. Segment profit was $38 million in Urban Solutions, $88 million in Energy Solutions, and $44 million in Mission Solutions. For 2026, Fluor now expects adjusted EBITDA of $500 million to $525 million and adjusted EPS of $2.70 to $2.80. It also guided to adjusted operating cash flow of $300 million to $320 million, new awards book-to-burn well above 1, G&A of $170 million to $180 million, and full-year revenue mix of about 65% Urban, 20% Energy and 15% Mission. Management said the Q3 Mexico JV sale will create a $90 million pretax gain, but that gain is outside the earnings guide.

Jim Breuer was upbeat and focused on pipeline conversion, saying the company’s prospect pipeline is “taking flight” as awards are being pulled forward earlier than expected. He emphasized that growth is coming from multiple end markets, not just one theme, and highlighted strength in nuclear, mining and metals, power, LNG and selective data center work. His tone was constructive but disciplined, repeatedly stressing selectivity, front-end planning, and a desire to avoid taking on lump-sum risk before projects are properly defined.

John Regan focused on the financial bridge and on portfolio cleanup. He said Q2 revenue was $4.3 billion, adjusted EBITDA $149 million, adjusted EPS $0.91, and cash ended at $3 billion, later rising to $3.2 billion by July 31; operating cash flow was negative $317 million because of a $357 million tax payment tied to the NuScale share conversion, which would have been $40 million positive on a normalized basis. He also noted $96 million of Q2 funding on loss projects, with only $94 million more expected, and said the Mexico JV sale produced a $175 million cash inflow, a $90 million pretax gain, and a $33 million tax payment. On capital allocation, he reiterated the plan for $1.4 billion of buybacks in 2026, including 6 million shares repurchased for $300 million in Q2.

Analysts focused on whether Energy Solutions’ strong profit was boosted by closeouts and what that meant for normalized margins; management said closeout profits were largely already embedded in prior guidance, though some may have accelerated into Q2. Questions also centered on the pace and quality of the new award pipeline, especially power, data centers, mining and metals, and management said it sees book-to-bill well above 1 and expects many of the front-end efforts to turn into meaningful awards in the first half of 2027. Analysts pressed on legacy projects, especially the mining project and possible scope changes, and management said conversations with the client are ongoing and could take a couple of months to resolve. There was also debate over whether the full-year EBITDA guide includes the Mexico JV gain; management said it does not.