Fluor Dips On Q1 Earnings Miss & Tweaked Outlook

Fluor Corporation (NYSE:FLR) shares are trading lower on Friday after the company reported worse-than-expected first-quarter results. Earnings Details Revenue was $3.66 billion, missing the $3.89 billion estimate and down from $3.98 billion a year earlier. Adjusted EPS was 33 cents, missing the 34 cents analyst estimate. GAAP net earnings of $160 million vs. a loss of $241 million in the year-ago quarter. Adjusted EPS stood at 14 cents, missing the consensus of 62 cents. New awards totaled $2.7 billion, down 54% year over year and primarily reimbursable. This brings the backlog to $25.7 billion (82% reimbursable), slightly higher than year-end 2025. Operating cash flow improved to $110 million from a negative $286 million a year earlier, supported by joint venture dividends. Cash and marketable securities stood at $3.2 billion at quarter-end. Segment Performance Urban Solutions generated $6 million in segment profit versus $70 million a year ago, primarily due to a $37 million cost overrun on a mining project in the Americas. Revenue increased to $2.4 billion from $2.2 billion, while new awards totaled $2.1 billion (down from $5.3 billion last year) due to a large pharma contract in the base period. Backlog ended at $19 billion, slightly below $20.2 billion year over year. Energy Solutions posted $74 million in segment profit, up from $47 million, supported by favorable project closeouts. However, revenue declined to $703 million from $1.2 billion as major projects neared completion. New awards were $213 million, down from $315 million a year ago, and backlog fell to $4.3 billion from $6.2 billion. It reflects ongoing project execution, including at a JV in Mexico. Mission Solutions recorded a $71 million loss, compared with a $5 million profit last year, driven by a $96 million charge related to an adverse court ruling in a long-standing legal case. Revenue fell to $523 million from $597 million a year ago. Awards rose to $332 million from $164 million in the prior year quarter, including a major FEED contract for the Centrus uranium enrichment plant expansion. Outlook Fluor Corporation narrowed its 2026 adjusted EBITDA guidance range to $525–$560 million from $525–$585 million prior. The reduction at the top end reflects cost increases on a mining project in the Americas recognized in the quarter, along with a temporary slowdown on another project linked to geopolitical uncertainty in the Middle East. Management noted that the remainder of the business continues to perform in line with or ahead of expectations. Contract From Anglo American Fluor Corporation disclosed that it has been awarded a feasibility study contract by Anglo American for the Woodsmith mining project in North Yorkshire, U.K. The company expects to book the undisclosed contract value in the second quarter of 2026. Tunnelling and shaft sinking work for the project is already in progress. Once operational, the mine is expected to reach an annual production capacity of around 13 million tonnes of polyhalite fertilizer. FLR Price Action: Fluor shares were down 10.53% at $45.70 at the time of publication on Friday, according to Benzinga Pro data. Photo via Shutterstock