FLR · Fluor Corporation

Fluor Corporation reported Q1 2026 results that included GAAP net earnings of $160 million, a significant improvement from a net loss of $241 million in the prior year quarter, driven largely by a $124 million gain on sale of CFHI and $51 million in equity method earnings. However, adjusted EBITDA came in at $60 million, reflecting a $37 million impact from cost growth on a mining project in the Americas and a $96 million charge from an adverse court ruling in Mission Solutions. Revenue declined 8% year-over-year to $3.6 billion, with Urban Solutions revenue up but Energy and Mission Solutions down. New awards totaled $2.7 billion, down 54% from a strong prior year quarter that included a large pharmaceutical award, but backlog remained robust at $25.7 billion, 82% reimbursable. Operating cash flow was $110 million, the strongest Q1 in nine years, supported by dividends from joint venture projects. The company completed $516 million in share repurchases during the quarter and targets $1.4 billion for the full year. Management narrowed 2026 adjusted EBITDA guidance to $525-$560 million from $525-$585 million, citing the mining project cost growth and a temporary slowdown on a Middle East project due to geopolitical concerns. The rest of the business is performing at or above expectations. The sale of NuScale investment generated $1.359 billion in proceeds during the quarter, contributing to a strong cash position of $3.2 billion at quarter end. Overall, the quarter reflects operational challenges in certain segments but strong cash generation and capital returns, with a positive outlook on new awards and backlog quality.