Fluor (FLR) AI Stock Analysis

• Market Cap: $6.06B
• Dividend Yield: N/A
• Average Volume (3M): 3.61M
• Price to Earnings (P/E): 2.9
• Beta (1Y): 1.16
• Revenue Growth: 5.43%
• EPS Growth: 2094.12%
• Country: US
• Employees: 26,866
• Sector: Industrials
• Sector Strength: 66
• Industry: Construction
• EPS (TTM): 12.21
• Shares Outstanding: 168,786,390
• 10 Day Avg. Volume: 3,735,565
• 30 Day Avg. Volume: 3,612,139
• PEG Ratio: 0.00141
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.38
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.80
• Price Target Upside: 39.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Fluor's overall score reflects solid financial performance and attractive valuation, offset by technical weakness and challenges in cash flow generation. The earnings call and corporate events indicate a positive outlook with strategic leadership changes and anticipated growth. However, caution is advised due to bearish technical indicators and operational challenges.

Positive Factors

Earnings Potential

Management expressed confidence in near-term earnings power and long-term demand for its services, while noting that its full EPC capabilities are increasingly in demand as speed-to-market rises up customer’s preferences.

Financial Guidance

FLR raised its FY cash from ops guide to $500-600mn given the outperformance in Q2, indicating strong cash flow management.

Project Execution

The LNG Canada project seems impressive in its scale and technical efficiency — strong pride coming from FLR management in its ability to deliver 224 modules and efficiently manage almost 5,000 people on site at the project.

Negative Factors

Earnings Uncertainty

Negatives include near-term earnings performance uncertainty and valuation now well off its highs.

Market Volatility

A macro/politically uncertain environment could potentially increase bookings volatility in the second half of the year.

Project Delays

Energy profit of $75mn declined 16% year-over-year due to certain delays in revenue recognition for some major projects, which are expected to be recognized later.

Fluor Business Overview & Revenue Model

Company Description

Fluor Corp. is a holding company, which engages in providing engineering, procurement, construction, fabrication and modularization, operations, maintenance and asset integrity, as well as project management services, on a global basis. It operates through the following four segments: Energy & Chemicals, Mining, Industrial, Infrastructure & Power, Diversified Services and Government. The Energy & Chemicals segment focuses on opportunities in the upstream, midstream, downstream, chemical, petrochemical, offshore and onshore oil and gas production, liquefied natural gas and pipeline markets. The Mining, Industrial, Infrastructure & Power segment provides design, engineering, procurement, construction and project management services to the mining and metals, transportation, life sciences, advanced manufacturing and power sectors. The Diversified segment provides a wide array of asset services, asset integrity services, equipment solutions and staffing services. The Government segment provides engineering, construction, logistics, base and facilities operations and maintenance, contingency response and environmental and nuclear services to the U.S. government and governments abroad. The company was founded by John Simon Flour, Sr. in 1912 and is headquartered in Irving, TX.

How the Company Makes Money

Fluor makes money primarily through its engineering, procurement, and construction services across diverse sectors. The company earns revenue by securing contracts for large-scale projects, which typically involve designing, building, and maintaining industrial facilities and infrastructure. Revenue is generated through fixed-price, cost-reimbursable, and hybrid project contracts. Significant revenue streams include projects in the oil and gas industry, government contracts for infrastructure and defense projects, and partnerships with global companies for mining and industrial developments. Fluor's ability to deliver complex projects efficiently and its strategic partnerships and joint ventures contribute significantly to its earnings.

Fluor Financial Statement Overview

Summary

Fluor has demonstrated strong revenue growth and improved profitability metrics, with significant equity growth and reduced financial leverage. However, challenges remain in cash flow generation and relatively low margins compared to industry standards.

Income Statement

Fluor has demonstrated a strong revenue growth of 5.44% from 2023 to 2024, with notable improvements in profitability metrics. The gross profit margin increased to 3.52% and the net profit margin significantly rose to 13.15%, indicating enhanced cost management and operational efficiency. The EBIT and EBITDA margins also improved to 2.84%, reflecting better earnings performance. However, compared to industry standards, margins remain relatively low.

Balance Sheet

Fluor's balance sheet shows a healthy equity growth, with stockholders' equity almost doubling from 2023 to 2024. The debt-to-equity ratio decreased to 0.28, suggesting reduced financial leverage and improved financial stability. The equity ratio increased to 43.21%, highlighting stronger asset backing by equity. However, the total liabilities remain significant, posing potential risks if not managed properly.

Cash Flow

Despite a decline in free cash flow, Fluor has managed to maintain a strong cash position with a substantial cash balance. The operating cash flow to net income ratio was not calculable due to zero operating cash flow in 2024. The free cash flow to net income ratio turned negative, indicating challenges in converting earnings into free cash flow, which could affect liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.32B	15.47B	13.74B	12.43B	15.67B
	Gross Profit
574.00M	477.00M	355.00M	411.60M	385.25M
	EBIT
463.00M	147.00M	209.00M	211.65M	170.25M
	EBITDA
732.00M	334.00M	231.00M	-183.00M	172.76M
	Net Income Common Stockholders
2.15B	139.00M	73.00M	-144.19M	-225.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.96B	2.59B	2.62B	2.34B	2.22B
	Total Assets
9.14B	6.97B	6.83B	7.28B	7.31B
	Total Debt
1.10B	1.16B	1.13B	1.17B	1.74B
	Net Debt
-1.73B	-1.36B	-1.31B	-1.04B	-463.33M
	Total Liabilities
5.15B	4.92B	4.83B	5.71B	6.05B
	Stockholders Equity
3.95B	1.94B	1.79B	1.39B	1.03B
Cash Flow		Free Cash Flow
664.00M	106.00M	-44.00M	-49.74M	72.44M
	Operating Cash Flow
828.00M	212.00M	31.00M	25.33M	185.88M
	Investing Cash Flow
-333.00M	-277.00M	-78.00M	-121.87M	-41.56M
	Financing Cash Flow
-116.00M	127.00M	294.00M	122.25M	48.45M

Fluor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLR, the sentiment is Negative. The current price of 37.06 is below the 20-day moving average (MA) of 41.62, below the 50-day MA of 46.59, and below the 200-day MA of 48.06, indicating a bearish trend. The MACD of -3.28 indicates Positive momentum. The RSI at 31.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLR.

Fluor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	77 Outperform	$17.99B	18.39	34.28%	0.26%	15.76%	61.64%
KBR	73 Outperform	$6.40B	17.31	25.81%	1.22%	11.30%	―
PWR	72 Outperform	$36.99B	41.40	12.36%	0.15%	13.36%	20.00%
FLR	66 Neutral	$6.06B	2.94	54.32%	―	5.43%	2094.12%
J	62 Neutral	$15.04B	25.28	14.66%	0.95%	-13.76%	-13.39%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
DY	61 Neutral	$4.44B	19.33	18.84%	―	12.61%	7.43%

Fluor Corporate Events

Fluor Names Jim Breuer as New CEO

On February 17, 2025, Fluor Corporation announced the appointment of Jim Breuer as the new Chief Executive Officer effective May 1, 2025, while David E. Constable transitions to the role of Executive Chairman. This strategic leadership change aims to advance the company’s focus on business growth and excellence in project execution. Breuer, with over three decades of experience at Fluor, is expected to drive the company’s strategy forward, emphasizing sustainable earnings and leadership development. Constable highlighted the achievements under the ‘building a better future’ strategy and expressed confidence in Breuer’s ability to lead the company into its next phase, ‘grow and execute.’

Fluor Expands Board with Charles P. Blankenship Jr.

On February 5, 2025, Fluor Corporation’s Board of Directors voted to expand the Board to eleven members, appointing Charles P. Blankenship Jr. effective March 1, 2025. Blankenship, an experienced leader in the industrial and aerospace sectors, will join the Board’s Audit and Commercial Strategies and Operational Risk Committees, bringing strategic expertise that aligns with Fluor’s focus on growth in advanced manufacturing and energy markets.