Fluor (FLR) Q1 2025 earnings summary

Executive summary

• Launched the next phase of the strategic plan, shifting to "Grow and Execute" with a focus on organic growth, project delivery, and disciplined contract terms, targeting growth in non-traditional oil & gas, advanced manufacturing, and infrastructure.

• Q1 2025 revenue reached $4.0 billion, up 7% year-over-year, with 87% from reimbursable contracts and $5.8 billion in new awards, 79% reimbursable.

• Backlog stood at $28.7 billion, with strong client engagement and robust project pipeline, despite some macroeconomic uncertainty.

• Net loss attributable to Fluor was $241 million, primarily due to a $393 million equity method loss and a $477 million pre-tax loss on NuScale investment.

• Accelerated share repurchases in Q1, with $142 million completed and $600 million targeted for 2025.

Financial highlights

• Adjusted EBITDA was $155 million, up 76% year-over-year; consolidated segment profit was $131 million.

• Adjusted EPS for Q1 was $0.73, up from $0.47 in 2024; GAAP net loss was $241 million.

• G&A expenses dropped to $36 million from $59 million a year ago, mainly due to lower performance-based compensation.

• Operating cash flow was an outflow of $286 million, reflecting working capital growth and incentive payments.

• Cash and marketable securities at quarter-end were $2.5 billion, down $400 million from year-end.

Outlook and guidance

• Maintained 2025 adjusted EBITDA guidance of $575–$675 million and adjusted EPS guidance of $2.25–$2.75, with a 30–35% tax rate.

• Operating cash flow guidance remains $450–$500 million for 2025.

• Revenue growth expected at 15% year-over-year; book-to-bill ratio above one.

• Segment margin guidance: Urban Solutions 4–5%, Energy Solutions 3.5–4.5%, Mission Solutions 5–6%.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, credit capacity, and anticipated operating cash flows.