Fluor (FLR) Q4 2025 earnings summary

Executive summary

• Achieved $12B in new awards for 2025, with 87% reimbursable contracts and backlog ending at $25.5B, 81% reimbursable.

• Completed major strategic actions: $754M in share repurchases, NuScale monetization ($2B received through Q1 2026), Stork divestiture, and CFHI Yard sale agreement.

• Transitioned from 'Fix & Build' to 'Grow & Execute' phase, strengthening capital structure and diversifying revenue mix.

• Major project completions and expanded wins in pharmaceuticals, mining, and semiconductors.

• Advanced AI integration across project lifecycle, enhancing planning, execution, and competitiveness.

Financial highlights

• 2025 revenue reached $15.5B, with adjusted EBITDA of $504M and adjusted EPS of $2.19, excluding a $643M Santos litigation charge.

• Reported consolidated segment loss of $109M for 2025, significantly impacted by a $643M Santos charge.

• Operating cash flow was negative $387M, mainly due to $642M Santos payment.

• Ended 2025 with $2.2B in cash and marketable securities, down from $3B a year ago.

• G&A for 2025: $196M (down from $203M); net interest income: $67M (down from $150M).

Outlook and guidance

• 2026 adjusted EBITDA guidance: $525M–$585M; adjusted EPS: $2.60–$3.00; operating cash flow expected at ~$300M, excluding $400M tax bill from NuScale conversion.

• New awards for 2026 expected to be significantly higher, with book-to-burn ratio above 1.

• Segment revenue split for 2026: ~20% Energy Solutions, ~65% Urban, ~15% Mission.

• Segment margin guidance: Urban 3–4%, Energy 4–5%, Mission 6%.

• Effective tax rate projected at 26–28%; net interest income: $35–$45M.