Fluor Corporation
FLR
$56.25
+3.19%
Fluor Corporation is a global engineering, procurement, construction, fabrication, operations, and maintenance services provider, serving end markets including oil and gas, chemicals, mining, metals, and transportation. As one of the largest players in the Engineering & Construction industry, Fluor operates through three core segments: Urban Solutions, Mission Solutions, and Energy Solutions, and generated $15.5 billion in revenue in 2025. The current investor narrative centers on Fluor's turnaround momentum, highlighted by a massive Q2 2026 earnings beat, a surge in new awards, and activist investor Starboard Value taking a stake, which has fueled a sharp stock rally and optimism about reaccelerating industrial investment cycles. However, debates persist about whether the stock's recent appreciation has fully priced in the improvement, with some analysts suggesting a pullback may be prudent.…
FLR
Fluor Corporation
$56.25
Related headlines
Investment Opinion: Should I buy FLR Today?
Based on the analysis, Fluor is rated a Buy. The thesis is that Fluor's turnaround is gaining traction, as evidenced by the Q2 2026 earnings beat and surge in new awards, and the stock is undervalued relative to its revenue potential. The average analyst target price of $60.69 implies a 13.9% upside, and the consensus recommendation is bullish. The company's PS ratio of 0.43x is well below the industry average of 1.5x, indicating a discount. Revenue, while declining, is expected to recover, with analysts estimating $20.27 billion for the next fiscal year. The forward PE of 15.83x suggests earnings recovery is anticipated. However, the negative margins and revenue decline are risks. This Buy rating would be downgraded to Hold if revenue growth fails to materialize or if margins remain negative. The stock is currently undervalued relative to its peers and its own history, making it an attractive opportunity for investors with a higher risk tolerance.
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FLR 12-Month Price Forecast
The AI assessment is bullish with medium confidence. Fluor's recent earnings beat and strong relative performance indicate improving fundamentals, and the valuation discount on a PS basis provides a margin of safety. However, the negative margins and revenue decline temper confidence. The stance would be upgraded to high confidence if revenue growth turns positive and margins improve, while a downgrade to neutral would occur if the stock fails to hold its gains or if earnings disappoint.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Fluor Corporation's 12-month outlook, with a consensus price target around $60.69 and implied upside of +7.9% versus the current price.
Average Target
$60.69
0 analysts
Implied Upside
+7.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$48 - $71
Analyst target range
Fluor has coverage from 8 analysts, with a consensus recommendation leaning bullish, as evidenced by recent actions from firms like Truist Securities, Citigroup, and DA Davidson, all maintaining Buy ratings. The average target price is $60.69, implying an upside of +13.9% from the current price of $53.27. The target range spans from $47.50 (low) to $71.00 (high), indicating a wide dispersion in expectations. The high target suggests that some analysts see significant upside potential, likely driven by the company's strong project pipeline and activist involvement, while the low target reflects concerns about execution risks and revenue volatility. The recent upgrade activity and the presence of activist investor Starboard Value suggest that sentiment is improving, but the wide target range highlights uncertainty about the pace of the turnaround.
Bulls vs Bears: FLR Investment Factors
Fluor presents a compelling turnaround story with a strong Q2 2026 earnings beat, activist investor involvement, and a valuation discount on a price-to-sales basis. However, the company faces significant challenges including revenue decline, negative margins, and a stock price that has already rallied substantially. The bull case is currently stronger, driven by improving fundamentals and analyst optimism, but the key tension lies in whether the recent earnings improvement is sustainable and can translate into consistent revenue growth. If Fluor can maintain its earnings momentum and convert its new awards into revenue, the stock has significant upside; otherwise, the current valuation may be stretched.
Bullish
- Massive Q2 2026 earnings beat: Fluor reported a Q2 2026 EPS of $0.95, a dramatic turnaround from the prior year's loss, and significantly exceeded analyst expectations. This beat, combined with a surge in new awards, signals strong operational momentum and validates the turnaround narrative.
- Activist investor Starboard Value stake: Starboard Value's new stake in Fluor signals confidence in the company's turnaround and potential for operational improvements. Activist involvement often drives management focus on margin expansion and shareholder returns, which could unlock further value.
- Undervalued on price-to-sales basis: Fluor's PS ratio of 0.43x is significantly below the industry average of 1.5x, indicating the market is not fully pricing in its revenue generation potential. This discount suggests upside if the company can sustain its earnings recovery.
- Strong relative price performance: Fluor's stock has outperformed the S&P 500 by 9.46% over the past year and by 14.71% over the past three months, reflecting strong investor confidence and momentum. This relative strength indicates the market is rewarding the company's improving fundamentals.
Bearish
- Revenue decline in recent quarters: Fluor's Q1 2026 revenue of $3.663 billion was down 8.01% year-over-year, and the multi-quarter trend shows a decline from $4.226 billion in Q2 2024. This top-line contraction raises concerns about demand and project execution.
- Negative profitability metrics: Fluor's trailing twelve-month net income is negative (EPS of -$0.0076), and its gross margin is -0.77% and operating margin is -2.34%. These negative margins indicate operational inefficiencies and cost pressures that could persist.
- Stock trading near 52-week high: At $53.27, the stock is at 92% of its 52-week range (high $57.93), suggesting it may be overextended. The recent sharp rally, including a 13.75% gain in the past month, could lead to a pullback as investors take profits.
- High beta and market sensitivity: With a beta of 1.257, Fluor is more volatile than the market, amplifying downside risk in a market downturn. This sensitivity could lead to larger losses if the broader market corrects.
FLR Technical Analysis
Fluor's stock is in a clear uptrend, with a 1-year price change of +28.02% and a year-to-date gain of +27.75%. The current price of $53.27 sits at 92% of its 52-week range (low $39.33, high $57.93), indicating the stock is trading near its highs, which reflects strong momentum but also potential overextension. The stock has outperformed the S&P 500 significantly over the past year, with relative strength of +9.46% versus the SPY's +18.56% return, and the 3-month relative strength is +14.71%, underscoring its leadership in the current market environment.
Beta
1.26
1.26x market volatility
Max Drawdown
-30.2%
Largest decline past year
52-Week Range
$39-$58
Price range past year
Annual Return
+37.1%
Cumulative gain past year
| Period | FLR Return | S&P 500 |
|---|---|---|
| 1m | +12.1% | +2.0% |
| 3m | +12.1% | +1.0% |
| 6m | +21.8% | +11.8% |
| 1y | +37.1% | +18.1% |
| ytd | +34.9% | +11.7% |
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FLR Fundamental Analysis
Fluor's revenue trajectory has been volatile, with Q1 2026 revenue of $3.663 billion, down 8.01% year-over-year, following a Q4 2025 revenue of $4.176 billion and Q3 2025 revenue of $3.368 billion. The multi-quarter trend shows a decline from $4.226 billion in Q2 2024 to $3.663 billion in Q1 2026, indicating a deceleration in top-line growth. However, the company's revenue segments reveal strength in Urban Solutions ($2.437 billion) and Energy Solutions ($703 million), which are driving the business, while the 'Other' segment is negligible. The revenue decline is a concern, but the surge in new awards mentioned in recent news suggests potential for future growth.
Quarterly Revenue
$3.7B
2026-03
Revenue YoY Growth
-8.0%
YoY Comparison
Gross Margin
0.4%
Latest Quarter
Free Cash Flow
$-41000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is FLR Overvalued?
Given that Fluor's trailing twelve-month net income is negative (EPS of -$0.0076), the price-to-sales (PS) ratio is the most appropriate valuation metric, as it focuses on revenue generation rather than earnings. The current PS ratio is 0.43x, which is significantly lower than the industry average of 1.5x, indicating that Fluor is trading at a substantial discount to its peers. This discount is likely due to the company's recent losses and revenue decline, but it also suggests that the market is not fully pricing in the potential for a turnaround. The forward PE ratio of 15.83x implies that analysts expect earnings to recover strongly, which is a positive signal for investors.
PE
-127.8x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 1x~37x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-23.0x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are prominent for Fluor. The company's trailing twelve-month net income is negative, with an EPS of -$0.0076, and its gross margin is -0.77%, indicating that cost of revenue exceeds revenue. The operating margin is also negative at -2.34%, reflecting operational inefficiencies. Additionally, Fluor has a debt-to-equity ratio of 0.33, which is manageable but not negligible, and its free cash flow is negative at -$41 million over the trailing twelve months, indicating cash burn. The revenue decline of 8.01% year-over-year in Q1 2026 adds to the financial risk, as it suggests weakening demand for its services.
FAQ
The key risks of holding FLR include financial risks such as negative margins and negative free cash flow, which could persist if revenue continues to decline. Market risks include the stock's high beta of 1.257, making it susceptible to market downturns. Competitive risks include intense competition in the engineering and construction industry, which could pressure margins. Company-specific risks include project execution failures, cost overruns, and delays, which have historically plagued the industry. The most severe risk is a continued revenue decline, which could lead to further losses and a drop in the stock price toward the 52-week low of $39.33.
The FLR stock forecast over the next 12 months is moderately bullish. The base case scenario, with a 50% probability, targets a price range of $55 to $65, aligning with the average analyst target of $60.69. The bull case, with a 30% probability, targets $60 to $71, driven by strong execution and revenue growth. The bear case, with a 20% probability, targets $40 to $48, reflecting continued revenue decline and margin pressure. The most likely scenario is the base case, assuming the company can stabilize revenue and improve margins.
FLR is undervalued on a price-to-sales basis, with a PS ratio of 0.43x versus the industry average of 1.5x. This indicates the market is pricing in significant pessimism about its earnings potential. The forward PE of 15.83x suggests analysts expect earnings to recover strongly, which is not yet reflected in the trailing metrics. Compared to its own history, the stock is trading near its 52-week high, but the valuation multiples are still below historical averages. The market is likely pricing in a successful turnaround, but the discount to peers suggests there is room for upside if the company delivers.
FLR is a good buy for investors with a higher risk tolerance and a medium-term horizon. The stock offers a 13.9% upside to the average analyst target of $60.69, and the PS ratio of 0.43x is well below the industry average of 1.5x, suggesting undervaluation. However, the company has negative margins and a declining revenue trend, which are significant risks. The recent Q2 2026 earnings beat and activist investor involvement provide positive catalysts, but the stock's sharp rally may limit near-term upside. It is a buy for those who believe in the turnaround, but not for risk-averse investors.
FLR is more suitable for medium-to-long-term investment, given its turnaround nature and the time required for operational improvements to materialize. The stock's high beta of 1.257 makes it volatile for short-term trading, and the recent rally may lead to pullbacks. However, for long-term investors, the potential for earnings recovery and margin expansion could provide significant upside. A minimum holding period of 12-18 months is recommended to allow the turnaround to play out. The company pays no dividend, so returns will depend on capital appreciation.