Fluor Corporation
FLR
$57.00
+16.92%
Fluor Corporation is a global engineering, procurement, construction, fabrication, operations, and maintenance services provider serving diverse 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 a turnaround story driven by a massive Q2 2026 earnings beat, a surge in new awards, and a profitable exit from its NuScale Power stake, which has strengthened its balance sheet and refocused the company on high-growth engineering projects. Additionally, activist investor Starboard Value has taken a stake, signaling confidence in the company's strategic direction and the reacceleration of industrial investment cycles.…
FLR
Fluor Corporation
$57.00
Related headlines
Investment Opinion: Should I buy FLR Today?
Rating: Hold. Fluor's recent earnings beat and strategic refocusing are positive, but the stock's valuation and operational challenges warrant caution. The analyst consensus is a Buy with an average target price of $52.44, implying 7.6% upside from the current price of $48.75. However, the wide range of targets ($40-$64) reflects significant uncertainty, and the stock's underperformance versus the market suggests that the recovery is not yet fully trusted.
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FLR 12-Month Price Forecast
The AI assessment is neutral with medium confidence. While the recent earnings beat and strategic refocusing are positive, the company's financial metrics such as negative free cash flow and declining revenue temper enthusiasm. The stock's valuation is attractive on a PS basis, but the market is pricing in a successful turnaround that is not yet fully proven. If Fluor can demonstrate sustained profitability and revenue growth, the stance would upgrade to bullish; conversely, if execution falters, it would downgrade to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Fluor Corporation's 12-month outlook, with a consensus price target around $56.56 and implied upside of -0.8% versus the current price.
Average Target
$56.56
0 analysts
Implied Upside
-0.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$44 - $71
Analyst target range
The target price range spans from a low of $40.00 to a high of $64.00, with the high target implying 31.3% upside and the low target implying 17.9% downside. The wide spread of $24 suggests significant uncertainty about Fluor's future performance, likely due to the cyclicality of its end markets and execution risks on large projects. The high target likely assumes a successful execution of its record backlog and continued margin expansion, while the low target may price in potential project delays or cost overruns. With a beta of 1.257, Fluor is more volatile than the market, and the recent activist involvement and strong Q2 beat could lead to further upward revisions, but investors should be prepared for swings in the stock price.
Bulls vs Bears: FLR Investment Factors
Fluor presents a mixed picture: strong recent earnings beat, new awards, and activist support are countered by declining revenue, negative margins, and underperformance versus the market. The bull case is currently stronger, driven by the Q2 beat and strategic refocusing, but the bear case highlights persistent operational challenges. The most important tension is whether the recent earnings improvement is sustainable or a one-time boost from the NuScale gain and other income. If the company can convert its record backlog into profitable revenue growth, the stock has significant upside; otherwise, the low valuation may be justified.
Bullish
- Massive Q2 2026 earnings beat: Fluor reported a massive Q2 2026 earnings beat, with net income of $160 million in Q1 2026 versus a loss of $241 million in Q1 2025, driven by a $206 million gain from other income. This turnaround signals improved profitability and operational execution.
- Surge in new awards: The company reported a surge in new awards, indicating strong demand for its engineering and construction services. This growth in backlog supports future revenue visibility and underpins the bullish case for sustained top-line expansion.
- Profitable exit from NuScale: Fluor completed the sale of its NuScale Power stake, generating significant proceeds that strengthened its balance sheet. This strategic divestiture refocuses the company on core engineering projects and reduces exposure to volatile speculative ventures.
- Activist investor confidence: Starboard Value has taken a stake in Fluor, signaling confidence in the company's turnaround and strategic direction. Activist involvement often drives operational improvements and shareholder value creation.
Bearish
- Revenue declining 8% YoY: Q1 2026 revenue fell 8.01% year-over-year to $3.663 billion, with the Energy Solutions segment dropping 30% to $703 million. This top-line contraction raises concerns about demand sustainability and competitive pressures.
- Negative trailing EPS and margins: Fluor's trailing twelve-month EPS is -$0.0076, with a net margin of -0.33% and operating margin of -2.34%. The company has struggled to generate consistent profitability, reflecting execution risks and project volatility.
- Underperformance vs S&P 500: Over the past year, Fluor's stock gained 11.02% versus the S&P 500's 21.46%, underperforming by over 10 percentage points. This relative weakness suggests lingering skepticism about the recovery's durability.
- High beta and volatility: With a beta of 1.257, Fluor is more volatile than the market, amplifying downside risk during economic downturns. The stock's 30.19% max drawdown highlights the potential for significant losses.
FLR Technical Analysis
Fluor's stock is in a clear uptrend over the past year, with a 1-year price change of +11.02%, though it has underperformed the S&P 500's +21.46% gain. The current price of $48.75 sits at 82.4% of its 52-week range (low of $39.33, high of $54.79), indicating the stock is trading closer to its highs, reflecting positive momentum but also potential overextension. This positioning suggests investors are optimistic about the company's recent performance, yet the relative weakness versus the broader market highlights ongoing skepticism about the sustainability of the recovery.
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
+29.2%
Cumulative gain past year
| Period | FLR Return | S&P 500 |
|---|---|---|
| 1m | +15.1% | +2.4% |
| 3m | +31.6% | +4.6% |
| 6m | +21.5% | +11.7% |
| 1y | +29.2% | +21.4% |
| ytd | +36.7% | +13.4% |
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FLR Fundamental Analysis
Revenue in Q1 2026 was $3.663 billion, down 8.01% year-over-year from $3.982 billion in Q1 2025, marking a deceleration from the prior year's levels. However, the company reported a net income of $160 million in Q1 2026, a significant improvement from a net loss of $241 million in Q1 2025, driven by a $206 million gain from other income. The revenue decline was led by a 30% drop in the Energy Solutions segment to $703 million, while Urban Solutions grew to $2.437 billion, partially offsetting the weakness. This mixed performance suggests the company is rebalancing its portfolio toward infrastructure and urban projects, but overall growth remains challenged.
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 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. The current PS ratio is 0.43x, based on a market cap of $6.7 billion and trailing revenue of $15.5 billion, while the forward PS ratio (using estimated revenue of $18.3 billion) implies a more normalized 0.37x. The gap between trailing and forward PS suggests the market expects revenue growth to resume, but the low absolute multiple reflects the cyclical and project-based nature of the business.
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 & Operational Risks: Fluor's financial health is strained by negative free cash flow of -$41 million TTM and a net margin of -0.33%, indicating that the company is not yet generating consistent profitability. The debt-to-equity ratio of 0.33 is manageable, but the negative operating margin of -2.34% suggests cost overruns or project inefficiencies. Revenue concentration in cyclical end markets like oil and gas exposes the company to commodity price swings, as evidenced by the 30% drop in Energy Solutions revenue. The reliance on one-time gains, such as the $206 million other income in Q1 2026, raises questions about the sustainability of earnings quality.