Fluor Corporation
FLR
$48.75
-3.31%
Fluor Corporation is a global engineering, procurement, construction, fabrication, operations, and maintenance services provider, serving end markets such as 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. The current investor narrative centers on Fluor's strategic repositioning, highlighted by its profitable exit from NuScale Power, a new activist stake from Starboard Value, and a reaccelerating industrial investment cycle, which together signal a potential turnaround and renewed growth focus.…
FLR
Fluor Corporation
$48.75
Related headlines
Investment Opinion: Should I buy FLR Today?
Rating: Hold. Fluor is a turnaround story with a consensus 'Buy' rating and an average price target of $52.44, implying a modest 4.5% upside. The thesis is that the company's strategic repositioning, including the NuScale exit and Starboard's involvement, will drive earnings recovery and margin expansion. However, the limited upside and recent revenue decline warrant caution, making a Hold appropriate until there is clearer evidence of sustained growth.
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FLR 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Fluor's valuation is not demanding on a forward basis, but the negative trailing earnings and revenue decline introduce uncertainty. The stock's underperformance relative to the market suggests skepticism, but the analyst consensus is positive. The key factor is whether the earnings recovery materializes as expected. If Q2 2026 shows revenue growth and margin expansion, the stance would upgrade to bullish. Conversely, if earnings disappoint, 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 $52.44 and implied upside of +7.6% versus the current price.
Average Target
$52.44
0 analysts
Implied Upside
+7.6%
vs. current price
Analyst Count
—
covering this stock
Price Range
$40 - $64
Analyst target range
Fluor is covered by 8 analysts, with a consensus recommendation of 'Buy' and a mean rating of 2.22 (where 1 is Strong Buy and 5 is Sell). The average price target is $52.44, implying a modest upside of 4.5% from the current price of $50.17. The distribution of ratings includes 5 Buys, 2 Holds, and 1 Sell, indicating a generally positive but not overwhelmingly bullish sentiment. Recent actions from firms like Truist Securities and Citigroup have reaffirmed Buy ratings, while Baird maintains a Neutral stance, reflecting a balanced view on the stock's near-term prospects.
Bulls vs Bears: FLR Investment Factors
Fluor presents a mixed picture: the bull case is anchored by strategic moves like the profitable NuScale exit and Starboard's activist stake, which could drive operational improvements and re-rating. The bear case is grounded in weak recent revenue growth, negative trailing earnings, and significant underperformance relative to the market. Currently, the bull case has slightly stronger evidence given the forward P/E of 15.3x and P/S below industry average, but the key tension is whether the expected earnings recovery (EPS of $3.81) will materialize. If it does, the stock is undervalued; if not, the stock could face further downside. The most important factor to watch is the execution of the turnaround, particularly revenue growth and margin expansion.
Bullish
- Profitable NuScale exit strengthens balance sheet: Fluor completed its sale of NuScale Power stock, generating significant proceeds that bolster its financial position and allow a sharper focus on core E&C operations. This strategic move reduces exposure to a volatile, cash-burning venture and was highlighted as a key positive in recent news.
- Activist investor Starboard Value takes stake: Starboard Value's new stake in Fluor signals confidence in the company's turnaround potential and the reaccelerating industrial investment cycle. Activist involvement often drives operational improvements and shareholder value creation, providing a catalyst for the stock.
- Forward P/E of 15.3x implies earnings recovery: Despite trailing losses, the forward P/E of 15.33x suggests the market expects a strong earnings rebound, with estimated EPS of $3.81 for the next fiscal year. This is a reasonable multiple for a cyclical industrial, indicating undervaluation if the recovery materializes.
- P/S ratio of 0.43x is below industry average: Fluor's price-to-sales ratio of 0.43x is significantly lower than the industry average, suggesting the stock is trading at a discount to its peers on a sales basis. This provides a margin of safety and upside potential if revenue stabilizes.
Bearish
- Revenue declined 8% YoY in Q1 2026: Q1 2026 revenue fell to $3.663 billion, an 8.0% year-over-year decline, continuing a trend of volatile and uneven demand across project portfolios. This top-line weakness raises concerns about the sustainability of the recovery.
- Trailing twelve-month net income is negative: Fluor's trailing twelve-month net income is negative, with a net margin of -0.33% and a trailing P/E of -127.8x. The company has not yet demonstrated consistent profitability, making the stock risky for value investors.
- Stock underperformed S&P 500 by 29.8% over 1 year: Over the past year, Fluor declined 11.6% while the S&P 500 gained 18.2%, resulting in a significant relative underperformance. This suggests persistent investor skepticism and a lack of momentum.
- Negative free cash flow of -$41 million TTM: Fluor's trailing twelve-month free cash flow is negative at -$41 million, indicating that the company is not yet generating sufficient cash to fund operations and growth. This could limit financial flexibility and increase reliance on debt.
FLR Technical Analysis
Fluor's stock is currently trading at $50.17, which is 91.6% of its 52-week range (low: $37.62, high: $54.79), indicating a position near the upper end of its yearly range. Over the past year, the stock has declined 11.6%, while the S&P 500 has gained 18.2%, resulting in a significant relative underperformance of 29.8%. This suggests that despite the recent recovery, Fluor has lagged the broader market, and the current price level reflects a mix of recovery momentum and lingering investor caution.
Beta
1.26
1.26x market volatility
Max Drawdown
-30.2%
Largest decline past year
52-Week Range
$39-$55
Price range past year
Annual Return
+11.0%
Cumulative gain past year
| Period | FLR Return | S&P 500 |
|---|---|---|
| 1m | +0.3% | +2.8% |
| 3m | +12.6% | +4.2% |
| 6m | +3.9% | +11.3% |
| 1y | +11.0% | +21.5% |
| ytd | +16.9% | +12.7% |
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FLR Fundamental Analysis
In Q1 2026, Fluor reported revenue of $3.663 billion, a decline of 8.0% year-over-year, continuing a trend of fluctuating quarterly revenues. The company's revenue has been volatile, with Q4 2025 at $4.176 billion and Q3 2025 at $3.368 billion, indicating uneven demand across its project portfolio. The Energy Solutions segment contributed $703 million, while Urban Solutions led with $2.437 billion, showing the importance of infrastructure and urban projects in driving growth. This revenue decline suggests that Fluor is facing headwinds in certain end markets, but the mix of segments provides some diversification.
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 negative trailing twelve-month net income, the price-to-sales (P/S) ratio is the most appropriate valuation metric, currently at 0.43x, which is significantly lower than the industry average. The forward P/E ratio of 15.33x indicates that the market expects a return to profitability, with estimated EPS of $3.81 for the next fiscal year. This gap between trailing losses and forward earnings suggests that investors are pricing in a strong earnings recovery, which is a key driver of the current valuation.
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 under pressure, with a negative trailing twelve-month net income and a net margin of -0.33%. The company's free cash flow is also negative at -$41 million TTM, indicating it is not yet self-sustaining. The debt-to-equity ratio of 0.33 is manageable, but the reliance on continued growth to justify the forward P/E of 15.3x poses a risk if earnings disappoint. Revenue concentration in the Urban Solutions segment (66% of Q1 revenue) exposes the company to infrastructure spending cycles, which can be volatile. Additionally, the gross margin of -0.77% TTM is concerning, though Q1 2026 showed improvement to 0.35%, suggesting operational leverage may be starting to work.