FLUOR CORP (FLR): Results of Operations and Financial Condition
FLUOR CORP (FLR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Fluor Corporation Brett Turner Exhibit 99.1 6700 Las Colinas Blvd Media Relations Irving, Texas 75039 864.281.6976 tel 469.398.7000 main tel Jason Landkamer Investor Relations 469.398.7222 tel News Release FLUOR REPORTS SECOND QUARTER 2026 RESULTS • Strong new awards of $6.1 bill
How this was made
The 30-second read
Why it matters
Traders should focus on the combination of (1) strong new awards and high reimbursable backlog, (2) the narrowed adjusted EBITDA range and its explicit Mexico JV driver, and (3) cash flow weakness driven by NuScale monetization taxes.
Market read
A primary earnings and guidance update with a specific guidance reduction driver, plus strong awards/backlog that may counterbalance the earnings outlook.
What to watch
Operating cash flow was negative ($317M) due to a large NuScale-related tax payment, which could mask improving underlying cash generation if taxes normalize.
FLUOR REPORTS SECOND QUARTER 2026 RESULTS
Revenue increased 9% year over year, awards rose to $6.1 billion, and segment profit improved across all three operating segments, but operating cash flow was ($317) million and the company narrowed 2026 adjusted EBITDA guidance to $500 – $525 million following removal of the previously estimated second-half Mexico JV contribution.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $4.3 billion | – | up 9% y/y |
| Net earnings attributable to FluorGAAP | $114 million | – | – |
| Adjusted EBITDAnon-GAAP | $149 million | – | – |
| EPSGAAP | $0.81 | – | – |
| Adjusted EPSnon-GAAP | $0.91 | – | – |
| Consolidated segment profitnon-GAAP | $170 million | – | – |
| G&A expensesGAAP | $41 million | – | – |
| Operating Cash FlowGAAP | ($317) million | – | – |
| New Awardsother | $6.1 billion | – | – |
| Backlogother | $26.9 billion | – | – |
| Urban Solutions segment profitnon-GAAP | $38 million | – | – |
| Urban Solutions new awardsother | $3.2 billion | – | – |
| Urban Solutions ending backlogother | $19.4 billion | – | – |
| Energy Solutions segment profitnon-GAAP | $88 million | – | – |
| Energy Solutions new awardsother | $704 million | – | – |
| Energy Solutions ending backlogother | $3.5 billion | – | – |
| Mission Solutions segment profitnon-GAAP | $44 million | – | – |
| Mission Solutions new awardsother | $2.2 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Urban SolutionsRevenue improved compared with $2.1 billion a year ago, reflecting increased execution levels on mining and metals projects. Segment profit also reflected cost growth of $44 million for the now substantially completed Gordie Howe International Bridge project due to foreign currency fluctuation, a subcontractor bankruptcy and client driven changes. | $2.9 billion | – | – |
| Energy SolutionsRevenue was compared with $1.1 billion a year ago. Segment profit reflected favorable close out items on certain projects, including the former JV in Mexico. | $709 million | – | – |
| Mission SolutionsRevenue was compared with $762 million a year ago. Results reflected improved award fee performance within the DOE portfolio. | $716 million | – | – |
2026 outlook
- NoteAdjusted EBITDA: $500 – $525 million
- NoteThe company is not providing forward-looking guidance for U.S. GAAP net earnings or U.S. GAAP earnings per share.
- NoteAdjusted EBITDA guidance excludes items similar to those outlined in the reconciliation table at the end of this release.
Capital returns
- Returned $300 million to shareholders through repurchases during the quarter.
- Still targeting $1.4 billion for 2026.
- Completed $175 million divestiture of Mexico JV.
What drove it
- Revenue of $4.3 billion was up 9% y/y.
- New awards were $6.1 billion, compared with $1.8 billion in the prior-year period; 89% reimbursable.
- Backlog was $26.9 billion; 85% reimbursable, with legacy project backlog reduced to $119 million.
- Urban Solutions awards included a fertilizer project in Canada, an incremental life sciences award in the United States, and an infrastructure project in Europe.
- Energy Solutions awards included a gas compression project on the west coast and the limited notice to proceed on the phase 2 expansion of the LNG Canada project.
- Mission Solutions awards included the reimbursable EPC contract for the Centrus nuclear fuel enrichment facility.
Concerns
- The company narrowed its 2026 adjusted EBITDA guidance from $525 – $560 million to $500 – $525 million due to removal of the previously estimated 2nd half contribution from the JV in Mexico.
- Operating Cash Flow was ($317) million and included a $357 million tax payment related to NuScale monetization.
- Urban Solutions incurred cost growth of $44 million on the Gordie Howe International Bridge project.
- Energy Solutions revenue was $709 million, compared with $1.1 billion a year ago, and ending backlog was $3.5 billion, compared with $5.6 billion a year ago.
- Mission Solutions revenue was $716 million, compared with $762 million a year ago.
- Urban Solutions ending backlog was $19.4 billion, compared with $20.6 billion a year ago.
What to watch
- Conversion of the prospect pipeline into additional awards.
- Execution on mining and metals projects and the substantially completed Gordie Howe International Bridge project.
- Whether favorable close out items in Energy Solutions recur.
- Progress on the reimbursable EPC contract for the Centrus nuclear fuel enrichment facility.
- The impact of the removal of the Mexico JV contribution on 2026 adjusted EBITDA.
- Repurchases toward the $1.4 billion 2026 target.
Balance sheet and cash flow
- Cash and marketable securities at quarter end were $3.0 billion.
- Operating Cash Flow: ($317) million, includes $357 million tax payment related to NuScale monetization.
- Completed NuScale monetization in April.
Analysis
Fluor reported second-quarter revenue of $4.3 billion, up 9% y/y, alongside GAAP net earnings attributable to Fluor of $114 million, GAAP EPS of $0.81, adjusted EPS of $0.91, adjusted EBITDA of $149 million and consolidated segment profit of $170 million. The release points to stronger activity and execution in key markets, with Urban Solutions revenue improving to $2.9 billion from $2.1 billion a year ago.
Award activity was the principal positive operating indicator. New awards were $6.1 billion, compared with $1.8 billion in the prior-year period, and 89% were reimbursable. Ending backlog was $26.9 billion and 85% reimbursable, while legacy project backlog was reduced to $119 million. Urban Solutions generated $3.2 billion of awards, Mission Solutions generated $2.2 billion, and Energy Solutions generated $704 million.
Segment profitability improved year over year across the portfolio. Urban Solutions segment profit was $38 million compared with $29 million, Energy Solutions segment profit was $88 million compared with $15 million, and Mission Solutions segment profit was $44 million compared with $35 million. Energy Solutions benefited from favorable close out items on certain projects, including the former JV in Mexico, while Mission Solutions cited improved award fee performance within its DOE portfolio.
Revenue and backlog trends were uneven by segment. Urban Solutions revenue rose, although its ending backlog was $19.4 billion compared with $20.6 billion a year ago. Energy Solutions revenue was $709 million compared with $1.1 billion a year ago and ending backlog was $3.5 billion compared with $5.6 billion a year ago. Mission Solutions revenue was $716 million compared with $762 million a year ago, even as its new awards increased to $2.2 billion from $363 million.
Cash flow was affected by the NuScale monetization-related tax payment. Operating Cash Flow was ($317) million and included a $357 million tax payment related to NuScale monetization, while quarter-end cash and marketable securities were $3.0 billion. The company completed the $175 million Mexico JV divestiture and returned $300 million through repurchases during the quarter, while maintaining a $1.4 billion 2026 repurchase target.
The outlook is the key offset to the stronger awards and segment-profit performance. Fluor narrowed 2026 adjusted EBITDA guidance from $525 – $560 million to $500 – $525 million, attributing the reduction to removal of the previously estimated second-half contribution from the Mexico JV. The company did not provide forward-looking U.S. GAAP net earnings or U.S. GAAP EPS guidance.
Management, verbatim
Our second quarter awards demonstrate the successful pull-through of our front-end work and the confidence clients have in Fluor to advance their most important investments.
Jim Breuer, chief executive officer of Fluor
These awards reflect conversion of our prospect pipeline, which we continue to replenish with additional opportunities. We remain focused on disciplined growth in our selected markets, strategic capital allocation and long-term value creation for our clients and shareholders.
Jim Breuer, chief executive officer of Fluor
Not in the filing
stated, not guessed- Gross profit and gross margin, including prior-year and prior-quarter comparisons.
- GAAP operating income and operating margin, including prior-year and prior-quarter comparisons.
- GAAP net earnings attributable to Fluor prior-year and prior-quarter amounts and changes.
- Adjusted net earnings.
- Prior-year and prior-quarter GAAP EPS and adjusted EPS amounts and changes.
- Free cash flow.
- Debt and net debt.
- Dividend amount or dividend policy.
- Weighted average diluted shares outstanding.
- Mission Solutions ending backlog.
- Consolidated backlog prior-year and prior-quarter comparisons.
- Segment revenue percentage changes.
- Prior-quarter comparisons for all reported metrics.
- Forward revenue, gross margin, operating expenses and tax rate guidance.
- Forward U.S. GAAP net earnings and U.S. GAAP EPS guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Fluor’s SEC 8-K with Q2 2026 results (ended June 30, 2026) and an updated 2026 adjusted EBITDA outlook.
Ticker impact
Fluor reported Q2 2026 results and narrowed 2026 adjusted EBITDA guidance to $500-$525 million after removing Mexico JV 2H contribution.
Likely choppy reaction: positive offset from $6.1B awards and $26.9B backlog versus negative from operating cash flow decline and guidance narrowing.
The filing is a primary earnings/guidance disclosure with specific numeric changes (Q2 metrics, backlog, and adjusted EBITDA range) and a stated driver (Mexico JV removal).
Market effects
Signals continued demand in reimbursable EPC/engineering markets, but highlights earnings volatility from JV mix and project execution/cost items.
Backlog and awards commentary spans Canada, Europe, and U.S. DOE, implying broad geographic order flow rather than a single-region catalyst.
NuScale monetization cash/tax effects and LNG Canada phase-2 limited notice to proceed point to ongoing global energy infrastructure investment cycles.
Counterpoint
The guidance cut may be more about accounting/assumption changes (JV contribution removal) than underlying demand deterioration, so the market may over-penalize it versus awards strength.
Key entities
- companyFluor Corporation
Reported Q2 2026 financial results, backlog, and narrowed 2026 adjusted EBITDA guidance in an SEC 8-K.
- corporate_actionNuScale monetization
Company notes operating cash flow includes a $357M tax payment related to NuScale monetization.
- business_unitMexico JV
Adjusted EBITDA guidance narrowed due to removal of previously estimated 2H contribution from the Mexico JV.
