Financial Data and Key Metrics Changes - Revenue for Q3 was $3.4 billion, including a $653 million revenue reversal in energy solutions due to litigation [4] - Consolidated new awards for Q3 totaled $3.3 billion, with 99% being reimbursable [4] - Adjusted EBITDA for Q3 was $161 million, compared to $124 million a year ago, and adjusted EPS was $0.68 compared to $0.51 in 2024 [17][24] - The company ended the quarter with $2.8 billion in cash and marketable securities, up $500 million from June 30 [19] Business Segment Data and Key Metrics Changes - Urban Solutions reported a profit of $61 million in Q3, with new awards totaling $1.8 billion, a significant increase from $828 million in the same period last year [5] - Energy Solutions reported a segment loss of $533 million compared to a profit of $50 million a year ago, primarily due to the $653 million court ruling [7] - Mission Solutions reported a segment profit of $34 million for Q3, down from $45 million a year ago, with new awards totaling $1.3 billion compared to $274 million a year ago [10] Market Data and Key Metrics Changes - The total backlog remains around $28 billion, with 82% being reimbursable [4] - The company anticipates significant contributions from Urban Solutions, particularly in metals and mining, and expects a Q4 award for a pharmaceutical facility [7][11] - Energy transition projects have slowed down due to market conditions, while traditional oil and gas activities are picking up [15][58] Company Strategy and Development Direction - The company is transitioning to an asset-light model with a majority reimbursable backlog, aiming for long-term growth [4] - The monetization of the NuScale investment is expected to enhance financial discipline and capital allocation [13][24] - The company is focusing on strategic relationships rather than competitive bidding for new projects, particularly in power generation and data centers [34][46] Management's Comments on Operating Environment and Future Outlook - Management noted that external factors have caused delays in new awards, impacting EBITDA growth rates [14][15] - The company expects to approach $90 billion in new awards over the four-year planning cycle ending in 2028, with most awards concentrated in 2026-2028 [14][59] - The outlook for 2026 suggests EBITDA generation may be marginally better than the guidance for 2025, with a potential shift in growth targets to 2029 [26][59] Other Important Information - The company plans to deploy an additional $800 million in share repurchases through February [23] - The anticipated payment to Santos for the court ruling will be funded from cash generated from core operations [30][54] - The company is actively pursuing opportunities in various sectors, including mining, power generation, and data centers [33][35] Q&A Session Summary Question: Insights on 2026 EBITDA expectations - Management indicated that 2026 EBITDA is expected to be marginally better than 2025, driven by growth in Urban Solutions and the resumption of work in Mexico [27][29] Question: Clarification on Energy Solutions margins - The margins in Energy Solutions, excluding Santos, showed strong performance due to the nearing completion of LNG Canada and resumption of work in Mexico [29] Question: Funding for Santos payment - The Santos payment is expected to be funded from cash on the balance sheet generated from core operations, not from NuScale proceeds [30] Question: Opportunities in power generation and data centers - The company is focusing on strategic relationships for power generation projects and is well-positioned for larger data center projects despite challenging terms in the U.S. [34][35] Question: Competitive landscape for $90 billion potential awards - The competitive set is favorable, with many projects already in progress, particularly in mining and metals, and a focus on negotiated contracts rather than competitive bidding [45][46]

Financial Performance - Revenue reached $3.4 billion[8], while the company experienced a consolidated segment loss of $439 million[44], impacted by a $653 million charge related to the Santos litigation[45] - Adjusted EBITDA was $161 million[44] and diluted adjusted EPS was $0.68[44] - New awards totaled $3.3 billion[9], with 99% being reimbursable[9] - Backlog reached $28.2 billion[10], with 82% being reimbursable[10] Segment Results - Urban Solutions reported a segment profit of $61 million[17], with new awards of $1.8 billion[17] and a backlog of $20.5 billion[14, 17], representing 73% of the total backlog[17] - Energy Solutions experienced a segment loss of $533 million[30], including the $653 million court ruling related to the Santos project[30], with new awards of $222 million[30] and a backlog of $5.121 billion[28] - Mission Solutions reported a segment profit of $34 million[38], with new awards of $1.3 billion[38] and a backlog of $2.6 billion[36, 38] NuScale Investment - A major monetization milestone was achieved with the conversion of the remaining 111 million shares[7] - Monetization of Class A shares is expected to begin in November and finish in the second quarter of 2026[7] Outlook - The company expects 2025 new awards to reach $13 billion[57] - The company anticipates operating cash flow between $250 to $300 million[54] - The company projects adjusted EBITDA between $510 to $540 million and adjusted EPS between $2.10 to $2.25[56]

Core Viewpoint - Fluor (FLR) reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, and showing an increase from $0.51 per share a year ago, representing an earnings surprise of +54.55% [1][2] Financial Performance - The company posted revenues of $3.37 billion for the quarter ended September 2025, which missed the Zacks Consensus Estimate by 18.21% and decreased from $4.09 billion year-over-year [2] - Over the last four quarters, Fluor has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - Fluor shares have declined approximately 9.6% since the beginning of the year, contrasting with the S&P 500's gain of 14.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $4.29 billion, and for the current fiscal year, it is $2.03 on revenues of $16.37 billion [7] - The outlook for the Engineering - R and D Services industry, where Fluor operates, is currently in the bottom 38% of Zacks industries, which may negatively impact stock performance [8]

Financial Performance - Q3 2025 revenue was $3.4 billion, down 18% year-over-year, primarily due to a $653 million reversal related to the Santos ruling[9] - GAAP net loss attributable to Fluor was $697 million, including a $653 million charge for the Santos ruling and a $401 million reduction in NuScale's share price[9] - Adjusted EBITDA for Q3 2025 was $161 million, up 29% year-over-year[9] - Total revenue for Q3 2025 was $3,368 million, a decrease of 17.7% compared to $4,094 million in Q3 2024[19] - The company reported a net loss attributable to Fluor of $697 million in Q3 2025, compared to a profit of $54 million in Q3 2024[22] - Adjusted net earnings for the nine months ended September 30, 2025, were $306 million, compared to $318 million for the same period in 2024, a decrease of 3.8%[22] - Operating cash flow for the nine months ended September 30, 2025, was $(21) million, a significant decline from $501 million in the same period of 2024[21] - The company had cash and cash equivalents of $2,776 million at the end of Q3 2025, down from $2,912 million at the end of Q3 2024[21] Awards and Backlog - New awards in Q3 totaled $3.3 billion, representing a 21% increase year-over-year, with 99% being reimbursable[4][9] - Backlog at the end of Q3 was $28.2 billion, down 10% year-over-year, with 82% being reimbursable[4][9] - Total backlog decreased to $28,236 million in Q3 2025 from $31,319 million in Q3 2024, a decline of 9.9%[20] - New awards totaled $3,253 million in Q3 2025, an increase of 20.5% compared to $2,699 million in Q3 2024[19] Segment Performance - Urban Solutions revenue increased to $2,343 million in Q3 2025 from $1,931 million in Q3 2024, representing a growth of 21.4%[19] - Energy Solutions reported a significant decline in revenue, dropping to $262 million in Q3 2025 from $1,428 million in Q3 2024, a decrease of 81.7%[19] Cash Flow and Guidance - Operating cash flow for Q3 was $286 million, compared to $330 million year-over-year, with full-year guidance increased to $250 - $300 million[9] - Adjusted EPS guidance for 2025 was revised to $2.10 to $2.25 per share, up from the previous range of $1.95 to $2.15[8] Corporate Actions - The company announced a share repurchase of $70 million in Q3, targeting an additional $800 million through February 2026[4] - General and administrative expenses increased by 16% year-over-year to $43 million, including $12 million in restructuring costs[9] Investment and Monetization - NuScale investment is expected to be fully monetized by the end of Q2 2026, with net proceeds of $605 million received for 15 million shares converted in Q3[4][9] International Exposure - The backlog related to projects located outside of the U.S. was 41% in Q3 2025, down from 56% in Q3 2024[20]

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Core Insights - Fluor Corporation reported its financial results for Q3 2025, highlighting a commitment to disciplined project delivery and value creation for clients and shareholders [2][6]. Financial Performance - Revenue for Q3 2025 was $3.4 billion, down 18% year-over-year, primarily due to a $653 million reversal related to the Santos ruling [7]. - The company recorded a GAAP net loss of $697 million, which includes a $653 million charge for the Santos ruling and a $401 million reduction in NuScale's share price [7]. - Adjusted EBITDA was $161 million, reflecting a 29% increase year-over-year, while adjusted EPS was $0.68, up 33% year-over-year [7][22]. - General and administrative expenses increased by 16% year-over-year to $43 million, which included $12 million in restructuring costs [7]. Guidance and Outlook - The company revised its adjusted EBITDA guidance to $510 to $540 million and adjusted EPS guidance to $2.10 to $2.25 per share [5]. - Fluor's backlog stood at $28.2 billion, with 82% being reimbursable, down 10% year-over-year [6][21]. Segment Performance - Urban Solutions reported a profit of $61 million with revenue increasing to $2.3 billion, up from $1.9 billion a year ago [9]. - Energy Solutions experienced a loss of $533 million, with revenue decreasing to $262 million from $1.4 billion due to the Santos litigation [10]. - Mission Solutions reported a profit of $34 million, with revenue increasing to $761 million from $635 million a year ago [11]. Shareholder Returns - The company repurchased $70 million in shares during Q3 and is targeting an additional $800 million through February 2026 [6]. - Fluor announced a comprehensive agreement for the conversion and monetization of its remaining stake in NuScale, expecting full monetization by the end of Q2 2026 [2][6].

Core Insights - Fluor Corporation reported an EPS of $0.41, slightly below the estimated $0.44, while revenue reached $4.22 billion, exceeding the forecast of $4.20 billion [1][6] Financial Performance - The company's price-to-sales ratio is 0.44, indicating a relatively low valuation compared to its sales, suggesting potential undervaluation of revenue-generating capacity [3] - Fluor's enterprise value to sales ratio stands at 0.37, further supporting the notion of modest valuation in relation to overall sales [3] - The earnings yield is 54.82%, reflecting a strong return on investment for shareholders [4] - A debt-to-equity ratio of 0.18 indicates conservative use of debt, showcasing a stable capital structure [4] - The current ratio of 1.62 suggests a healthy liquidity position to cover short-term liabilities [4] - The enterprise value to operating cash flow ratio of 17.44 highlights the company's cash flow efficiency, crucial for sustaining growth [5] Strategic Initiatives - Fluor's agreement with NuScale Power is a strategic move to convert and monetize its remaining stake, expected to influence the financial dynamics of both companies [2][6]

Core Insights - Fluor Corporation is set to release its third-quarter earnings results on November 7, with analysts expecting earnings of 45 cents per share, a decrease from 51 cents per share in the same period last year [1] - The consensus estimate for Fluor's quarterly revenue is $4.2 billion, an increase from $4.09 billion a year earlier [1] Recent Performance - In the second quarter, Fluor reported results that fell below estimates and subsequently lowered its FY25 adjusted EPS guidance, leading to a 6% drop in share price to $44.58 [2] Analyst Ratings - Truist Securities analyst Jamie Cook maintained a Buy rating but reduced the price target from $52 to $51 [4] - UBS analyst Steven Fisher also maintained a Buy rating, cutting the price target from $60 to $56 [4] - Citigroup analyst Andrew Kaplowitz kept a Buy rating while lowering the price target from $71 to $57 [4] - Baird analyst Andrew Wittmann maintained a Neutral rating and reduced the price target from $55 to $46 [4] - Keybanc analyst Sangita Jain downgraded the stock from Overweight to Equal-Weight with a price target of $41 [4]

Core Insights - Fluor Corporation is set to release its third-quarter earnings results on November 7, with analysts expecting earnings of 45 cents per share, a decrease from 51 cents per share in the same quarter last year [1] - The consensus estimate for Fluor's quarterly revenue is $4.2 billion, an increase from $4.09 billion a year earlier [1] Recent Performance - In the second quarter, Fluor reported results that fell below estimates and subsequently lowered its FY25 adjusted EPS guidance, leading to a 6% drop in share price to $44.58 [2] Analyst Ratings - Truist Securities analyst Jamie Cook maintained a Buy rating but reduced the price target from $52 to $51 [4] - UBS analyst Steven Fisher also maintained a Buy rating, cutting the price target from $60 to $56 [4] - Citigroup analyst Andrew Kaplowitz kept a Buy rating while lowering the price target from $71 to $57 [4] - Baird analyst Andrew Wittmann maintained a Neutral rating and reduced the price target from $55 to $46 [4] - Keybanc analyst Sangita Jain downgraded the stock from Overweight to Equal-Weight with a price target of $41 [4]

Core Viewpoint - Fluor Corporation (NYSE:FLR) is facing multiple securities fraud class action lawsuits that may affect investor sentiment, despite its potentially undervalued stock metrics as it prepares to release quarterly earnings on November 7, 2025 [1][6]. Financial Performance Expectations - The company anticipates an earnings per share (EPS) of $0.44 and revenue of approximately $4.2 billion for the upcoming quarterly earnings [1][6]. Legal Challenges - The lawsuits, initiated by firms such as Glancy Prongay & Murray LLP, Schall Law Firm, and Gross Law Firm, allege that FLR failed to disclose critical information regarding escalating project costs due to subcontractor design errors, price increases, and scheduling delays [2]. - These legal actions cover investors who purchased FLR securities between February 18, 2025, and July 31, 2025, with a lead plaintiff deadline set for November 14, 2025 [2]. Valuation Metrics - FLR's price-to-earnings (P/E) ratio is approximately 1.84, indicating a low valuation relative to its earnings [3]. - The price-to-sales ratio of 0.45 and enterprise value to sales ratio of 0.38 suggest that FLR's stock is trading at less than half of its annual sales per share, appealing to value investors [3]. Financial Health Indicators - The company has a debt-to-equity ratio of 0.18, indicating a low level of debt compared to its equity [4]. - A current ratio of 1.62 suggests that FLR has sufficient liquidity to cover its short-term liabilities [4]. - However, the enterprise value to operating cash flow ratio of 17.67 reflects a higher valuation in relation to its cash flow from operations, which investors should consider [4]. Future Considerations - As FLR approaches its earnings release, the outcome of the lawsuits and the company's ability to manage project costs amid economic uncertainty will be crucial for its financial performance and stock valuation [5].