Core Viewpoint - Fluor Corporation has announced its decision to divest its Zhuhai Fabrication Yard located in China, indicating a strategic shift in its operational focus [1] Company Summary - The divestment of the Zhuhai Fabrication Yard is part of Fluor's broader strategy to streamline operations and focus on core business areas [1] - This move may reflect Fluor's response to changing market conditions and its commitment to optimizing its asset portfolio [1] Industry Summary - The decision to divest assets in China highlights the ongoing trends in the construction and engineering industry, where companies are reassessing their international operations [1] - The divestment could impact the competitive landscape in the region, as it may open opportunities for other firms to enter or expand in the Chinese market [1]

Core Insights - Hotchkis & Wiley Mid-Cap Value Fund's third-quarter 2025 investor letter highlights strong equity market performance, with major indices reaching all-time highs, driven by enthusiasm for AI, anticipated Federal Reserve rate cuts, and robust corporate earnings [1] - The fund outperformed the Russell Midcap Value Index, achieving a gain of 7.74% compared to the index's 6.18% [1] Company Overview: Fluor Corporation (NYSE:FLR) - Fluor Corporation is an engineering, procurement, and construction (EPC) company, primarily generating revenue from full EPC services [3] - The stock experienced a one-month return of -5.10% and a 52-week decline of 22.26%, closing at $43.40 per share with a market capitalization of $7.016 billion as of December 09, 2025 [2] Performance Analysis - Fluor's stock underperformed in the third quarter due to a weak earnings report and reduced forward guidance [3] - Despite the underperformance, Fluor is considered a high-quality professional services company with a medium-risk business model, expected to grow without reinvested capital [3] Investment Sentiment - Fluor Corporation is not among the top 30 most popular stocks among hedge funds, with 64 hedge fund portfolios holding its stock at the end of the third quarter, up from 57 in the previous quarter [4] - While acknowledging Fluor's potential, the company believes certain AI stocks present greater upside potential and lower downside risk [4]

Core Insights - Fluor Corporation, in partnership with JGC Corporation, has successfully completed Train 2 of the LNG Canada Project, marking the completion of the first phase of Canada's first LNG mega-project in Kitimat, British Columbia [1][2] Group 1: Project Completion and Significance - The handover of Train 2 demonstrates the commitment to safety, quality, and schedule performance by the workforce involved in the project [2] - The LNG Canada facility is designed to export Canadian natural gas to global markets, emphasizing environmental performance, Indigenous engagement, and economic development in British Columbia [2][3] Group 2: Economic Impact - Over $3.3 billion CAD has been spent on goods and services contracted with Indigenous businesses and joint ventures, along with more than $550 million CAD with local area businesses [2] - The facility has an annual production capacity of up to 14 million tonnes of LNG, benefiting from access to abundant natural gas and an ice-free harbor [3] Group 3: Joint Venture Structure - LNG Canada is a joint venture involving multiple stakeholders: Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%), and Korea Gas Corporation (5%) [4] Group 4: Company Background - Fluor Corporation has over 75 years of experience in Canada, providing engineering, procurement, fabrication, and construction services for major projects in various sectors [5] - Fluor reported revenue of $16.3 billion in 2024 and is ranked 257 among Fortune 500 companies [6]

Core Perspective - The article discusses the investment potential of Fluor Corporation, particularly in the context of the nuclear power industry and small modular reactors (SMRs) [1][5]. Company Overview - Fluor Corporation is an engineering and construction company specializing in building full-scale nuclear plants that generate 1 gigawatt and above [6]. - Fluor holds a 38.9% stake in NuScale Power, a prominent SMR company, which is valued at approximately $2.3 billion based on NuScale's market capitalization of $6 billion [7]. Financial Analysis - Fluor's market capitalization is approximately $6.6 billion, with its NuScale stake and cash backing up 62% of this value, leading to an effective enterprise value of about $2.5 billion [8]. - The company reported earnings of $3.4 billion over the last 12 months, resulting in an enterprise-value-to-earnings ratio of less than 1 [9]. - Analysts project Fluor will earn around $360 million in real profit next year, with a growth rate of about 36% over the next three years, translating to a 12% annual growth rate [10][11]. Market Context - The nuclear power sector has seen a rise in stock prices for major SMR companies, but there are concerns regarding their profitability, with none expected to turn a profit before 2030 [4]. - Fluor's profitability contrasts with the SMR companies, as it is already generating revenue, making it a potentially safer investment in the nuclear sector [5][4]. Industry Developments - The U.S. Department of Energy announced Japan's commitment to invest $550 billion in the U.S., including $80 billion for the construction of 10 large nuclear power plants, which aligns with Fluor's business model [14]. - This development may positively impact Fluor's stock, despite the decline in value of its NuScale stake [15].

Core Viewpoint - Fluor Corporation is positioned as a strong investment opportunity in the nuclear power sector, particularly due to its profitability and growth prospects compared to other companies in the industry [1][4][15]. Company Performance - Fluor has been profitable for the last three years, earning over $1.5 billion in 2023 and is expected to exceed analyst forecasts of $1.6 billion in profit for 2025 [4][15]. - The company's total revenue has grown by 15%, driven by a 42% increase in urban solutions and a 20% increase in energy solutions [5]. Nuclear Business Potential - Fluor has extensive experience in nuclear power, having designed and built multiple nuclear power units and performed maintenance on around 90 nuclear reactor units [6]. - The company is likely to play a significant role in the upcoming nuclear renaissance in the U.S. [7]. Market Context - The U.S. government is promoting nuclear power, with plans for significant investments in new nuclear reactors, including potential contracts for Fluor [9][10]. - Japan is expected to invest $80 billion in building new nuclear reactors, with Fluor potentially serving as the engineering and construction contractor [11]. Valuation Metrics - Fluor's market capitalization is approximately $6.8 billion, with an enterprise value of around $5 billion after accounting for net cash [13]. - Analysts project Fluor will earn $360 million in net profit next year, leading to an enterprise value of only 7.8 times forward earnings, which is considered inexpensive relative to the expected 12% earnings growth [15][16].

Core Insights - Airbus is grounding approximately 6,000 aircraft for a critical software update to prevent potential data corruption that could affect flight safety [2][3] Group 1: Software Update and Directives - Airbus has collaborated with aviation authorities to issue an Alert Operators Transmission (AOT) for immediate precautionary action, which will be formalized in an Emergency Airworthiness Directive by the European Union Aviation Safety Agency (EASA) [3] - The directives encompass the entire A320 family, including A319, A320, and A321 models, which are essential to the global fleet [4] - For 5,100 of the aircraft, the software update can be completed in approximately three hours, while 900 aircraft may require onboard flight computer replacements, potentially causing delays [4] Group 2: Impact on Airlines - The impact of the grounding varies by airline; Air France reported delays at Charles de Gaulle airport, while EasyJet, American Airlines, and Delta, which also operate A320 fleets, experienced minimal disruption [5] Group 3: Incident Background - The issue was identified during an investigation of an incident involving a JetBlue aircraft that unexpectedly pitched downward, necessitating an emergency landing [6] - Airbus discovered that intense solar radiation could corrupt onboard data used for altitude calculations, raising concerns about the fly-by-wire technology employed in their aircraft [7] Group 4: Fly-by-Wire Technology - Unlike Boeing's designs, Airbus aircraft utilize fly-by-wire technology, which electronically commands control surfaces and limits pilot override capabilities [7][9] - Criticism of fly-by-wire technology has existed since its inception, with historical incidents highlighting potential issues with computer control [11]

Core Viewpoint - Fluor is undergoing a significant business reset, focusing on unwinding legacy risks, reshaping its project mix, and unlocking value from its NuScale Power stake, while managing stock volatility and aiming for improved performance in the coming years [2][9]. Group 1: Company Overview - Fluor is one of the oldest construction and engineering firms in the U.S., with a history spanning 113 years [2]. - The company has a market capitalization of $7 billion and has experienced a 15% decline year-to-date, significantly below its all-time high of $101 from 2008 [3]. Group 2: Financial Performance - In Q3, Fluor's revenue fell 18% year-over-year to $3.4 billion, marking the eighth consecutive quarter of missing analysts' expectations [5]. - Adjusted earnings per share increased by 33% to $0.68, indicating some positive performance despite revenue challenges [5]. - The company booked $3.3 billion in new contracts in Q3, raising its total backlog to $28.2 billion, with 82% of this backlog being reimbursable work [6]. Group 3: Strategic Initiatives - Execution of Fluor's reorganization plan is critical for restoring investor confidence and achieving consistent performance [5]. - Fluor is implementing a risk-reducing strategy by focusing on reimbursable contracts rather than fixed-price contracts [6]. - The company is also pursuing an exit strategy from NuScale Power, having raised over $600 million from a stock sale and planning to monetize its remaining 39% stake, estimated at $800 million [7][8]. Group 4: Future Outlook - The NuScale windfall is seen as a potential catalyst for Fluor's future growth, especially with the rising demand for nuclear energy to support new AI data centers [7][8]. - The company is viewed as a transition story with potential for improvement, contingent on its ability to execute its plans effectively [9].

Core Insights - The energy-infrastructure sector is experiencing a significant transformation as utilities, data-center operators, and industrial customers seek to expand capacity and modernize grids [2] - Quanta Services, Inc. (PWR) and Fluor Corporation (FLR) are two major U.S.-listed contractors playing pivotal roles in this transformation, focusing on power generation, transmission, and large-scale EPC services [2][3] - Each company is adopting different strategies to navigate the current market cycle, with Quanta emphasizing execution certainty and integrated solutions, while Fluor is pursuing a more asset-light approach [3] Quanta Services, Inc. (PWR) - PWR is witnessing strong momentum in its core markets, particularly in electric infrastructure and renewable energy, with the Electric segment contributing 80.9% of total revenues in Q3 2025, amounting to $6.17 billion, reflecting a 17.9% year-over-year growth [5][10] - The company reported a record backlog of $39.2 billion at the end of Q3 2025, up from $33.96 billion a year ago, indicating strong demand across utility and technology-driven markets [6][10] - PWR anticipates ongoing strength in electricity needs, driven by data centers and manufacturing, which will support further investments in infrastructure [8] Fluor Corporation (FLR) - Fluor is capitalizing on healthy activity across key markets, with strong execution in Energy Solutions and progress in Mission Solutions, leading to improved performance in LNG, mining, and government services [11][12] - The company raised its full-year guidance due to stronger-than-expected performance and a total backlog of $28.2 billion, with 82% being reimbursable projects, indicating a lower-risk mix [12] - Fluor expects constructive conditions in LNG, clean energy, and government work, with a strengthening pipeline of engineering and EPC opportunities [14] Stock Performance & Valuation - Over the past six months, Quanta's share price has outperformed Fluor's and the Zacks Engineering - R and D Services industry [15] - Quanta is currently trading at a premium compared to Fluor based on a forward 12-month price-to-earnings (P/E) ratio [16] Earnings Estimates - The Zacks Consensus Estimate for PWR's 2025 and 2026 earnings indicates year-over-year improvements of 17.8% and 16.7%, respectively, while FLR's 2025 EPS estimate shows a 7.7% decline [19][20] - PWR's EPS for 2025 is estimated at $10.57, while FLR's is projected at $2.15 [20][21] Conclusion - Both Quanta and Fluor hold a Zacks Rank 3 (Hold), supported by different fundamental drivers, with Quanta focusing on utility infrastructure and Fluor benefiting from a stronger mix of reimbursable work [22][23]

Core Points - Fluor Corporation has commenced the groundbreaking of the State Highway 6 expansion project in Bryan/College Station, Texas, in collaboration with local officials and the Texas Department of Transportation (TxDOT) [2][3] - The project involves reconstructing and widening a 12-mile stretch of SH-6 from two to three lanes in each direction, aimed at enhancing traffic capacity, regional connectivity, and safety [2][3] - Completion of the construction is anticipated by the end of 2030 [4] Company Overview - Fluor Corporation, listed on NYSE as FLR, reported a revenue of $16.3 billion in 2024 and is ranked 257 among Fortune 500 companies [5] - The company employs nearly 27,000 individuals and specializes in providing engineering, procurement, construction, and maintenance services globally [5] - Fluor has a long-standing history of over a century in delivering capital-efficient projects [5]

Core Viewpoint - Grabar Law Office is investigating claims on behalf of shareholders of Fluor Corporation regarding potential breaches of fiduciary duties by certain officers and directors [1] Group 1: Investigation Details - The investigation is focused on whether Fluor Corporation's officers made materially false and misleading statements and failed to disclose adverse facts about the company's business and operations [3] - Allegations include that costs for specific projects were increasing due to subcontractor errors, price hikes, and scheduling delays, which negatively impacted the company's financial results [3] - The investigation suggests that Fluor's financial guidance for FY 2025 was unreliable, and the effectiveness of its risk mitigation strategies was overstated [3] Group 2: Shareholder Actions - Shareholders who purchased Fluor Corporation shares before February 18, 2025, and still hold them can seek corporate reforms and the return of funds at no cost [2][4] - Interested shareholders are encouraged to contact Grabar Law Office for more information on the investigation and potential actions [2][4]