Market Overview - U.S. stocks experienced a decline, with the Dow Jones index dropping over 200 points, down 0.47% to 46,693.85, NASDAQ falling 1.42% to 22,725.49, and S&P 500 decreasing 0.82% to 6,664.90 [1] - European shares also fell, with the eurozone's STOXX 600 down 0.55%, Spain's IBEX 35 Index down 1.3%, and other major indices in London, Germany, and France also declining [5] - Asian markets closed lower, with Japan's Nikkei 225 down 1.19%, Hong Kong's Hang Seng down 0.92%, and China's Shanghai Composite down 0.25% [6] Company Performance - Fluor Corporation's shares fell 2% after reporting third-quarter results, with adjusted earnings per share at 68 cents, exceeding the 45-cent estimate, but revenue fell 18% to $3.37 billion, below the $4.20 billion consensus [2] - Motorsport Games Inc saw a significant increase in shares, rising 84% to $4.02 due to a year-over-year increase in third-quarter sales [8] - BIO-Key International Inc shares surged 66% to $1.06 following the announcement of significant biometric and IAM deployment in the Middle East [8] - Gulf Island Fabrication Inc shares increased by 50% to $11.76 after IES agreed to acquire the company for $12 per share in cash [8] - Eledon Pharmaceuticals Inc shares dropped 54% to $1.88 after announcing results from its Phase 2 BESTOW trial [8] - Energys Group Ltd shares fell 46% to $2.14, and Functional Brands shares decreased by 47% to $0.68 [8] Economic Indicators - The University of Michigan's consumer sentiment index declined to 50.3 in November from 53.6 in the previous month, below market expectations of 53.2 [10] - Median inflation expectations in the U.S. eased to 3.2% for the one-year horizon in October, down from 3.4% in September [10]

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Market Overview - Pre-market trading has declined, reflecting a cautious sentiment towards AI infrastructure spending and a lack of economic data, particularly during what was expected to be Jobs Week [1] - The market has seen a downward trend over the past five days, moving away from all-time highs reached in late October [1] Employment Data - Non-farm payroll numbers from the U.S. Bureau of Labor Statistics (BLS) are unavailable due to a government shutdown, with estimates suggesting a loss of 60,000 jobs last month [2] - The unemployment rate is expected to rise to 4.5%, while hourly wages are anticipated to remain steady at a year-over-year increase of 0.3% [2] - ADP reported an addition of 42,000 new jobs, which is better than BLS estimates but still indicates a weak labor market [3] - The Challenger Job Cuts report indicated 153,000 job cuts, highlighting ongoing challenges in employment [3] Interest Rate Expectations - There is a tentative expectation for a 25 basis-point interest rate cut in approximately 4.5 weeks, although market indexes may have already priced in this cut [4] - The "neutral rate" of inflation is uncertain but is believed to be higher than the optimal 2% [4] Earnings Reports - Wendy's (WEN) reported Q3 earnings of $0.24 per share, exceeding expectations by 20%, leading to a 9% increase in shares [5] - Six Flags Entertainment (FUN) posted earnings of $3.28 per share, surpassing the consensus estimate by 46.4%, although shares are down 2% in early trading [5] - Fluor (FLR) reported Q3 earnings of $0.68 per share, beating expectations by 54.55%, with shares up 4.6% in pre-market trading [6] - Constellation Energy (CEG) reported earnings of $3.04 per share, falling short of the anticipated $3.13, resulting in a 6.3% decline in shares [7] - Canopy Growth (CGC) shares increased by 12% despite reporting a loss of $0.01 per share, an improvement from the expected loss of $0.10 [8] Consumer Sentiment and Credit - The University of Michigan Consumer Sentiment report for November is expected to show a slight decrease to 53.0 from 53.6, remaining above the neutral threshold of 50 [9] - Consumer credit for September is projected to total $10.0 billion [9]

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]