Fluor(US:FLR)2026-02-17 12:06Revenue Performance - Total revenue for 2025 decreased to $15,503 million, down from $16,315 million in 2024, primarily due to a $643 million revenue reversal related to the Santos project[226]. - Urban Solutions revenue increased to $9,200 million in 2025, compared to $7,239 million in 2024, while Energy Solutions revenue decreased to $3,554 million from $5,976 million[226]. - Revenue for the Urban Solutions segment increased to approximately $5 billion in 2025, up from $4 billion in 2024, representing about 59% of segment revenue[235]. - Energy Solutions segment revenue decreased by $643 million in 2025 due to the reversal of previously recognized revenue for the Santos project[238]. Backlog and New Awards - The company's total backlog as of December 31, 2025, was $25,536 million, down from $28,484 million in 2024, with 40% of the backlog related to projects outside the U.S.[226][228]. - New awards in 2025 totaled $11,956 million, a decrease from $15,123 million in 2024, with 26% of new awards related to projects outside the U.S.[226]. - New awards in 2025 included a multi-billion dollar pharmaceutical facility and two significant mining projects, contributing to an increase in backlog[237]. Financial Performance - The company recognized a net loss attributable to Fluor of $51 million in 2025, compared to a net earnings of $2,145 million in 2024[226]. - Adjusted net revenue for 2025 was impacted by approximately $8 billion in at-cost revenue, representing 53% of consolidated revenue, compared to $7 billion or 40% in 2024[227]. - Earnings before taxes decreased to a loss of $311 million in 2025, influenced by revenue declines and cost growth on infrastructure projects[229]. - Net earnings (loss) excluding amounts attributable to equity method earnings were $(364) million in 2025, compared to $355 million in 2024[232]. - Equity method earnings were $210 million in 2025, a significant decrease from $2,105 million in 2024, largely due to a loss on the fair value of the investment in NuScale[247]. Cash Flow and Liquidity - Operating cash flow for 2025 was $(387) million, a significant decline from $828 million in 2024, primarily due to a $642 million payment to Santos[265][267]. - Cash and cash equivalents combined with marketable securities were $2.2 billion as of December 31, 2025, down from $3.0 billion in 2024[261]. - Liquidity is expected to improve in 2026 due to proceeds from the sales of NuScale shares and a fabrication yard in China[258]. Divestitures and Investments - The company completed the sale of 15 million NuScale shares for net proceeds of $605 million and plans to monetize the remaining shares, expecting total proceeds of $1.35 billion from 71 million shares sold in early 2026[221][222]. - The divestiture of the Stork business was substantially completed with the sale of its U.K. operations in 2025 and an agreement to sell the fabrication yard in China for approximately $122 million[223]. - Investments in partnerships and joint ventures in 2025 totaled $278 million, including $158 million for a proportionately consolidated loss project[271]. Shareholder Actions - The company repurchased 18 million shares of common stock for $754 million in 2025, with a target of approximately $1.4 billion in share repurchases for 2026[264][273]. - The company expects to monetize the remaining 40 million shares of NuScale by the second quarter of 2026[263]. Other Financial Metrics - General and administrative expenses decreased to $196 million in 2025 from $203 million in 2024, primarily due to lower compensation expenses[245]. - As of December 31, 2025, outstanding letters of credit totaled $424 million under a $2.2 billion credit facility, which matures in February 2028[260]. - Letters of credit outstanding totaled $424 million under committed lines and $918 million under uncommitted lines as of December 31, 2025[280]. - The maximum potential amount of future payments under outstanding performance guarantees was estimated to be $14 billion as of December 31, 2025[281]. - Capital expenditures in 2025 were $50 million, primarily related to IT investments[270]. - As of December 31, 2025, the backlog included $255 million for ongoing legacy projects in a loss position, with estimated unfunded losses of approximately $212 million[266].