Fluor Q3 Earnings Surpass Estimates, Revenues Miss, Stock Up

Core Insights - Fluor Corporation (FLR) reported mixed third-quarter 2025 results, with adjusted earnings exceeding estimates while revenues fell short [1][5][10] - Year-over-year, the bottom line improved, but the top line experienced a decline [1] Financial Performance - Adjusted earnings per share (EPS) reached 68 cents, surpassing the Zacks Consensus Estimate of 44 cents by 54.6%, compared to 51 cents in the same quarter last year [5][10] - Quarterly revenues totaled $3.4 billion, missing the consensus mark of $4.12 billion by 18.2%, and declined 18% from $4.1 billion in the prior year [5][10] - The company incurred a segment loss of $439 million, primarily due to a $653 million charge related to the Santos ruling, resulting in a negative segment margin of 13% [6][10] Segment Performance - Energy Solutions segment revenues plummeted 81.6% year over year to $262 million, with new awards dropping to $222 million from $1.5 billion [8] - Urban Solutions segment revenues increased by 21.3% to $2.34 billion, driven by life sciences and mining projects, with new awards rising to $1.8 billion [9] - Mission Solutions segment revenues rose 19.8% to $761 million, with new awards significantly increasing to $1.3 billion [11] Backlog and Awards - Total new awards for the quarter were $3.3 billion, up from $2.7 billion a year ago, while the consolidated backlog decreased to $28.2 billion from $31.3 billion [7] - The Urban Solutions segment's backlog increased by 8% to $20.5 billion, while the Energy Solutions segment's backlog fell to $5.1 billion [8][9] Future Outlook - Fluor raised its 2025 adjusted EPS guidance to a range of $2.10-$2.25, up from the previous range of $1.95-$2.15, and adjusted EBITDA expectations to $510 million-$540 million [14] - The company anticipates a decision on a strategically important AUKUS-related award and remains well-positioned in nuclear enrichment projects [3]