Core Viewpoint - A class action lawsuit has been filed against Fluor Corporation and certain executives for allegedly making false and misleading statements during the class period from February 18, 2025, to July 31, 2025 [1][2][3] Company Overview - Fluor Corporation provides engineering, procurement, construction, fabrication, modularization, and project management services through its Urban Solutions, Energy Solutions, and Mission Solutions segments [2] - The Urban Solutions division was the largest contributor to revenue and profit during 2024 and early 2025 [2] Allegations - The lawsuit claims that Fluor and its executives failed to disclose significant issues, including rising costs tied to major infrastructure projects, customer reductions in capital spending, and unrealistic financial guidance [3][7] - Specific allegations include overstating the effectiveness of risk mitigation strategies and downplaying risks from economic conditions [7] Financial Performance - In February 2025, Fluor issued FY 2025 guidance of adjusted EBITDA between $575 million and $675 million and EPS between $2.25 and $2.75 [7] - In May 2025, the guidance was reaffirmed despite acknowledged market uncertainty [7] - On August 1, 2025, Fluor reported Q2 results with EPS of $0.43, missing estimates by $0.13, and revenue of $3.98 billion, down 5.9% year-over-year and $570 million below expectations [7] - Following these disclosures, FY 2025 guidance was cut to adjusted EBITDA between $475 million and $525 million and EPS between $1.95 and $2.15, citing project cost overruns, delays, and client spending hesitation [7] Market Impact - Following the August 1, 2025 disclosures, Fluor's stock price dropped 27%, closing at $41.42 per share [4]

Core Viewpoint - A class action lawsuit has been filed against Fluor Corporation for allegedly misleading investors regarding its business prospects and financial guidance during a specific period in 2025 [1][2]. Group 1: Allegations and Financial Impact - The lawsuit claims that Fluor failed to disclose rising costs associated with major projects due to subcontractor design errors, price increases, and scheduling delays [2]. - It is alleged that these issues, along with reduced capital spending from customers and economic uncertainty, significantly impacted Fluor's business and financial results [2]. - Following the release of disappointing financial results for Q2 2025, Fluor revised its financial outlook for FY 2025, projecting adjusted EBITDA of $475 million to $525 million, down from $575 million to $675 million, and adjusted EPS of $1.95 to $2.15, down from $2.25 to $2.75 [3]. Group 2: Stock Price Reaction - After the negative financial disclosures, Fluor's stock price dropped by $15.35 per share, or 27.04%, closing at $41.42 per share on August 1, 2025 [3]. Group 3: Class Action Participation - Shareholders who wish to participate in the class action must submit their papers by November 14, 2025, to serve as lead plaintiff [4]. - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4]. Group 4: Legal Representation - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses unless the case is won [5]. - The firm has a history of advocating for shareholder rights and holding company executives accountable since 2002 [5].

Core Viewpoint - Fluor Corporation is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding project costs and financial guidance during a specified class period [1][3]. Group 1: Class Action Details - The class action lawsuit is titled Maglione v. Fluor Corporation, and it includes purchasers of Fluor securities from February 18, 2025, to July 31, 2025, with a deadline of November 14, 2025, for seeking lead plaintiff status [1][5]. - The lawsuit alleges that Fluor's costs for major infrastructure projects, including the Gordie Howe International Bridge and Texas highways, were increasing due to subcontractor errors, price hikes, and scheduling delays [2][3]. Group 2: Financial Performance and Impact - On August 1, 2025, Fluor reported second quarter 2025 non-GAAP earnings per share of $0.43, missing consensus estimates by $0.13, and revenue of $3.98 billion, which was a 5.9% year-over-year decline and fell short of estimates by $570 million [4]. - The disappointing financial results were attributed to rising costs in infrastructure projects and reduced capital spending by customers, leading to a negatively revised financial outlook for fiscal year 2025 [4][3]. - Following the announcement of these results, Fluor's stock price dropped by over 27% [4].

Group 1 - A shareholder has filed a class action lawsuit on behalf of purchasers of Fluor Corporation securities between February 18, 2025, and July 31, 2025 [1] - Fluor Corporation is described as a company that provides engineering, procurement, and construction (EPC), fabrication and modularization, and project management services worldwide [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $4 billion, with consolidated new awards of $1.8 billion, 72% of which were reimbursable [6][25] - Total backlog remains around $28 billion, with 80% being reimbursable [7] - Adjusted EBITDA for Q2 was $96 million, down from $165 million a year ago, and adjusted EPS was $0.43 compared to $0.85 [27][38] - Operating cash flow for the quarter was an outflow of $21 million, compared to cash generation of $282 million a year ago [31] Business Segment Data and Key Metrics Changes - Urban Solutions reported a profit of $29 million, impacted by a $54 million net cost growth on three infrastructure projects [8][14] - Energy Solutions segment profit was $15 million, down from $75 million a year ago, due to nearing project completions and an arbitration ruling [16] - Mission Solutions reported a segment profit of $35 million, down from $41 million a year ago, due to a temporary stop work order [21] Market Data and Key Metrics Changes - The company noted a slowdown in client investment decisions due to trade policy uncertainties and cost escalations [23][24] - There is strong demand in the mining sector, but immediate enthusiasm for major capital deployment is tempered by global trade uncertainty [12][24] Company Strategy and Development Direction - The company is focusing on markets such as mining, advanced manufacturing, data centers, and life sciences for future growth [48][49] - The strategic sale of NuScale shares is being pursued, with a conversion of 15 million shares expected to enhance capital return objectives [35][36] Management's Comments on Operating Environment and Future Outlook - Management indicated that client sentiment is cautious due to ongoing trade discussions and cost uncertainties, impacting long-term investment decisions [23][24] - The company expects that once trade agreements stabilize, clients will accelerate investments in various end markets [24][96] Other Important Information - The company achieved significant milestones on the LNG Canada project, including the shipment of the first LNG cargo [20] - The company is revising its 2025 adjusted EBITDA guidance to $475 million to $525 million, reflecting market hesitancy and project delays [38] Q&A Session Summary Question: Insights on bookings environment and backlog growth - Management acknowledged that trade policy impacts client sentiment and investment decisions, but they are pursuing work in the right markets [44][50] Question: NuScale conversion mechanics and future plans - The conversion of 15 million shares is expected to provide tax benefits and facilitate monetization without significant cash leakage [51][53] Question: Cash flow implications of LNGC change order - The JV structure means that cash flow will be realized when dividends are made, following the collection of funds related to the change order [105] Question: Infrastructure project performance and future outlook - Management expressed disappointment with recent project results but emphasized a commitment to addressing issues and learning from past experiences [85][88]

Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, considering projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Example: KBR Inc. - KBR, Inc. is a global engineering and construction firm with operations in over 29 countries and customers in more than 80 countries [12] - Currently rated 3 (Hold) by Zacks, KBR has a VGM Score of A and a Growth Style Score of B, indicating potential for growth with a forecasted year-over-year earnings growth of 15.3% for the current fiscal year [12][13] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase to $3.85 per share further support KBR's position as a strong candidate for growth investors [13]

Core Insights - Matrix Service Company reported strong revenue growth in the third quarter of fiscal 2025, driven by increased activity in its Storage & Terminal Solutions and Utility & Power Infrastructure segments, achieving a revenue of $200.2 million, up 21% from $166.0 million in the same quarter of the previous year [5][9] - The company experienced a book-to-bill ratio of 1.5x for the quarter, indicating strong demand in core energy and industrial markets, with total project awards of $301.2 million [7][13] - Despite a reduction in fiscal year revenue guidance by 10% due to macroeconomic uncertainties, the company maintains a robust backlog of $1.4 billion and a project pipeline valued at $7 billion, suggesting continued growth potential [3][4][18] Financial Summary - Revenue for the third quarter of fiscal 2025 was $200.2 million, a 21% increase from $166.0 million in the prior year [5] - Gross margin improved to $12.9 million (6.4%) compared to $5.6 million (3.4%) in the same quarter of fiscal 2024, attributed to better performance in Utility and Power Infrastructure and Process and Industrial Facilities segments [6] - The company reported a net loss of $(3.4) million or $(0.12) per share, an improvement from a net loss of $(14.6) million or $(0.53) per share in the prior year [9] Segment Performance - The Storage and Terminal Solutions segment saw revenue increase by 77% to $96.1 million, driven by higher volumes in specialty vessel and LNG storage projects, although gross margin slightly decreased to 3.9% [10] - The Utility and Power Infrastructure segment's revenue rose 27% to $58.7 million, with gross margin improving significantly to 9.4% due to effective project execution [11] - The Process and Industrial Facilities segment experienced a revenue decline to $45.4 million, primarily due to the completion of a large renewable diesel project, but gross margin improved to 8.3% [12] Backlog and Project Awards - The total backlog increased by 7.7% to $1.4 billion as of March 31, 2025, with project awards totaling $301.2 million for the quarter [7][13] - The book-to-bill ratio for the quarter was 1.5x, with significant contributions from the Storage and Terminal Solutions segment, which had a book-to-bill ratio of 2.1x [13][42] Financial Position - As of March 31, 2025, the company had total liquidity of $247.1 million, consisting of $185.5 million in unrestricted cash and cash equivalents, with no outstanding debt [16] - Cash flow from operations for the quarter was $31.2 million, reflecting strong scheduled payments from customers [14] Fiscal Year 2025 Guidance - The company updated its fiscal year 2025 revenue guidance to a range of $770 million to $800 million, down from the previous guidance of $850 million to $900 million, due to external uncertainties affecting project timelines [18]

Core Insights - Jacobs Solutions reported mixed quarterly results, with adjusted earnings exceeding expectations but revenue falling short of Wall Street predictions [1][3] - The company's shares declined by 6% following the earnings report [1] Financial Performance - Jacobs earned $1.43 per share in its fiscal second quarter, surpassing expectations by $0.05 [3] - Revenue for the quarter was $2.91 billion, approximately $90 million below consensus estimates [3] Business Segments and Demand - The company is experiencing strong demand in life sciences, transportation, and energy programs [4] - Earnings were negatively impacted by a mark-to-market loss on the investment in Amentum, which acquired Jacobs' government business in 2024 [4] - Jacobs plans to exit its retained stake in Amentum on May 30, distributing remaining shares to current investors [4] Capital Management - Jacobs repurchased $351 million worth of shares during the quarter [5] - The company retired over $300 million in debt and refinanced another $700 million at a lower interest rate [5] Future Outlook - Jacobs' backlog of future business reached $22.2 billion at the end of the quarter, reflecting a 20% year-over-year increase [6] - The company billed approximately $1.10 for every $1 it invoiced to customers, indicating positive future growth prospects [6] - With a 10% decline in stock price year-to-date, this may present a favorable opportunity for investors [7]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4 billion, with consolidated new awards of $5.8 billion, leading to a book to burn ratio of 1.5 [7][8] - Total backlog increased to $28.7 billion, with 79% being reimbursable [8] - Adjusted EBITDA for Q1 was $155 million, compared to $88 million a year ago, and adjusted EPS was $0.73 compared to $0.47 in the previous year [21][22] Business Segment Data and Key Metrics Changes - Urban Solutions segment reported a profit of $70 million, with new awards of $5.3 billion, up from $4.9 billion a year ago [8][9] - Energy Solutions segment profit decreased to $47 million from $68 million a year ago, with new awards totaling $315 million [14][15] - Mission Solutions reported a profit of $5 million, down from $22 million a year ago, impacted by a reserve of $28 million related to a long-standing claim [17] Market Data and Key Metrics Changes - Significant new awards in Urban Solutions were driven by life sciences and infrastructure projects [8] - The infrastructure segment secured a $682 million construction contract for highway widening in Texas [13] - The company is tracking opportunities in pharmaceuticals, advanced manufacturing, and green steel production [11][12] Company Strategy and Development Direction - The company is transitioning from a "fix and build" strategy to a "grow and execute" strategy for 2025 to 2028, focusing on generating cash and earnings [5][6] - There is an emphasis on maintaining strong client relationships and pursuing bolt-on acquisitions to enhance technical capabilities [6] - The company aims to leverage its financial foundation for capital allocation opportunities, including share repurchases and reinvestment [26] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are looking for clarity in the market before making final investment decisions, particularly in energy and copper projects [19] - Despite some clients being sensitive to costs, many projects are proceeding as planned, especially in the ATLS and mission solutions areas [19][36] - The company maintains confidence in its backlog and the ability to convert projects into revenue, despite potential delays [60][65] Other Important Information - The company plans to repurchase up to $600 million in shares for 2025, with $150 million expected in Q2 [26] - Cash and marketable securities at the end of Q1 were $2.5 billion, a decrease of over $400 million from year-end [23] - Operating cash flow for Q1 was an outflow of $286 million, compared to an outflow of $111 million a year ago [24] Q&A Session Summary Question: Client sentiment changes since the last call - Management indicated that while some clients are more price-sensitive, many projects, especially in urban solutions, are moving forward as planned [36][37] Question: EBITDA guidance and revenue growth - Management acknowledged that the strong Q1 EBITDA performance may not be indicative of the full year, but they remain confident in achieving their guidance [44][46] Question: Impact of project delays on second-half performance - Management does not expect significant underutilization despite some project delays, as the quality of the backlog remains strong [58][60] Question: Cash collection potential from joint ventures - Management expects cash collection from joint ventures to be lower than the previous year, with more confidence in Canadian projects compared to those in Mexico [95]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4 billion, with consolidated new awards of $5.8 billion, leading to a book to burn ratio of 1.5 [7][8] - Total backlog increased to $28.7 billion, with 79% being reimbursable [8] - Adjusted EBITDA for Q1 was $155 million, compared to $88 million a year ago, and adjusted EPS was $0.73 compared to $0.47 in the previous year [22][23] Business Segment Data and Key Metrics Changes - Urban Solutions reported a profit of $70 million, with new awards of $5.3 billion, up from $4.9 billion a year ago [8][9] - Energy Solutions segment profit decreased to $47 million from $68 million a year ago, with new awards totaling $315 million [15][16] - Mission Solutions reported a profit of $5 million, down from $22 million a year ago, impacted by a $28 million reserve related to a long-standing claim [18] Market Data and Key Metrics Changes - Significant new awards in Urban Solutions were driven by life sciences and infrastructure projects [8] - The company is seeing strong demand in pharmaceuticals, advanced manufacturing, and semiconductor sectors [12][13] - Infrastructure projects include a $682 million construction contract for highway widening in Texas [14] Company Strategy and Development Direction - The company is transitioning from a "fix and build" strategy to a "grow and execute" strategy for 2025 to 2028, focusing on generating cash and earnings [5][6] - There is an emphasis on maintaining strong client relationships and pursuing bolt-on acquisitions to enhance technical capabilities [6][7] - The company aims to leverage its financial foundation for capital allocation opportunities, including share repurchases and reinvestment [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are looking for clarity in the market before making final investment decisions, particularly in energy and copper projects [20][36] - Despite some clients being sensitive to costs, many projects are proceeding as planned, especially in the ATLS and mission solutions areas [20][36] - The company maintains a positive outlook for new awards, expecting a book to burn ratio above one and revenue growth of approximately 15% [29] Other Important Information - The company repurchased 3.6 million shares for $142 million in Q1, with plans for up to $600 million in repurchases for 2025 [27] - The effective tax rate for Q1 was approximately 20%, expected to rise to around 30% for the full year [30] Q&A Session Summary Question: Client sentiment changes since the last call - Management indicated that projects in urban solutions are moving forward, while energy and copper projects require more certainty [36][37] Question: EBITDA guidance and revenue growth - Management acknowledged that the first quarter's EBITDA was strong but emphasized the need for continued revenue growth to meet annual guidance [44][46] Question: Impact of project delays on second half performance - Management expressed confidence in the quality of the backlog and the ability to convert projects, despite some delays [55][56] Question: Clarification on Urban Solutions segment benefits - The $84 million benefit recognized was not included in segment profit results and was related to equity income [67][69] Question: Cash collection potential from joint ventures - Management expects cash collection from joint ventures to be lower than the previous year, with a focus on recouping profits from Canada [92]