Fluor (NYSE:FLR) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsJamie Cook - Managing DirectorJason Landkamer - VP of Investor RelationsJim Breuer - CEOJohn Regan - CFOSteven Fisher - Managing DirectorConference Call ParticipantsAndrew Wittman - Senior Research AnalystAndy Kaplowitz - Senior AnalystMichael Dudas - Equity Research AnalystSangita Jain - Director and Equity Research AnalystOperatorGood morning, and welcome to Fluor's fourth quarter and full year 2025 earnings conferenc ...

Fluor (NYSE:FLR) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsJamie Cook - Managing DirectorJason Landkamer - VP of Investor RelationsJim Breuer - CEOJohn Regan - CFONatalia Alvarez Iragorri - SVPSteven Fisher - Managing DirectorConference Call ParticipantsAndrew Wittman - Senior Research AnalystMichael Dudas - Equity Research AnalystSangita Jain - Director and Equity Research AnalystOperatorGood morning, and welcome to Fluor's fourth quarter and Full Year 2025 Earnings Conference ...

Financial Data and Key Metrics Changes - Consolidated new awards for 2025 were $12 billion, with 87% being reimbursable, showing a recovery from previous geopolitical and trade uncertainties [9] - The backlog ended at $25.5 billion, with 81% reimbursable, indicating strong earnings potential [9] - Adjusted EBITDA for 2025 was $504 million, down from $530 million in 2024, while adjusted EPS decreased to $2.19 from $2.32 [25][30] - Operating cash flow was negative $387 million, primarily due to a $642 million payment to Santos [26] Business Segment Data and Key Metrics Changes - Urban Solutions reported a profit of $205 million for 2025, down from $304 million in 2024, affected by cost growth on infrastructure projects [10] - Energy Solutions reported a segment loss of $414 million for 2025, compared to a profit of $256 million in 2024, largely due to the Santos ruling and project completions [12] - Mission Solutions reported a profit of $94 million for the year, down from $153 million in 2024, with new awards totaling $1.8 billion [16] Market Data and Key Metrics Changes - The company is seeing improved confidence across its client base, with expectations for new awards in 2026 to be significantly higher than in 2025 [6] - The power market in the U.S. has evolved, with utilities showing more willingness to engage in reimbursable contracts that convert to lump sum [42] Company Strategy and Development Direction - The company has transitioned to a "Grow and Execute" strategy, focusing on growth, project delivery, and returning value to shareholders [4] - The company is actively pursuing opportunities in LNG, mining, advanced technologies, and nuclear fuels, with a focus on diversifying its revenue mix [8] - The company plans to spend approximately $1.4 billion on share repurchases in 2026, indicating a strong commitment to returning capital to shareholders [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a recovery in client confidence and a robust pipeline of projects [6][76] - The company anticipates that new awards for 2026 will be significantly higher than in 2025, with a Book-to-Burn Ratio exceeding 1 [8] - Management highlighted the importance of AI as a strategic advantage, enhancing project planning and execution [19] Other Important Information - The company completed the sale of Stork and is in the process of monetizing its investment in NuScale, having received $2 billion since September 2025 [5] - The company is focusing on building additional expertise and depth in its workforce while reviewing tuck-in M&A opportunities [29] Q&A Session Summary Question: Initial guidance and customer confidence - Management noted that the initial guidance for 2026 was better than expected due to increased customer confidence and a diverse range of prospects [34][35] Question: Power market opportunities - Management indicated that the power market has improved, with utilities more accommodating in contract terms, and expects to execute multiple large projects simultaneously [41][43] Question: Backlog conversion rates - Management estimated that 50%-60% of the backlog would convert to revenue in the next 12 months, depending on execution and client materials [82] Question: Share repurchases vs. capital allocation - Management confirmed that share repurchases would be prioritized initially, with plans to reinvest in the business and explore smaller-scale acquisitions later [85][86] Question: Competitive advantages in end markets - Management emphasized targeting markets where the company has a competitive advantage, such as LNG, copper, and nuclear fuels, while acknowledging challenges in newer markets like data centers [88][89]

Summary of Primoris Conference Call Company Overview - **Company**: Primoris Services Corporation - **Industry**: Engineering construction, focusing on utilities and energy sectors - **Segments**: - Utilities: $2.7 billion gross revenue, with a margin target of 10%-12% - Power delivery: 45% - Gas utility: 40% - Communications: 15% [2][3] - Energy: $4.9 billion gross revenue - Renewables: 60% - Traditional industrial (natural gas power): 20% - Heavy civil (highways, roads, bridges): 12% - Pipeline: 7% [3] Core Insights and Arguments - **Demand Environment**: Strong demand across end markets, with a focus on maintaining long-term client relationships through Master Service Agreements (MSAs) [5][6] - **Competitive Position**: Primoris competes on service quality and long-term relationships rather than just price, especially in utilities [5][6] - **Project Work**: The energy segment is driven by discrete projects, with varying competition levels. The pipeline business is currently competitive, while solar and gas power generation are seeing increased demand [7][9] - **Growth Potential**: - Natural gas generation is expected to be the highest growth area in the next few years [11] - Pipeline projects are anticipated to contribute significantly again, with $4.5 billion worth of projects tracked [12] - Solar business growth is expected to flatten in 2026 after a strong 2025 [12][13] - Power delivery is seen as a long-term growth driver, with a goal to increase transmission and substation work [14] Financial Performance and Margins - **Bid Margins**: Current project work margins are stable, with equitable contract terms allowing for better margin management [17][18] - **Utility Business Improvements**: Focus on resource utilization, contract renegotiation, and efficient billing has improved margins [19][21] - **Project Work vs. MSA**: Project work allows for better resource planning and efficiency, translating into higher margins [22][23] Capital Allocation Strategy - **Priorities**: - Organic growth is the top priority, followed by debt repayment, M&A, and return of capital [29] - No M&A in the last three years due to a disciplined approach; potential for acquisition in 2026 if suitable opportunities arise [30] - **Valuation Multiples**: Current multiples for potential acquisitions are in the 8-10 times range, with some exceptions in electrical CNI [31][32] Future Milestones and Catalysts - **Growth Drivers**: Continued focus on natural gas generation and pipeline resurgence are expected to drive growth [33][34] - **Margin Improvement**: Anticipated margin appreciation in power delivery and energy segments [34] Technology and AI Integration - **AI Utilization**: Primoris is investing in foundational AI and automation strategies to improve efficiency and reduce SG&A growth relative to revenue [36][38] Equipment Strategy - **CapEx Flexibility**: Transitioning from a leasing-heavy strategy to a more balanced approach between purchasing and leasing equipment [40][41] Conclusion - Primoris is well-positioned to leverage strong market tailwinds and improve operational efficiency, with a focus on organic growth and strategic capital allocation [46]

Core Insights - Aristides Capital has initiated a new position in Fluor Corporation, acquiring 224,842 shares valued at approximately $9.46 million as of September 30, representing about 2.84% of its total reportable U.S. equity assets [1][2]. Company Overview - Fluor Corporation is a global leader in engineering and construction services, focusing on energy, infrastructure, technology, and government projects [6]. - The company operates a project-driven business model, generating revenue through large-scale contracts in various sectors including energy transition, infrastructure, and government services [9]. Financial Performance - Fluor's revenue for the trailing twelve months (TTM) is reported at $15.59 billion, with a net income of $3.38 billion [4]. - The company's stock price as of the latest report is $40.69, reflecting a 20% decline over the past year, underperforming the S&P 500, which has increased by about 15% during the same period [3][4]. Recent Developments - Despite a challenging third quarter, where revenue fell 18% year over year, adjusted EBITDA increased by 29% to $161 million, and management has raised full-year adjusted EPS and EBITDA guidance [10]. - Fluor's backlog stands at $28.2 billion, with 82% being reimbursable, which mitigates risks associated with cost overruns [10][11]. - The company has repurchased $70 million of its stock in the quarter and plans to repurchase up to $800 million more by early 2026, supported by $2.8 billion in cash and marketable securities [11].

Matrix Service Company Conference Call Summary Company Overview - **Company Name**: Matrix Service Company (Ticker: MTRX) - **Industry**: Engineering and Construction (ENC) for oil, gas, utility, and industrial markets - **Key Segments**: - Storage and Terminal Solutions (49% of revenue) - Utility and Power Infrastructure (33% of revenue) - Process and Industrial Facilities (18% of revenue) [4][4][4] Financial Performance - **Fiscal Year End**: June 30 - **Fiscal 2025 Revenue**: Approximately $770 million - **Fiscal 2026 Revenue Guidance**: $875-$925 million (14%-20% growth) [4][4] - **Backlog**: $1.2 billion [4][4] - **Q1 Fiscal 2026 Revenue**: $211.9 million (28% increase from $165 million in Q1 Fiscal 2025) [14][14] - **Gross Margin**: Increased to 6.7% from 4.7% year-over-year [15][15] - **Liquidity**: Strong at $248.9 million with no outstanding debt [15][15] Strategic Focus - **Core Values**: Safety is the number one core value [2][2] - **Market Position**: Positioned to capitalize on multi-year spending cycles in LNG, NGL infrastructure, data centers, and utility investments [3][3] - **Growth Strategy**: Focus on organic and inorganic growth, enhancing market share, and expanding into high-growth verticals [12][12] Project and Backlog Insights - **Project Awards**: $187 million in Q1, with a book-to-bill ratio of 0.9 [9][13] - **Opportunity Pipeline**: $6.7 billion in project opportunities expected to be awarded in the next 12-18 months [10][10] - **Backlog Composition**: 70% fixed-price projects, 30% reimbursable or cost-plus projects [18][18] Market Dynamics - **Competitive Landscape**: Fair market conditions with good opportunities available; timing of awards is a key factor [24][24] - **Employee Retention**: No significant issues in retaining key employees [25][25] Technology and Efficiency - **Technological Advancements**: Implementation of new project management systems and 3D technology to improve efficiency and profitability [22][22] - **AI Integration**: Evaluating AI's role in enhancing project management and operational efficiency [22][22] Long-term Outlook - **Revenue Growth**: Anticipated to continue, with a focus on reaching $250 million in quarterly revenue by the end of the fiscal year [32][32] - **Profitability Goals**: Targeting a gross margin of 10% and reducing SG&A to 6.5% of revenue [33][33] Key Takeaways - **Recurring Revenue**: Approximately 90% of revenue comes from recurring customers, emphasizing the importance of long-term relationships [4][30] - **Safety and Quality**: Commitment to safety and quality project execution as core operational principles [7][7] - **Market Trends**: Elevated spending across various industries, including data centers and low-carbon infrastructure, presents growth opportunities [8][8]

Core Insights - Aecom reported stronger-than-expected fourth-quarter adjusted earnings, with adjusted earnings per share at $1.36, slightly above the consensus estimate of $1.34 [1] - Quarterly revenue was $4.18 billion, which fell short of analyst expectations of $4.32 billion, leading to a more than 2% decline in shares intra-day [1] - The company achieved a record segment adjusted operating margin of 17.1%, reflecting a 40-basis-point improvement from the previous year [2] Financial Performance - Net service revenue increased by 8%, driven by a 9% growth in the Americas design division [1] - Adjusted EBITDA rose by 13% to $329 million [2] Future Guidance - For fiscal 2026, Aecom provided guidance for adjusted earnings per share in the range of $5.65 to $5.85, indicating approximately 9% growth at the midpoint [2] - The company raised its quarterly dividend by 19% to $0.31 per share [2]

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]

Core Viewpoint - Rosen Law Firm is encouraging investors of Fluor Corporation to secure legal counsel before the November 14, 2025 deadline for a securities class action lawsuit related to misleading statements made by the company during the class period from February 18, 2025, to July 31, 2025 [1][5]. Group 1: Class Action Details - Investors who purchased Fluor securities during the specified class period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the court to serve as lead plaintiff by November 14, 2025 [3]. - The lawsuit alleges that Fluor made false and misleading statements regarding project costs and financial guidance, which negatively impacted the company's business and financial results [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified counsel with a proven track record in securities class actions, highlighting its own success in achieving significant settlements for investors [4]. - The firm has been recognized for its performance in securities class action settlements, including being ranked No. 1 by ISS Securities Class Action Services in 2017 and recovering over $438 million for investors in 2019 [4].

Core Viewpoint - Rosen Law Firm is encouraging investors of Fluor Corporation to secure legal counsel before the November 14, 2025 deadline for a securities class action lawsuit related to misleading statements made by the company during the class period from February 18, 2025, to July 31, 2025 [1][5]. Group 1: Class Action Details - Investors who purchased Fluor securities during the specified class period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the court to serve as lead plaintiff by November 14, 2025 [3]. - The lawsuit alleges that Fluor made false and misleading statements regarding project costs and financial guidance, which negatively impacted the company's business and financial results [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in achieving significant settlements for investors [4]. - The firm has been recognized for its performance in securities class action settlements, including being ranked No. 1 by ISS Securities Class Action Services in 2017 and recovering over $438 million for investors in 2019 [4].