Overview

• U.S. engineering and construction firm's Q1 revenue fell 8% and missed analyst expectations

• Adjusted EPS for Q1 missed analyst expectations

• Company repurchased $516 mln in shares, targeting $1.4 bln for 2026

Outlook

• Fluor narrows 2026 adjusted EBITDA guidance to $525-$560 mln from $525-$585 mln

• Company maintains full-year operating cash flow guidance of $300 mln

• Fluor does not provide GAAP net earnings or EPS guidance due to uncertainty

Result Drivers

• MINING PROJECT COSTS - Urban Solutions segment profit fell sharply due to increased costs on a mining project in the Americas

• PROJECT CLOSE-OUTS - Energy Solutions profit rose, driven by recognition of favorable close out items on three projects

• LITIGATION CHARGE - Mission Solutions reported a segment loss due to a $96 mln charge triggered by a court ruling on a lawsuit filed in 2013

Company press release: ID:nBwcdhL1fa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Fluor Corp is $55.00, about 7.7% above its May 7 closing price of $51.08

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.