Fluor Plans Legal Action to Recover Project Losses

Fluor Corp. launched good earnings information however famous a brief slowdown in new awards and its intention to take authorized motion in opposition to subs on two troubled initiatives.

Fluor (NYSE: FLR) reported increased earnings throughout 2025’s second quarter, $2.5 billion on $3.9 billion in income, in comparison with $169 miliion on $4.2 billion in the identical quarter final yr. However new awards for the quarter, $856 million, had been down sharply from $2.4 billion in the identical quarter final yr.

New enterprise slowed noticeably for a variety of causes, CEO James R. Breuer advised analysts on an Aug. 1 earnings name.

In current months, Fluor’s shoppers had been holding again as a part of a wait-and-see method earlier than urgent ahead with new initiatives, Breuer mentioned. Commerce coverage, value escalation and rates of interest had given prospects pause, and, in a couple of circumstances, led to cancelled initiatives.

“It implies that we’re at some extent within the cycle of short-term hesitation on our approach to longer-term alternative,” Breuer mentioned.

In the meantime, the corporate is planning authorized motion in opposition to subcontractors and designers to get well value overruns on initiatives whose late completion and cost-overruns had been already recognized.

Delayed completion of the $5.7-billion Gordie Howe International Bridge, a 1.5-mile cable-stayed span to attach Detroit and Windsor, Ont., was forecast in 2022. At 97% full, Fluor has “skilled rework and extra efforts required handy over each ports of entry,” mentioned Breuer. “We anticipate substantial completion this fall.”

In response to what occurred on the Gordie Howe Bridge and two main freeway initiatives, “we have now elevated operations oversight and strengthening the execution groups,” Breuer mentioned. He added that the corporate can be “taking motion” in opposition to subs and designers for what he alleged as “their poor efficiency.”

Breuer added that different initiatives in Fluor’s infrastructure portfolio “proceed to carry out to administration expectations.”