Fluor posts Q3 loss, remains bullish on power projects

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Fluor swung to decrease income and a third-quarter loss after a court docket ruling in Australia pressured a $653 million cost, however executives remained optimistic about its shift towards reimbursable megaprojects, based on remarks in the course of the company’s third quarter earnings call.

“Regardless of continued short-term uncertainty in some markets, we’re nicely positioned with unmatched world engineering and development experience, disciplined execution, a predominantly reimbursable portfolio and a transparent capital allocation technique,” mentioned Fluor CEO Jim Breuer in a information launch. “We stay assured in our capacity to ship important worth over time.”

Breuer mentioned delays in consumer funding choices, pushed by trade policy uncertainty, have impacted 2025 new awards. As well as, most new awards in 2026 might be weighted in the direction of the second half of the yr, he added.

However, the Irving, Texas-based agency nonetheless expects about $90 billion in new awards over its four-year planning cycle, most of which can land between 2026 and 2028, Breuer mentioned. He added the ongoing government shutdown might have an effect on near-term federal contracting exercise however that Fluor’s rising publicity to energy work ought to present some insulation from wider economic swings.

“We’re accelerating our efforts within the energy market, given the elevated want for energy era,” mentioned Breuer in the course of the name. “We’re pursuing numerous alternatives within the U.S. and internationally, significantly the place we’ve an operational footprint.”

Section efficiency

The agency’s City Options section posted $61 million in revenue on a ramp-up in life sciences and mining tasks, plus incremental bookings on a copper challenge in Canada and a U.S. pharma facility, mentioned Breuer.

On legacy infrastructure, Breuer mentioned 4 long-running, unprofitable tasks are nearing completion. For instance, he mentioned the Gordie Howe bridge ought to open to site visitors by the tip of the yr or early 2026, the LAX folks mover by early 2026, the I-635 challenge by the second quarter of 2026 and the I-35E part 2 job by late 2026.

“On many of those tasks, we proceed to pursue price recoveries and alter orders from shoppers and subcontractors,” mentioned Breuer in the course of the name. “Whereas we in the end count on to achieve success in these recoveries, in lots of instances, these efforts materialize on an prolonged timeline.”

The Power Options section reported a $533 million loss, largely resulting from an Australian court docket ruling on a long-completed LNG challenge Fluor constructed for Santos, an Australian power firm. The ruling, which Fluor plans to attraction, resulted in a $653 million cost.

On a optimistic notice, the corporate accomplished Practice 2 at its LNG Canada challenge and handed over all techniques.

“This challenge might be remembered as one of many largest and most complicated tasks in Fluor’s historical past,” mentioned Breuer in the course of the name. “Its success is a testomony to our world capabilities, even in distant or troublesome areas.”

Missions Options earned $34 million with $1.3 billion in new awards, akin to a six-year Division of Power contract to increase Fluor’s presence on the Portsmouth challenge in Ohio. Different prospects embrace work on a strategic vary providers contract for the Air Power, extra work to assist the intelligence group and work for the Nationwide Most cancers Institute, based on Fluor.

Q3 outcomes

Fluor reported a lack of $697 million within the third quarter of 2025, in contrast with earnings of $54 million in the identical interval in 2024, based on the discharge. Its income reached $3.4 billion within the third quarter, a few 18% drop yr over yr.

Backlog fell 10% from $31.3 billion a yr in the past to about $28.2 billion, based on the report. New awards within the third quarter, however, totaled $3.3 billion, up 21% from a yr in the past.

“Traders might be happy however seemingly nonetheless need extra,” wrote Andrew Wittmann, senior analysis analyst at Baird, a Milwaukee-based monetary providers firm, in a analysis notice. “Outcomes, nonetheless, have been robust with weak orders, fees and delays all peppering the report.”