Flur Posts Double-Digit Earnings Growth as Backlog Hits Record High

Fluor Corporation reported second-quarter revenue of $4.3 billion, marking a 9 per cent increase from the prior year, as robust project execution drove adjusted earnings per share to $0.91, up from $0.43 in the same period last year. The engineering and construction firm also saw adjusted EBITDA climb to $149 million from $96 million year-on-year. Chief Executive Officer Jim Breuer noted that several client decisions arrived sooner than anticipated, supporting expectations for a full-year book-to-bill ratio well above one.

The company secured more than $6 billion in new awards during the quarter, lifting its backlog to a record $26.9 billion. Growth opportunities are expanding across key sectors, including mining and metals, fertilizers, nuclear fuel, liquefied natural gas, power generation, and data centres. Breuer highlighted that nearly $30 billion of potential Mining and Metals awards have been identified within the in-house pipeline over the next 18 months, with demand for copper, fertilizers, aluminium, and steel remaining supportive.

Segment performance varied, with Energy Solutions posting a profit of $88 million, a significant rise from $15 million a year earlier, driven by higher contributions from projects nearing completion. Conversely, Urban Solutions generated $38 million in segment profit, though this figure included $44 million in additional losses related to the Gordie Howe International Bridge project. The company attributed the bridge impact to foreign-currency fluctuations, the bankruptcy of a subcontractor, and client-driven changes, though it noted the bridge opened to traffic in late July.

In a strategic move to streamline its portfolio, Fluor announced the sale of its equity stake in a Mexican joint venture for $175 million. The transaction is expected to result in a $90 million pre-tax book gain and a $33 million tax payment, with the gain excluded from adjusted EBITDA guidance. Chief Financial Officer John Regan stated that the divestiture aligns with strategic priorities, citing diminishing backlog and limited prospects in Mexico through the end of the decade. The company removed more than $650 million of related backlog from its balance sheet.

Looking ahead, Fluor updated its 2026 financial guidance, forecasting adjusted EBITDA between $500 million and $525 million and adjusted EPS between $2.70 and $2.80. The company also raised its adjusted operating cash flow outlook to $300 million to $320 million, excluding specific tax payments. Fluor maintained its plan to repurchase $1.4 billion in shares for the full year, having already bought back 6 million shares for $300 million in the second quarter. The firm ended the quarter with $3 billion in cash and cash equivalents, rising to $3.2 billion as of July 31.