Fluor Corp (NYSE: FLR) reported second-quarter 2026 revenue of $4.3 billion, a 9% increase year-over-year, alongside sharply higher earnings and a surging backlog.
Adjusted EBITDA climbed to $149 million in the quarter, compared to $96 million in the same period a year ago, signaling strong operational momentum across business segments.
Adjusted earnings per share came in at $0.91, more than doubling the $0.43 reported in Q2 2025, reflecting improved profitability and execution across the company’s core markets.
New awards exceeded $6 billion in the quarter, pushing the total backlog to $26.9 billion, even after the removal of over $650 million tied to the company’s former joint venture in Mexico.
CEO Jim Breuer said the company has a robust prospect pipeline heading into the second half of the year across LNG, copper, and rare earth magnets, expressing confidence in achieving a book-to-bill ratio “well above 1” for the full year.
The Energy Solutions segment delivered a profit of $88 million in Q2, a dramatic improvement from just $15 million in the prior-year period, driven in part by accelerated closeout profits from subcontractor settlements and warranty satisfactions on mega projects.
Fluor completed two legacy infrastructure projects during the quarter and expects to finish the remaining two by year-end, which will reduce execution risk and allow management to redirect focus toward growth initiatives.
The company’s operating cash flow was negative $317 million for the quarter, but that figure was heavily distorted by a $357 million tax payment related to the conversion of NuScale shares, with normalized operating cash flow estimated at a positive $40 million.
Fluor repurchased 6 million shares in Q2, deploying $300 million, and is modeling total share repurchases of approximately $1.4 billion for the full year of 2026.
The sale of Fluor’s Mexican joint venture for $175 million sharpens the company’s strategic focus, though it also results in approximately $23 million in foregone profit that contributed to a slight downward revision in full-year EBITDA guidance.
Revised full-year adjusted EBITDA guidance now stands at $500 million to $525 million, while adjusted EPS guidance was set at $2.70 to $2.80, and adjusted operating cash flow guidance was raised to $300 million to $320 million, excluding NuScale-related tax payments.
Fluor is building out a comprehensive nuclear value chain presence, with the Centrus Fuel Enrichment award adding to capabilities that span power generation through decommissioning, with heavier revenue impact expected in 2027 and beyond.
In the power and data center space, Breuer confirmed that several front-end projects are advancing with clients, with the company taking a disciplined approach to avoid converting projects to lump-sum contracts before risks are adequately priced.
CFO John Regan noted that peak execution across the reloaded backlog is expected in late 2027 and early 2028, meaning the earnings acceleration from current new awards will be more back-end weighted in its timing.
The Gordie Howe project continued to weigh on the Urban Solutions segment, recording an additional $44 million in losses during Q2 due to foreign currency fluctuations, a subcontractor bankruptcy, and client-driven scope changes.
Fluor’s remaining legacy loss projects, including LAX and I-35 Phase II, still require an additional $94 million in funding, which management expects to conclude in the third quarter of 2026.
Regan confirmed that the vast majority of EBITDA expected in the back half of 2026 is already covered by existing backlog, meaning new awards in the second half are not critical to achieving revised full-year guidance.
The company also flagged ongoing uncertainty in the Middle East due to regional hostilities, noting that while no direct operational impact has been observed so far, the situation could affect clients and supply chains going forward.
