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 courtroom ruling in Australia compelled a $653 million cost, however executives remained optimistic about its shift towards reimbursable megaprojects, in response to remarks in the course of the company’s third quarter earnings call.

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

Breuer stated delays in consumer funding choices, pushed by trade policy uncertainty, have impacted 2025 new awards. As well as, most new awards in 2026 can be weighted in direction of the second half of the 12 months, he added.

Nonetheless, 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 stated. He added the ongoing government shutdown may 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,” stated Breuer in the course of the name. “We’re pursuing a variety of alternatives within the U.S. and internationally, significantly the place we have now 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 initiatives, plus incremental bookings on a copper undertaking in Canada and a U.S. pharma facility, stated Breuer.

On legacy infrastructure, Breuer stated 4 long-running, unprofitable initiatives are nearing completion. For instance, he stated the Gordie Howe bridge ought to open to site visitors by the tip of the 12 months or early 2026, the LAX folks mover by early 2026, the I-635 undertaking by the second quarter of 2026 and the I-35E part 2 job by late 2026.

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

The Power Options section reported a $533 million loss, largely because of an Australian courtroom ruling on a long-completed LNG undertaking Fluor constructed for Santos, an Australian vitality firm. The ruling, which Fluor plans to enchantment, resulted in a $653 million cost.

On a constructive be aware, the corporate accomplished Practice 2 at its LNG Canada undertaking and handed over all techniques.

“This undertaking can be remembered as one of many largest and most complicated initiatives in Fluor’s historical past,” stated Breuer in the course of the name. “Its success is a testomony to our world capabilities, even in distant or tough places.”

Missions Options earned $34 million with $1.3 billion in new awards, resembling a six-year Division of Power contract to increase Fluor’s presence on the Portsmouth undertaking in Ohio. Different prospects embrace work on a strategic vary companies contract for the Air Power, extra work to help the intelligence group and work for the Nationwide Most cancers Institute, in response to 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, in response to the discharge. Its income reached $3.4 billion within the third quarter, a couple of 18% drop 12 months over 12 months.

Backlog fell 10% from $31.3 billion a 12 months in the past to about $28.2 billion, in response to the report. New awards within the third quarter, then again, totaled $3.3 billion, up 21% from a 12 months in the past.

“Traders can be happy however doubtless nonetheless need extra,” wrote Andrew Wittmann, senior analysis analyst at Baird, a Milwaukee-based monetary companies firm, in a analysis be aware. “Outcomes, nonetheless, have been robust with weak orders, expenses and delays all peppering the report.”