Fluor Corporation Reports Q1 2025 Revenue Increase to $3.98 Billion, Net Loss of $241 Million

Fluor Corporation reported its financial results for the first quarter of 2025, revealing a revenue increase to $3.98 billion, up from $3.73 billion in the same period last year. The company experienced a gross profit of $140 million, compared to $99 million in the prior year, reflecting improved operational efficiency. However, Fluor reported a net loss of $241 million, a significant decline from a net profit of $59 million in the first quarter of 2024. This loss translated to a basic and diluted earnings per share (EPS) of $(1.42), compared to $0.35 in the previous year.

The financial performance was impacted by several factors, including a notable increase in costs associated with revenue, which rose to $3.84 billion from $3.64 billion. The company’s operating profit improved to $91 million from $52 million, driven by enhanced execution activities in its Urban Solutions segment, which saw revenue rise to $2.16 billion from $1.48 billion. Conversely, the Energy Solutions segment experienced a revenue decline to $1.21 billion from $1.43 billion, attributed to projects nearing completion and reserves taken for a joint venture project in Mexico.

Strategically, Fluor completed the sale of its Stork operations in the U.K. during the quarter, which did not materially impact the financial statements. The company also recognized a gain of $7 million from this sale, following an $11 million gain from the previous year’s sale of Stork's operations in continental Europe. Additionally, Fluor's backlog increased slightly to $28.72 billion from $28.48 billion at the end of 2024, bolstered by new awards in the Urban Solutions segment, including a significant contract for a pharmaceutical facility.

Operationally, Fluor's total assets decreased to $8.42 billion from $9.14 billion, with cash and cash equivalents at $2.43 billion, down from $2.83 billion. The company reported a total employee headcount of 41,000, reflecting ongoing adjustments in workforce management. The effective tax rate for the quarter was reported at (49)%, compared to 56% in the previous year, influenced by a tax benefit related to equity method losses.

Looking ahead, Fluor anticipates continued challenges in the Energy Solutions segment but expects growth in Urban Solutions driven by new project awards. The company plans to repurchase approximately $150 million of its stock in the second quarter of 2025 and an additional $300 million in the latter half of the year. Fluor remains focused on enhancing operational efficiencies and managing its project portfolio to navigate the evolving market landscape.