Fluor Corporation Reports Q2 2025 Financial Results with Revenue Decline and Significant Net Earnings Increase

Fluor Corporation reported its financial results for the second quarter of 2025, revealing a revenue of $3.978 billion, a decrease from $4.227 billion in the same quarter of 2024. For the six months ending June 30, 2025, revenue remained relatively stable at $7.959 billion compared to $7.961 billion in the prior year. The company experienced a net earnings increase to $2.460 billion for the quarter, significantly up from $169 million in the previous year, while net earnings for the six-month period rose to $2.219 billion from $228 million. The basic earnings per share (EPS) for the quarter was reported at $14.93, compared to $0.99 in the same quarter last year.

The financial performance reflects a notable shift in operational dynamics, particularly within the Urban Solutions segment, which saw revenue increase to $2.070 billion from $1.831 billion year-over-year. This growth was attributed to heightened execution activities on life sciences projects and a mining project. Conversely, the Energy Solutions segment reported a decline in revenue to $1.143 billion from $1.595 billion, primarily due to projects nearing completion and issues with customer payments in a joint venture in Mexico. The Mission Solutions segment also experienced a revenue increase, but overall profitability was impacted by increased legal costs and a decline in execution activity for a Department of Defense project.

Fluor's strategic developments included the completion of the sale of Stork's operations in the U.K., which did not materially affect the financial statements. The company also reported a significant increase in its investment in NuScale Power Corporation, with a fair value gain of $3.2 billion for the quarter. This investment is expected to play a crucial role in Fluor's future growth, as the company anticipates converting a portion of its NuScale shares into publicly traded shares in August 2025.

Operationally, Fluor's backlog as of June 30, 2025, was reported at $28.205 billion, slightly down from $28.484 billion at the end of 2024. The company secured new awards totaling $1.768 billion in the second quarter, a decrease from $3.098 billion in the same quarter of the previous year. The backlog included a significant portion of projects located outside the U.S., which accounted for 42% of the total. The company noted that ongoing challenges, including customer payment delays and project execution issues, have impacted its operational efficiency and cash flow.

Looking ahead, Fluor remains cautious about market conditions, particularly regarding the cyclical nature of the industries it serves and potential economic downturns. The company is focused on managing its liquidity and capital resources effectively, with a strong cash position of $2.172 billion as of June 30, 2025. Fluor plans to continue its stock repurchase program, targeting an additional $150 million to $200 million in share buybacks during the latter half of 2025, while also navigating the complexities of its ongoing projects and market dynamics.