Fluor (FLR) Secures $3.3 Billion in Q3 Contracts, Enhancing Business Stability
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Contract Revenue Growth: Fluor secured $3.3 billion in construction contracts in Q3 2025, reflecting strong performance in large infrastructure projects, which is expected to further enhance its market share and revenue stability.
- Backlog Situation: Fluor's total backlog reached $28.2 billion, with 99% of new orders being reimbursable contracts, indicating the company's effective shift in contract structure to mitigate risks associated with fixed-price contracts, thereby enhancing financial stability.
- Investment in NuScale Power: As an early investor in NuScale Power, Fluor successfully sold part of its stake for $605 million in Q3 2025 and plans to divest the remaining shares in the first half of 2026, which will provide significant cash flow for the company.
- Cyclical Industry Risks: Although Fluor's business is becoming more reliable, it remains in a cyclical industry, and investors should be aware that economic downturns may lead to delays or cancellations of large capital investment projects, thus facing potential stock price volatility in the long term.
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Analyst Views on FLR
Wall Street analysts forecast FLR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLR is 49.25 USD with a low forecast of 40.00 USD and a high forecast of 57.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 46.780
Low
40.00
Averages
49.25
High
57.00
Current: 46.780
Low
40.00
Averages
49.25
High
57.00
About FLR
Fluor Corporation is a holding company that provides engineering, procurement, construction (EPC), fabrication and modularization, and project management services. The Company's segments include Energy Solutions, Urban Solutions and Mission Solutions. The Energy Solutions segment provides EPC services for traditional oil and gas markets, including the production and fuels, chemicals, LNG and power markets. The segment serves these industries with comprehensive project life-cycle services. The Urban Solutions segment provides EPC and project management services to the advanced technologies and manufacturing, life sciences, mining and metals, infrastructure industries and professional staffing services. The Mission Solutions segment provides high-end technical solutions to the United States and other governments. These include, among others, the DOE, the Department of Defense, FEMA and intelligence agencies. The segment also provides services to commercial nuclear clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fluor's Stock Declines Over 20% Amid Mixed Performance in 2025
- Performance Volatility: Fluor experienced dramatic fluctuations in quarterly earnings and cost overruns in 2025, leading to a stock decline of over 20% over the year, reflecting market concerns about its financial performance.
- Tariff Impact: Although Fluor primarily focuses on U.S. projects, the tariff policies in early 2025 resulted in significant increases in material costs, further weakening the company's profitability, particularly as it missed analyst expectations in the fourth quarter.
- Nuclear Investment: Fluor's investment in NuScale Power is seen as a 'hidden gem', with over $600 million invested since 2011, and a $969 million gain from share sales in 2025, highlighting its strategic value in the nuclear energy sector.
- Future Outlook: Despite challenges, Fluor retains a stake in NuScale valued at approximately $2.5 billion, which is expected to provide support and help the company maintain competitiveness amid economic cycles.
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- New French Facility: The company's subsidiary, Less Common Metals Europe SAS, announced plans to develop a metal and alloy production facility in France, partially subsidized by the French government, which will significantly enhance production capacity and competitiveness in the European market.
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