Fluor (FLR) Stock Declines 20% in 2025 Due to Cost Overruns and Lawsuits
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Performance Decline: Fluor's stock fell 20% in 2025 after missing analysts' expectations in its Q2 earnings report, which led to a downward revision of its full-year outlook, highlighting design and scheduling issues in its infrastructure projects.
- Legal Action: The company faces a class action lawsuit from investors alleging “materially misleading” statements regarding growth prospects prior to its earnings report, further intensifying market concerns about its future performance.
- Financial Impact: Fluor's $653 million settlement with Santos significantly reduced its third-quarter revenue, and its backlog shrank for four consecutive quarters, indicating challenges in securing new contracts.
- Future Outlook: While analysts expect revenue and EBITDA to rise by 7% and 10% respectively in 2026, Fluor must address execution issues and rebuild its backlog to stabilize its market position.
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: 40.300
Low
40.00
Averages
49.25
High
57.00
Current: 40.300
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.
