Fluor Reshapes Business with $3.3 Billion in Q3 Contracts
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Contract Structure Shift: In Q3 2025, 99% of the work added to Fluor's backlog was under reimbursable contracts, indicating a strategic move away from fixed-price contracts that enhances revenue stability and predictability.
- Strong Project Backlog: Fluor's backlog stands at $28.2 billion, reflecting robust demand in infrastructure construction, particularly in key markets like the U.S., which is expected to drive future revenue growth.
- NuScale Investment Returns: Fluor successfully sold part of its stake in NuScale Power for $605 million in Q3 2025 and plans to divest the remainder in H1 2026, potentially providing additional cash inflow for the company.
- Cyclical Industry Risks: While Fluor's business has become more reliable, it remains in a cyclical industry where economic downturns can delay or cancel large investment projects, necessitating careful risk assessment for investors.
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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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USA Rare Earth Shares Surge 22.4% Amid New French Facility Announcement
- Stock Surge: USA Rare Earth shares rose 22.4% on Thursday to $23.20, reflecting strong market interest in rare earth mining, particularly amid renewed focus on critical minerals due to Trump Administration's threats over Greenland.
- 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.
- Accelerated Development Plan: USA Rare Earth selected Fluor Corporation and WSP Global as engineering, procurement, and construction partners for the Round Top project, planning to operate its demonstration plant in Colorado for 2,000 continuous hours while conducting geotechnical drilling, aiming to bring the project online by 2028, two years earlier than previous forecasts.
- Well-Funded Position: Although USA Rare Earth is currently pre-revenue, it reported $400 million in cash as of its third-quarter earnings, indicating strong potential in the rare earth sector, especially with ongoing trade negotiations with China and sustained demand for non-China sourced rare earths.
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