Fluor Shifts Business Model to Reimbursable Contracts, Aiming for Profitability by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Business Model Shift: Fluor is transitioning from fixed-price contracts to reimbursable contracts, aiming to enhance future profitability, particularly as its engineering and construction segment faces cost overruns.
- Equity Sale Financing: In October 2025, Fluor raised approximately $600 million from a partial sale of its NuScale Power stake, with the funds intended to strengthen the company's balance sheet rather than being distributed to shareholders.
- Backlog Status: As of Q3 2025, Fluor reported a backlog of $28.2 billion, with 82% of projects utilizing reimbursable contracts, although this represents a 10% year-over-year decline, indicating potential in the company's transformation.
- Market Volatility Risks: Fluor's GAAP earnings remain highly volatile due to fluctuations in NuScale Power's stock price, and while the company is undergoing restructuring, uncertainties around its valuation persist in the market.
FLR
$40.4+Infinity%1D
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: 40.820
Low
40.00
Averages
49.25
High
57.00
Current: 40.820
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.
